Why Buybacks Are An Important Factor To Consider For ETFs (PKW)
“I believe that share buybacks can be another helpful tool — when a company’s management team reduces the number of shares outstanding, it is signaling to the market that a stock is trading inexpensively to its intrinsic value….”
Read the full article at ETF Daily News right here: PowerShare Buyback Achievers Fund (ETF)(NASDAQ:PKW): Discover Hidden Value | ETF Daily News
- The Large Cap Growth style ranks fifth in Q3’17.
- Based on an aggregation of ratings of 17 ETFs and 655 mutual funds.
- QQQ is our top-rated Large Cap Growth ETF and PPIIX is our top-rated Large Cap Growth mutual fund.
Read the full article at Seeking Alpha right here: Best And Worst Q3’17: Large Cap Growth ETFs And Mutual Funds | Seeking Alpha
Beaten-down sectors provide opportunity
The S&P 500 Index is up about 10% so far this year, but the energy sector is off over 19%.1 Yet, my team believes conditions are ripe for a turnaround in energy.
- Exploration, production and service company valuations are near historic lows based on our analysis, trading at a price-to-book (P/B) multiple of 0.55. This compares with an average P/B of 0.88 for the sector using data all the way back to 1952.2
- Many energy companies are currently what we call “under-earners.” In good times, these firms can be cash-generating machines, but the long stretch of low energy prices has resulted in layoffs, dividend cuts, fewer stock buybacks and expense reductions. Once prices rebound a bit and stick, these companies should be even better positioned for growth, in our view.
- The sector is clearly out of favor and has been for some time. We believe investors are always wise to consider sentiment, but should then dig a little deeper and analyze the trends and facts.
- After the long period of underperformance, many funds (understandably) lightened up on energy shares and are now underweight.3 At some point, this trend will reverse, and demand for these shares should increase. Also, many investors have taken short positions in energy stocks, and they will have to buy shares in order to settle these positions.
- Last, energy company capital expenditures (CapEx) are at historically unsustainable levels relative to cash flow.
Read the full article at ETF Daily News right here: Energy Select Sector SPDR (ETF)(NYSE:XLE): Opportunity Awaits | ETF Daily News
- The All Cap Value style ranks fourth in Q3’17.
- Based on an aggregation of ratings of 13 ETFs and 331 mutual funds.
- FVD is our top-rated All Cap Value ETF and FBLEX is our top-rated All Cap Value mutual fund.
Read the full article at Seeking Alpha right here: Best And Worst Q3’17: All Cap Value ETFs And Mutual Funds | Seeking Alpha
…The iShares MSCI South Africa ETF (EZA) – the only ETF tracking the South African market that is traded on US exchanges – tracks the MSCI South Africa Index, which is comprised of 53 constituents. There are no sector or theme-based funds tracking the market even though there are 18 indices on the local exchange, according to Bloomberg data…
Read the full article at Frontera News right here: Inaccessible Markets: Which Frontier And Emerging Countries May Soon Be Tracked By More ETFs | Frontera News
Exchange-traded funds, or ETFs, are more than up and comers in the investment world. Now a nearly $3 trillion business, you rarely find them in retirement plans. That doesn’t make sense to me…
Read the full article at Forbes right here: 5 Reasons ETFs Should Be A Powerful Part Of Your Retirement Plan
…There are also many unique ETFs that introduce additional factor criteria to the mid-cap group as well. One example is the WisdomTree U.S. MidCap Dividend Fund (DON). This ETF has $2.8 billion dedicated to nearly 400 U.S. dividend paying stocks. Companies within DON are ranked and weighted according to their aggregate cash payouts, which gives the largest share of assets to the companies paying the biggest dividends. The fund charges an expense ratio of 0.38% and income is paid monthly to shareholders…
Read the full article Nasdaq.com right here: A Guide To Finding the Right Mid-Cap ETF
At a time when the U.S. small-cap stocks and exchange traded funds, such as the iShares Core S&P Small-Cap ETF (NYSEArca: IJR) and the iShares Russell 2000 ETF (NYSEArca: IWM), are trailing large-cap funds by wide margins, considering small-cap growth stocks may seem to be a risky proposition.
To be sure, the iShares S&P Small-Cap 600 Growth ETF (NASDAQ: IJT) has managed only a modest year-to-date return. The $4.2 billion IJT tracks the S&P SmallCap 600 Growth Index. Value stocks typically trade at cheaper prices relative to fundamental measures of value, such as earnings and the book value of assets. In contrast, growth stocks tend to run at higher valuations since investors expect the rapid growth in those company measures.
Read the full article at ETF Trends right here: An Adventurous Idea for Small-Cap Investors
- The Utilities sector ranks fifth in Q3’17.
- Based on an aggregation of ratings of 9 ETFs and 30 mutual funds.
- RYU is our top-rated Utilities ETF and BULIX is our top-rated Utilities mutual fund.
Read the full article at Seeking Alpha right here: Best And Worst Q3’17: Utilities ETFs And Mutual Funds | Seeking Alpha