|Bid||0.00 x 2200|
|Ask||100.92 x 800|
|Day's Range||100.73 - 101.51|
|52 Week Range||84.28 - 101.92|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.83|
|Expense Ratio (net)||0.35%|
Most investment factors are easy to understand. Value stocks are those names perceived to be trading at discounts to the broader market. Growth stocks are those posting superior earnings and revenue increases, while the low volatility factor offers exposure to equities with favorable volatility traits.When it comes the quality factor, however, there are varying definitions and traits used by investors to assess what constitutes quality."It's likely the factor where opinions are most diverse regarding the definition," according to Factor Research. "Broadly speaking there are qualitative and quantitative evaluations and these are often combined in a scoring model. Criteria like management quality or the soundness of strategy are intuitively appealing, but difficult to verify given a lack of data."InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhile definitions for quality vary, some of the factor's stickier attributes would include companies that are not highly leveraged -- or at the very least if they carrying debt, they have strong credit ratings and interest coverage ratios, strong return on assets (ROA) and return on equity (ROE), modest earnings variability, and solid management teams. Penchants for rewarding investors via buybacks and dividends can also be part of the quality assessment. * 7 Stocks to Buy As They Hit 52-Week Lows Investors wanting to integrate quality into their portfolios are in luck because there plenty of dedicated quality ETFs on the market today. Here are some of the best of breed quality ETFs to consider. iShares Edge MSCI USA Quality Factor ETF (QUAL)Source: PixabayExpense ratio: 0.15% per year, or $15 on a $10,000 investment.Home to $10.55 billion in assets under management, the iShares Edge MSCI USA Quality Factor ETF (CBOE:QUAL) is the king of dedicated quality ETFs. QUAL, which turns six years old next month, tracks the MSCI USA Sector Neutral Quality Index and holds 125 stocks.This ETF's approach to quality is straight forward as it targets "stocks exhibiting positive fundamentals (high return on equity, stable year-over-year earnings growth and low financial leverage)," according to iShares.Like other factor-based strategies, quality ETFs usually are not required to have overweight exposure to a particular sector or sectors. However, some groups often display more quality intensity than others. When it comes to QUAL, this quality ETF allocates almost half its combined weight to the technology, healthcare and financial services sectors.Quality can also mean lower volatility as highlighted by QUAL's three-year standard deviation of 10.94%, which is lower than the same metric on some other single-factor funds. JPMorgan U.S. Quality Factor ETF (JQUA)Source: Shutterstock Expense ratio: 0.12%The JPMorgan U.S. Quality Factor ETF (NYSEARCA:JQUA) is another dedicated quality ETF and an inexpensive one at that. With an annual fee of just 0.12%, JQUA is one of the cheapest single-factor funds that is not a value or growth strategy. JQUA uses "a rules-based approach that matches Russell 1000 sector weights and selects stocks based on quality and profitability characteristics," according to JPMorgan Asset Management.JQUA holds nearly 230 stocks, giving it a deeper bench than the aforementioned QUAL. Perhaps the biggest advantage of this quality ETF is its robust ROE. At the end of April, JQUA's ROE was 28.36%, or nearly 800 basis points above that of the Russell 1000 Index, according to issuer data. * 7 A-Rated Stocks to Buy Under $10 JQUA allocates about 55% of its combined weight to the technology, financial services and consumer