|Bid||135.32 x 1000|
|Ask||136.77 x 1100|
|Day's Range||135.38 - 138.08|
|52 Week Range||120.37 - 139.41|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-0.64%|
|Beta (5Y Monthly)||1.12|
|Expense Ratio (net)||0.07%|
With over $4 trillion in domestic assets allocated to exchange traded funds and more than 2,000 exchange traded products (ETFs and ETNs) trading on U.S. exchanges, its fair to say plenty of investors are embracing ETFs.Data also confirm the ETF market is booming. Bank of America recently said the ETF industry could top a stunning $50 trillion by 2030."The current growth rate points to ETF assets approaching $50tn over the next decade driven by a continued move to passive and increased awareness of the attractive tax efficiency, cost, liquidity and transparency characteristics of ETFs," BofA said in a note out in December.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOf course, there are plenty of good ETFs out there and some that could prove to be regrettable choices, regardless of how long they've been in the game. * 9 Boring Stocks to Buy You Should Never Let Go Of For investors new to the world of ETFs, here are some of the best funds to consider. Invesco QQQ (QQQ)Source: Shutterstock Expense ratio: 0.20% per year, or $20 on a $10,000 investment.Home to $87 billion in assets under management, the Invesco QQQ (NASDAQ:QQQ) is one of the world's largest ETFs that doesn't hail from the iShares or Vanguard families. QQQ is one of the best funds for new ETF investors, particularly those on the younger side with long time horizons, because it offers broad-based, cost-effective exposure to many storied communication services and technology companies.For example, QQQ allocates over 30% of its combined weight to Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). With a 47.30% weight to tech stocks, QQQ is one of the best funds for investors that want to overweight that sector with the commitment of a dedicated technology ETF.Then there is the long-term performance of the Nasdaq-100 Index, which, to put things simply, has been jaw-dropping.As of Dec. 13, 2019, "on a cumulative price return basis, the NASDAQ-100 Index has returned almost 6,673.51% since inception (January 1985), although past performance is not indicative of future performance," according to Nasdaq. Vanguard Small-Cap Value ETF (VBR)Source: Shutterstock Expense ratio: 0.07%Conventional wisdom often dictates that for new investors, the best funds are broad market ETFs and index funds that feature exposure to a massive number of stocks. That wisdom usually says there's small-cap exposure in those funds. That's correct, but total market funds typically generate returns that are comparable to the S&P 500 or Russell 1000 indexes because smaller stocks have tiny weights in those products.What that means is that investors should isolate the size factor and do it in cost-effective fashion with ETFs such as the Vanguard Small-Cap Value ETF (NYSEARCA:VBR). A slew of academic and industry research supports the notion that not only do small caps outperform larger stocks over time, but that small-cap value beats small-cap growth."Findings show that the size effect has been concentrated in the month of January and that small-cap stocks are riskier than large-cap stocks," according to the Journal of Financial Planning. "There is economic logic to suggest the small-cap outperformance evidences a risk premium. Small value has outperformed small growth stocks on an absolute basis."The $14.4 billion VBR is one of the best funds for investors looking to address the small-cap value proposition and features a deep bench of 854 stocks. This Vanguard product allocates a combined 57.4% of its weight to financial services and industrial stocks. * 7 Dividend Stocks to Buy to Kick Off the New Year With smaller and value stocks having lagged for several years, VBR could be one of the best funds for investors of all stripes to consider in 2020, assuming value stocks get their respective acts in gear. iShares Core MSCI Emerging Markets ETF (IEMG)Source: Shutterstock Expense ratio: 0.14%New investors, particularly those with time on their side, should embrace emerging markets equities, an asset class that spent much of the last decade lagging U.S. equities. Some market participants are wagering that trend will reverse, perhaps as soon as this year, indicating that the cost-effective iShares Core MSCI Emerging Markets ETF (NYSEARCA:IEMG) merits consideration.Even as emerging markets lagged, IEMG has been one of the most prolific asset-gathering ETFs over the past several years, becoming the second-largest fund in its respective category. The nearly $62 billion IEMG holds almost 2,500 stocks, making it one of the best funds when it comes to emerging markets diversification, at least at the components level.Geographically speaking, IEMG presents some concentration risk as China, Taiwan and South Korea combine for 56% of the fund's weight. Fortunately, President Donald Trump appears intent on repairing the trade relationship with China and the Fed Reserve is unlikely to raise rates in 2020."A final issue for so-called emerging markets will be their equity market valuations," reports the South China Morning Post. "As matters stand, emerging-market equities are generally inexpensive - and, by some measures, quite attractive - relative to equity and bond markets globally. If Trump decides to play nice, the Fed remains a benign influence and China stabilises its annual growth rate just below 6 per cent, emerging-market equities could do rather well in 2020."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 Dividend Stocks to Buy to Kick Off the New Year * 7 Buyout Targets to Watch For 2020 * 9 Boring Stocks to Buy You Should Never Let Go Of The post 3 Great Funds for New ETF Investors appeared first on InvestorPlace.
Recent macroeconomic developments, escalating geopolitical tensions and historical data point to a surge in stock prices of small companies Continue reading...
