42.99 +0.24 (0.56%)
After hours: 5:06PM EDT
|Bid||42.10 x 1300|
|Ask||43.19 x 29200|
|Day's Range||42.69 - 43.06|
|52 Week Range||36.35 - 44.19|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.05|
|Expense Ratio (net)||0.12%|
There are now scores of cheap ETFs and by all accounts, investors love these products. Honing in on a specific fee range, even when excluding the two ETFs that do not have annual fees, there are 100 ETFs in the U.S. with expense ratios of 0.02%, or $2 on a $10,000 investment, to 0.08%. That's a lot of cheap ETFs.Seductive as cheap ETFs may be, investors owe it to themselves to approach these funds with discerning eyes. Remember, there is a difference between value and value traps. Said another way, not all cheap ETFs are good ETFs. Likewise, there are some expensive ETFs that merit their high fees.It is a slippery slope for investors. Scores of academic research and data points confirm that over the long term, saving on fees can have a meaningful impact on total returns. What investors need to weigh is saving with a cheap ETF really worth it if there is a better option with a higher fee out there.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn other words, if Fund A costs 0.05% per year and averages annual returns of 5%, but Fund B costs 0.30% a year and averages annual returns of 10%, simple math says Fund B is the better bet. * 7 Restaurant Stocks to Put on Your Plate With that in mind, here are some cheap ETFs that have better, but pricier rivals. Schwab U.S. Large-Cap Value ETF (SCHV)Source: GotCredit via Flickr (Modified)Expense ratio: 0.04% per year, or $4 on a $10,000 investment.The Schwab U.S. Large-Cap Value ETF (NYSEARCA:SCHV) is one of the cheapest ETFs in the value arena. Plus, Schwab clients can realize additional savings because the brokerage allows clients to trade its ETFs (and hundreds of others) commission-free.On a standalone basis, SCHV is not a bad cheap ETF. It is up 34.4% over the past three years, an admirable showing considering the struggles of value stocks over the course of this bull market. SCHV's strategy is easy to understand and the fund is appropriate for new and conservative investors alike. So there are plenty of benefits with this fund.However, it is hard to endorse this cheap ETF knowing that the iShares Edge MSCI USA Value Factor ETF (CBOE:VLUE) is out there. VLUE charges 0.15% per year, still decent among smart beta strategies, and the iShares fund has consistently outperformed SCHV by a wide enough margin that the cheaper ETF's fee is rendered moot. Vanguard FTSE Emerging Markets ETF (VWO)Source: Shutterstock Expense ratio: 0.12%Home to $61.3 billion in assets under management, the Vanguard FTSE Emerging Markets ETF (NYSEARCA:VWO) is the largest emerging markets fund in the world. It is also a cheap ETF. For emerging markets investors, there is a lot to like with VWO. It holds over 4,600 stocks and offers exposure to dozens of developing economies, through China is taking on increased prominence in this fund.As is the case with the aforementioned SCHV, VWO is not a bad cheap ETF per se. The rub with this fund is that there are more compelling options out there with higher price tags. Moreover, at least one of those funds is outperforming VWO by a wide enough margin that the higher fee is warranted.The JPMorgan Diversified Return Emerging Markets Equity ETF (NYSEARCA:JPEM) is a multi-factor fund that charges 0.45% per year. That fund's "index uses a multi-factor stock screening process that has historically driven strong performance," according to the issuer. * 7 Stocks on Sale the Insiders Are Buying Over the past three years, JPEM has outpaced VWO by 360 basis points with less volatility. iShares Core S&P Mid-Cap ETF (IJH)Source: Shutterstock Expense ratio: 0.07%The iShares Core S&P Mid-Cap ETF (NYSEARCA:IJH) is a cheap ETF avenue to mid-cap stocks. Its straight forward approach (it tracks the S&P MidCap 400 Index), coupled with its low fee, make it an appealing avenue to an often overlooked corner of the equity market.In fact, IJH is one of the cheapest ETFs in the mid-cap space and some competing funds that track the same index have significantly higher fees. The quibble with IJH is that there are better-performing options out there with higher fees, some of which also have significantly lower volatility than IJH.Sure, the Invesco S&P MidCap Low Volatility ETF (NYSEARCA:XMLV) charges 0.25% per year, but over the past three