discretionary sectors. Year-to-date, this quality ETF is higher by nearly 14%. SPDR S&P Dividend ETF (SDY)Source: Shutterstock Expense ratio: 0.35%As has been widely noted, dividends are integral to well-balanced portfolios and vital to investors' long-term outcomes. Dividends are also one of the premier quality traits, particularly dependable dividend growth. Hence, the SPDR S&P Dividend ETF (NYSEARCA:SDY) merits a place in this discussion of quality ETFs.SDY, one of the largest domestic dividend ETFs, tracks the S&P High Yield Dividend Aristocrats Index, which requires member firms to have increased payouts for at least 20 consecutive years. Although SDY's components are weighted by yield, this is not a high-yield fund as highlighted by its trailing 12-month dividend yield of 2.37%.The industrial, financial services and consumer staples sectors combine for almost half of SDY's weight, giving it a different sector profile than the aforementioned quality ETFs. With the business cycle in its late innings, some market observers believe quality ETFs will benefit investors."Stretched valuations and slowing growth depict a late cycle environment, but this doesn't mean that investors should abandon equities," said State Street in a recent note. "Focusing on quality stocks with reasonable valuations may mitigate the episodic microbursts of volatility typical of a late-cycle market." WisdomTree U.S. SmallCap Quality Dividend Growth Fund (DGRS)Source: Shutterstock Expense ratio: 0.38%Yes, the WisdomTree U.S. SmallCap Quality Dividend Growth Fund (NASDAQ:DGRS) has "quality" in its name, but this fund is a credible quality ETF for more valid reasons. Notably, DGRS' weighting methodology emphasizes ROA and ROE.Those are important traits with dividend stocks because strong ROA and ROE metrics imply companies not only have the ability to sustain current payouts, but raise those dividends in the future. Using ROA and ROE with small-cap stocks can prove efficacious because many smaller companies take on debt to fuel growth, punishing ROA and ROE along the way."We also know that typically companies that have the highest debt burdens are more acutely exposed to a deceleration in the economy," according to WisdomTree. * 4 Antitrust Tech Stocks to Keep an Eye On Not surprisingly, DGRS outpaced the Russell 2000 Index by more than 450 basis points during the 2018 fourth-quarter market swoon. Although DGRS is a dividend growth strategy, its yield is more than double that of the Russell 2000. Invesco S&P 500 Quality ETF (SPHQ)Source: Shutterstock Expense ratio: 0.15%The Invesco S&P 500 Quality ETF (NYSEARCA:SPHQ) is one of the elder statesmen of the quality ETF group having debuted in late 2005. Age usually should not be a deciding factor when it comes to ETFs, but SPHQ's long track record gives investors willing to do some homework an idea of how the fund has performed across multiple market cycles, good and bad.SPHQ follow the S&P 500 Quality Index. That benchmark is home to 100 S&P 500 members "that have the highest quality score, which is calculated based on three fundamental measures, return on equity, accruals ratio and financial leverage ratio," according to Invesco.For investors that want to focus on ROE, SPHQ is a quality ETF that makes a lot of sense because its ROE is a stellar 42.70%.That says something about the technology sector because that group accounts for 41.71% of this quality ETF's weight. Healthcare and consumer discretionary names combine for almost 21% of SPHQ's roster.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy As They Hit 52-Week Lows * 4 Antitrust Tech Stocks to Keep an Eye On * 5 Gold and Silver Stocks Touching Intraday Highs Compare Brokers The post 5 Quality ETFs That Qualify for Your Portfolio appeared first on InvestorPlace.
