Category: Blog

Content written by The Deep Value ETF Accumulator, aka Micah McDonald.

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The New Zealand ETF: A Ten Year History Of Good Returns (ENZL) 1.4

  • The iShares MSCI New Zealand ETF (ENZL) has a 10-year history of good returns

  • ENZL has a relatively low U.S. market correlation of 0.68

  • ENZL has a CAGR of 14.18 since inception (September 1, 2010)

  • ENZL has a current 12-month trailing dividend yield of 1.67%

ENZL vs SPY: October 2010 – December 2020

Continue reading “The New Zealand ETF: A Ten Year History Of Good Returns (ENZL) 1.4”

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4 Best Long-Term Performance Natural Resources Sector ETFs 1.4

  • Asset Class: Natural Resources Sector

  • Oldest ETF back tested: The Materials Select Sector SPDR® Fund (XLB)

  • Correlation to U.S. Stock Market: 0.81

  • Long-Term Performance: 7.98% CAGR

  • S&P 500 Performance: 7.12% CAGR

  • Back test timeframe: January 1999 – December 2020

  • Number of ETFs available in this asset class: 33

  • Number of ETFs in this asset class that are 10-years old or older: 23

XLB vs SPY: January 1999 – December 2020

XLB vs SPY: December 22, 1998 – January 8, 2021

Continue reading “4 Best Long-Term Performance Natural Resources Sector ETFs 1.4”

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4 Best Long-Term Performance Miscellaneous Sector ETFs 1.4

  • Asset Class: Miscellaneous Sector

  • Best performing ETF back tested: First Trust Water ETF (FIW)

  • Correlation to U.S. Stock Market: 0.90

  • Long-Term Performance: 10.38% CAGR

  • S&P 500 Performance: 9.01% CAGR

  • Back test timeframe: June 2007 – December 2020

  • Number of ETFs available in this asset class: 29

  • Number of ETFs in this asset class that are 10-years old or older: 11

FIW vs SPY: May 11, 2007 – January 8, 2021

Continue reading “4 Best Long-Term Performance Miscellaneous Sector ETFs 1.4”

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4 Best Long-Term Performance U.S. Large Cap Growth ETFs 1.4

  • Asset Class: U.S. Large Cap Growth

  • Long-Term Performance: 10.75% CAGR

  • Correlation to U.S. Markets: 0.96

  • U.S. Large Cap Blend Performance: 10.55% CAGR

  • Back test timeframe: January 1972 – December 2020

  • Oldest ETF back tested: Invesco QQQ Trust (QQQ)

  • Long-Term Performance: 9.27% CAGR

  • Correlation to U.S. Markets: 0.85

  • S&P 500 Performance: 7.00% CAGR

  • Back test timeframe: April 1999 – December 2020

  • Number of ETFs available in this asset class: 62

  • Number of ETFs in this asset class that are 10-years old or older: 19

U.S. Large Cap Growth vs. U.S. Large Cap Blend (aka S&P 500): January 1972 – December 2020

Continue reading “4 Best Long-Term Performance U.S. Large Cap Growth ETFs 1.4”

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10 Questions & Answers On Convertible Bond ETFs & CEFs 1.4

  • What is it? A convertible bond is a fixed-income corporate debt security that yields interest payments, but can be converted into a predetermined number of common stock or equity shares. The conversion from the bond to stock can be done at certain times during the bond’s life and is usually at the discretion of the bondholder. As a hybrid security, the price of a convertible bond is especially sensitive to changes in interest rates, the price of the underlying stock, and the issuer’s credit rating. A convertible bond pays fixed-income interest payments, but can be converted into a predetermined number of common stock shares. The conversion from the bond to stock happens at specific times during the bond’s life and is usually at the discretion of the bondholder. A convertible bond offers investors a type of hybrid security that has features of a bond, such as interest payments, while also having the option to own the underlying stock.
    • Convertible Bond ETFs offer investors exposure to convertible bonds. Convertible bonds are securities that have features of both equity and debt, making them hybrid instruments.
  • Is it investing, speculating, or gambling? There are cash flows from dividends and potential capital appreciation of bonds and/or the stocks if bonds are converted to stocks. Therefore, it is an investment.
  • What is the upside? Interest payments. Potential capital appreciation of bonds and/or stocks. Past performance: the oldest closed end fund is BCV (inception 1971), CAGR since 1988 10.15%, best year 50.45%
  • What is the downside? Decrease in interest payments, potential capital depreciation of bonds and/or stocks. Past performance: the oldest closed end fund is BCV (inception 1971), since 1988 worst year was -39.37%, max drawdown was -41.89%
  • Who is on the other side of the trade? Professional money managers, other investors, corporations issuing convertible bonds
  • What is the investment vehicle? Convertible bonds can be bought individually, or multiple convertible bond can be held within mutual funds, closed end funds (CEFs) or exchange traded funds (ETFs). I will be covering ETFs and CEFs in this article.
  • What does it take to be successful? Long term conviction, periodic contributions & rebalancing, buying more when prices drop, trimming profits if position grows larger than chosen allocation (and is trading at a profitable price).
  • Who is getting a cut? Asset managers via expense ratios, examples ICVT 0.20%, BCV 1.20%
  • How does it impact your portfolio? Personally, I am considering a 3 to 4% allocation. Correlations: Convertibles to S&P500 ≈ 0.81. Convertibles to Gold≈ 0.18. Convertibles to Utilities ≈ 0.44. Convertibles to REITs ≈ 0.58. Convertibles to US long treasuries ≈ -0.24. Bottom line, convertible bonds are highly correlated to the US stock market.
  • Should you invest? Maybe. I am considering a 3 to 4% allocation to this asset class.