years, the fund has been almost 300 basis points less volatile than IJH while outperforming the cheap ETF by more than 800 basis points. iShares National Muni Bond ETF (MUB)Source: Shutterstock Expense ratio: 0.07%When shopping for a traditional municipal bond fund, investors should seek a broad, high-quality cheap ETF. The iShares National Muni Bond ETF (NYSEARCA:MUB). Thing is many cheap ETFs in the municipal bond space seem like they are intended for ultra-conservative investors that simply want a vehicle with steady income and slightly higher yields than cash instruments.Because the VanEck Vectors Municipal Allocation ETF (CBOE:MAAX) is a new fund (it debuted last month), weighing its past performance against MUB and other cheap ETFs in this space is currently impossible. The comparison here is more about potential. * 7 One-Stock Portfolios for Passive Investors MAAX charges 0.36% per year and because it holds other VanEck municipal bond ETFs, its roster is not only massive in terms of issues, the new ETF also spans durations and features a wide arrange of credit opportunities, both investment-grade and junk. Features like that are not found on many cheap muni ETFs. Schwab U.S. Dividend Equity ETF (SCHD)Source: Shutterstock Expense ratio: 0.06%There are plenty of cheap ETFs in the dividend realm and the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) is one of those funds. SCHD has attracted a following in part to its low fee and its emphasis on domestic stocks that have dividend increase streaks of at least 10 years. Overall, this a sound, cost-effective fund for dividend investors.Those willing to jump up in fees, however, could be rewarded by the WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW), which we highlighted here earlier this month. At that time, we noted DGRW's underlying index emphasizes "both ROE and return on assets (ROA) as part of the selection requirements. Using ROA as a screening criterion penalizes firms using leverage to drive ROE," said WisdomTree.Over the past three years, DGRW, which pays a monthly dividend, has topped the cheap ETF SCHD by almost 700 basis points.Todd Shriber owns shares of DGRW and VWO More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks to Buy and Hold Forever * 10 Small-Cap Stocks That Look Like Bargains * 10 Names That Are Screaming Stocks to Buy The post 5 Cheap ETFs That Aren't Actually a Good Value appeared first on InvestorPlace.
Some of those funds will soon see increased China exposure as A-shares stocks join FTSE Russell benchmarks. This month, the index provider is starting its previously announced effort to include the stocks trading on mainland China in some of its widely followed international indexes. “China A Shares have been added to the FTSE Emerging Index as of Monday June 24th, 2019,” said FTSE Russell in a statement out Monday.
Ongoing U.S.-China trade tensions saw investors flee emerging markets stocks in May. Play for a bounce using these three ETFs.
Is an exchange-traded fund with lots of assets necessarily a desirable one? If every ETF ends up holding comparably sized portions of this petrochemicals multinational and that internet search company, the less opportunity there is for the investor to enjoy returns that beat the market. The SPDR S&P 500 (SPY) from State Street Global Advisors was created in 1993 – making it also the oldest ETF in the United States – and, as its name indicates, contains proportionate holdings of each of the issues listed on the Standard & Poor’s 500 index.
Several months ago, State Street Corporation's (STT) State Street Global Advisors (SSgA), the third largest U.S. issuer of exchange-traded funds (ETFs), made its presence felt in the ongoing ETF fee battle in significant fashion. The SPDR Portfolio ETFs, which SSgA debuted in October, are a suite of 15 previously existing SPDR ETFs that now carry ultra-low fees.
FTSE Russell has officially incorporated China A Shares into its global equity benchmarks, including the widely observed FTSE Emerging Index, which serves as a benchmark for one of the most popular emerging market-related exchange traded funds. "As a result of ongoing enhancements to market access, governance standards and regulation, China A Shares have now been included in FTSE Russell’s global equity benchmarks," according to a FTSE Russell note. On June 24, mainland China listed companies, or China A Shares, will be included in FTSE Global Equity Index Series (GEIS).