Editor's note: This story was previously published in February 2019. It has since been updated and republished.Many folks infer an element of royalty when they hear the word "aristocrat." While the U.S. is a democracy, not a monarchy, there are plenty of ways for dividend investors to become aristocratic in their own right.Several exchange-traded funds (ETFs) track indices that are known as dividend aristocrats indices. The alluring thing about dividend aristocrats ETFs is that these funds emphasize dividend growth, not yield. High yields, while seductive, have some drawbacks investors should consider.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDividend growth can be a sign that a company has a sound balance sheet and the capacity to continue delivering steady payout increases whereas some high-yield companies could be in financial distress and close to cutting their payout. * 10 Great Stocks to Buy on Dips For investors looking to put the potency of dividend growth to work in their portfolios, here are some of the most royal names among dividend aristocrats ETFs. SPDR S&P Dividend ETF (SDY)Expense ratio: 0.35% per year, or $35 on a $10,000 investment.The SPDR S&P Dividend ETF (NYSEARCA:SDY) is the original dividend aristocrats ETF and one of the largest U.S. dividend ETFs of any variety. SDY follows the S&P High Yield Dividend Aristocrats Index, which mandates that member firms have minimum dividend increase streaks of 20 years."Due to the index screen for 20 years of consecutively raising dividends, stocks included in the Index have both capital growth and dividend income characteristics, as opposed to stocks that are pure yield," according to State Street.While SDY's index implies it is a high-yield benchmark, the fund's dividend yield of 2.43% is not alarmingly high and implies plenty of room for continued dividend growth. Likewise, this dividend aristocrat ETF is not excessively allocated to high-yield sectors as utilities and real estate stocks combine for less 17% of the fund's weight. ProShares S&P 500 Dividend Aristocrats ETF (NOBL)Expense ratio: 0.35% per yearThe ProShares S&P 500 Dividend Aristocrats ETF (CBOE:NOBL) is the ETF that tracks the S&P 500 Dividend Aristocrats Index, also known as THE dividend aristocrats index. That index requires member firms to have boosted payouts for at least 25 consecutive years.A benefit of dividend aristocrats ETFs that should not be overlooked is reduced volatility. Both NOBL and SDY have less volatile than the S&P 500 over the past three years. Additionally, dividend aristocrats ETFs can expose investors to reduced downside when stocks decline. While the S&P 500 slumped 4.60% last year, NOBL was lower by just 3.30%. * 7 Strong Buy Stocks That Tick All the Boxes While NOBL is not the most adventurous fund on the market, this dividend aristocrats ETF makes a lot of sense for younger investors that can reinvest dividends. Over the past three years, NOBL is up 43% with dividends reinvested compared to 34.30% without reinvested dividends. SPDR S&P Global Dividend ETF (WDIV)Expense ratio: 0.40% per yearOften overlooked in the dividend aristocrats ETF conversation, the SPDR S&P Global Dividend ETF (NYSEARCA:WDIV) can be seen as the global complement to the aforementioned SDY.WDIV follows the Global Dividend Aristocrats Index, which mandates a minimum dividend increase streak of at least a decade.That index "includes the top 100 qualified stocks with the highest indicated dividend yield, with no more than 20 stocks selected from each country and 35 stocks from each GICs sector," according to State Street.WDIV, which yields 3.82%, provides exposure to almost 20 countries, the bulk of which are developed markets. Canada and the U.S. combine for over 42% of this dividend aristocrats ETF's geographic exposure. ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL)Expense ratio: 0.40% per yearThe epitome of an overlooked asset class, mid-cap stocks are also overlooked when it comes to dividends, but that should not be the case. There are several dedicated mid-cap dividend funds, but the ProShares S&P MidCap 400 Dividend Aristocrats ETF (CBOE:REGL) is the dividend aristocrats ETF in that group.REGL follows the S&P MidCap 400 Dividend Aristocrats Index, a derivative of the S&P MidCap 400 Index. This dividend aristocrats ETF requires its components to have minimum dividend increase streaks of 15 years. That is a stringent requirement for small stocks and as such, REGL has a smaller roster of just 49 holdings.Like its large-cap brother NOBL, REGL can help investors weather market storms. Last year, this dividend aristocrats ETF lost just 3.30% while the S&P MidCap 400 plunged 11.30%. REGL allocates over 45% of its combined weight to financial services and industrial stocks. ProShares MSCI Europe Dividend Growers ETF (EUDV)Expense ratio: 0.55% per yearIn the strictest sense of being a dividend aristocrats ETF, the ProShares MSCI Europe Dividend Growers ETF (CBOE:EUDV) is not one of those funds simply because the ETF does not track a dividend aristocrats index. Overlook that technicality and investors will find a viable income-generating avenue to Europe.EUDV's underlying index requires a minimum dividend increase streak of 10 years, which is an important trait considering plenty of European companies cut dividends during the region's sovereign debt crisis earlier this century. Just 35 companies meet the requirements for admission into EUDV.Many Europe dividend ETFs are heavily allocated to the U.K. and Switzerland. EUDV obliges as those countries combine for over 51% of the fund's weight. France, which saw record dividend growth in 2018, is EUDV's second-largest geographic exposure at 11.70%.EUDV is ahead of the S&P Europe 350 Index by 400 basis points over the past year. Invesco Dividend Achievers ETF (PFM)Expense ratio: 0.55% per yearThe Invesco Dividend Achievers ETF (NASDAQ:PFM) is not a dividend aristocrats ETF, but it does offer quality exposure to domestic large-caps with dividend increase streaks of at least a decade.There is often some intersection of dividends and the value factor, but PFM does allocate over 20% of its weight to growth stocks. Eight of PFM's top 10 holdings are members of the Dow Jones Industrial Average. With the dividend increase streak requirement of 10 years, PFM is heavy on sectors found in traditional dividend aristocrats ETFs, including consumer staples and industrials.The rub with PFM is its high fee. A slew of dividend growth strategies, including dividend aristocrats ETFs, can be had with much lower expense ratios. Vanguard International Dividend Appreciation ETF (VIGI)Expense ratio: 0.25% per yearThe Vanguard International Dividend Appreciation ETF (NASDAQ:VIGI) is not a true dividend aristocrats ETF, but as the international answer to the popular Vanguard Dividend Appreciation ETF (NYSEARCA:VIG), VIGI does provide exposure to stocks with penchants for steadily boosting payouts. Keeping with Vanguard's tradition of low-cost leadership, VIGI is one of the most cost-effective international dividend strategies on the market today.VIGI is a blend of developed and emerging markets dividend payers, so a relevant comparison is the MSCI All-Country ex-US Index, a benchmark the Vanguard fund has trailed over the past three years. However, over the past years, VIGI is beating that benchmark with a little less volatility.VIGI holds 357 stocks with a median market capitalization of $41.4 billion. India is the fund's largest emerging market weight at 14.1% while France and the U.K. combine for 23.6%.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks That Won Super Bowl Sunday * 7 High-Yield ETFs for Brave Investors * 10 F-Rated Stocks That Could Break Your Portfolio Compare Brokers The post Are These 7 Dividend Aristocrats ETFs Fit for a King? appeared first on InvestorPlace.
Investors who are concerned that the trade negotiations can breakdown into a full out trade war should look to dividend growers and related ETFs. “We are thinking about some of the drivers of profit growth going forward, and we are looking at some of the communication services stocks,” Avid Kostin, Goldman Sachs chief U.S. equity strategist, told CNBC. Goldman also screens for stocks with big dividends and low labor costs in portfolios for its own clients.
Looking for a steady income stream to provide stability in your portfolio? Here are five of the best dividend ETFs to invest in this year, ranked by assets.
