|Bid||52.82 x 800|
|Ask||52.83 x 1100|
|Day's Range||52.77 - 53.36|
|52 Week Range||42.11 - 53.65|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||21.72%|
|Beta (3Y Monthly)||0.69|
|Expense Ratio (net)||0.25%|
After a recent series of new highs, Wall Street retreated on a doubt over trade deal that has undermined bullish sentiments. As such, investors could consider low volatility ETFs.
As the ETF universe continues to expand, U.S. markets are seeing greater interest and adoption in smart beta or factor-based ETF strategies.
As investors look for ways to better manage risk and diversify their investment portfolios, more are considering smart beta or factor-based exchange traded funds.
The S&P 500 so far this month is lower by 1.7%. It seems like investors may still be debating the efficacy of the "sell in May and go away" strategy this year. But what is clear is that, particularly amid ongoing global trade tensions, there are good reasons to consider exchange traded funds that reside on the more conservative end of the risk spectrum.Predictably, many investors think some of the best ETFs for going conservative are fixed-income funds, but the reality is some of the best ETFs for turbulent times can span multiple asset classes, including bonds, stocks and more.Importantly, many of the best ETFs for rocky market environments also perform well over long holding periods. A variety of research points indicate the low-volatility factor delivers for long-term investors, and there are plenty of calls for the moribund value factor to regain its form.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Safe Stocks to Buy for Anxious Investors Those points and more potentially bode well for some of the best ETFs for conservative investors. Here are some of those funds to consider. VanEck Vectors Municipal Allocation ETF (MAAX)Expense Ratio: 0.36% per year, or $36 on a $10,000 investment.Having debuted just last week, the VanEck Vectors Municipal Allocation ETF (NYSEAMERICAN:MAAX) is the newest fund highlighted here. Rookie status aside, MAAX is one of the best ETFs for conservative, income-hungry investors to consider. There are multiple advantages to owning municipal bonds, including steady levels of income, tax breaks and usually benign credit risk.MAAX is also one of the best ETFs for investors seeking exposure to a massive roster of municipal bonds. This new fund is an ETF of ETFs, made up of other VanEck municipal bond ETFs. MAAX currently holds four of the established VanEck municipal bond ETFs and allocates just over 70% of its weight to the VanEck Vectors High-Yield Municipal Index ETF (CBOE:HYD) and the VanEck Vectors AMT-Free Long Municipal Index ETF (CBOE:MLN).MAAX has an effective duration of 7.37 years and a yield to worst of 3.25%. Overall, this new ETF features exposure to nearly 5,900 bonds. iShares Core Conservative Allocation ETF (AOK)Expense Ratio: 0.25%The iShares Core Conservative Allocation ETF (NYSEARCA:AOK) is one of the best ETFs for prudent investors to consider and not just because "conservative" is in the fund's name. AOK is a multi-asset fund that targets the S&P Target Risk Conservative Index and uses the ETF of ETFs structure used by the aforementioned MAAX.In the case of AOK, it holds seven ETFs, all of which are other iShares funds. Currently, AOK is positioned, well, conservatively as over 70% of its weight is divided among the iShares Core Total USD Bond Market ETF (NASDAQ:IUSB) and the iShares Core International Aggregate Bond ETF (CBOE:IAGG). * 7 Stocks to Buy for Over 20% Upside Potential AOK's largest equity holding is the iShares Core S&P 500 ETF (NYSEARCA:IVV) and the fund currently features some light exposure to domestic mid- and small-cap stocks as well as some international holdings. Invesco S&P MidCap Low Volatility ETF (XMLV)Source: Shutterstock Expense Ratio: 0.25%Investors may be skittish about embracing stocks right now -- even more so when it comes to small stocks, including mid-caps. But some of the best ETFs to consider in the current environment are those dedicated to reducing volatility. Enter the Invesco S&P MidCap Low Volatility ETF (NYSEARCA:XMLV).XMLV tracks the S&P MidCap 400 Low Volatility Index, the low volatility offshoot of the widely followed S&P MidCap 400 Index."The Index is compiled, maintained and calculated by Standard & Poor's, consisting of 80 out of 400 medium-capitalization securities from the S&P MidCap 400 Index with the lowest realized volatility over the past 12 months," according to Invesco.Over 50% of XMLV's 80 holdings hail from the financial services and real estate sectors. Meanwhile, the normally docile utilities sectors commands almost 20% of the fund's weight. Cambria Trinity ETF (TRTY)Expense Ratio: 0.66%The Cambria Trinity ETF (CBOE:TRTY) is an actively managed fund that also uses the ETF of ETFs methodology. While TRTY is an active fund, it aims to replicate or beat the performance of the Cambria Trinity Index, a benchmark that "employs a balanced, systematic approach to asset allocation, focusing on diversification, value investing, and trend following," according to Cambria.Several factors make TRTY one of the best ETFs for conservative investors. For starters, its roster of 18 funds makes this one of the largest ETFs of ETFs in terms of depth. Second, TRTY offers diversification across asset classes, including