With rising expectations of a Federal Reserve interest rate cut, developing country central banks have more room to cut their own benchmark rates and stimulate their economies, potentially bolstering emerging market-related exchange traded funds. Year-to-date, the iShares Core MSCI Emerging Markets ETF (IEMG) rose 6.3% and Vanguard FTSE Emerging Markets ETF (VWO) gained 8.5%. Supporting the emerging market outlook, central banks are beginning to loosen their monetary policies, with Russia the latest example.
When it comes to building a portfolio, Vanguard ETFs and funds are often the top draws for investors. And there's a good reason for that. The firm and investment pioneer John Bogle created the idea of the index fund back in the 1970s. Moreover, the asset manager's philosophy stems from low-cost investing. So, naturally, Vanguard ETFs are some of the least expensive funds to own. When putting all the pieces together, it becomes really easy to see why Vanguard ETFs have attracted billions of dollars' worth of assets from investors both big and small.The question is which Vanguard funds make sense for you?The firm has a line-up of 80 different ETFs and the bulk of those offerings can be a bit heavy. For example, the Vanguard S&P 500 ETF (NYSEArca:VOO) holds more than $106 billion in assets, while the Vanguard FTSE Emerging Markets ETF (NYSEArca:VWO) holds roughly $62 billion. As a result, just a few Vanguard ETFs get most of the press. That's a shame as the firm's low-cost and index-hugging mantra extends to the rest of its ETF line-up as well.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Biggest Announcements From Apple WWDC 2019 With that, here are three wonderful, but commonly overlooked Vanguard ETFs that should be right at home in your portfolio. Vanguard Extended Market ETF (VXF)Source: Shutterstock Over the long haul, small- and mid-cap stocks have long outperformed their bigger counterparts. However, most investors still remain woefully underweight smaller stocks and finding successful individual winners here can be incredibly difficult. This is where Vanguard ETFs can come to the rescue.The Vanguard Extended Market ETF (NYSEARCA:VXF) allows investors to tap into both small- and mid-cap stocks at the same time with one ticker. VXF tracks the S&P Completion Index. As the name implies, the fund owns everything that isn't in the large-cap focused S&P 500. And we're talking literally everything. VXF currently holds more than 3,260 different small- and mid-cap stocks. When you combine the fund with large-cap holdings, you basically have the U.S. stock market covered. The best part is, by using this ETF, the volatility and single-company risks are minimized to almost zero. With it, investors can instantly overweight the economies real growth engines.It turns out this is a powerful thing to do.When it comes to Vanguard ETFs, VXF has been a top performer. Over the last ten years, the fund has averaged a 16.61% annual total return. That's not too shabby by any means. And as a Vanguard fund, VXF is pretty cheap to own. Expenses for the ETF clock in at just 0.07%- or just $7 per $10,000 invested.In the end, VXF does everything a Vanguard ETF should do. That's broad indexing a rock-bottom price. Vanguard Mortgage-Backed Securities ETF (VMBS)Source: Grab Media When it comes to bonds, Treasury securities are often the first stop for investors and there are plenty of Vanguard ETFs looking at these. However, there is a way to get a slightly higher yield and still keep that government guarantee. We're talking about mortgage-back securities or MBS bonds.Mortgage-backed securities are bonds secured by home and other real estate loans. There are all different flavors of these, but the vast bulk of them are residential-focused and issued by federal government agencies like Ginnie Mae (GNMA) or government sponsored-enterprises Fannie Mae (FNMA), or Freddie Mac (FHLMC). Moreover, MBS bonds typically pay slightly more than comparable Treasury bonds thanks to the higher risk that you or I could default on our mortgages or pay them back earlier. However, GNMA bonds are backed by the full faith and credit of the U.S. government, while the recession taught us that the government will bail out Freddie and Fannie when the water's get rough.With that, the Vanguard Mortgage-Backed Securities ETF (NYSEARCA:VMBS) could be a good bet for investors looking for a bit more. VMBS tracks Bloomberg Barclays U.S. Mortgage-Backed