|Bid||266.02 x 1000|
|Ask||266.05 x 1000|
|Day's Range||265.47 - 266.37|
|52 Week Range||214.83 - 270.67|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.00|
|Expense Ratio (net)||0.04%|
Raymond James' Take: Can the Bull Run Continue?(Continued from Prior Part)Raymond James versus Morgan StanleyJeffrey Saut, Raymond James’ chief investment strategist, told CNBC that the stock markets (SPY) could rally to fresh highs. His opinion
BAML Survey: How Are Global Fund Managers Positioned?BAML survey’s key findings BAML (Bank of America Merrill Lynch) conducted a survey that polled 187 global investors with $547 billion in total assets under management between April 5 and April
Why Jeffrey Gundlach Thinks Now's a Good Selling Opportunity(Continued from Prior Part)Jeffrey Gundlach on next presidential elections Jeffrey Gundlach accurately predicted Donald Trump’s victory in the 2016 elections. While talking about his
The SPDR S&P 500 ETF (NYSEARCA:SPY) has some nifty superlatives attached to it. Having debuted in 1993, SPY is the first ETF that listed in the U.S. As of April 10, 2019, SPY is home to $274.23 billion in assets under management, making it the world's largest ETF.Source: Shutterstock SPY's size is remarkable. Consider this: SPY has nearly $100 billion more in assets than the second-largest U.S. listed ETF, the iShares Core S&P 500 ETF (NYSEARCA:IVV). There are other important differences between SPY and its primary rivals, IVV and the Vanguard S&P 500 ETF (NYSEARCA:VOO), for investors to consider. The Case for SPY's RivalsLong term, buy-and-hold investors may want to consider IVV or VOO over SPY. With an annual fee of 0.0945%, or $9.45 on a $10,000 investment, SPY fits the bill as a cheap ETF, but it is not cheap as its rivals. IVV and VOO both charge 0.04% per year. Additionally, due to the way SPY is structured, its dividends cannot be reinvested. Owing to the fact that SPY is one of the world's oldest ETFs, it is structured as a unit investment trust (UIT).InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 High-Risk Stocks to Buy for Massive Rewards Under the UIT structure, SPY's dividends are held until the end of the quarters and paid out to shareholders. By not being able to reinvest dividends, SPY shareholders lose the potency of compounding, something that is not an issue with IVV or VOO.Conversely, SPY is the go-to ETF for professional investors looking for cost-efficient, easy, liquid exposure to U.S. stocks. SPY's tight bid/ask spreads ensure professional traders can transact in SPY in significant size without disrupting the underlying market. Additionally, SPY has a massive options market, often larger than the fund's total assets under management, adding another layer of liquidity to the fund. What You're Getting With SPYAs its name implies, SPY tracks the venerable S&P 500, the world's most widely followed equity benchmark. The weighted average market capitalization of SPY's holdings is nearly $238 billion, confirming the S&P 500's status as a mostly large-cap index.The S&P 500 and the aforementioned ETFs are cap-weighted, meaning the largest U.S. companies command the biggest weights in the index and in SPY. As of April 10, Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN) combined for 10.73% of SPY's weight.The S&P 500 is home to 11 sectors with weights ranging from 2.68% for materials at the bottom to 21.46% for technology at the top. After technology, healthcare and financial services follow with weights of 14.30% and 12.80%, respectively. Bottom Line on the SPYThe bottom line with SPY and the other ETFs mentioned here is that investors considering these funds are making a bet on U.S. stocks and the world's largest economy. With that wager comes macro risk, including the Federal Reserve, electoral politics, geopolitical flare ups and more.Imminently, the SPY thesis will be tested by first-quarter earnings reports and it is earnings that usually chart the course for SPY and rival funds."Industry analysts in aggregate predict the S&P 500 will see a 7.5% increase in price over the next twelve months," according to FactSet. "This percentage is based on the difference between the bottom-up target price and the closing price for the index as of yesterday (April 4). The bottom-up target price is calculated by aggregating the median target price estimates (based on company-level estimates submitted by industry analysts) for all the companies in the index. On April 4, the bottom-up target price for the S&P 500 was 3096.66, which was 7.5% above the closing price of 2879.39." * 7 Marijuana Companies: Which Pot Stocks Should You Buy? Healthcare and energy, two sectors that combine for almost 20% of SPY's weight, are expected to see the largest price increases.Todd Shriber owns shares of VOO. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Is It Time to Buy the SPY? appeared first on InvestorPlace.
Job Market Rebounds in March, Markets Breathe Sigh of Relief(Continued from Prior Part)Wage growth slowed While job additions in March topped analysts’ estimate of 175,000, coming in at 196,000, wage growth came in below expectations. Economists
This easy-to-use app helps its users squirrel away every extra penny and invest it wisely. Here's how it works and what it costs to use.