Now, let’s look at the past performance of Convertible Bonds.

BCV vs an S&P 500 index fund: December 1988 – November 2020

BCV vs an S&P 500 index fund: December 20, 2000 – December 21, 2020

Continue reading “10 Questions & Answers On Convertible Bond ETFs & CEFs 1.4”

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4 Best Long-Term Performance International Large Cap Value ETFs 1.4

  • Asset Class: International ex-U.S. Value Equities

  • Long-Term Performance: 5.18% CAGR

  • Correlation to U.S. Markets: 0.79

  • U.S. Large Cap Blend Performance: 10.29% CAGR

  • Back test timeframe: January 1995 – November 2020

  • Oldest ETF back tested: iShares MSCI EAFE Value ETF (EFV)

  • Long-Term Performance: 2.67% CAGR

  • Correlation to U.S. Markets: 0.87

  • S&P 500 Performance: 9.55% CAGR

  • Back test timeframe: September 2005 – November 2020

  • Number of ETFs available in this asset class: 35

  • Number of ETFs in this asset class that are 10-years old or older: 10

International ex-US Value vs U.S. Large Cap Blend (aka S&P 500): January 1995 – November 2020

EFV vs SPY: September 2005 – November 2020

EFV vs SPY: August 5th, 2005 – December 4th, 2020

Continue reading “4 Best Long-Term Performance International Large Cap Value ETFs 1.4”

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4 Best Long-Term Performance Industrials Sector ETFs 1.4

  • Asset Class: Industrials Sector

  • Oldest ETF back tested: The Industrial Select Sector SPDR® Fund (XLI)

  • Correlation to U.S. Stock Market: 0.89

  • Long-Term Performance: 7.24% CAGR

  • S&P 500 Performance: 6.50% CAGR

  • Back test timeframe: January 1999 – October 2020

  • Number of ETFs available in this asset class: 26

  • Number of ETFs in this asset class that are 10-years old or older: 14

XLI vs SPY: January 1999 – October 2020

Continue reading “4 Best Long-Term Performance Industrials Sector ETFs 1.4”

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4 Best Long-Term Performance Utilities Sector ETFs 1.4

  • Asset Class: Utilities Sector

  • Oldest ETF back tested: The Utilities Select Sector SPDR® Fund (XLU)

  • Correlation to U.S. Stock Market: 0.40

  • Long-Term Performance: 7.09% CAGR

  • S&P 500 Performance: 6.50% CAGR

  • Back test timeframe: January 1999 – October 2020

  • Number of ETFs available in this asset class: 13

  • Number of ETFs in this asset class that are 10-years old or older: 8

XLU vs SPY: January 1999 – October 2020

XLU vs SPY: December 22, 1998 – October 30, 2020

Continue reading “4 Best Long-Term Performance Utilities Sector ETFs 1.4”

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4 Best Long-Term Performance U.S. Small Cap Growth ETFs 1.4

  • Asset Class: U.S. Small Cap Growth

  • Long-Term Performance: 10.01% CAGR

  • Correlation to U.S. Markets: 0.90

  • U.S. Large Cap Blend Performance: 10.26% CAGR

  • Back test timeframe: January 1972 – October 2020

  • Oldest ETF back tested: iShares S&P Small-Cap 600 Growth ETF (IJT)

  • Long-Term Performance: 8.56% CAGR

  • Correlation to U.S. Markets: 0.91

  • S&P 500 Performance: 6.16% CAGR

  • Back test timeframe: August 2000 – October 2020

  • Number of ETFs available in this asset class: 18

  • Number of ETFs in this asset class that are 10-years old or older: 9

U.S. Small Cap Growth vs U.S. Large Cap Blend (aka S&P 500): January 1972 – October 2020

IJT vs SPY: August 2000 – October 2020

IJT vs SPY: July 27, 2000 – October 30, 2020

Continue reading “4 Best Long-Term Performance U.S. Small Cap Growth ETFs 1.4”

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How Did the U.S. Stock Market React During the Last 6 Presidential Elections?

I don’t know that we can draw any conclusions from these charts, but I thought it would be interesting to do the research since election day is just a couple weeks away.

These charts are for the SPY ETF (S&P 500) from August 1 to December 31 of each election year from 1996 to 2016.

Election Day: November 8, 2016

Election Day: November 6, 2012

Election Day: November 4, 2008

Election Day: November 2, 2004

Election Day: November 7, 2000

Election Day: November 5, 1996

Draw your own conclusions. And Vote!

