|Bid||0.00 x 1000|
|Ask||0.00 x 1100|
|Day's Range||141.90 - 143.31|
|52 Week Range||119.35 - 151.84|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.03|
|Expense Ratio (net)||0.04%|
Morgan Stanley: ‘Get Defensive’ on Inverted Yield Curve(Continued from Prior Part)Morgan Stanley bearish on S&P 500 Morgan Stanley chief equity strategist Michael Wilson’s year-end target for the S&P 500 (SPY) is among the most bearish
Could Gold Prices Rise as Market Concerns Increase?(Continued from Prior Part)Fed’s dovish stanceThe markets have been cautious since the Fed’s two-day policy meeting ended on March 20. The Fed signaled no rate hike in 2019 and an end to balance
In the investment community, millennials get plenty of attention. Whether it is the wealth millennials stand to one day inherit from their parents, trends tied to the generation's spending habits or the specific investments being embraced by millennials, the generation with birthdays ranging from 1980 to 2000 is on Wall Street's radar in significant fashion.One thing is clear: millennial investors like exchange-traded funds (ETFs). According to a Charles Schwab survey released in June 2018, nine in 10 millennials view ETFs as important to portfolios and a third of those investors have dumped other investments in favor all-ETF portfolios. Even if they're not millennial ETFs specifically, they like investing with these funds."The move is coming at the expense of individual stocks, with more than half of millennials surveyed saying they dumped all their equity holdings for ETFs," according to CNBC.InvestorPlace - Stock Market News, Stock Advice & Trading TipsETFs are an ideal way for other investors to access millennial themes and trends, but investors should note there are important differences between "millennial ETFs," or those that appear geared toward themes tied to this generation, and ETFs millennials themselves like. * 10 Stocks on the Rise Heading Into the Second Quarter Let's take a look at some millennial ETFs as well as some other funds younger investors often embrace. Millennial ETFs: Vanguard Total Stock Market ETF (VTI)Expense Ratio: 0.04%, or $4 per $10,000 invested annually.Millennials' reasons for embracing ETFs are basically the same as the reasons found among other generations. Among other reasons, millennials like having the ability to access a broad basket of stocks under one umbrella at a low cost. The Vanguard Total Stock Market ETF (NYSEARCA:VTI), while not a millennial ETF specifically, checks all of those boxes.With its annual fee of just 0.04%, VTI is cheaper than all but a handful of U.S.-listed ETFs and this Vangurd fund is one of just four ETFs with more than $100 billion in assets under management.VTI holds nearly 3,600 stocks with a median market value of $70.3 billion, but its holdings span the large-, mid- and small-cap segments. The technology and financial services sectors combine for more than 39% of VTI's weight. Invesco QQQ (QQQ)Source: Shutterstock Expense Ratio: 0.2%The Invesco QQQ (NASDAQ:QQQ), the Nasdaq-100 tracking ETF, is not a dedicated millennial ETF either, but like the aforementioned VTI, this is one of the most popular ETFs among "Gen Y" investors. QQQ recently turned 20 years old, meaning some of the older millennials that have been actively following financial markets for significant portions of their lives grew up with QQQ.QQQ has credibility as a millennial ETF because many of the fund's marquee holdings are purveyors of products and services widely used by millennials. Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN) and Facebook (NASDAQ:FB) combine for over 24% of QQQ's weight. * 5 Cloud Stocks to Help Your Portfolio Fly Another reason QQQ has credibility as a millennial ETF is the fund's almost 62% weight to growth stocks. Younger investors can be more heavily allocated to growth stocks than retirement investors because the benefit of time allows younger investors to ride out some of the volatility associated with growth fare. Global X Millennials Thematic ETF (MILN)Expense Ratio: 0.68%As its name implies, the Global X Millennials Thematic ETF (NASDAQ:MILN) is in fact a millennial ETF. MILN, which debuted nearly three years ago, tracks the Indxx Millennials Thematic Index.This millennial ETF's holdings "come from a broad range of categories, including: social media and entertainment, food and dining, clothing and apparel, health and fitness, travel and mobility, education and employment, housing and home goods, and financial services," according to Global X.MILN is heavily exposed to the communication services and consumer discretionary sectors and the fund features plenty of large-cap fare, such as Amazon, Starbucks (NASDAQ:SBUX) and Netflix (NASDAQ:NFLX).While this millennial ETF is performing admirably in 2019 with a gain of over 20%, adoption of the fund has been slow as highlighted by its roughly $35 million in assets under management. ETFMG Alternative Harvest ETF (MJ)Source: Shutterstock Expense