As the S&P 500 and Nasdaq Composite climbed to new highs on Monday, it was the lesser-known Russell 2000 index that reached a new 52-week high. The fund employs an indexing investment approach designed to track the performance of the CRSP US Small Cap Growth Index, a broadly diversified index of growth stocks of small U.S. companies.
Small-cap stocks and ETFs are coming off impressive performances in September, but with October’s reputation for equity market volatility, some investors may shy away from the asset class. With the help ...
Investors use index funds for various strategies like capitalizing on a market rotation. For them, today marks the debut of five new Fidelity mutual funds.
The first aspect to touch upon was the limitations of a market cap weighted index, which would then warrant the need for smart beta and factor strategies. While these indexes provided simple, low-cost solutions, the need for even greater scrutiny is necessary in the quest for more alpha —a case for smart beta. In addition, the simplicity of buying a broad-based market index has a concentration of risk, and should a market correction ensue comparable to that witnessed in the fourth quarter, investors are left vulnerable.
There are some certainties when it comes to retirement investing and planning. Chief among those certainties is that investors should not put off saving for retirement. The earlier an investor starts, say in his or her 20s, the larger the retirement portfolio is likely to be given the benefit of time. Second, instruments such as exchange-traded funds (ETFs) and index funds make for ideal retirement planning investments because many of those funds carry low fees. In addition to the diversification benefits offered by many index funds, those low fees matter over time. The less an investor loses in fund fees, the more of his or her total returns are kept. Another retirement planning certainty is that Vanguard funds, be it ETFs or index funds, are great cornerstones of retirement portfolios because many of these funds offer diversification at attractive price points. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 High-Yield Monthly Dividend Stocks Here are some of the best Vanguard retirement funds for consideration by young investors. ### Vanguard Mega-Cap Growth ETF (MGK) Expense Ratio: 0.07%, or $7 annually per $10,000 invested Vanguard Mega-Cap Growth ETF (NYSEARCA:MGK) is one of the best Vanguard retirement funds for young investors for several reasons. One of those reasons is that an investor in her 20s, with a long-term time horizon, can withstand some of the gyrations associated with growth stocks. On the other hand, the MGK probably is not suitable for an investor in his 70s. Data confirm growth stocks are usually more volatile than the broader market. Last year, MGK was 300 basis points more volatile than the S&P 500 and 280 basis points more volatile than the Vanguard Mega Cap ETF (NYSEARCA:MGC), this Vanguard retirement fund's broader counterpart. Many growth funds, including MGK, are heavily allocated to the consumer discretionary and technology sectors, meaning this Vanguard retirement fund is a suitable alternative for investors that do not want to tap sector-specific products. Technology and consumer cyclical names combine for almost 55% of MGK's weight. Top 10 holdings in this Vanguard retirement fund include Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN). ### Vanguard Small-Cap Value ETF (VBR) Expense Ratio: 0.07% The Vanguard Small-Cap Value ETF (NYSEARCA:VBR) is a standout among Vanguard retirement funds because there is significant long-term potency in combining the small size and value factors. Historical data confirm the usefulness of VBR as a solid Vanguard retirement fund option. "From 1928 through 2016, the S&P 500 index compounded at 9.7%, while small-cap value stocks grew at 13.5%," according to MarketWatch. VBR holds 868 stocks, giving it a deep bench relative to some other factor-based small-cap strategies. Some of the volatility associated with small caps is mitigated with this Vanguard retirement fund because, with a median market capitalization of $3.3 billion among its holdings, VBR is actually a mid-cap fund. * 10 Stocks to Sell in February VBR devotes over 54% of its combined weight to the financial services and industrial sectors. ### Vanguard International Dividend Appreciation ETF (VIGI) Expense Ratio: 0.25% International stocks or funds should be a part of well-balanced portfolios, particularly for younger investors because investors in their 20s have time on their side, meaning they can endure some of the volatility that comes with ex-U.S. investing while waiting for some of these markets to rebound after years of disappointment. As its name indicates, the Vanguard International Dividend Appreciation ETF (NASDAQ:VIGI) is a dividend ETF, which bolsters VIGI's credibility as one of the better Vanguard retirement funds. Younger investors do not need to take the dividends paid by VIGI. Rather, they can reinvest those payouts. When done over the long-term, dividend reinvestment plays a major, positive role in long-term total returns. The $1 billion VIGI holds 357 stocks, nearly 28% of which are emerging markets names. Europe is this Vanguard retirement fund's largest regional exposure at 49.10%. Over the past two years, VIGI is beating the MSCI All-Country Ex-US Index by nearly 400 basis points while displaying comparable volatility to that international benchmark. As of this writing, Todd Shriber did not own a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 of the Best Stocks to Buy for a Dovish Federal Reserve * 5 Best Fidelity ETFs for Retirement Savers * 7 Blue-Chip Stocks That Could Lead the Market Higher Compare Brokers The post The 3 Best Vanguard Retirement Funds to Buy in Your 20s appeared first on InvestorPlace.
Note: This article is part of Morningstar's 2019 Portfolio Tuneup week. The largest ETFs are utilitarian index trackers covering broad swaths of the market, just as traditional funds do. The cost advantage that can accompany ETFs (or traditional index funds) can also be a boon to conservative investors.