|Bid||0.00 x 4000|
|Ask||122.97 x 1300|
|Day's Range||122.71 - 123.28|
|52 Week Range||111.25 - 124.96|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.39|
|Expense Ratio (net)||0.15%|
There's been a boom in bond ETFs. Assets have skyrocketed to $1 trillion and BlackRock predicts they'll double in just four and a half years. BlackRock's iShares also happens to be the biggest player in ETFs overall. iShares fixed income strategist at BlackRock, Jon Rather, talks with Yahoo Finance's Julie Hyman, Adam Shapiro and Sibile Marcellus.
The U.S. economy is decelerating, but corporate America is carrying trillions of dollars in debt on its books. Is that a problem?
ETFs have become a go-to investment vehicle for many investors across a range of backgrounds, revealing the shifting trends in investors’ habits and thoughts in a changing market environment.
Investors continue searching for sources of yield beyond government bonds, a trend that is stoking inflows to fixed-income exchange-traded funds (ETFs) tracking debt that is a little more exciting than U.
With more expecting the Federal Reserve to cut interest rates ahead, exchange traded funds that track long-term debt are beginning to pick up steam as investors hunt for attractive income in a lower-for-longer yield environment. Investors and analysts highlighted the worsening projections for growth as a catalyst for the Federal Reserve to its loosening monetary policy outlook instead of tightening it. Sentiment for a rate cut picked up Wednesday and Thursday after the Fed held rates steady but signaled a possible cut in the months ahead to combat the weakening effects of a prolonged trade war.
Morningstar, Inc., a leading provider of independent investment research, recently reported estimated U.S. mutual fund and exchange-traded fund (ETF) fund flows for May 2019. Overall, passive U.S. equity ...
As a result, high yield has underperformed lately as investors flocked to the safer confines of quality oriented assets like investment-grade debt issues. "The market was clearly pricing in a good chance of a trade deal in May and that did not happen," said Todd Schomberg, senior portfolio manager for Invesco Fixed Income. "I wouldn't call it a full-blown flight to quality," said John Hollyer, principal and global head of Vanguard Fixed Income Group.
Investors can take a look at exchange traded fund flows to see how markets respond to the developing global trade war. “Participation through ETFs has trended higher in the last month, aligning with escalation ...
“Sell in May” saw investor capital go away from equity exchange-traded funds (ETFs) during that month. It was the largest monthly outflow in history for equity ETFs, which reached a record $19 billion, ...
U.S. equities rallied in 2019, but for investors who are just starting to get back into the stock market after a tumultuous year-end to 2018 could have missed the meat of the move. As such, lower equity ...
Depending on your stage of life or the asset allocation in your portfolio, bonds may be a solid choice to provide fixed-income stability and a hedge against more risky equity investments. Interest rates have been historically low for many years, making the gold standard, U.S. Treasuries, less attractive. Fortunately, there are a number of high-quality investment-grade corporate bond exchange-traded funds (ETFs) that are comparatively inexpensive and highly liquid.
Limitation on the deductibility of state and local taxes (the SALT deduction) from federal taxes and limited supply are favoring muni ETFs.
Heading into this year, there was plenty of chatter and concern about a potential raft of downgrades for BBB-rated corporate debt, or the corporate bonds with the lowest investment-grade ratings. Bonds ...
The U.S. economic growth in the first quarter breezed past expectations and marked the best first-quarter growth in four years. These ETF areas should gain from this momentum.
After years of racking up debt on their balance sheets, investment-grade companies bloated with leverage could start going on a diet.
Heading into this year, there was plenty of chatter and concern about a potential raft of downgrades for BBB-rated corporate debt, or the corporate bonds with the lowest investment-grade ratings. The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), the largest investment-grade corporate bond exchange traded fund, devotes about 51 percent of its weight to BBB-rated debt. LQD seeks to track the investment results of the Markit iBoxx USD Liquid Investment Grade Index composed of U.S. dollar-denominated, investment-grade corporate bonds.
The exchange-traded fund marketplace is littered with a variety of terms and acronyms that have left many investors in want of a user's manual. From time to time, it is worth going back to basics to better understand the ins and outs of ETFs' mechanics to help investors use them to their best advantage. If the fund uses physical replication to track its benchmark (that is, it owns securities, not derivatives), the assets are the component securities (or a sampling thereof) of its benchmark index, any accrued income generated through securities lending, and some cash.