Market Optimism about a US-China Trade Deal Could Be Short-LivedMarket optimism about a US-China trade deal Optimism about a trade deal between the United States and China has been a major driver of the year-to-date rally in the markets. The
Markets Spooked as Yield Curve Inverts for First Time since 2007Flattening of the yield curveA yield curve tracks the yields of Treasury securities maturing at different times. Usually, the yields of securities with higher durations, such as
Reputable billionaire investors such as Jim Simons, Cliff Asness and David Loeb generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won't accept your savings unless you commit at least $5 million) by pinpointing winning […]
The standard play for millions of people saving for retirement is an S&P 500 Index fund, but there are other broad approaches that have performed better than that benchmark. The wildly successful Invesco QQQ Trust is one of the best. The S&P 500 (SPX) is the index that dominates the ETF industry.
On a global basis, trillions of dollars are benchmarked to the S&P 500, the widely-followed gauge of U.S. equities. The hefty sum of capital allocated to S&P 500 stocks is reflected in the world of exchange-traded funds (ETFs).Source: Shutterstock In the U.S. three of the four largest ETFs by assets are S&P 500-tracking funds and all three of those funds are among the few ETFs in the world with $100 billion or more in assets under management. The Vanguard S&P 500 ETF (NYSEARCA:VOO) is one of those funds. With $101.35 billion of assets under management, the VOO ETF is one of the largest ETFs in the world. * 15 Stocks Sitting on Huge Piles of Cash As its name implies, the VOO ETF's "goal is to closely track the index's return, which is considered a gauge of overall U.S. stock returns," according to Vanguard. The VOO ETF "offers high potential for investment growth; share value rises and falls more sharply than that of funds holding bonds," the company stated.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMany investors often look for what they consider to be the "perfect ETF," which is a daunting task because aiming for perfection in the world of ETFs often results in finding moving targets. While it is accurate to say that the Vanguard S&P 500 ETF is a solid ETF, it is not perfect. Like any other fund, VOO has its pluses and minuses. Let's explore some of those. The VOO ETF Is CheapAs has been widely documented, Vanguard ETFs are some of the cheapest on the market, and that label extends to the VOO ETF. The Vanguard S&P 500 ETF's annual expense ratio is just 0.04% per year, or $4 on a $10,000 investment. Just five US-listed ETFs have annual fees of less than 0.04%, so VOO is among the least expensive ETFs in the U.S., regardless of asset class.Additionally, Vanguard clients can trade VOO commission-free, enabling them to save more money. It's LiquidOften, investors look at an ETF's expense ratio and their brokers' commission charges as the only costs they incur when buying and selling ETFs. However, there is more to the game than those elements. When assessing the total cost of ETF ownership, investors should also consider spreads, or the gap between what buyers are willing to pay and what sellers are willing to accept.VOO and rival S&P 500 ETFs have tight spreads, usually around 1 cent, because the S&P 500's most prominent names are large, highly liquid stocks. That helps keep the total cost of ownership low for investors in the Vanguard S&P 500 ETF. It's Representative of the Market As the ETF industry has evolved, so have the weighting methodologies used by fund issuers, but weighting by market value is still the primary index structure. While the S&P 500 ETFs use a variety of weighting measures, the original version of the index, and the version offered by the VOO ETF, is a cap-weighted structure.That means the largest companies have the largest weights in the Vanguard S&P 500 ETF. So the VOO ETF's largest holdings currently are, in order, Microsoft Corp. (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL) and Amazon.com Inc. (NASDAQ:AMZN).Now for some of the VOO ETF's disadvantages. It's Representative of the MarketThis attribute is also a benefit of the Vanguard S&P 500 ETF, but market representation is not what some investors are looking for. One of the primary criticisms of cap-weighted indexes is that these benchmarks can expose investors to the gyrations of highly valued stocks because, as a stock's price climbs, so does its weight in the S&P 500. Said another way, a cap-weighted index like the S&P 500 is based on what already happened, not attempting to anticipate what will happen.Investors who were active in the markets during the dot com crash likely remember that when expensive stocks take over cap-weighted indexes and markets turn awry, things can turn ugly in a hurry. Concentration Risk The VOO ETF is home to just over 500 stocks, and Microsoft, which constitutes 3.70% of the Vanguard S&P 500 ETF, has the largest weight in the index. Plenty of ETFs have components with larger weights than that. However, there is an element of sector-level concentration risk in the S&P and the VOO ETF.There are 11 sectors in the S&P 500, but just three - technology, healthcare and financial services - make up nearly half of the benchmark's weight. Technology alone accounts for 20.59% of the VOO ETF. That's about six percentage points higher than the weight assigned to healthcare. As a result, it is difficult for VOO and its rivals to trade higher when technology stocks falter.As of this writing, Todd Shriber owns shares of VOO. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market's Anniversary Compare Brokers The post Should You Buy the Vanguard S&P 500 ETF? 3 Pros, 2 Cons appeared first on InvestorPlace.
