|Bid||122.54 x 1100|
|Ask||122.51 x 1300|
|Day's Range||122.48 - 122.84|
|52 Week Range||92.80 - 122.84|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.90|
|Expense Ratio (net)||0.15%|
Smart beta ETF strategies that track alternative or customized indices have been gaining traction, reflecting the various dynamics of different markets in varying conditions.
The iShares MSCI USA Momentum Factor ETF (Cboe: MTUM) , one of the largest exchange traded funds dedicated to the momentum factor, and other momentum ETFs are often heavily allocated to technology stocks. At issue for investors is when funds like MTUM increase or decrease exposure to the technology sector. The momentum factor was beloved for much of this bull market.
How often momentum funds adjust their holdings, and when they do so, can make a big difference to their performance. A rebalancing in May came at just the wrong time for one momentum ETF.
Earlier this year, the iShares MSCI USA Momentum Factor ETF (Cboe: MTUM) , one of the largest exchange traded funds dedicated to the momentum factor, pivoted away from growth sectors, boosting allocations to more defensive groups. More recently, MTUM boosted its allocation to technology stocks, just as traded tensions between the U.S. and China flared up. MTUM “pivoted back to technology shares -– a sector caught in the crosshairs of a U.S.-China trade war -- only a few months after reducing its stake in these companies and missing a 10% rally,” reports Bloomberg.
Momentum, an investment factor rooted in the idea that a security that has already appreciated in price can continue doing so, makes a predictable candidate to overshoot declines when the broad market declines. The iShares Edge MSCI USA Momentum Factor ETF (CBOE:MTUM) recently boosted its allocation to technology stocks to almost 40 percent of its weight, more than triple its weight to health care, its second-largest sector weight. “Using momentum ETFs, investors can gain some diversification using this approach, but it is important to understand the exposure is not static and that momentum funds can be quite different,” said CFRA Research Director of ETF & Mutual Fund Research Todd Rosenbluth in a note out Thursday.
The momentum factor was beloved for much of this bull market. Then, the late 2018 market slump, led mostly by stocks with the momentum designation, plagued the momentum factor, but some exchange traded ...
Momentum and low volatility have been remarkably effective investment strategies, despite their simplistic focus on past performance. Momentum is built to deliver market-beating returns, while low volatility reduces risk. Low volatility tends to work the best during market downturns and in risk-off environments.
Momentum investing would be a winning strategy for those seeking higher returns in a short spell. The strategy looks to fetch profits from buying hot stocks that have shown an uptrend over the past few weeks or months.
Generating income continues to preoccupy many investors, but of course they want growth too. Investor's Business Daily's ETF Strategies special report shows how you can get the best of both worlds in your portfolio, particularly in an environment of rising interest rates.
Democrats and Republicans reach a deal on over border security to fund the U.S. government. This could avert a second government shutdown and boost high beta and momentum ETFs.
[Editor's note: This article was previously published in December 2017. It has since been updated and republished to reflect new fund information.] The best exchange-traded funds (ETF) that you should buy will likely be funds that concentrate their holdings in sectors that can beat the broad market indices. As is the case in almost every calendar year, some of the best ETFs will be top funds from the previous year that continue their momentum into the new year, while others will be recent laggards that make a big turnaround. InvestorPlace - Stock Market News, Stock Advice & Trading Tips But picking the best ETFs for an entire year can be challenging, especially because there are always scenarios that play out that no one could have predicted accurately in advance. Therefore, the smart bets for the top ETFs will be a diverse list of funds that combine the best momentum plays based upon what we know now along with some contrarian bets that go against the herd consensus. * 10 High-Yield Monthly Dividend Stocks So, with that backdrop, here are the seven of the best sector funds that can lead the market … ### iShares Edge MSCI USA Momentum Factor (MTUM) Expenses: 0.15%, or $15 annually for every $10,000 invested Momentum will be a major theme of markets and the best way to capture the trend is iShares Edge MSCI USA Momentum Factor (NYSEARCA:MTUM). Although this ETF does not focus on one single sector, it's a great way to gain exposure to momentum stocks that will inevitably come from the leading sectors, without having to identify them yourself. MTUM offers shareholders exposure to momentum in the market by passively tracking the performance of an index of large- and mid-cap stocks with high relative momentum characteristics. For example, top holdings that met this criteria as of this writing were JPMorgan Chase & Co. (NYSE:JPM), Microsoft Corporation (NASDAQ:MSFT), and Bank of America Corp (NYSE:BAC). ### Financial Select Sector SPDR Fund (XLF) Expenses: 0.13% With rising interest rates and a resilient stock market, financial stocks should maintain leadership, which makes ETFs like the Financial Select Sector SPDR Fund (NYSEARCA:XLF) a smart fund to hold. Higher rates generally translate into wider spreads for financial institutions that lend money, and a healthy stock market means higher profits for the big brokerage firms and other large financial companies involved in capital markets. * 10 Smart Money Stocks to Buy for the Rest of the Year XLF, the oldest financial sector ETF, tracks the Financial Select Sector Index, which focuses primarily on large U.S. stocks like Berkshire Hathaway Inc. (NYSE:BRK.A, NYSE:BRK.B), JPM and BAC. ### Energy Select Sector SPDR (XLE) Expenses: 0.13% Although energy was a lagging sector for much of the past few years, signs of life emerged and this momentum has legs to move into 2019, which would benefit top energy ETFs like Energy Select Sector SPDR (NYSEARCA:XLE). XLE tracks the Energy Select Sector Index, which consists of 25 stocks of companies in the oil and gas industries, as well as energy equipment and services. This means shareholders of XLE get a healthy dose of energy sector stocks like Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX) and Schlumberger Limited. (NYSE:SLB). ### PowerShares S&P SmallCap Information Technology (PSCT) Expenses: 0.29% Technology promises to continue as a market leader this year and funds like PowerShares S&P SmallCap Information Technology (NYSEARCA:PSCT) could be smart bets in the tech sector. After a period of small-caps lagging large-caps, the trend started to turn around, which could make PSCT a smart momentum growth bet. PSCT passively tracks the S&P SmallCap 600 Capped Information Technology Index, which is an S&P SmallCap 600 subset that consists of small-cap stocks of companies that provide information technology-related products and services. * 7 Blue-Chip Stocks That Could Lead the Market Higher This means shareholders get exposure to small info-tech names like MKS Instruments, Inc. (NASDAQ:MKSI), Lumentum Holdings Inc (NASDAQ:LITE) and Stamps.com Inc. (NASDAQ:STMP). ### Health Care SPDR (ETF) (XLV) Expenses: 0.13% Health sector ETFs have taken a hit recently, but they have returned to market leadership, which makes now a good time to consider holding funds like the Health Care SPDR (ETF) (NYSEARCA:XLV). The health sector can work as a long-term growth play or a short- to intermediate-term defensive play, which makes health stocks like XLV top holdings Johnson & Johnson (NYSE:JNJ), Pfizer Inc. (NYSE:PFE) and UnitedHealth Group Inc (NYSE:UNH) a good idea to hold in almost any portfolio. XLV has a good balance of health sector stocks, which means it won't be as volatile as some of the health sector ETFs that are more concentrated in sub-sectors of health. This diversification can also serve as added insulation amid health legislation talks in Congress. ### Vanguard Utilities ETF (VPU) Expenses: 0.10% The utilities sector has quietly remained just behind the major market indices for performance the past few years, and it has recently picked up momentum. Combined with their defensive qualities, utilities ETFs look good for 2019. The Vanguard Utilities ETF (NYSEARCA:VPU) passively tracks an index that consists of 75 quality U.S. utilities stocks like NextEra Energy Inc (NYSE:NEE), Duke Energy Corp (NYSE:DUK) and Southern Co (NYSE:SO). * 5 Dividend Stocks to Help You Through the Market's Mayhem The defensive nature of utilities will show its value once the stock market sees another major correction, which remains a real possibility in 2019. ### Consumer Staples Select Sect. SPDR (ETF) (XLP) Expenses: 0.13% Diversification will likely be a major theme in 2019 and a smart move for that purpose is to hold a defensive stock ETF like the Consumer Staples Select Sect. SPDR (ETF) (NYSEARCA:XLP). If stocks continue their climb, this year will see the nine-year anniversary for the bull market, which is getting old by historical standards. Therefore, now is arguably one of the best times in a decade to begin shifting portfolio holdings to a more defensive posture. XLP holds a wide variety of defensive stocks like Procter & Gamble Co (NYSE:PG), Philip Morris International Inc. (NYSE:PM), and The Coca-Cola Co (NYSE:KO). As of this writing, Kent Thune did not personally hold a position in any of the aforementioned securities. However, he holds XLE, XLV and XLP in some client accounts. Under no circumstances does this information represent a recommendation to buy or sell securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Machine-Learning Stocks to Buy for a Smarter Portfolio * 10 Stocks to Sell in February * 10 Triple-A Stocks to Buy in February Compare Brokers The post 7 Sector ETFs to Buy for 2019 and Beyond appeared first on InvestorPlace.
A short-term spending measure has been signed to reopen the U.S. government for three weeks. These should boost high beta and momentum ETFs.
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.
After days of painful losses, Wall Street made a roaring comeback after Christmas. These ETFs & stocks are intriguing choices to play the Santa rally for a short spell.
Pfizer’s net revenues were $39.7 billion in the first nine months of 2018—compared to $38.8 billion during the same period in 2017. Pfizer’s revenues grew ~2% YoY (year-over-year). Pfizer expects that its net revenues for fiscal 2018 will be $53.0 billion–$53.7 billion. Pfizer updated its revenue guidance after the third quarter. Previously, Pfizer expected revenues of $53.0 billion–$55.0 billion for fiscal 2018. Wall Street analysts expect Pfizer to report net revenues of $53.6 billion in fiscal 2018.