58.85 -0.14 (-0.24%)
After hours: 4:14PM EDT
|Bid||58.39 x 1000|
|Ask||59.85 x 1400|
|Day's Range||58.69 - 59.25|
|52 Week Range||48.95 - 62.36|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.10|
|Expense Ratio (net)||0.63%|
For 2018, the S&P 500 companies returned more than $1.2 trillion to investors, buying back a record $806.4 billion in shares thanks in part to a corporate tax bonanza.
Corporate buyback has been at the receiving end of political attack, of late. But activity is growing and driving the market in 2019, putting these ETFs in focus.
Share repurchase plans have recently drawn the ire of U.S. senators from both parties, but the Invesco Buyback Achievers ETF (PKW) is still up more than 14% this year. Despite the increased Congressional scrutiny, companies still increased share repurchases over the first quarter, potentially bolstering a smart beta ETF strategy that specifically targets companies with a history of stock buybacks. “Share repurchases do not paint a complete picture of a firm’s financial health or its attractiveness as an investment,” said Morningstar in a recent note.
Stock buybacks are a sign of strong profitability and shareholder-friendly management teams who understand that their employers may have better investment opportunities than they do. Invesco BuyBack Achievers ETF PKW has built a solid record by selecting stocks based on short-term repurchasing activity. Firms that repurchase their shares tend to be highly profitable, but there is little to suggest that past repurchasing activity is predictive of future performance after controlling for profitability.
Despite the increased Congressional scrutiny, companies still increased share repurchases over the first quarter, potentially bolstering a smart beta ETF strategy that specifically targets companies with a history of stock buybacks.
A number of U.S. companies have announced an increase in share repurchases, bolstering sentiment and exchange traded funds that focus on the share buyback strategy. In December, Facebook Inc., Mastercard Inc., Lowe’s Co s., AbbVie Inc., United Rentals Inc. and Pioneer Natural Resources Co. are among the companies that have revealed bigger or resumed share buybacks this month, the Wall Street Journal reports. S&P 500 companies spent a record amount on buybacks over the third quarter, investing roughly $200 billion back into their own company shares.
With the U.S. stock market dipping into correction territory, Corporate America could step in and buy back their own shares on the cheap, potentially bolstering ETFs that focus on the share buyback strategy. According to Goldman Sachs, the market sell-off is "overdone" and will be partially offset in part by companies returning to share repurchases as fundamentals still underpin values, CNBC reports. "The recent sell-off has priced too sharp of a near-term growth slowdown," David Kostin, Goldman's chief U.S. equity strategist, said in a note to clients.
The recent market correction is a short-term event as the earnings season should support further strength in the equity markets, especially with continued share buybacks bolstering prices. Investors can ...
Corporate America's cash infusion is being used to fuel a surge in share repurchases, bolstering ETFs that cover the buyback theme. Goldman Sachs analysts revealed that for the first time in a decade, buybacks accounted for the largest share of cash spending among S&P 500 companies, reports William Watts for MarketWatch. As more companies look to add value through share repurchases, ETF investors can also capitalize on the potential opportunity through buyback-themed ETF strategies.
Thanks to the Republican tax plan and increasing revenues, investors are seeing a bit more green in their pockets. Momentum in iPhone sales, as well as record services revenues, helped the consumer tech giant realize a big jump in operating cash flows.
U.S. companies have only just begun to repatriate more than $2 trillion cash stored abroad. As Corporate America repatriates their foreign revenue, investors turn to buyback exchange traded funds that ...
The S&P 500 companies repurchased a record $178 billion worth of their own stocks during the first quarter of 2018, per the S&P Dow Jones Indices data. The number accounted for about 94% of companies’ share buyback plan and easily outpaced the previous peak of $172 billion set more than a decade ago, in the third quarter of 2007. The technology sector, accounting for 32.4% of buybacks in the first quarter, is leading the pack with more-than-doubled share repurchases.
S&P 500 companies are on track to return shareholders over $1 trillion for the first time in history, through dividends and buybacks, for this year.