Ratio: 0.75%The status of the ETFMG Alternative Harvest ETF (NYSEARCA:MJ) as a millennial ETF should be taken as an implication that all millennials indulge in marijuana. However, data confirm that many millennial ETFs are also thematic ETFs and that Gen Y investors do love MJ.Nearly 36,000 millennial investors on the popular Robinhood investment app are involved with MJ, ranking the fund 46th on that platform, according to Business Insider. * Top 7 Service Sector Stocks That Will Pay You to Own Them Any investor, millennial or otherwise, that bought MJ late last year is loving life right as the fund is up nearly 54% this year, making it one of 2019's best-performing non-leveraged ETFs. Currently, MJ is the only dedicated cannabis fund listed in the U.S. Global X Robotics & Artificial Intelligence ETF (BOTZ)Expense Ratio: 0.68%.Keeping with the theme of thematic ETFs also being millennial ETFs, the Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ) is a hit among Gen Y investors.The fund has almost 17,000 millennial investors on Robinhood, ranking it 88th on the platform, reports Business Insider. Home to $1.58 billion in assets, BOTZ follows the Indxx Global Robotics & Artificial Intelligence Thematic Index and is one of the largest robotics ETFs in the world.BOTZ, which is up 20% this year, makes for an ideal millennial ETF. The fund is levered to fast-growing investment theme with long-term durability, but it is essentially a growth fund with volatility metrics that are significantly higher than the broader market. iShares Core S&P U.S. Growth ETF (IUSG)Expense Ratio: 0.04%As has been noted throughout this piece, millennial investors have the luxury of longer investment horizons, meaning they can and should embrace the growth factor. They can do just that in cost-effective fashion with the iShares Core S&P U.S. Growth ETF (NASDAQ:IUSG).This millennial ETF targets the S&P 900 Growth Index and his home to nearly 540 stocks, giving it a larger roster than S&P 500 Growth Index funds. For a growth ETF, IUSG's volatility metrics are more than tolerable. The fund's three-year standard deviation of just over 12% compares favorably with traditional broader market strategies and value funds. * 7 Small-Cap Stocks That Make the Grade Like many growth funds, IUSG is heavily allocated to some combination of the technology, communication services and consumer discretionary sectors. Those groups combine for over half of IUSG's weight. The fund is up about 14% this year and is one of the most attractively priced growth ETFs on the market. Xtrackers MSCI USA ESG Leaders Equity ETF (USSG)Expense Ratio: 0.1%Millennials are being looked to as important drivers of growth for socially responsible and environmental, social and governance (ESG) funds. If millennials do come calling for ESG funds, the newly minted Xtrackers MSCI USA ESG Leaders Equity ETF (NYSEARCA:USSG) is poised to benefit.USSG debuted earlier this month and is already one of the largest ESG ETFs in the U.S. This millennial ETF is not even two weeks old and it already has nearly $872 million in assets under management, according to issuer data. USSG has the potential to more socially conscious investors with an annual fee that makes it one of the cheapest ESG funds on the market.As is the case with many millennial ETFs, USSG is heavily allocated to tech stocks (30.49%). Among the companies that are often excluded from ESG funds are casino operators, alcohol makers, civilian firearms manufacturers and tobacco companies. Those exclusions are true to form in USSG.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post 7 ETFs for a Millennial Portfolio appeared first on InvestorPlace.
A version of this article was published in the December 2018 issue of Morningstar ETFInvestor. Download a complimentary copy of Morningstar ETFInvestor by visiting the website. Simple, compelling stories tap into our emotions, hijack our ability to think rationally, and persuade us to pursue investments that are unlikely to perform well. The South Sea Company of early 18th century England exemplifies how a well-spun narrative can cause investors to ignore facts and disrupt their ability to make sound investment decisions.
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 ...
When Warren Buffett’s annual letter to Berkshire Hathaway shareholders was published last weekend, media coverage focused on the chairman and CEO’s mea culpaabout Berkshire’s investment in Kraft Heinz (KHC) his lament that he couldn’t find the next big investment to buy, the accounting change that caused Berkshire to take a $20 billion write-down, and, once again, his failure to announce any formal succession plans even though Buffett is 88 years old and Vice Chairman Charlie Munger is 95. Todd Combs and Ted Wechsler joined Berkshire as investment managers within a year of each other in 2011-2012. “Overall, they are a tiny bit behind the S&P (SPX) each by just almost the same margin over the same time,” Buffett told Quick.
