|Bid||25.81 x 1800|
|Ask||29.99 x 900|
|Day's Range||25.97 - 26.18|
|52 Week Range||22.90 - 26.23|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||2.24%|
|Beta (5Y Monthly)||0.64|
|Expense Ratio (net)||0.95%|
Market uncertainty and the prospect for modest gains in 2020 could have investors looking for more value propositions that strike the perfect balance between performance and cost. Of course, the more performance for lesser cost the better, but one sector that could provide this combination is energy. One only has to look at the Morningstar US Energy Index, which underperformed for much of last year.
Fund fees are falling and that is true of both actively-managed mutual funds, passive index funds, and exchange traded funds (ETFs)."The asset-weighted average expense ratio for U.S. open-end mutual funds and exchange-traded funds fell to 0.48%, down from 0.51% in 2017," said Morningstar in a note out earlier this year.Declining fees in the active mutual fund universe are largely the result of cheaper ETFs continually pilfering market share from their pricier rivals. The reality is, saving on fees improves investors' outcomes and more of them are realizing this fact. Data confirm as much.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe cheapest ETFs, those with annual fees of no more than 0.10%, or $10 on a $10,000 investment, represent approximately 20% of the ETF universe's population, but consistently command 80% or more of inflows. Conversely, the 80% with fees above 0.10% garner the remaining 20% of flows.Low fees are undoubtedly nice, but there are some instances where it's worth paying up for higher fee products. Today, there are more than 200 active ETFs in the U.S., but combined asset penetration of these funds still pale in comparison to their passive counterparts. Additionally, many active ETFs reside in the fixed-income universe, potentially limiting the audience for adoption among investors seeking active equity exposure. * 10 Hot Stocks Staging Huge Reversals Still, there are some impressive active ETFs across multiple asset classes for investors to consider. Let's have a look at the following five options. ARK Innovation ETF (ARKK)Source: Beneath Blue / Shutterstock.com Expense ratio: 0.75%The ARK Innovation ETF (NYSEARCA:ARKK) definitely fits the bill as an active ETF worth paying up for. As an active ETF, ARKK can and does expand far beyond on the confines of traditional technology and internet strategies. This fund can include companies with exposure to healthcare technology, fintech, next generation internet and many more.ARKK, which celebrates its fifth birthday later this month, can hold 35 to 55 stocks, making it a concentrated portfolio. As of Oct. 11, this active ETF had 38 holdings, led by Tesla (NASDAQ:TSLA) at just over 13%. That means ARKK has one of the largest weights to controversial Tesla among all ETFs. The fund's managers have absorbed criticism on social media for their bullish outlook on Elon Musk's company.However, ARKK's performance cannot be argued with and the active ETF does justify its above-average expense ratio. Over the past three years, ARKK has more than doubled in value, but the average return for the Nasdaq-100 Index, the largest technology and internet ETFs over that span is "just" 68.9%. AdvisorShares Focused Equity ETF (CWS)Source: Shutterstock Expense ratio: 0.68%Eddy Elfenbein, the force behind the popular Crossing Wall Street blog, runs the concentrated AdvisorShares Focused Equity ETF (NYSEARCA:CWS) portfolio. This is an ideal active ETF for investors looking for returns above those offered by traditional domestic equity benchmarks. As of the end of September, CWS was outpacing the S&P 500 by more than 200 basis points year-to-date.Elfenbein "may look for stocks with a strong history of sales and earnings growth, or companies that have steadily increased their earnings and dividends for several years," according to AdvisorShares. "In addition, the Advisor may invest the Fund's assets in lesser-known companies that the Advisor believes have a unique opportunity for growth. At times, the Advisor may buy certain out-of-favor stocks believed to be priced below their intrinsic value, as measured by the Advisor. Additionally, the Advisor aims to keep the portfolio turnover low."Ninety-four percent of this active ETF's roster are large- and mid-cap stocks. There's something of a value tilt with 44.4% of the fund's holdings hailing from the financial services and healthcare sectors. * 10 Best Cloud Growth Stocks Right Now Some of Elfenbein's favorite names currently include Moody's (NYSE:MCO), Hershey (NYSE:HSY) and Ross Stores (NASDAQ:ROST). That trio combines for about 12% of CWS' weight. Cambria Cannabis ETF (TOKE)Expense ratio: 0.42%The Cambria Cannabis ETF (CBOE:TOKE) is one of the newest members of the cannabis ETF fray having debuted in July. That means TOKE has been dinged by bad timing as it came to market during a tumble for cannabis stocks, one that has not relented since this active ETF debuted.This new pot fund "seeks capital appreciation