To say 2018 was an interesting year for fixed income investors is probably an understatement. While some fixed income market observers believe the Fed will slow its pace of rate hikes this year and some believe there will not be any rate increases at all, the new year brings new challenges and opportunities for bond ETF investors.
The Roth IRA is one of the most popular retirement vehicles. While Roth IRAs are funded with post-tax income, the popularity of these products stems from the fact that future withdrawals are not taxed. "Roth IRAs make the most sense if you expect your tax rate to be higher during retirement than your current rate," according to RothIRA.com. "That makes Roth IRAs ideal savings vehicles for young, lower-income workers who won't miss the upfront tax deduction and will benefit from decades of tax-free, compounded growth." Straightforward investments such as individual stocks, bonds, exchange-traded funds (ETFs), index funds and mutual funds are suitable for Roth IRAs, but some asset classes are not conducive to inclusion in Roth IRAs. For example, cash investments like money markets probably should not be included in Roth IRAs nor should funds with high acquired costs and fees. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stupidly Cheap Stocks to Buy Now Here are seven of the best ETFs and index funds to consider for Roth IRA inclusion this year. ### Schwab U.S. Dividend Equity ETF (SCHD) Source: Shutterstock Expense Ratio: 0.07% per year, or $7 on a $10,000 investment. Given that Roth IRAs are designed to be long-term investment vehicles, it makes sense that investors add some dividend stocks or funds to their Roth IRA rosters. And knowing that assets in a Roth IRA are bound to be held for lengthy holding periods, saving on ETF or index fund fees is pivotal. Among dividend funds, the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) is one of the least-expensive options to consider. The $7.60 billion SCHD follows the Dow Jones U.S. Dividend 100-Index, which features domestic dividend payers with minimum dividend increase streaks of 10 years. SCHD holds just over 100 stocks. Dividend growth strategies and funds often feature stocks with quality hallmarks and SCHD is no exception. The fund devotes 43.5% of its weight to consumer staples and technology stocks. Consumer staples has a rich tradition of growing dividends and offering above-average yields while the technology sector has been one of the most prodigious dividend growth groups in recent years. Those traits, among others, make SCHD ideal for inclusion in Roth IRAs. ### Vanguard Value ETF (VTV) Source: Shutterstock Expense Ratio: 0.05% While the value factor struggled mightily over the course of the recent U.S. bull market, historical data suggests value stocks usually perform well, if not outperform over long holding periods. That combined with its low fee make the Vanguard Value ETF (NYSEARCA:VTV) an ideal addition to Roth IRA lineups. VTV is one of the largest and least expensive value ETFs and therefore also one of the largest and cheapest smart beta funds in the U.S. The fund holds 344 domestic stocks with the value designation and it tilts heavily toward large-caps names as highlighted by a median market value of $89.3 billion among its holdings. * 7 Dark Horse Stocks You Really Need to Look at for 2019 While this potential Roth IRA addition is a value fund, many of its holdings qualify as low volatility or quality stocks or both. The possible near-term hindrance to VTV is its 23.5% weight to financial services, but that sector is rallying to start 2019. ### iShares Edge MSCI USA Momentum Factor ETF (MTUM) Expense Ratio: 0.15% Momentum is another investment factor that has impressive long-term returns, but as 2018 showed investors, momentum stocks can be volatile and their fortunes can change abruptly. However, allocating a portion of one's Roth IRA to a momentum fund rather than stock picking among momentum names can smooth out some of volatility associated with momentum fare. Enter the iShares Edge MSCI USA Momentum Factor ETF (BATS:MTUM). The $8.1 billion MTUM "seeks to track the performance of an index that measures the performance of U.S. large- and mid-capitalization stocks exhibiting relatively higher momentum characteristics, before fees and expenses," according to iShares. Investors typically think of momentum strategies as being heavy on technology and consumer discretionary names, and that is the case with MTUM as the fund devotes almost 45% of its weight to those sectors. However, factor-based funds are usually sector agnostic and that is true of this fund. Its sector weights can shift as momentum improves or declines through the