Thank you for taking time to read this article. If you found it useful, please share it with a friend.

Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator

Disclosure: I am not a professional investment advisor. Please perform you own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to M1 Finance and Google AdSense.

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The South Korea ETF With A Long History Of Excellent Returns (EWY) 1.4

  • The iShares MSCI South Korea ETF (EWY) has an 20-year history of good returns

  • EWY has a relatively low U.S. market correlation of 0.73

  • EWY has outperformed an S&P 500 ETF by 1.06% CAGR since June 2000

  • EWY has a current 12-month trailing dividend yield of 2.03%

EWY vs SPY: June 2000 – September 2020

EWY vs SPY: May 12, 2000 – October 9, 2000

Continue reading “The South Korea ETF With A Long History Of Excellent Returns (EWY) 1.4”

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4 Best Long-Term Performance Consumer Staples Sector ETFs 1.4

  • Asset Class: Consumer Staples Sector (aka Consumer Defensive Sector)

  • Oldest ETF back tested: The Consumer Staples Select Sector SPDR® Fund (XLP)

  • Correlation to U.S. Stock Market: 0.58

  • Long-Term Performance: 6.42% CAGR

  • S&P 500 Performance: 6.65% CAGR

  • Back test timeframe: January 1999 – September 2020

  • Number of ETFs available in this asset class: 13

  • Number of ETFs in this asset class that are 10-years old or older: 9

XLP vs SPY: January 1999 – September 2020

 

 

XLP vs SPY: December 22, 1999 – October 9, 2020

Continue reading “4 Best Long-Term Performance Consumer Staples Sector ETFs 1.4”

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4 Best Long-Term Performance U.S. Large Cap Value ETFs 1.4

  • Asset Class: U.S. Large Cap Value

  • Long-Term Performance: 10.89% CAGR

  • Correlation to U.S. Markets: 0.95

  • U.S. Large Cap Blend Performance: 10.34% CAGR

  • Back test timeframe: January 1972 – September 2020

  • Oldest ETF back tested: SPDR® Dow Jones® Industrial Average ETF Trust (DIA)

  • Long-Term Performance: 8.02% CAGR

  • Correlation to U.S. Markets: 0.93

  • S&P 500 Performance: 7.50% CAGR

  • Back test timeframe: February 1998 – September 2020

  • Number of ETFs available in this asset class: 102

  • Number of ETFs in this asset class that are 10-years old or older: 29

U.S. Large Cap Value vs U.S. Large Cap Blend (aka S&P 500): January 1972 – September 2020

DIA vs SPY: February 1998 – September 2020

DIA vs SPY: January 20, 1998 – October 2, 2020

Continue reading “4 Best Long-Term Performance U.S. Large Cap Value ETFs 1.4”

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4 Best Long-Term Performance U.S. Small Cap Value ETFs 1.4

  • Asset Class: U.S. Small Cap Value

  • Long-Term Performance: 13.22% CAGR

  • Correlation to U.S. Markets: 0.89

  • U.S. Large Cap Blend Performance: 10.34% CAGR

  • Back test timeframe: January 1972 – September 2020

  • Oldest ETF back tested: iShares S&P Small-Cap 600 Value ETF (IJS)

  • Long-Term Performance: 8.12% CAGR

  • Correlation to U.S. Markets: 0.88

  • S&P 500 Performance: 6.32% CAGR

  • Back test timeframe: August 2000 – September 2020

  • Number of ETFs available in this asset class: 21

  • Number of ETFs in this asset class that are 10-years old or older: 12

U.S. Small Cap Value vs U.S. Large Cap Blend (aka S&P500)

IJS vs SPY: August 2000 – September 2020

IJS vs SPY: July 28, 2000 – September 30, 2020

Continue reading “4 Best Long-Term Performance U.S. Small Cap Value ETFs 1.4”

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4 Best Long-Term Performance U.S. Long Term Government ETFs 1.4

  • Asset Category: U.S. Long Government Bonds

  • Long-Term Performance: 8.77% CAGR

  • Correlation to U.S. markets: 0.02

  • S&P 500 Performance (US Large Cap Blend): 11.66% CAGR

  • Back test timeframe: January 1978 – August 2020

  • Oldest ETF back tested: iShares 20+ Year Treasury Bond ETF (TLT)

  • Long-Term Performance: 7.55% CAGR

  • Correlation to U.S. markets: -0.33

  • S&P 500 Performance: 9.85% CAGR

  • Back test timeframe: August 2002 – August 2020

  • Number of ETFs available in this asset class: 12

  • Number of ETFs in this asset class that are 10-years old or older: 8

U.S. Long Government Bonds vs U.S. Large Cap Blend Equities: January 1978 – August 2020

TLT vs SPY: August 2002 – August 2020

TLT vs SPY: July 26, 2002 – September 18, 2020

Continue reading “4 Best Long-Term Performance U.S. Long Term Government ETFs 1.4”

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4 Best Long-Term Performance Real Estate Sector ETFs 1.4