from investments in the global equity markets that have exposure to the broad cannabis industry," according to Cambria. "The Fund will target investing in approximately 20 to 50 of the top companies with exposure to the broad cannabis industry based on Cambria's determination as to their exposure to the industry," it added.While cannabis equities and ETFs are struggling, there are still some positive traits about TOKE. For starters, it is the least expensive among the current crop of marijuana funds. Second, with TOKE being an active ETF, the Cambria managers aren't constrained by an index, meaning they can look for value opportunities in the cannabis space while lowering weights to or eliminating some of the worst-performing stocks. First Trust North American Energy Infrastructure Fund (EMLP)Source: Shutterstock Expense ratio: 0.95%For investors that enjoy the income benefits of master limited partnerships (MLPs), the First Trust North American Energy Infrastructure Fund (NYSEARCA:EMLP) is an active ETF that's worth the price of admission. Over the past three years, this active ETF is up 12.3% while the largest traditional MLP ETFs are lower by 12%.Plus, EMLP has been significantly less volatile than many of its passive peers over that period, confirming that it has been the better risk-adjusted bet. Home to $2.56 billion in assets under management, EMLP is also the largest equity-based active ETF. * Best Stocks for 2019: Q3 Was a Roller Coaster The First Trust fund has also been a better bet than traditional energy investments and passive ETFs addressing the sector. Not all of EMLP's 47 holdings are structured as MLPs, which helps avoid some of the punitive tax issues associated with dedicated MLP ETFs, but the bulk of the fund's components are levered to the energy infrastructure ecosystem. Plus, this active ETF still has an impressive dividend yield of 3.75%. PIMCO Enhance Short Maturity Active ETF (MINT)Source: Shutterstock Expense ratio: 0.42%With $12.92 billion in assets under management, the PIMCO Enhance Short Maturity Active ETF (NYSEARCA:MINT) is by far the largest active ETF. At its core, MINT is an alternative to cash and money market investments and the fund's 30-day SEC yield of 2.29% is more compelling on the interest offered by most typical cash instruments.While MINT is an active ETF, the managers avoid derivatives, currency risk and keep the portfolio confined to investment-grade debt. Those traits keep risk low, which is what investors expect out of a cash alternative."The fund has delivered strong returns versus distinct open-end and exchange-traded fund competitors, even though its less-adventurous profile has caused it to miss out on some of its open-end sibling's gains," said Morningstar in a recent note. "The fund has also kept a lid on volatility, and its cheap fees versus active funds provide another advantage."Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Staging Huge Reversals * 7 Under-The-Radar Growth Stocks That Could Benefit New Investors * 5 Excellent High-Yield Dividend Stocks to Buy The post 5 Actively Managed ETFs Worth the Price of Admission appeared first on InvestorPlace.
First Trust Advisors L.P. announces the declaration of distributions for 125 exchange-traded funds advised by FTA.
It is not up for debate that one of the primary selling points of exchange-traded funds (ETFs) is low fees. Earlier this year, Morningstar said investors saved $5.5 billion last year due to declining fund fees, including ETFs."The study found that across U.S. funds, the asset-weighted expense ratio dropped to 0.48% in 2018, compared to 0.51% in 2017," according to Morningstar. "As a result, investors saved an estimated $5.5 billion in fund fees in 2018. This 6% percent year-over-year decline is the second largest recorded since Morningstar began tracking asset-weighted fees in 2000."In more good news for ETF investors, fees are falling. As part of their efforts to lure investors, fund sponsors are continually lowering expense ratios on ETFs, some to rock-bottom levels, or in some cases, no fees at all.InvestorPlace - Stock Market News, Stock Advice & Trading TipsA byproduct of all these cheap ETFs on the market is that investors frequently think that the cheapest funds are the best funds. While fees certainly are a meaningful consideration for long-term investors, there are cases where higher-priced ETFs merit those higher fees.Consider the following, hypothetical example. ETF "A" and ETF "B" both track tech stocks. ETF charges 0.50% per year, or $50 on a $10,000 investment, while ETF "B" charges 0.10%. Over the past five years, ETF "A" is up 100% while ETF "B" is up just 50%. Simple math says ETF "A" was the better ETF to buy despite its higher fee. * 7 Dark Horse Stocks Winning the Race in 2019 Here are some higher fee ETFs to buy that earn those expensive expense ratios. Cambria Shareholder Yield ETF (SYLD)Source: Shutterstock Expense ratio: 0.59% per year, or $59 on a $10,000 investment.There are plenty of inexpensive dividend ETFs on the market today and most of the funds