Securities Float Adjusted Index -- which only focuses on U.S. agency mortgage bonds. None of the funny stuff. As a result, the ETF has been pretty steadfast since inception and yields a healthy 3.02%. * The 10 Best Stocks for 2019 -- So Far By using the Vanguard ETF, investors can get access to an esoteric asset class for a cheap 0.07% in expenses. Vanguard International Dividend Appreciation ETF (VIGI)Source: Shutterstock With $34 billion in assets, the Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) is a star player among Vanguard ETFs. VIG follows those stocks that have long histories of increasing their dividends every year. This strategy provides a way for investors to grow their income potential and provides with great long-term returns.But it's not U.S. stocks that benefit from growing dividends, international ones also win here.Which is why the smaller and often ignored Vanguard International Dividend Appreciation ETF (NYSEARCA:VIGI) can be a great compliment to the more popular VIG.VIGI also tracks a basket of large-cap stocks that have increased their dividends consistently over the last seven years. This time, the ETF combs both non-U.S. developed and emerging markets to find its dividend champions -- currently at a 75%/25% spilt between developed and emerging market stocks. The top 400 stocks are included in the index.This provides a way for investors to not only score some much-needed international exposure but also income growth as well. Currently, VIGI yields about 1.89%. However, that yield could be worth even more over the long haul. As foreign currencies fluctuate against the U.S. dollar, a drop in the dollar would boost the Vanguard ETFs underlying yield, as weaker local currencies convert into the stronger dollar.All in all, VIGI should belong in your portfolio just as much as VIG. Expenses run a cheap 0.25%.Disclosure: At the time of writing, Aaron Levitt did not hold a position in any of the ETFs mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Retailers Including Disney Agree to Ditch On-Call Scheduling * The 10 Best Stocks for 2019 -- So Far * 7 Small-Cap ETFs to Buy Now Compare Brokers The post 3 Wonderful, But Ignored Vanguard ETFs appeared first on InvestorPlace.
Emerging market exchange traded funds have shrugged off the trade war concerns that continued to weigh on U.S. markets. Over the past week, the iShares Core MSCI Emerging Markets ETF (NYSEArca: IEMG) rose ...
FTSE Russell, one of the largest providers of indexes for use by issuers of exchange traded funds, said the trade war between the U.S. and China will not impact its effort to add China's A-shares to its international benchmarks next month. Last September, FTSE Russell lifted China A-shares to emerging markets status. A-shares are the Chinese stocks trading on mainland exchanges in Shanghai and Shenzhen.
Below is a look at ETFs that currently offer attractive buying opportunities. The ETFs included in this list are rated as buy candidates for two reasons. First, each of these funds is deemed to be in an uptrend based on the fact that its 50-day moving average is above its 200-day moving average, which are popular indicators for gauging long-term and medium-term trends, respectively. Second, each of these ETFs is also trading below its five-day moving average, thereby offering a near-term 'buy on the dip' opportunity, given the longer-term uptrend at hand. Note that this prospects list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.
Can Dalio's Bridgewater Repeat Its Outperformance in 2019?Bridgewater AssociatesBridgewater Associates, the largest hedge fund in the world, had 303 positions at the end of the first quarter. Most of the fund is dominated by ETFs. The fund’s top
Bridgewater Associates is one of the world’s biggest hedge funds, launched and managed by one of the wealthiest investors in the world, renowned billionaire Ray Dalio. He actually founded the fund when he was very young – 26 years, which was back in 1975. And it all happened out of his two-bedroom apartment. Interestingly, his […]
Investors don’t need to be reminded of the risks of emerging market stocks. In the past 10 years, the SPDR S&P 500 exchange traded fund (SPY) which mirrors the benchmark S&P 500 Index (SPX) of the largest U.S. stocks, has produced total gains of 290%. Vanguard’s FTSE Emerging Markets exchange traded fund (VWO) over the same period: 80%.
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