  • Asset Class: Real Estate Sector

  • Long-Term Performance: 8.88% CAGR

  • Correlation to U.S. Markets: 0.59

  • U.S. Large Cap Blend Performance: 9.87% CAGR

  • Back test timeframe: January 1994 – August 2020

  • Oldest ETF back tested: iShares U.S. Real Estate ETF (IYR)

  • Long-Term Performance: 8.81% CAGR

  • Correlation to U.S. Markets: 0.66

  • S&P 500 Performance: 6.44% CAGR

  • Back test timeframe: July 2000 – August 2020

  • Number of ETFs available in this asset class: 27

  • Number of ETFs in this asset class that are 10-years old or older: 9

REITs vs U.S. Large Cap Blend: January 1994 – August 2020

IYR vs SPY: July 2000 – August 2020

IYR vs SPY: June 19, 2000 – September 9, 2020

Continue reading “4 Best Long-Term Performance Real Estate Sector ETFs 1.4”

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4 Best Long-Term Performance Foreign Large Cap Growth ETFs 1.4

  • Asset Category: International Developed ex-US Market

  • Long-Term Performance: 6.85% CAGR

  • Correlation to U.S. markets: 0.71

  • S&P 500 Performance (US Large Cap Blend): 10.76% CAGR

  • Back test timeframe: January 1986 – August 2020

  • Oldest ETF back tested: iShares MSCI EAFE Growth ETF (EFG)

  • Long-Term Performance: 5.59% CAGR

  • Correlation to U.S. Markets: 0.87

  • S&P 500 Performance: 9.42% CAGR

  • Back test timeframe: September 2005 – August 2020

  • Number of ETFs available in this asset class: 17

  • Number of ETFs in this asset class that are 10-years old or older: 5

International Developed ex-US Markets vs US Large Cap Blend: January 1986 – August 2020

Continue reading “4 Best Long-Term Performance Foreign Large Cap Growth ETFs 1.4”

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4 Best Long-Term Performance Foreign Small/Mid Blend ETFs 1.4

  • Asset Category: Foreign Small/Mid Blend

  • Long-Term Performance: 6.54% CAGR

  • Correlation to U.S. markets: 0.72

  • S&P 500 Performance (US Large Cap Blend): 9.97% CAGR

  • Back test timeframe: January 1995– July 2020

  • Oldest ETF back tested: SPDR® S&P® International Small Cap ETF (GWX)

  • Long-Term Performance: 2.04% CAGR

  • S&P 500 Performance: 8.34% CAGR

  • Back test timeframe: May 2007 – July 2020

  • Number of ETFs available in this asset class: 9

  • Number of ETFs in this asset class that are 10-years old or older: 4

Foreign ex-US Small Cap vs U.S. Large Cap Blend: January 1995 – July 2020

Continue reading “4 Best Long-Term Performance Foreign Small/Mid Blend ETFs 1.4”

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4 Best Long-Term Performance Health Sector ETFs 1.4

  • Asset Class: Health Sector

  • Oldest ETF back tested: The Health Care Select Sector SPDR® Fund (XLV)

  • Long-Term Performance: 8.24% CAGR

  • S&P 500 Performance: 6.55% CAGR

  • Back test timeframe: January 1999 – July 2020

  • Number of ETFs available in this asset class: 41

  • Number of ETFs in this asset class that are 10-years old or older: 17

XLV vs SPY: January 1999 – July 2020

XLV vs SPY: December 22, 1998 – August 7, 2020

Continue reading “4 Best Long-Term Performance Health Sector ETFs 1.4”

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4 Best Long Term Performance China Region ETFs 1.4

  • Asset Class: China Equities

  • Oldest ETF back tested: PGJ

  • Long-Term Performance: 9.67% CAGR

  • S&P 500 Performance: 8.74% CAGR

  • Back test timeframe: January 2005 – July 2020

  • Number of ETFs available in this asset class: 45

  • Number of ETFs in this asset class that are 10-years old or older: 13

PGJ vs SPY: January 2005 – July 2020

PGJ vs SPY: December 9, 2004 – July 31, 2020

Continue reading “4 Best Long Term Performance China Region ETFs 1.4”

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4 Best Long-Term Performance U.S. Mid Cap Growth ETFs 1.3

  • Asset Category: U.S. Mid Cap Growth

  • Long-Term Performance: 10.34% CAGR

  • Correlation to U.S. markets: 0.95

  • S&P 500 Performance (US Large Cap Blend): 10.21% CAGR

  • Back test timeframe: January 1972 – June 2020

  • Oldest ETF back tested: iShares S&P Mid-Cap 400 Growth ETF (IJK)

  • Long-Term Performance: 7.22% CAGR

  • S&P 500 Performance: 5.94% CAGR

  • Back test timeframe: August 2000 – June 2020

  • Number of ETFs available in this asset class: 30

  • Number of ETFs in this asset class that are 10-years old or older: 9

U.S. Mid Cap Growth vs U.S. Large Cap Blend: January 1972 – April 2020

Continue reading “4 Best Long-Term Performance U.S. Mid Cap Growth ETFs 1.3”

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4 Best Long-Term Performance Consumer Discretionary Sector ETFs 1.3