domestic and foreign bonds and stocks as well as managed futures strategies. By virtue of its robust fixed-income exposure and positions in two Cambria shareholder yield ETFs, TRTY is a great ETF. * 7 High-Yield REITs to Buy (Even When the Market Tanks) The Cambria Global Momentum ETF (CBOE:GMOM) accounts for roughly a third of TRTY's weight. GMOM is rooted in momentum and trend following. Pacer Trendpilot US Large Cap ETF (PLTC)Expense Ratio: 0.6%The Pacer Trendpilot US Large Cap ETF (CBOE:PTLC) is one of the best ETFs for investors that want to automatically reduce equity exposure when markets decline. Essentially, PTLC is a rules-based strategy that uses moving averages to guide its allocations.When the S&P 500 closes above its 200-day simple moving average for five consecutive days, PTLC will be 100% invested in equities. If the index closes below that moving average for five straight days, PTLC will go to 50% stocks/50% 3-month T-bills. Five more consecutive days below that moving average and PTLC transitions to 100% T-bills.Long-term data suggest there is validity to this strategy."Over the period of 1999 through 2018, a portfolio strategy that followed a 100% position in S&P 500 when above its 200 day simple moving average or 100% T-bills when below the 200 day simple moving average produced a return of 5.36%," according to ETF Trends. "On the other hand, a 100% position in the S&P 500 regardless of market conditions produced a return of 4.86%. It can be seen that a simple trend following strategy helped investors avoid the steeper drop offs while still maintaining an investment portfolio's upside potential."Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post 5 Conservative ETFs for Any Market Environment appeared first on InvestorPlace.
In 2019, investors are looking to play more defense against volatility, but at the same time, don’t want to do so at the expense of higher costs--a case for a pair of low volatility ETFs with low expense ratios-- Invesco S&P 500 Low Volatility ETF (SPLV) and the Invesco S&P MidCap Low Volatility ETF (XMLV) . Thus far, both funds are yielding positive gains as a result of strength in the S&P 500 reaching an all-time high. SPLV seeks to track the investment results of the S&P 500 Low Volatility Index.
"It's not just a political strategy by Donald Trump--this sense of a threat from China has been embraced structurally by the U.S. government. The idea of the trade war continuing would certainly send the markets south. Combined with fears of slowing global growth and a reduction in corporate earnings, an ongoing trade war would certainly add to the growing wall of worry for investors.
One of the biggest problems investors face is balancing growth potential while reducing risk. Go too safe with your portfolio and you'll miss out on potential returns. Head in the opposite direction and volatility sets in and could significantly hinder your overall results. It's a real balancing act. But perhaps the best way to balance is being in the middle. In this case, we're talking about mid-cap stocks and the exchange-traded funds that track them. The holdings within mid-cap ETFs are typically defined as companies between $2 billion and $10 billion in market capitalization. However, some definitions have larger market caps. The beauty is that mid-cap stocks are still growing like small-cap stocks, but they are large enough to stand on their own two feet. This gives them the best of both worlds. Most importantly, mid-cap ETFs and stocks perform. Over the last ten years, the mid-cap focused S&P 400 has managed to produce a 15.44% annual return. That has managed to beat the large-cap S&P 500 by roughly a full percentage point and it beat the return on small-caps during that time too. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 of the Best Stocks to Invest In for February In the end, mid-cap stocks remain one of the best things you can do for your portfolio. And the following three mid-cap ETFs are a great way to add/overweight the market-cap style in your portfolio. ### ### iShares Core S&P Mid-Cap ETF (IJH) Expense Ratio: 0.07% or $7 annually per $10,000 invested If you're looking for broad, no-fuss exposure to mid-cap stocks, then the iShares Core S&P Mid-Cap ETF (NYSEARCA:IJH) can't be beaten. IJH tracks the previously mentioned S&P 400 and uses a full-replication strategy to produce results. This means it actually holds all 400 different mid-cap stocks in the index. Top holdings include well-known names like Domino's Pizza (NYSE:DPZ) and garden/power tool maker Toro (NYSE:TTC). This alone makes it worthy of consideration in a portfolio. But the real win, and the reason why it has gathered more than $45 billion in assets, is its low-cost fees. As one of the members of iShares' core ETFs, IJH is basically free to own with an expense ratio of just 0.07% or just $7 per $10,000 invested. The popular SPDR S&P Mid-Cap 400 ETF (NYSEARCA:MDY), which tracks the same index, is about 4x more expensive. With lower fees, the IJH has managed to outperform the MDY over their histories. And it'll keep on doing so. When it comes to investing, every little bit helps when compounded over time. And with that, investors should almost always choose IJH as their main index way to play mid-cap stocks. ### ### WisdomTree U.S. MidCap Dividend Fund (DON) Expense Ratio: 