|Bid||24.23 x 1100|
|Ask||28.94 x 2200|
|Day's Range||26.82 - 27.07|
|52 Week Range||23.23 - 30.76|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.11|
|Expense Ratio (net)||0.38%|
[Editor's Note: This Article was originally published on Jan. 24, 2019. It has since been updated]Investors are seemingly always on a quest for a portfolio they deem to be "well-balanced." Fortunately for investors seeking balance, exchange-traded funds (ETFs) make that objective significantly easier and, in many cases, less expensive than other instruments.Many of the best ETFs are inexpensive, highly liquid and span asset classes and regions, helping investors ameliorate the dreaded home country bias. Of course, what makes a well-balanced portfolio for one investor may not be properly balanced to another, but conventional wisdom does dictate that a mix of bonds and equities is a sensible starting point.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFrom there, more aggressive investors can add in alternative asset classes, including commodities, something many of the best ETFs do in diversified fashion. * 10 Stocks to Buy That Could Be Takeover Targets In the search for balanced portfolios, here are some of the best ETFs to consider. ETFs to Buy: JPMorgan BetaBuilders U.S. Equity ETF (BBUS)Source: Shutterstock Expense Ratio: 0.02% per year, or $2 on a $10,000 investment.You may have recently heard that a pair of ETFs launched with expense ratios of 0%. The JPMorgan BetaBuilders U.S. Equity ETF (CBOE:BBUS) is not one of those funds, but of the ETFs with fees, the newly minted BBUS is the cheapest, charging a mere 0.02% per year.While BBUS is new (it debuted in late March), it is one of the best ETFs to act as a core building block for properly balanced portfolios. This fund holds over 620 stocks, providing investors with exposure to over 85% of the U.S. equity market. BBUS has over $30 million in assets under management, which is a decent start, but for investors that like big ETFs, expect BBUS's stature to soon increase as JPMorgan launches a robo-advisor platform. BBUS will be one of the cornerstones of that offering.BBUS allocates 21.5% of its weight to technology stocks while the healthcare and financial services sectors combine for 27.3% of the fund's roster. Investors that embrace this fund should expect long-term returns comparable to those generated by the S&P 500 or Russell 1000 indexes. iShares Core Total USD Bond Market ETF (IUSB)Expense Ratio: 0.06%As mentioned earlier, a well-diversified portfolio does not begin and end with stocks. It should include fixed-income exposure, too. The iShares Core Total USD Bond Market ETF (NASDAQ:IUSB) is one of the best ETFs for novice bond investors or those simply looking for broad-based, cost-efficient exposure to domestic bonds.The $3.57 billion IUSB, which tracks the Bloomberg Barclays U.S. Universal Index, is one of the best ETFs for bond investors seeking diversity and cost efficiencies. Home to nearly 7,900 bonds, IUSB is also one of the least expensive fixed income funds on the market today. * The 10 Best Stocks for 2019 -- So Far IUSB has a 30-day SEC yield of 2.9%, a 12-month yield of 3% and an effective duration of 5.22 years. Due to heavy exposure to U.S. Treasuries and other government agency debt, credit risk is minimal with this best ETF. Bonds with AAA ratings account for 61.54% of the portfolio. WisdomTree U.S. Quality Dividend Growth Fund (DGRW)Expense Ratio: 0.28%Sure, there are cheaper dividend funds on the market, but the WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) is one of the best ETFs in this category. Dividends, particularly when reinvested, are vital to investors' long-term outcomes, making DGRW ideal for a broad swath of market participants, be they rookies, sophisticated players or retirement planners.There are dozens of dividend ETFs for investors to consider, but DGRW's fundamentally weighted methodology stands out from the pack. A case can even be made that is a dividend ETF Warren Buffett himself would enjoy."Return on equity (ROE) is a metric Buffett has written on extensively: it's a 'quality' indicator for stocks, reflecting how much profit a business earns relative to its net equity capital," according to WisdomTree research.DGRW's underlying index emphasizes "both ROE and return on assets (ROA) as part of the selection requirements. Using ROA as a screening criterion penalizes firms using leverage to drive ROE," notes the issuer.DGRW also pays a monthly dividend and is worth the cost of admission relative to its peer group. WisdomTree U.S. SmallCap Dividend Fund (DES)Expense Ratio: 0.38%Like its stablemate DGRW, the WisdomTree U.S. SmallCap Dividend Fund (NYSEARCA:DES) is one of the stars in its respective category. This is one of the best ETFs for income-hungry investors as well as those seeking exposure to smaller stocks because DES is historically less volatile than rival non-dividend small-cap funds."This portfolio targets dividend payers without incurring too much risk," said Morningstar in a recent note. "Although the fund doesn't screen its holdings for profitability or dividend sustainability, a few dividend cuts across its portfolio shouldn't significantly affect its performance because it is broadly diversified and skews toward larger, more-stable names in the small-value Morningstar Category."DES allocates nearly a third of its combined weight to industrial and consumer discretionary stocks while the real estate and financial services sectors combine for 26.3%. Plus, this has long been one of the best ETFs in the small-cap value space. * 6 Big Dividend Stocks to Buy as Yields Plunge "From its launch in June 2006 through April 2019, the strategy has topped the small-value category average and the Russell 2000 Value Index by 1.2 and 1.0 percentage points annually, respectively, with similar risk," according to Morningstar. "The fund's favorable stock exposure within the energy and consumer discretionary sectors contributed to most to its outperformance." Vanguard Total Corporate Bond ETF (VTC)Expense Ratio: 0.07%While it is important to remember that bonds are an important part of well-balanced portfolios, investors should also remember that they should be heavily allocated to U.S. government debt. That strategy limits credit opportunities and some of the potential added upside associated with corporate bonds.Put simply, the Vanguard Total Corporate Bond ETF (NASDAQ:VTC) is one of the best ETFs for investors seeking a massive bench of investment-grade corporate bonds across varying durations and maturities. VTC is classified as an intermediate-term bond fund, but it features exposure to short-, medium- and long-dated corporate debt with almost 6,000 holdings.VTC accomplishes those objectives in cost-effective fashion by holding Vanguard's three other corporate bond ETFs, which span the aforementioned maturity categories. Over 87% of VTC's holdings are rated A or Baa and it has an average duration of 6.9 years. Vanguard Total International Bond ETF (BNDX)Expense Ratio: 0.09%Keeping with the theme of using cheap bond ETFs to enhance portfolio diversity, there is the Vanguard Total International Bond ETF (NASDAQ:BNDX). BNDX is one of the best ETFs in the fixed income arena this year in terms of both performance and asset-gathering acumen.BNDX tracks the Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index and holds nearly 5,800 bonds with an average duration of 7.8 years. There are other benefits to owning international bonds beyond making a portfolio more diverse. * 7 Bank Stocks to Leave in the Vault A fund such as BNDX can help investors access potentially higher yields than are found on domestic government bonds, gain exposure to monetary policies that are not delivered by the Federal Reserve and the potential for higher returns. Over the past three years, BNDX has outperformed the Bloomberg Barclays Aggregate Bond Index by nearly 200 basis points. iShares Core MSCI EAFE ETF (IEFA)Expense Ratio: 0.08%The iShares Core MSCI EAFE ETF (CBOE:IEFA) is one of the best ETFs for investors looking to bring cost-effective international equity exposure to their portfolios. IEFA, one of the largest ex-U.S. equity funds in the world, reflects the valuation discounts associated with many ex-U.S. developed markets, including Europe."Europe offers attractive asset valuations compared to history, especially in risk assets," according to BlackRock. "Regional assets have cheapened further compared to a year ago as concerns about growth and politics increased. The exception to this are core government bonds, which we believe to be expensive compared to global peers."IEFA's largest country weight is Japan at 24.75%, but four of its top five geographic weights are European nations, positioning the fund to take advantage of a rebound in stocks across the pond."As downward revisions to growth start petering out and incoming activity data begin to show signs of life, European risk assets might get a boost this year as value equities benefit," according to BlackRock.As of this writing, Todd Shriber owned shares of DES and DGRW. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 4 FANG Stocks Won't Be Bitten By Regulation Threats * 10 Stocks to Buy That Could Be Takeover Targets * 4 Big Bank Stocks Rebounding Compare Brokers The post 7 Best ETFs for a Well-Balanced Portfolio appeared first on InvestorPlace.