  • Asset Class: Consumer Discretionary Sector

  • Oldest ETF back tested: The Consumer Discretionary Select Sector SPDR® Fund (XLY)

  • Long-Term Performance: 8.97% CAGR

  • S&P 500 Performance: 6.30% CAGR

  • Back test timeframe: January 1999 – June 2020

  • Number of ETFs available in this asset class: 28

  • Number of ETFs in this asset class that are 10-years old or older: 14

XLY vs SPY: January 1999 – June 2020

XLY vs SPY: December 22, 1998 – July 2, 2020

Continue reading “4 Best Long-Term Performance Consumer Discretionary Sector ETFs 1.3”

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4 Best Long-Term Performance Technology Sector ETFs 1.3

  • Asset Class: Technology Sector

  • Oldest ETF back tested: The Technology Select Sector SPDR® Fund (XLK)

  • Long-Term Performance: 6.80% CAGR

  • S&P 500 Performance: 6.30% CAGR

  • Back test timeframe: January 1999 – June 2020

  • Number of ETFs available in this asset class: 70

  • Number of ETFs in this asset class that are 10-years old or older: 20

XLK vs SPY: January 1999 – June 2020

XLK vs SPY: December 22, 1998 – June 30, 2020

Continue reading “4 Best Long-Term Performance Technology Sector ETFs 1.3”

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4 Best Long-Term Performance U.S. Mid Cap Value ETFs 1.3

  • Asset Category: U.S. Mid Cap Value

  • Long-Term Performance: 12.29% CAGR

  • S&P 500 Performance (US Large Cap Blend): 10.09% CAGR

  • Back test timeframe: January 1972 – April 2020

  • Oldest ETF back tested: iShares S&P Mid-Cap 400 Value ETF (IJJ)

  • Long-Term Performance: 8.38% CAGR

  • S&P 500 Performance: 5.65% CAGR

  • Back test timeframe: August 2000 – April 2020

  • Number of ETFs available in this asset class: 31

  • Number of ETFs in this asset class that are 10-years old or older: 10

U.S. Mid Cap Value vs U.S. Large Cap Blend: January 1972 – April 2020

IJJ vs SPY: August 2000 – April 2020

IJJ vs SPY: July 28, 2000 – May 22, 2020

Continue reading “4 Best Long-Term Performance U.S. Mid Cap Value ETFs 1.3”

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The Asia / Pacific ETF With A Long History Of Excellent Returns (EPP) 1.3

  • The iShares MSCI Pacific ex Japan ETF (EPP) has an 18-year record of good returns
  • EPP has a relatively low U.S. market correlation of 0.81
  • EPP has outperformed an S&P 500 ETF by 0.58% CAGR since November 2001
  • EPP has a current dividend yield of 4.84%

EPP vs SPY: November 2001 – April 2020

EPP vs SPY: October 26, 2001 – May 15, 2020

Continue reading “The Asia / Pacific ETF With A Long History Of Excellent Returns (EPP) 1.3”

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4 Best Long-Term Performance Trading – Leveraged Equity ETFs (2X Only) 1.3

  • Asset Class: Trading – Leveraged Equity

  • Oldest ETF back tested: ProShares Ultra QQQ (QLD)

  • Long-Term Performance: 21.44% CAGR

  • S&P 500 Performance: 8.32% CAGR

  • Back test timeframe: July 2006 – April 2020

  • Number of ETFs available in this asset class: 103

  • Number of 2X Leveraged ETFs in this asset class that are 10-years old or older: 26

WARNING! Leveraged ETFs are high risk complex financial instruments. Please do not trade or invest in any leveraged product until you thoroughly understand the risks involved. Additionally, all but 9 of the 26 ETFs researched in this article failed to outperform a non-leveraged S&P 500 index fund; meaning that most of these products are simply not worth the risk of holding them for longer than a day or so. They are intended to be used as trading vehicles, not investment vehicles. Buyer beware!

QLD vs SPY: July 2006 – April 2020

Continue reading “4 Best Long-Term Performance Trading – Leveraged Equity ETFs (2X Only) 1.3”

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3 Best Long-Term Performance Foreign Small / Mid Value ETFs 1.3

  • Asset Class: Foreign Small / Mid Value

  • Long-Term Performance: 5.97% (international ex-U.S. small cap)

  • S&P 500 Performance: 8.43% CAGR

  • Back test timeframe: June 1995  – April 2020

  • Number of ETFs available in this asset class: 11

  • Number of ETFs in this asset class that are 10-years old or older: 3

International Ex-U.S. Small Cap vs S&P 500: June 1995 – April 2020

The Deep Value ETF Accumulator rankings for the 3 oldest Foreign Small / Mid Value ETFs:

Continue reading “3 Best Long-Term Performance Foreign Small / Mid Value ETFs 1.3”

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Our Exit Strategy For The South Africa ETF (EZA)

Well, we’re calling it quits on the iShares MSCI South Africa ETF (EZA). Why? The risk/reward ratio no longer looks beneficial to us. When we make a decision to invest in an ETF, we don’t go in blindly. We perform our due diligence and if the risk looks worthy of the undertaking, we put the ETF on the list of ETFs we allow ourselves to buy. Once an ETF is put on our list and we have purchased shares of it, we intend to hold that ETF long-term, potentially until death do we part. But, we also know that the investing world is ever changing, so we must evolve with it.