that are dedicated to the buyback theme are not really expensive, either. However, the Cambria Shareholder Yield ETF (CBOE:SYLD) has a unique approach to shareholder rewards that merits paying up for.This ETF to buy has nearly $105 million in assets under management and tracks the Cambria Shareholder Yield Index. That benchmark is "comprised of the 100 companies with the best combined rank of dividend payments and net stock buybacks, which are the key components of shareholder yield," according to Cambria.With SYLD, investors are also getting multi-factor exposure because many of its holdings are considered to be quality and/or value stocks. This ETF to buy devotes nearly 53% of its weight to the financial services and consumer discretionary sectors. First Trust North American Energy Infrastructure Fund (EMLP)Source: Shutterstock Expense ratio: 0.95%There are master limited partnership (MLPs) with higher fees than the First Trust North American Energy Infrastructure Fund (NYSEARCA:EMLP) and there are some with lower fees. On a standalone basis, EMLP's annual expense ratio is high relative to the broader universe of passively managed ETFs and actively managed mutual funds. This ETF to buy is an active fund.Simply put, this ETF to buy earns its above-average fee because, even through some trying times for the energy sector, EMLP delivers performance. Over the past three years, EMLP is up 19.40%, dominating a slew of cheap MLP and broader energy sector funds along the way. * 6 Chinese Stocks to Sell That Are Suffering From a Digital Ad Slowdown Credit the active management behind the fund. Moreover, EMLP's risk-adjusted returns over those three years are stellar as the fund has displayed significantly less volatility than rival MLP and energy ETFs during that period. VanEck Vectors Preferred Securities ex Financials ETF (PFXF)Source: Shutterstock Expense ratio: 0.41%To be fair, the VanEck Vectors Preferred Securities ex Financials ETF (NYSEARCA:PFXF) is cheaper than all but one preferred stock ETF, but this ETF to buy is considerably pricier than traditional bond funds. Regardless of how investors view PFXF's expense ratio, this is an ETF to buy because it is one of the best options in this particular asset class.Over the past three years, PFXF has beaten the largest preferred ETF by 410 basis points and for yield-hungry investors looking for more flair with their fixed income offerings, PFXF topped the Bloomberg Barclays Aggregate Bond Index by wide margins over those three years despite carrying a higher fee than funds tracking that bond benchmark.PFXF holds 117 preferred stocks and has 30-day SEC yield of 5.71%, giving it a better income profile than a slew of cheaper government and investment-grade corporate bond ETFs. Invesco Dynamic Software ETF (PSJ)Source: Shutterstock Expense ratio: 0.63%Domestic sector funds are inexpensive. Some sector ETFs even have annual fees of just over 0.08%, but when it comes to industry funds, such as those tracking software stocks, investors should expect to pay more. However, the Invesco Dynamic Software ETF (NYSEARCA:PSJ) is pricey compared to the broader universe of domestic equity sector funds.Still, this is an industry ETF to buy for tech investors. PSJ's underlying index uses a unique methodology that "is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value," according to Invesco. * 4 Technology Stocks Blasting Higher Here are three factors making PSJ an ETF to buy: 1) over the past three years the fund has trounced broader technology ETFs and the Nasdaq-100 Index 2) PSJ has a five-star Morningstar rating 3) the return on equity of PSJ's components is a stellar 36.61%. ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL)Source: Shutterstock Expense ratio: 0.40%The ProShares S&P MidCap 400 Dividend Aristocrats ETF (CBOE:REGL) is by no means alarmingly expensive. It is merely pricey compared to basic, passively managed index funds that track the S&P MidCap 400 Index. That is not surprising because dividend funds are usually more expensive than basic cap-weighted equity strategies.REGL follows the S&P MidCap 400 Dividend Aristocrats Index, which mandates that member firms have boosted payouts for 15 consecutive years. The strategy is a winner. Over the past three years, this ETF to buy has outperformed the S&P MidCap 400 by nearly 200 basis points with less volatility.Adding to REGL's ETF to buy status, the fund ranks No. 2 in Morningstar's universe of 373 mid-cap value funds. REGL allocates 46.60% of its weight to financial services and industrial stocks.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Dark Horse Stocks Winning the Race in 2019 * 6 Chinese Stocks to Sell That Are Suffering From a Digital Ad Slowdown * 4 Technology Stocks Blasting Higher Compare Brokers The post 5 High-Fee ETFs Worth Buying Despite Hefty Expense Ratios appeared first on InvestorPlace.
As many corners of the stock market fared well on the new of temporary exemption of the export blacklist against Huawei, a few sector ETFs hit new 52-week high in the recent trading session.