This article was originally published on ETFTrends.com. The WisdomTree SmallCap Dividend Fund (DES) was one of the first exchange traded funds to pair dividends and small-cap stocks. In recent years, the small-cap arena has become increasingly fertile ground for dividend investors, but yields remain low on traditional small-cap benchmarks.
With prospects of U.S. economy improving in the course of 2019 and a moderately dovish Fed, investors can play these dividend ETFs to enjoy solid current income as well as capital gains.
The Zacks Analyst Blog Highlights: First Trust SMID, WisdomTree, Global X S&P 500, WisdomTree U.S. SmallCap and First Trust Dorsey
We highlight five dividend ETFs that have generated strong returns this year and could be compelling picks given renewed demand for dividend investing.
In 2018, U.S. dividend growth remained solid, although some dividend exchange traded funds (ETFs) were challenged by the Federal Reserve's four interest rate hikes. Expectations are in place that the Fed will slow its pace of rate hikes this year or possibly not raise rates at all. Joe Smith, deputy chief investment officer (CIO), at CLS Investments ($9.2 billion AUM), recently discussed his firm's approach to dividend strategies with ETF Trends.
Various data points and studies confirm that investors are often heavily skewed, if not over-allocated, to large-cap stocks. However, there is also no shortage of studies confirming that over long holding periods, small-caps beat their large-cap rivals."The size premium is one of a handful of equity factors, including value and growth, that tend to deliver higher average returns than markets overall, according to decades of academic research," reports Institutional Investor.Factor performance, be it good or bad, is not linear. There will definitely be years when the large-cap S&P 500 beats small-cap benchmarks like the Russell 2000 Index or the S&P SmallCap 600 Index.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnother issue explaining why investors often favor large caps over smaller companies is volatility. Over the past three years, annualized volatility on the iShares Russell 2000 ETF (NYSEARCA:IWM) and the iShares Core S&P SmallCap 600 ETF (NYSEARCA:IJR), two of the biggest small-cap ETFs, was 15.8% compared to 12.7% on the S&P 500. Investors were, however, rewarded for taking on that extra volatility as IJR and IWM produced average returns of more than 69% over that period compared to 59.6% for the S&P 500. * 7 Financial Stocks With Accelerating Growth For investors looking to go small in search of potentially big returns, here are some of the best small-cap ETFs to consider. Vanguard Small-Cap ETF (VB)Expense Ratio: 0.05% per year, or $5 on a $10,000 investment.In almost all instances, small-cap ETFs carry higher fees than their large-cap rivals, but that does not mean all small-cap ETFs are expensive. Plenty of small-cap ETFs carry low fees, including the Vanguard Small-Cap ETF (NYSEARCA:VB).VB is a hit with many investors who are seeking small-cap exposure due in part to its low fee and its deep bench of around 1,400 stocks. If there is a quibble with this Vanguard, it is its level of small-cap purity. The median market cap of VB's holdings is $4 billion, well above the $2 billion that defines the top end of the small-cap spectrum.About 46% of VB's roster is allocated to financial services and industrial stocks while 25% is devoted to consumer discretionary and technology names. Invesco S&P SmallCap Low Volatility ETF (XSLV)Expense Ratio: 0.25%As was noted earlier, small-caps can be more volatile than larger stocks. The low volatility factor can reduce some the turbulence associated with smaller equities and the Invesco S&P SmallCap Low Volatility ETF (NYSEARCA:XSLV) is one avenue for accomplishing that objective.XSLV's 120 holdings are the members of the widely followed S&P SmallCap 600 Index that display the lowest trailing 12-month volatility. The average market value of this small-cap ETF's holdings is $1.59 billion, which is at the higher end of the small-cap range. * 10 Hot Stocks Leading the Market's Blitz Higher Low-volatility funds are sector agnostic, but there can be some sector-level concentration risk as volatility ebbs and flows across sectors. Currently, more than two-thirds of XSLV's combined weight goes to financial services and real estate stocks. Nearly 38% of XSLV's holdings are considered value stocks, compared to just 15% classified as growth names. Invesco S&P