Continue reading “Our Exit Strategy For The South Africa ETF (EZA)”

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4 Best Long-Term Performance Diversified Emerging Markets ETFs 1.3

  • Asset Class: Diversified Emerging Markets

  • Most Popular ETF back tested: iShares MSCI Emerging Markets ETF (EEM)

  • Long-Term Performance: 8.46% CAGR

  • S&P 500 Performance: 8.43% CAGR

  • Back test timeframe: May 2003  – March 2020

  • Number of ETFs available in this asset class: 77

  • Number of ETFs in this asset class that are 10-years old or older: 12

EEM vs SPY: May 2003 – March 2020

Continue reading “4 Best Long-Term Performance Diversified Emerging Markets ETFs 1.3”

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The Sweden ETF: 24 Years of Good Returns (EWD) 1.3

  • The iShares MSCI Sweden ETF (EWD) has a 24-year record of good returns
  • EWD has a low U.S. market correlation of 0.80
  • EWD has outperformed the oldest Europe ETF (IEV) by 1.24% CAGR since August 2000
  • EWD has outperformed the oldest EAFA index ETF (EFA) by 2.93% CAGR since September 2001
  • EWD has a current dividend yield of 4.55%

EWD vs SPY: May 1996 – March 2020

EWD vs SPY: May 1996 – March 2020

Continue reading “The Sweden ETF: 24 Years of Good Returns (EWD) 1.3”

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4 Best Long-Term Performance Natural Resources Sector ETFs 1.3

  • Asset Class: Natural Resources Sector

  • Oldest ETF back tested: The Materials Select Sector SPDR® Fund (XLB)

  • Long-Term Performance: 7.07% CAGR

  • S&P 500 Performance: 6.59% CAGR

  • Back test timeframe: January 1999 – January 2020

  • Number of ETFs available in this asset class: 32

  • Number of ETFs in this asset class that are 10-years old or older: 15

XLB vs SPY: January 1999 – January 2020

Continue reading “4 Best Long-Term Performance Natural Resources Sector ETFs 1.3”

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4 Best Long-Term Performance Miscellaneous Sector ETFs 1.3

  • Asset Class: Miscellaneous Sector

  • Best ETF back tested: First Trust Water ETF (FIW)

  • Long-Term Performance: 9.58% CAGR

  • S&P 500 Performance: 8.23% CAGR

  • Back test timeframe: June 2007 – January 2020

  • Number of ETFs available in this asset class: 31

  • Number of ETFs in this asset class that are 10-years old or older: 15

FIW vs SPY: May 11, 2007 – February 7, 2020

Continue reading “4 Best Long-Term Performance Miscellaneous Sector ETFs 1.3”

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4 Best Long-Term Performance U.S. Large Cap Growth ETFs 1.3

  • Asset Class: US Large Cap Growth

  • Long-Term Performance: 10.26% CAGR

  • S&P 500 Performance (US Large Cap Blend): 10.37% CAGR

  • Back test timeframe: January 1972 – January 2020

  • Oldest ETF back tested: Invesco QQQ (QQQ)

  • Long-Term Performance: 7.79% CAGR

  • S&P 500 Performance: 6.45% CAGR

  • Back test timeframe: April 1999 – January 2020

  • Number of ETFs available in this asset class: 58

  • Number of ETFs in this asset class that are 10-years old or older: 17

US Large Cap Growth vs US Large Cap Blend: January 1972 – January 2020

Continue reading “4 Best Long-Term Performance U.S. Large Cap Growth ETFs 1.3”

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4 Best Long-Term Performance U.S. Large Cap Blend ETFs 1.3

  • Asset Class: U.S. Large Cap Blend

  • Long-Term Performance: 10.39% CAGR

  • Back test timeframe: January 1972 – December 31, 2019

  • Oldest ETF back tested: SPY

  • Long-Term Performance: 9.73% CAGR

  • S&P 500 Performance: 9.76% CAGR

  • Back test timeframe: February 1993 – December 2019

  • Number of ETFs available in this asset class: 154

  • Number of ETFs in this asset class that are 10-years old or older: 31

U.S. Large Cap Blend CAGR = 10.39%: January 1972 – December 2019

SPY CAGR = 9.73%: February 1993 – December 2019

Continue reading “4 Best Long-Term Performance U.S. Large Cap Blend ETFs 1.3”

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4 Best Long-Term Performance International Large Cap Value ETFs 1.3

  • Asset Class: International Large Cap Value

  • Long-Term Performance: 11.56% CAGR

  • S&P 500 Performance (US Large Cap Blend): 10.24% CAGR

  • Back test timeframe: April 1, 1957 – December 31, 2019

  • Oldest ETF back tested: ADRD**

  • Long-Term Performance: 5.64% CAGR

  • S&P 500 Performance: 9.64% CAGR

  • Back test timeframe: December 2002 – December 2019

  • Number of ETFs available in this asset class: 40

  • Number of ETFs in this asset class that are 10-years old or older: 11

Continue reading “4 Best Long-Term Performance International Large Cap Value ETFs 1.3”