The energy sector started off 2019 in fine fashion, but a confluence of negative factors recently pressured the sector. As of May 15, the S&P 500 Energy Index was lower by 4.63% on a month-to-date basis. May usually marks the start of the seasonally weak period for the energy sector, but the flare up in trade tensions between the U.S. and China is likely behind the sector's recent lethargy.While the recent weakness in the energy patch may have scared some investors away, there are valid reasons to at least keep an eye on energy funds. These include decent second-quarter earnings expectations."During the month of April, analysts lowered earnings estimates for companies in the S&P 500 for the second quarter," said FactSet in a recent note. "The Q2 bottom-up EPS estimate (which is an aggregation of the median EPS estimates for all the companies in the index) dropped by 1.0% (to $41.04 from $41.45) during this period."InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, there is good news for energy investors."On the other hand, three sectors recorded an increase in their bottom-up EPS estimate during the first month of the quarter, led by the Energy (+11.1%) sector," according to FactSet. "Within the Energy sector, Chevron Corp. (NYSE:CVX) was a substantial contributor to the increase in earnings over this period." * 7 High-Yield REITs to Buy (Even When the Market Tanks) When it comes to energy funds, investors may want to consider putting active management on their side. That could help them play a rally in the sector. Here are some actively managed energy funds to evaluate. Energy Funds: First Trust North American Energy Infrastructure Fund (EMLP)Expense Ratio: 0.95% per year, or $95 on a $10,000 investment.The First Trust North American Energy Infrastructure Fund (NYSEARCA:EMLP) is an exchange-traded fund (ETF), but it is an actively managed energy fund, meaning it merits a place on this list. In fact, with $2.44 billion in assets under management, EMLP is the largest equity-based actively managed ETF in the U.S.EMLP is a play on the North American energy boom, as the energy fund invests in master limited partnerships (MLPs) "pipeline companies, utilities, and other companies that derive at least 50% of their revenues from operating or providing services in support of infrastructure assets," according to First Trust.EMLP has a 12-month distribution rate of 4%, which is well above the 3.12% on the S&P 500 Energy Index. This energy fund has been one of the best-performing products in this fund category since coming to market nearly seven years ago. InfraCap MLP ETF (AMZA)Expense Ratio: 2.4%As its name implies, the InfraCap MLP ETF (NYSEARCA:AMZA) is also an ETF, but like the aforementioned EMLP, this is an actively managed energy fund as well. AMZA typically invests in midstream MLPs and can employ some leverage to boost income and the fund's beta. AMZA's managers can also employ short positions as hedges against fluctuations in interest rates and oil prices.AMZA "offers the potential for attractive yields and employs modest leverage to pursue compelling total return results," according to the issuer. "Security selection and weightings are based on security-level fundamental analysis and technical factors instead of market capitalization."AMZA turns five years old later this year and is home to $484 million in assets under management. This energy fund is quietly climbing the ranks of the largest actively managed ETFs, too. ProShares K 1 Free Crude Oil Strategy ETF (OILK)Expense Ratio: 0.65%Unlike the other energy funds highlighted to this point, the ProShares K 1 Free Crude Oil Strategy ETF (CBOE:OILK) is not an equity-based product. Rather, it focuses on West Texas Intermediate (WTI) futures, the benchmark domestic oil contract.Active management can actually help investors minimize the costs and often-laggard returns associated with passively managed futures-based energy funds. OILK, which is nearly three years old, "seeks to provide total return through activelymanaged exposure to the West TexasIntermediate crude oil futures markets," according to Maryland-based ProShares.Predictably, OILK is sensitive gyrations in the oil market. While the fund is up 37.55% year-to-date, it labors 21% below its 52-week high, indicating there could be upside here if oil rallies again. Dreyfus Natural Resources Fund Class I (DLDRX)Expense Ratio: 1%The Dreyfus Natural Resources Fund Class I (MUTF:DLDRX) is a traditional, actively managed mutual fund that has the flexibility to invest in an array of natural resources companies of vary market caps. This energy fund, which has a minimum investment requirement of $1,000 can also feature some fixed income exposure."The fund seeks long-term growth of capital," according to the issuer. "To pursue its goal, the fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in common stocks or securities convertible into common stocks (such as convertible preferred stocks, warrants and convertible bonds) of foreign companies and depositary receipts evidencing ownership in such securities. At least 75% of the fund's net assets will be invested in countries represented in the MSCI EAFE Index."Currently, the fund's 37 holdings run the gamut of integrate oil companies, mining firms, fertilizer makers and others. Nearly 43% of DLDRX's weight is allocated to integrated oil firms and agribusiness companies. This energy fund earns a "neutral" rating from Morningstar.As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post 4 Active Energy Funds for Aggressive Investors appeared first on InvestorPlace.
When it comes to actively managed exchange traded funds, fixed income funds are the dominant asset class, but some actively managed equity ETFs are increasing their asset bases. Overall, actively managed ...
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Will TC PipeLines Maintain Its Rally?TC PipeLines hit a 52-week highTC PipeLines (TCP), the MLP subsidiary of TransCanada (TRP), hit a new 52-week high of $37.84 on March 27. While the stock is trading well below its January 2018 levels of ~$55, it