|Bid||0.00 x 1000|
|Ask||0.00 x 1200|
|Day's Range||51.29 - 52.22|
|52 Week Range||49.13 - 56.56|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.91|
|Expense Ratio (net)||0.45%|
While the universe of smart beta exchange traded funds continues growing, emerging markets stocks are not as represented in this space as are developed markets equivalents. The JPMorgan Diversified Return ...
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.
With the capital markets turning the page on the first quarter of 2019, investors are regaining their confidence from a rebound in the capital markets after a tumultuous end to 2018. Heading into the early beginnings of Q2, it’s necessary for investors to remain strategic when it comes to deploying capital in the current market environment, especially with respect to selecting exchange-traded funds (ETFs) for their portfolios.
The adage of “change is the only constant” is certainly applicable to the exchange-traded fund (ETF) space. As the number of ETFs continue to grow at a rapid pace, it opens up the arena for innovation in order for issuers to discern themselves and their products from the masses.
With the capital markets turning the page on the first quarter of 2019, investors are regaining their confidence from a rebound in the capital markets after a tumultuous end to 2018. Heading into the early beginnings of Q2, it's necessary for investors to remain strategic when it comes to deploying capital in the current market environment, especially with respect to selecting exchange-traded funds (ETFs) for their portfolios.
The adage of "change is the only constant" is certainly applicable to the exchange-traded fund (ETF) space. Gone are the days when ETFs like the SPDR S&P 500 ETF (SPY) for U.S. equities and the iShares Core US Aggregate Bond ETF (AGG) for fixed income was all an investor needed to gain broad-based exposure to the markets. "What I think it means for advisors who are building portfolios is you need more in your toolkit for that kind of environment, both on the, as we've talked about, declining return expectations, but also, the reality of volatility," said Dahya.
The developing markets have been whipsawed by a mix of a strong dollar, rising interest rates and trade concerns. The Vanguard FTSE Emerging Markets ETF (VWO) fell 9.3%, iShares Core MSCI Emerging Markets ETF (IEMG) dropped 8.9% and JPMorgan Diversified Return Emerging Markets Equity ETF (JPEM) declined 6.1% so far this year. J.P. Morgan's Nicolas Aguzin argued that if you're a long-term, strategic investor, it's worth looking at emerging market returns, pointing to positive fundamentals but adding that valuations could still fall further due to market sentiment and the perception of trouble, CNBC reports.