Now that tax season is in the rearview mirror, investors can get back to contributing to their retirement portfolios, including individual retirement accounts (IRAs). Good news for investors: IRA contribution limits are moving up.Investors under 50 years old can now contribute up to $6,000 per year to traditional and Roth IRAs while individuals 50 years old and older can add another $1,000 to that figure, according to the IRS.For investors that enjoy building their retirement portfolios themselves, ETFs are among the ideal vehicles for use in tax-advantaged accounts, such as IRAs. As has been widely noted, many of the best ETFs are also inexpensive, providing a significant benefit to long-term investors.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMany of the best retirement ETFs for consideration in IRAs should be cheap funds because high fees can erode long-term total returns. Additionally, ETFs help investors efficiently access an array of asset classes, helping bolster portfolio diversification. * The 10 Best Stocks to Buy for May Here are some of the best retirement ETFs to consider if you're looking to make additions to your IRAs. SPDR S&P Dividend ETF (SDY)Source: Shutterstock Expense ratio: 0.35% per year, or $35 on a $10,000 investment.Some of the best retirement ETFs are dividend funds. The SPDR S&P Dividend ETF (NYSEARCA:SDY), one of the largest U.S. dividend ETFs, is a solid place to start, particularly for dividend investors looking for steadily rising payouts. The $19.77 billion SDY tracks the S&P High Yield Dividend Aristocrats Index, which requires member firms to have minimum dividend increase streaks of 20 years.There are plenty of dividend-paying stocks in the U.S. and many of the best ETFs hold those stocks, but requiring two decades of higher payouts helps investors identify the cream of the dividend crop. As such, SDY is home to just 111 stocks. For long-term investors, dividends are an integral part of their outcomes."Over the past 30 years, dividends from S&P 500 stocks have, on average, contributed exactly half of the index's total return on an annual basis," according to State Street research. "While price returns of equities can fluctuate year over year, dividends tend to be more stable, consistently offering a positive contribution to total return each year."SDY, which yields 2.39%, allocates nearly 34% of its combined weight to the industrial and financial services sectors. iShares Edge MSCI USA Quality Factor ETF (QUAL)Source: Shutterstock Expense ratio: 0.15%The quality factor makes a lot of sense for investors of all skill levels, but with this current bull market aging by the day, novice investors, in particular, may want to consider quality stocks. The iShares Edge MSCI USA Quality Factor ETF (CBOE:QUAL) is one of the best ETFs for accessing a broad basket of domestic stocks with the quality designation.The $11.30 billion QUAL, which holds 125 stocks, defines quality with the following metrics: return on equity, earnings variability and debt-to-equity. Long-term performance data indicate that the quality factor not only provides substantial upside capture in bull markets, but reduces some of the downside often experienced in bear markets. * 5 Stocks to Sell in May Before Investors Go Away "Quality strategies seek enhanced returns versus the market through exposure to profitable companies with less debt and more stable earnings," according to BlackRock. "Since the Quality factor has historically delivered more upside capture with less downside resilience, it may be more appropriate for risk-aware, return seeking investors." Xtrackers USD High Yield Corporate Bond ETF (HYLB)Source: Shutterstock Expense ratio: 0.15%Bonds are an important part of the retirement asset class mix and fixed income funds are among the best ETFs for consideration in IRAs. Conventional wisdom dictates that older investors may want to shy away from riskier fixed income investments, but younger investors with the luxury of more time can consider high-yield corporate debt. For cost-conscious investors, the Xtrackers USD High Yield Corporate Bond ETF (NYSEARCA:HYLB) is one of the best ETFs in the junk bond space to consider.HYLB, which tracks the Solactive USD High Yield Corporates Total Market Index, debuted in late 2016 with an expense ratio 0.15%. Proving the usefulness of low fees, HYLB is now home to more than $2.8 billion in assets under management and has forced some rivals to cut fees on junk bond ETFs or create comparably-priced funds.HYLB holds over 1,000 bonds and has a yield to worst of 6%. Over 90% of the fund's holdings are rated BB or B, but it does have a 6% weight to speculative CCC-rated debt. Vanguard FTSE Developed Markets ETF (VEA)Source: Shutterstock Expense ratio: 0.05%Some of the best ETFs for IRAs are international equity funds, something investors should remember because many are often over-allocated to domestic equities. Fortunately, some of the best ETFs for international exposure are also some of the cheapest. That includes the Vanguard FTSE Developed Markets ETF (NYSEARCA:VEA).In fact, VEA's already modest fee was recently pared to 0.05% from 0.07%. Home