0.38% One of the biggest misconceptions is that small- and mid-cap stocks can't pay dividends. The idea is that they are forced to keep all their extra cash flows in order to grow their businesses. This couldn't be further from the truth. In fact, mid-cap stocks are some of the best dividend growers around. The size of the company has little to do with the stability of earnings, profits and financial conservativism. To that end, income seekers may want to consider adding mid-cap dividend payers to their portfolios and the WisdomTree U.S. MidCap Dividend Fund (NYSEARCA:DON) is the best way to do it. DON tracks the proprietary WisdomTree U.S. MidCap Dividend Index. Here, the ETF is fundamentally weighted and designed "to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year." Currently, DON holds more than 400 different mid-cap stocks that pay dividends. Top holdings include retailer Kohl's (NYSE:KSS) and consumer products firm Smucker's (NYSE:SJM). The focus on dividend payers produces a pretty decent yield, which is currently at 2.84%. An added bonus for retirees is that the ETF pays its dividend monthly. * 7 Best ETFs for a Well-Balanced Portfolio The focus on dividends hasn't hurt its performance either. Kicking out the fastest growing mid-cap stocks has allowed DON to produce a 13.48% average annual return over the last ten years. That's not shabby at all. Helping that cause is its low 0.38% expense ratio. ### Source: Shutterstock ### ### Invesco S&P MidCap Low Volatility ETF (XMLV) Expense Ratio: 0.25% Naturally, mid-cap stocks -- and many mid-cap ETFs -- are a tad bit more volatile than their larger sisters. For investors near or in retirement, this added volatility can cause some restless nights. But there is a way to cut that bounciness further and still benefit from all the good things that mid-caps have to offer. The Invesco S&P MidCap Low Volatility ETF (NYSEARCA:XMLV) is a smart-beta ETF that uses various screens to kick out high-volatility stocks in order to capture the upside of the market and simultaneously eliminate the downside risk. The idea is that betting on stocks that have historically shown lower overall volatility will result in a smoother ride for portfolios. The benefits of a low-vol strategy work wonders when moving down the market-cap ladder. XMLV combs the previously mentioned S&P 400 and chooses the 80 stocks that have been the least volatile over the last 12 months. The strategy has worked wonders. Over the last five years -- it's a new fund -- the ETF has managed to return 11.77% annually. This compares to the S&P 400's 6.03% return. And XMLV has produced that return with far fewer market movements. For investors with shorter timelines or the inability to recoup losses, using XMLV could be a great way to play the potential of mid-cap stocks, while reducing loss potential. And they can do it for a cheap 0.25% in expenses and score a 2% yield. As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks to Buy Right Now * 7 Stocks That Have Big Headwinds In 2019 * 5 Terrific Tech Stocks That Will Make You Forget About FANG Compare Brokers The post 3 Mid-Cap ETFs to Buy for Massive Growth Potential appeared first on InvestorPlace.
Analyzing RPM International's First-Quarter Dividends (Continued from Prior Part) ## Analysts’ recommendations The number of analysts tracking RPM International (RPM) has remained constant at 13. Among the analysts, 46% recommended a “buy,” 39% recommended a “hold,” and 15% recommended a “sell.” Analysts’ recommendations are widely followed in the investor community. The recommendations help investors track the stock price and make investment decisions. Analysts’ consensus on RPM International indicates a target price of $66.80, which implies a return potential of 21.3% over the closing price as of January 10. RPM International reported disappointing earnings in the second quarter of fiscal 2019. A few analysts lowered RPM International’s target price. However, RPM International’s acquisition spree to maintain future growth is seen as a positive. Many analysts have recommended to “hold” the stock. ## Individual brokerages’ recommendations * Baird cut RPM International’s target price to $60 from the earlier recommendation of $65, which implies a potential return of ~9.0% based on its closing price on January 10. * RBC (RBC) cut RPM International’s target price to $59 from $66, which implies a return potential of 7.15% over the closing price as of January 10. * BMO Capital Markets recommended a “buy” for RPM International with a target price of $72, which implies a return potential of 30.8% over the closing price as of January 10. Investors could hold RPM International indirectly through the Invesco S&P MidCap Low Volatility ETF (XMLV). XMLV has invested 1.0% of its portfolio in RPM International. The fund also provides exposure to Atmos Energy (ATO) and Maximus (MMS) with weights of 1.5% and 1.4%, respectively. Browse this series on Market Realist: * Part 1 - Key Dates: RPM International’s First-Quarter Dividend * Part 2 - RPM International’s Free Cash Flow Trend * Part 3 - RPM’s Dividend Yield Is Showing an Upward Trend Again
When stocks tumbled in the fourth quarter, investors gravitated toward more defensive assets. The low volatility factor and the related exchange traded funds, including the Invesco S&P 500 Low Volatility ...