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THD – The Thailand ETF Removed from the Deep Value ETF Accumulator Buy List

Today we made the decision to remove the iShares MSCI Thailand ETF (THD) from the list of ETFs we are accumulating. This is a fine single country emerging markets ETF, but it no longer meets our criteria for our portfolio. Last year I added this ETF to the Deep Value ETF Accumulator daily buy list based on this article that I wrote: Is the Thailand ETF Worth the Risk? (THD) 1.1 I can no longer stand by the thoughts I put forth in this article and have decided to no longer invest in THD. We will be closing our positions in THD in the near future and diverting those funds to the some of the other 31 ETFs that we continue to invest in. Here’s a current chart of THD which may shed some light on why we originally wanted to invest in this ETF and why we are dropping this fund from our portfolio.

Disclosure: We currently own shares of THD and we intend to sell these shares in the near future. I am not a professional investment advisor. Please perform you own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to M1 Finance and Google AdSense.

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4 Best Long-Term Performance U.S. Mid Cap Blend ETFs 1.3

  • Asset Class: US Mid Cap Blend

  • Long-Term Performance: 11.97% CAGR

  • S&P 500 Performance (US Large Cap Blend): 10.39% CAGR

  • Back test timeframe: January 1972 – December 2019

  • Oldest ETF back tested: SPDR® S&P MIDCAP 400® ETF Trust (MDY)

  • Long-Term Performance: 10.87% CAGR

  • S&P 500 Performance: 9.40% CAGR

  • Back test timeframe: September 1995 – December 2019

  • Number of ETFs available in this asset class: 40

  • Number of ETFs in this asset class that are 10-years old or older: 13

US MID CAP BLEND vs US LARGE CAP BLEND: January 1972 – December 2019

Continue reading “4 Best Long-Term Performance U.S. Mid Cap Blend ETFs 1.3”

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2019 Annual Performance Report – The Deep Value ETF Accumulator

“What gets measured, gets improved.”

Welcome to my 6th installment of my semi-annual performance reports. 2019 was an amazingly profitable year to be invested in the stock market, especially coming off the heels of that horrible last quarter of 2018. Most markets are hitting new all-time-highs and so are most investor’s portfolios. Look at how 9 major asset classes performed in 2019; even emerging markets performed well.

Source: https://novelinvestor.com/asset-class-returns/

Continue reading “2019 Annual Performance Report – The Deep Value ETF Accumulator”

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4 Best Long-Term Performance U.S. Small Cap Blend ETFs 1.3

  • The U.S. Small Cap Blend asset class has outperformed the U.S. Large Cap Blend asset class by 1.35% CAGR over the last 47 years
  •  The oldest U.S. Small Cap Blend ETF has outperformed an S&P 500 index fund by 3.66% CAGR over the last 19 years
  • There are 42 ETFs available in the U.S. Small Cap Blend category
  •  10 of these ETFs have been available for 10 years or longer. This article will focus on these 10 older Small Cap Blend ETFs

U.S. Small Cap Blend vs U.S. Large Cap Blend: June 2000 – November 2019

Continue reading “4 Best Long-Term Performance U.S. Small Cap Blend ETFs 1.3”

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4 Best Long-Term Performance Industrials Sector ETFs 1.3

  • The oldest Industrials sector ETF has outperformed an S&P 500 index fund by 1.33% CAGR over the last 20 years
  • There are 27 ETFs available in the Morningstar Industrials category
  • 13 of these ETFs are 10 years old or older
  • This article will focus on the long-term performance of these 13 older ETFs

XLI vs S&P 500 index fund: January 1999 – October 2019

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4 Best Long-Term Performance Utilities Sector ETFs 1.3

  • The oldest Utilities Sector ETF has outperformed an S&P 500 index fund by 1.07% CAGR over the last 20 years
  • The Utilities Sector has low correlation to broad U.S. Equity Markets
  • There are 13 ETFs in the Morningstar Utilities category
  • 7 of these Utilities Sector ETFs have been available for 10 years or longer
  • This article will show the long-term performance of these 7 older Utilities Sector ETFs

XLU vs S&P 500 index fund: January 1999 – October 2019

Continue reading “4 Best Long-Term Performance Utilities Sector ETFs 1.3”

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4 Best Long-Term Performance U.S. Small Cap Growth ETFs 1.3

  • The U.S. Small Cap Growth asset class has slightly trailed the performance of U.S. Large Cap Blend by 0.43% CAGR over the last 47 years
  • The oldest U.S. Small Cap Growth ETF has outperformed an S&P 500 index fund by 3.13% CAGR over the last 19 years
  • There are 18 ETFs in the U.S. Small Cap Growth category. 7 of these have been available for 10 years or longer
  • This article compares the past performance of these 7 older ETFs

U.S. Small Cap Growth vs U.S. Large Cap Blend (aka the S&P 500)