SmallCap Information Technology ETF (PSCT)Expense Ratio: 0.29%Tactical investors looking for significant appreciation potential may want to consider sector-specific small-cap ETFs, including the Invesco S&P SmallCap Information Technology ETF (NASDAQ:PSCT).This small-cap ETF follows the S&P SmallCap 600 Capped Information Technology Index. Its holdings "are principally engaged in the business of providing information technology-related products and services, including computer hardware and software, internet, electronics and semiconductors and communication technologies," according to Invesco.Over 55% of PSCT's 89 holdings are semiconductor companies or related to that industry in some form. Not surprisingly, this small-cap ETF features a growth tilt, as nearly half its components are classified as growth stocks -- more than double its exposure to value names. WisdomTree Emerging Markets SmallCap Dividend Fund (DGS)Expense Ratio: 0.63%Just as investors are biased toward large-caps, they are also biased toward stocks in their domestic markets, meaning many investors are often under-allocated to international markets. For risk-tolerant investors, the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSEARCA:DGS) can bolster a portfolio's geographic and market cap diversity while providing a dividend kicker.This small-cap ETF offers investors some other notable benefits. First, even during eras of weakness in emerging markets stocks, DGS has a track record of outperforming the MSCI Emerging Markets Index with less volatility. Second, DGS's volatility usually is not much higher than the Russell 2000's. Third, DGS almost always has a higher dividend yield and lower earnings multiples than the major domestic small-cap benchmarks. * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? Over half of DGS's geographic weight is allocated to Taiwan, China and South Africa, which is not too surprising given those countries' dividend track records. WisdomTree U.S. SmallCap Dividend Fund (DES)Expense Ratio: 0.38%Ample research suggests dividend stocks, particularly those with growing payouts, can provide investors not only with added income, but another layer of protection when market volatility rises. The WisdomTree U.S. SmallCap Dividend Fund (NYSEARCA:DES), the original name among domestic small-cap dividend ETFs, was less volatile than small-cap benchmarks last year, extending a theme that has been true for nearly all of DES's nearly 13 years on the market.DES follows the WisdomTree U.S. SmallCap Dividend Index, which "is dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently declared dividend per share," according to WisdomTree.The trailing-12-month dividend yield of 3.3% on that index is more than double the yield on the Russell 2000. This small-cap ETF allocates almost 34% of its combined weight to industrial and consumer discretionary stocks. iShares ESG MSCI USA Small-Cap ETF (ESML)Expense Ratio: 0.17%Investors can access small-cap ETFs in socially responsible fashion, and the iShares ESG MSCI USA Small-Cap ETF (CBOE:ESML) is one of the premier avenues for doing just that. Having debuted last April, ESML is one of the newest small-cap ETFs, but the fund is off to a fine start. This year, ESML is one of the best-performing small-cap ETFs, as it is up more than 17%.ESML holds over 900 stocks and follows the MSCI USA Small Cap Extended ESG Focus Index. This small-cap ETF has an environmental, social and governance ratio coverage percentage of 97.40% and an ESG quality peer rank of 98.30%, according to issuer data. * 9 U.S. Stocks That Are Coming to Life Again Over a third of ESML's weight is devoted to technology and industrial stocks while nearly 29% goes to the financial services and healthcare sectors. Xtrackers Russell 2000 Comprehensive Factor ETF (DESC)Expense Ratio: 0.3%The Xtrackers Russell 2000 Comprehensive Factor ETF (NYSEARCA:DESC) is a multifactor approach to the Russell 2000 universe.This small-cap ETF's underlying index "is designed to provide transparent, cost-efficient exposure to small-cap domestic equities based on five factors -- quality, value, momentum, low volatility and size," according to the issuer.This small-cap ETF's multifactor approach removes the need to time the performance of various investment factors, an endeavor that is basically as difficult as stock picking. When some or all of the factors represented in DESC are in style, the fund offers some potential to outperform traditional small-cap funds, but it may be