You know the saying: Past performance is not indicative of future results. Over a decade ago, the SEC explicitly warned investors about this when it came to mutual funds – and now the author of today’s article is issuing the same warning about “performance chasing” when it comes to ETFs, noting that “Investors who choose funds primarily for their strong track records are often disappointed.” For some specific case studies of ETF performance chasing gone wrong and some pointers on how to avoid falling into the performance chasing trap – including some key performance metrics to watch out for – CLICK HERE.
Much has been written and said about who is winning and who is losing – politically or otherwise – in the current partial federal government shutdown (now the longest such shutdown on record). For its part, today’s article highlights some ETFs that the authors believe are likely to be winners – and some which they believe are likely to be losers – as a result of the shutdown, the economic cost of which is poised to soon surpass the amount of funding for his border wall with Mexico that President Trump is demanding. For more, CLICK HERE.
For mature companies without significant growth opportunities to fund, and with shareholders to please, there are two standard ways to use excess cash: distribute said cash directly to shareholders in the form of dividends, or use it to buy back shares. But which of these approaches is better for investors? Today’s article examines this question – including looking at the tax implications of each approach for investors. For more, CLICK HERE.
Back in August, the author of today’s article saw a trade opportunity in a giant cable and broadband provider – and since that time, shares of that company have outperformed the S&P 500 by almost 12%. The reason he saw an opportunity in the company, as he explains, is that, while the “market isn’t wrong about the fact that cable customers are choosing to ‘cut the cord’ at a rapid pace… the market is very wrong about… how this is going to impact the cable companies” – and now he is eyeing shares of another undervalued cable and broadband provider. For more, CLICK HERE.
When it comes to reliable income, the author of today’s article notes that “utilities have provided that for decades” – and he proceeds to highlight a group of ten utility closed-end funds (CEFs) that offer more generous payouts than the Utilities SPDR ETF. Moreover, all but one of these CEFs “have impressive long-term annualized returns of over 6%, with 4 delivering double-digit returns over the long haul”, and all but two are currently available at a discount to their net asset value. For these ten utility CEFs, CLICK HERE.
The Jackson Square SMID-Cap Growth Fund has consistently beaten its peers – and today’s article outlines the fund’s selection process (“The co-managers don’t buy the idea that companies have to choose between investing in fast growth or returning money to shareholders. Instead, they seek out those whose business models allow them to do it all….”) and highlights some of its top holdings right now – a mix of disruptors and more-established companies. For more, CLICK HERE.
Recency bias – the tendency to assume that the events of the recent past are indicative of what is going to happen in the future – is an all-too-common affliction among investors – and one that the author of today’s article believes “is running rampant in the markets today.” However, it’s also possible to profit from the recency bias – and the author highlights two funds currently trading at a discount – one of which boasts an 11.4% dividend yield – that he believes are perfectly positioned to do just that. For more, CLICK HERE.
One oil analyst sees everything coming together for the “most bullish summer for crude in several years” – and exchange-traded funds that track oil stocks stand to gain should the price of crude continue to rise. The task for investors now, as the author of today’s article notes, is picking the right plays from among the 65 energy ETFs out there. What are some specific funds to consider – and what may be the biggest risk to oil prices? CLICK HERE.
Inflation is once again becoming a concern – and the author of today’s article advises that “As we enter a more mature phase of the current economic growth cycle, it’s worthwhile to consider the net effects that rising prices for goods and services will have on your purchasing power.” One way to address this risk is through exchange-traded funds that benefit from inflationary conditions – and he proceeds to highlight four. For these four inflation fighting ETFs – one tied to commodities, one tied to TIPS, and two that employ a “fund-of-funds” strategy – CLICK HERE.
In today’s article, the author highlights a new – and little-known – dividend ETF that he believes is a compelling pick for several reasons. The fund in question “selects from the highest yielding dividend stocks in the S&P 500 index, but it uses a different method to add a layer of protection for the dividend….” Moreover, the two factors the fund uses to select stocks are both linked to outperformance. For more on this dividend ETF – including additional ways in which it may be superior to a more well-known option – CLICK HERE.