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4 Best Long-Term Performance Consumer Staples Sector ETFs 1.3

  • The oldest Consumer Staples Sector ETF has outperformed an S&P 500 index fund by 0.13% CAGR, while being less volatile and having a low correlation to the US equity markets
  • There are 16 ETFs to pick from in the Consumer Staples category
  • 8 of these Consumer Staples Sector ETFs have been available for 10 years or longer
  • This article focuses on the long-term performance of these 8 older ETFs

XLP vs S&P 500 Index Fund: January 1999 – September 2019

Source: https://www.portfoliovisualizer.com/

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Looking Back at the 19-Year Performance of the South Korea ETF (EWY) 1.3

  • The iShares MSCI South Korea ETF (EWY)  has been available for 19 years. Inception date: May 9, 2000
  • Since inception, this single-country ETF has outperformed an S&P 500 index fund by 0.96 CAGR
  • EWY is considered an Emerging Market fund and carries a standard deviation measure of volatility similar to other emerging markets. EWY = 28.76%. S&P 500 fund = 14.47%
  •  EWY has relatively low correlation to U.S. Markets at 0.73

EWY vs S&P 500 Index Fund: June 2000 – September 2019

Source: https://www.portfoliovisualizer.com/

Continue reading “Looking Back at the 19-Year Performance of the South Korea ETF (EWY) 1.3”

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4 Best Long-Term Performance U.S. Large Cap Value ETFs 1.3

  • The U.S. Large Cap Value asset class has outperformed U.S. Large Cap Blend by 0.96% CAGR over the last 47 years
  • The oldest Large Cap Value ETF has outperformed an S&P 500 index fund by 0.98% CAGR over the last 21 years
  • There are 96 ETFs available in the Large Cap Value category. This article focuses on the 24 that have been available for 10 years or longer

U.S. Large Cap Value vs U.S. Large Cap Blend: January 1972 – September 2019

Source: https://www.portfoliovisualizer.com/ Continue reading “4 Best Long-Term Performance U.S. Large Cap Value ETFs 1.3”

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Weighing the Risks & Rewards of the Brazil ETF (EWZ) 1.3

  • The iShares MSCI Brazil ETF (EWZ) has outperformed an S&P 500 index fund by 1.26% CAGR over the last 19 years
  • This is a single-country emerging market ETF which means it carries more risk than a diversified emerging market fund
  • This article will explore some of the risks and rewards of owning this ETF

EWZ vs S&P 500 index fund: August 2000 – September 2019

Source: https://www.portfoliovisualizer.com/ Continue reading “Weighing the Risks & Rewards of the Brazil ETF (EWZ) 1.3”

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4 Best Long-Term Performance U.S. Small Cap Value ETFs 1.3

 

  • The U.S. Small Cap Value asset class has outperformed U.S. Large Cap Blend (S&P 500) by 3.58% CAGR over the last 47 years
  • The oldest U.S. Small Cap Value ETF has outperformed an S&P 500 index fund by 3.77% CAGR over the last 19 years
  • There are 24 U.S. Small Cap Value ETFs available. This article focuses on the 10 oldest ETFs in this category

U.S. Small Cap Value vs U.S. Large Cap Blend: January 1972 – September 2019

Source: https://www.portfoliovisualizer.com/

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4 Best Long-Term Performance Energy Sector ETFs 1.3

  •  The oldest Energy Sector ETF is The Energy Select Sector SPDR® Fund (XLE). It has outperformed an S&P 500 index fund by 0.28% CAGR since inception.
  •  There are 27 ETFs in the Morningstar Energy Equity category. 14 of these funds have inception dates before September 22, 2009
  •  This article focuses on the long-term returns of these 14 older Energy Sector ETFs

XLE vs S&P 500 Index Fund: January 1999 – August 2019

Source: https://www.portfoliovisualizer.com/

XLE vs SPY: December 22, 1998 – September 20, 2019

Source: https://www.koyfin.com/home Continue reading “4 Best Long-Term Performance Energy Sector ETFs 1.3”

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4 Best Long-Term Performance Real Estate Sector ETFs 1.3

  • The REIT asset class has had returns comparable to an S&P 500 index fund since 1994 while maintaining a low U.S. Market correlation of 0.57
  • The oldest available Real Estate ETF has outperformed an S&P 500 index fund by 4.13% CAGR over the last 19 years
  • There are currently 28 ETFs available in the Morningstar Real Estate Category. 9 of those ETFs are 10 years old or older

REITs vs US Large Cap Blend (aka S&P 500): January 1994 – August 2019

Source: https://www.portfoliovisualizer.com/

The oldest Real Estate ETF is the iShares U.S. Real Estate ETF (IYR). Its’ inception date was June 12, 2000. Since inception, this ETF has outperformed an S&P 500 index fund by 4.13% CAGR with a relatively low correlation to US Markets of 0.65.

IYR vs S&P 500 Index fund: July 2000 – August 2019

IYR vs SPY: June 19, 2000 – September 13, 2019

Source: https://www.koyfin.com/home Continue reading “4 Best Long-Term Performance Real Estate Sector ETFs 1.3”