best used for investors looking to reduce small-cap volatility. ProShares Russell 2000 Dividend Growers ETF (SMDV)Expense Ratio: 0.4%As mentioned earlier, dividend growth works with small caps. Investors just need to know where to look. A good place to start is with the ProShares Russell 2000 Dividend Growers ETF (CBOE:SMDV). This small-cap ETF explicitly focus on dividend growth consistency as its holdings must have minimum dividend increase streaks of at least 10 years, a screening requirement found on some popular large-cap dividend ETFs. * Buy These 5 Stocks to Play the Megatrend of the Century Even with the dividend growth requirement, SMDV's yield of 2.6% is not a cause for concern and implies room for more payout growth. This small-cap ETF devotes 42% of its combined weight to the utilities and industrial sectors. Invesco S&P SmallCap 600 Pure Growth ETF (RZG)Expense Ratio: 0.35%Regardless of market cap segment, growth stocks are usually more volatile than other cap segments and it has already been established that small-caps are more volatile than larger stocks. Acknowledging those factors, the combination of small-cap growth can be more volatile than, say, small-cap value, but the combination is nonetheless potentially potent.Home to almost 150 stocks, the Invesco S&P SmallCap 600 Pure Growth ETF (NYSEARCA:RZG) follows the S&P SmallCap 600 Pure Growth Index."Growth is measured by the following risk factors: sales growth, earnings change to price and momentum," according to Invesco.This small-cap ETF is heavily allocated to sectors known for growth in the small-cap universe. Healthcare, consumer discretionary and technology names combine for over 51% of the fund's weight. Schwab Fundamental U.S. Small Company ETF (FNDA)Expense Ratio: 0.25%The Schwab Fundamental U.S. Small Company ETF(NYSEARCA:FNDA) is a small-cap spin on traditional small-cap ETFs. FNDA's underlying "index measures the performance of the small company size segment by fundamental overall company scores, which are created using as the universe the companies included in the Russell 3000 Index," according to Schwab.While pricier than traditional small-cap ETFs, FNDA compares favorably on that metric relative to other smart beta small-cap ETFs and Schwab clients can trade FNDA commission-free. * 7 Financial Stocks With Accelerating Growth FNDA holds almost 900 stocks, and over 20% of the holdings are industrials. The consumer discretionary and financial services sectors combine for around 29% of FNDA's weight.As of this writing, Todd Shriber owned shares of DES. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Leading the Market's Blitz Higher * 7 Strong Buy Stocks With Over 20% Upside * 5 Growthy Stocks Trading Below 15X Earnings Compare Brokers The post 10 Small-Cap ETFs That Pack a Wallop appeared first on InvestorPlace.
Exchange traded funds tracking small-cap stocks are outperforming their bigger-cap peers in the market this year by a wide margin.
The late 2018 stock market rout paved the way for new leadership among the best ETFs early in the new year. Small caps and oil are big gainers.
Rising interest rates can be a bane for dividend stocks and high-yielding, income-oriented sectors, but there is some positive news in the 2018 dividend outlook. Through the first half of the year, approximately 40% of S&P 500 member firms boosted dividends, potentially making some of the best funds to buy in the dividend landscape all the more attractive. Looked at differently, some of the best funds to buy need to show investors that dividend stocks are worth the extra risk relative to safer U.S. government debt.
Traditional income products like CDs, money market funds and even bonds are still paying pitiful amounts of interest to savers. The explosion in ETFs has produced plenty of income and dividend focus funds. In fact, ETFdb.com tags more than 180 funds as “Dividend ETFs.” That’s a lot of different funds and ways to get your income fix.
WisdomTree U.S. MidCap Dividend ETF DON employs a fundamental weighting approach and is a strong candidate for exposure to dividend-paying U.S. mid-cap stocks. This fund weights its holdings by their expected dividend payment, which effectively diversifies risk, and rebalances into stocks as they become cheaper relative to their dividends. Many dividend-oriented funds land in the mid-value Morningstar Category because they weight large-cap stocks by dividend yield or equally, which knocks down their portfolio's weighted average market cap.