to $72.52 billion in assets under management, VEA is not just the largest international ETF trading in the U.S., it is the sixth-largest ETF of any variety. This is also one of the best ETFs for investors looking for a big basket of stocks as VEA is home nearly 4,000 holdings. * Mother's Day 2019: 10 High-Tech Gifts Your Mom Will Love Japan and the U.K. combine for almost 37% of VEA's geographic exposure while Canada and France combine for 17.10%. Over the past three years, VEA has modestly outpaced the MSCI EAFE Index with slightly less volatility. iShares Core MSCI Emerging Markets ETF (IEMG)Source: Shutterstock Expense ratio: 0.14%Keeping with the theme of international equity exposure, emerging markets funds are among the best ETFs for risk-tolerant retirement planners and younger investors with lengthy time horizons. The iShares Core MSCI Emerging Markets ETF (NYSEARCA:IEMG) confirms that some of the best ETFs in the emerging markets space are also inexpensive.In terms of superficial superlatives, IEMG is the second-largest emerging markets ETF trading in the U.S. and one of the least expensive. IEMG targets the MSCI Emerging Markets Investable Market Index and has been one of the top ETFs in terms of new assets added over the past several years.IEMG holds over 2,200 stocks and its three-year standard deviation of just under 13% is palatable for many investors. Making emerging markets solid ideas for long-term investors are the depressed valuations seen in many of developing economies coupled with still robust economic growth expectations.More than 15 countries are represented in IEMG, but China is the dominant geographic exposure at 30.74%, a percentage that is likely to increase later this year when MSCI adds more Chinese A-shares to its international indexes.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best Stocks to Buy for May * 5 Elephant-Sized Companies Warren Buffett Could Buy * 7 Cheap ETFs for Novice Investors Compare Brokers The post 5 of the Best Retirement ETFs for Your IRA appeared first on InvestorPlace.
Buyback ETFs top the dividend growth ones of late. But things might change ahead with the saturation of benefits from the tax cuts. Therefore, investors can play these high dividend ETFs.
Millennial investors were more likely than investors in other age groups to own exchange-traded funds, according to a survey from investment provider BlackRock. Among investors age 21 to 35, 42% said they owned ETFs in 2017, up from 33% of investors in that same age group who said they had ETFs in their portfolios the year prior. Given that ETFs are a new(er) investment innovation, it's probably not surprising that the youngest investors would embrace them. What's unexpected, however, is just how much ETFs have found a home in the portfolios of what BlackRock calls “Silver”-aged investors--people over age 70.
A slew of dividend exchange traded funds (ETFs) have recently been hitting all-time highs, including the SPDR S&P Dividend ETF (NYSEArca: SDY). SDY is up just over 13% this year. SDY, one of the largest ...
The case for dividend stocks, particularly those that are reliable growers of their payouts, remains strong in 2019. Analysts are predicting another potentially banner year for dividends in 2019 if profit growth ends up at around current expectations. According to Goldman Sachs, dividends are estimated to still rise 6% next year, although lower than the 9% rate of 2018.
ETF investments provide advisors and investors with an idea of currently trending global investment themes popping up in a changing market environment. On the recent webcast, ETF Flash Flows: Where Are ...
When it comes to ETFs, investors may want to go with the flow. Billions of dollars exchange hands across asset classes and investors should consider where the money is going to gauge potential opportunities ...
Here are a few ways to invest your money that will help you improve your financial health and mitigate the impacts of any potential adversity.
Weighed down by trade tensions, global growth worries and U.S. government shutdown? Play these dividend growth ETFs and stocks.
Sage Advisory's three best ETF ideas for a potential slowdown ahead in the U.S. economy include a dividend and value play.
Dividend Aristocrats are a group of S&P; 500 stocks that have boosted their annual dividend payouts for at least 25 consecutive years and whose individual market cap exceeds $3 billion, explains income expert Ned Piplovic, editor of DividendInvestor.
The latest short interest report on November 30 indicated that Illinois Tool Works’ (ITW) short interest has declined marginally from its highest point in 2018, which it reached as of November 2.
Furthermore, over two dozen companies have announced additional dividend increases this month, which could push the year's total to an even higher level. Investors are enjoying the dividend growth due to a surge in company profits following last year's broad corporate tax cuts. “There was a confluence of a couple of things that contributed to dividends that won’t happen again,” Jim Tierney, chief investment officer of concentrated U.S. growth at AllianceBernstein, told the WSJ.