Fidelity Investments rocked the investment world last August with its bombshell offer of zero-fee index funds. In the race to the management fee bottom, Fidelity changed the game. But, there's more to this move than meets the eye.Source: Shutterstock Fidelity offers three zero management expense ratio funds and many zero minimum investment amount funds. Fidelity's No-Fee Index Fund FactsFidelity ZERO Large Cap Index (NASDAQ:FNILX) targets the returns of the large-cap U.S. equity market. The fund has no minimum investment requirement, unlike competitor Vanguard. The fund does not charge a fund management fee.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFidelity ZERO Total Market Index (NASDAQ:FZROX) seeks to provide returns commensurate with the total U.S. stock market. This fund also has no minimum investment requirement or fund management fees.The third no-management-fee fund is Fidelity ZERO International Index (NASDAQ:FZILX). This fund seeks to replicate the returns of both developed and developing international stocks. As is the case with the other two ZERO funds, this one also has no management fees or investment minimums. Familiar Names in PortfoliosLarge cap-focused FNILX holds names such as Apple (NASDAQ:AAPL), Berkshire Hathaway (NYSE:BRK-B) and Johnson & Johnson (NYSE:JNJ) among the portfolio's top five positions, as of Dec. 31. The 506-stock fund is up 11.94% in 2019, compared to the S&P 500 index's 11.4% gain.In contrast, FZROX holds a much larger range of equities, some 2,500, in its portfolio. The fund's value has increased 12.64% this year. * 7 IPOs to Get Excited for in 2019 FZILX, with its international focus, has a portfolio that's heavy in financial and industrials stocks, with those two sectors making up a combined 32.24% of its 2,295 holdings. The top 10 holdings include HSBC Holdings PLC and Alibaba (NYSE:BABA). Developed markets stocks accounted for about 70% of the portfolio, while emerging markets represented 23% of the holdings. The fund is up 10.15% year to date. How Can Fidelity Afford to Offer Zero Management Fee Funds?It's just common sense that if there's zero management fee, then there's no way to make money. Or is there?Sometimes the goal isn't solely to make money.Fidelity can build a relationship with valuable younger investors, who may ultimately invest in other, more lucrative Fidelity funds and products. Nobel economics laureate Richard Thaler and his co-author Cass Sunstein write in Nudge: Improving Decisions About Health, Wealth, and Happiness about how inertia keeps most people from acting. So, once these young investors are in the Fidelity system, it's likely that they'll remain.Consider these Fidelity No Fee Funds like a loss leader. The grocery offers a discounted item -- such as a gallon of milk -- to get you in the store. Once you're in, it's likely you'll buy other items with higher margins and net a profit for the grocery store. Are Fidelity's Zero-Fee Funds Good Investments?Fees are important, but so is performance. There are a sea of index-mimicking large-cap U.S., total market U.S., and international stock funds. Most benchmark their returns against well-known gauges like the S&P 500.To keep costs down, Fidelity is avoiding the typical licensing fee for a common index fund benchmark. Instead the firm created their own benchmarks -- The Fidelity U.S. Total Investable Market index and others. * 10 Blue-Chip Stocks to Lead the Market But the real question is performance. You can invest in the Vanguard Total Stock Market ETF (NYSEArca:VTI) for 0.04% or 40 cents annually per $1,000 invested. This tiny expense ratio would be worth it if the Vanguard fund outperforms Fidelity's.So, before jumping into these new free index funds, wait until performance information is out. Then if returns are comparable with other low-fee index funds, by all means, go for the Fidelity funds. Consider Tax ConsequencesBefore you jump in with both feet and gobble up these enticing zero-fee index funds, think about the tax consequences. If you need to sell other assets in order to purchase the Fidelity funds, be aware of your cost basis. If you incur taxable gains after selling existing assets to free up capital for the new purchases, it might not be worth it.For example, if you have a specific percentage of your assets in VTI with a 40% gain, then you'll have to pay taxes on that gain in the year that you sell.And, if you sell existing assets for a loss, before deploying the proceeds in a Fidelity zero-fee fund, review the wash sale rules. You must wait 30 days after selling an asset for a loss before buying a similar asset. So, don't sell VTI for a loss and turn around and buy Fidelity ZERO Total Market Index fund, because the loss will likely be denied, and you'll have to add the loss to the cost of the new fund purchase. Fidelity's New Zero-Fee Funds Worth it?It depends. If returns are comparable or better to similar index funds, then sure, buy in. Just remain aware of the tax implications.Today, investment fees have declined so much that it's easy to keep costs down when investing passively in index funds. Even managed accounts like the FidelityGo robo-advisor option allow investors to grow their wealth without forking over huge fund management fees. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Consumer Stocks to Buy and Hold for Years * 4 China Stocks Soaring on Trade Hopes * 3 Esports Stocks to Benefit From the Boom Compare Brokers The post Fidelityas No-Fee Index Funds -- Are They Worth it? appeared first on InvestorPlace.
Buffett versus Dalio on Gold: Whose Advice Should You Take?(Continued from Prior Part)Fed to let inflation overshoot target? The Federal Reserve has two main objectives: price stability and maximizing employment. Its inflation objective has been 2%
Online lender known as SoFi is close to launching two ETFs that will waive entire management fees for at least in their first year of operation.
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.
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Where Druckenmiller Suggests Investing amid Market Fluctuation(Continued from Prior Part)Stanley Druckenmiller’s adviceStanley Druckenmiller shared his views on markets and the economy with Bloomberg TV in December. While the market environment
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Will Iron Ore Breach $100 in the Wake of Vale's Dam Collapse?(Continued from Prior Part)Iron ore prices and mill margins So far in this series, we’ve discussed how Vale’s (VALE) dam disaster has breathed new life into iron ore and why this could