Over the past several years, some of the largest issuers of exchange traded funds, including BlackRock’s iShares and State Street’s SPDR ETFs, have reduced fees on existing ETFs, introduced new low-cost ...
Gundlach: Could US Economic Indicators Be Signaling a Recession?(Continued from Prior Part)Gundlach on government debt Jeffrey Gundlach has long been warning markets about the risk that excess leverage in the system poses. During his annual Just
If you're new to investing, one of the best ways you can dip your toe into the water is to buy a mutual fund or exchange-traded fund (ETF) that invests in all 505 of the S&P 500's stocks. Your first question: What is the S&P 500? Your second question: How come there are 505 stocks, not 500? Both are relatively painless questions to answer.First, the S&P 500 represents 500 of the largest and most established companies listed on a U.S. stock exchange. You're likely familiar with many of the index's constituents. InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe S&P 500's largest company by market capitalization [share price multiplied by number of shares outstanding] is Microsoft (NASDAQ:MSFT) at $825 billion. * 10 Hot Stocks Leading the Market's Blitz Higher Warren Buffett, one of the most successful investors of all time, has said that most investors should simplify their investments to deliver better long-term returns. He put it this way in his 2013 annual letter to shareholders:"My advice [to the trustee] couldn't be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard's.) …I believe the trust's long-term results from this policy will be superior to those attained by most investors -- whether pension funds, institutions or individuals -- who employ high-fee managers."Low costs and few moving parts wins the game in the long run.The second question requires much less legwork. There are 505 stocks in the index because some of the companies, such as Buffett's Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B), have more than one class of shares, which means Berkshire Hathaway counts as two holdings, not one. Simple, right?Now that I've answered the two questions, I better cut to the chase by providing readers with a short list of ways to buy S&P 500 stocks. Option 1 - An Oldie But a Goodie The oldest ETF in the U.S. -- launched in 1993 -- is the SPDR S&P 500 ETF (NYSEARCA:SPY). It also happens to be the biggest with $256 billion in assets. However, remember what Buffett said about low-cost funds. It's not the cheapest of the ETFs tracking the S&P 500 (it charges 9 cents for every $1,000 you invest,) but it is the most popular. Option 2 - The Low-Cost OptionsTwo of the next three-largest U.S.-listed ETFs also invest in every one of the S&P 500 stocks -- the Vanguard S&P 500 ETF (NYSEARCA:VOO) has $101.4 billion in assets and charges 0.04% as does the iShares Core S&P 500 ETF (NYSEARCA:IVV) with $157.6 billion in assets. These each give you plenty of choice when it comes to capturing a significant portion of American equities. Option 3 - Buy Buffett's StockBerkshire Hathaway has often been compared to a very large mutual fund because it owns $200 billion worth of publicly traded stocks, most of them part of the S&P 500.However, in addition to the equities, you get a small piece of hundreds of private companies operating in all kinds of different sectors of the economy. The best part: Buffett won't charge you annual fees to own his fund. He'll just deliver long-term returns that handily beat the S&P 500. From 1965 to 2017, Berkshire Hathaway stock's generated a compound annual growth rate of 20.9%, more than double the S&P 500. The Verdict on Investing in S&P 500 StocksAs Warren Buffett suggests, you ought to do it early and often and at the lowest cost possible.These three options plus mutual funds that track the S&P 500 index (they're slightly more expensive than ETFs) will get the job done while letting you sleep easier at night. As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? * 7 Strong Buy Stocks With Over 20% Upside * 7 Reasons Stock Buybacks Should Be Illegal Compare Brokers The post 3 Different Ways for Newcomers to Buy S&P 500 Stocks appeared first on InvestorPlace.
Larry Puglia explains how he has outperformed benchmarks while running the T. Rowe Price Blue Chip Growth Fund for more than 25 years.
January’s Jobs Report: Analysts' Expectations(Continued from Prior Part)US job additions in DecemberThe US (IVV) (QQQ) non-farm payrolls were at 312,000 for December, which beat economists’ consensus of 180,000 by a huge margin. The major gains
January’s Jobs Report: Analysts' Expectations(Continued from Prior Part)Wage growth in JanuaryWage growth will likely be the most closely watched component of the US (VOO) jobs report. While the other components of the jobs report have shown a