various sectors. The fund also devotes over a quarter of its weight to the healthcare sector. ### iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) Expense Ratio: 0.15% Although Roth IRAs are long-term vehicles, even risk-tolerant investors should include some fixed-income exposure. Rather than relying on slower-moving, lower-yielding Treasuries, Roth IRA investors can boost their income profiles with investment-grade corporate bonds. The iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEARCA:LQD) is the largest corporate bond ETF in the U.S. LQD holds nearly 2,000 corporate bonds and has a 30-day SEC yield 4.3%, well above what investors will find with 10-year Treasuries or on the S&P 500. Roth IRA investors can ride out some of the risks associated currently associated with corporate bonds. There is some interest rate risk with LQD, as the fund's duration is 8.27 years. Moreover, roughly half of the fund's holdings are rated BBB, the investment-grade spectrum that is closest to junk territory. That group is also viewed as increasingly vulnerable to credit downgrades. * 7 Retail Stocks to Buy for the Rise of Menswear "Historically, investment-grade corporates with BBB ratings perform relative to other corners of the corporate bond market, but those bonds delivered losses last year, heightening concerns about fragile grasps on investment-grade ratings heading into 2019," according to ETF Trends. ### ProShares Russell 2000 Dividend Growers ETF (SMDV) Expense Ratio: 0.4% As noted earlier, dividends merit strong consideration for Roth IRAs. The same is true of small-cap stocks. The combination of dividends and small caps available via the ProShares Russell 2000 Dividend Growers ETF (BATS:SMDV) is a potentially potent one for Roth IRA investors. SMDV tracks the Russell 2000 Dividend Growers Index, the dividend growth derivative of the famous Russell 2000 Index. SMDV's underlying index requires member firms to have minimum dividend increase streaks of at least a decade. That trait is something of a rarity in the small-cap space and as such, SMDV holds just 61 stocks. However, the fund can help investors mitigate some of the volatility associated with smaller stocks. "According to Harnessing the long-term potential of dividend growth, a new report from FTSE Russell, the Russell 2000 Dividend Growth Index had an annualized return of 11.8% from June 1998 through December 2018, versus 7.6% for the Russell 2000 Index," said FTSE Russell in a recent note. "And these returns were achieved amid a respective annualized volatility of 15.1% and 19.6% for the same period. More return for less risk resulted in a significantly higher return/risk ratio of 0.78 for the Russell 2000 Dividend Growth Index." ### Invesco QQQ (QQQ) Source: Shutterstock Expense Ratio: 0.2% The Invesco QQQ (NASDAQ:QQQ) is ideal for younger Roth IRA investors with the benefits of time and higher risk tolerance. One of the most venerable broad market ETFs in the U.S., QQQ tracks the Nasdaq-100 Index and is known for being a reliable proxy on the technology sector without being a dedicated technology ETF. QQQ devotes almost 42% of its weight to that sector, with Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) combining for 19% of the fund's weight. * 7 Stocks to Buy as the Dollar Weakens For investors looking to add some growth names to their Roth IRAs, QQQ is an efficient way of doing just that, as about 62% of the fund's holdings are classified as growth stocks. ### Invesco S&P 500 Equal Weight ETF (RSP) Source: Shutterstock Expense Ratio: 0.2% Many so-called experts will tell investors only to add prosaic, cap-weighted funds to Roth IRAs. The long-term performance of the Invesco S&P 500 Equal Weight ETF (NYSEARCA:RSP), the largest equal-weight ETF in the U.S., indicates Roth IRA investors could miss out on some impressive returns by solely focusing on cap-weighted strategies. As its name implies, RSP is an equal-weight ETF and none of its 505 holdings command weights of more than 0.25%. Equal-weight strategies often thrive due to exposure to the size or value factors. In RSP's case, it is more a case of the latter because the fund features scant small-cap exposure but does devote over 40% of its weight to value stocks. Since inception and over the past decade, RSP has outperformed the cap-weighted S&P 500, according to issuer data. As on this writing, Todd Shriber does not own any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Consumer Stocks to Buy for Income * 7 Dark Horse Stocks You Really Need to Look at for 2019 * 7 Retail Stocks to Buy for the Rise of Menswear Compare Brokers The post 7 of the Best Funds to Own in a Roth IRA appeared first on InvestorPlace.