Four Emerging Markets ETFs That Have It All: Value, Growth, Quality, Yield – Plus A Note On Alibaba (DEM, DGS)

Summary

  • This article melds Dividend Ideas, Retirement, and Portfolio Strategy; it’s an in-depth look at four emerging market ETFs which combine value, growth, quality, and yield.
  • I made the case for emerging markets in my previous article; this article discusses several EM portfolios, two small caps (one China, one diversified) and two large cap high-div ETFs.
  • Important selection factors include sector allocation levels and country rankings; I prefer Asia and the MSCI index which includes Korea and reduces countries I don’t prefer. Mixed feelings on Russia.
  • All four ETFs have great value: PEs under 10 (US 25), price-to-book of 1 (US 4), average dividend over 4%, growth better than anything in the developed world (including US).
  • Emerging markets are about 60% of global GDP; their weight in the global equity index is 12.5-13%; their average weight in US portfolios is 3%. It’s called home-country bias. Does it make any sense?

Continue reading at Seeking Alpha right here: https://seekingalpha.com/article/4396153-four-emerging-markets-etfs-all-value-growth-quality-yield-plus-note-on-alibaba

ETFs: 5 Funds For Investing In Water, A Vital Resource (FIW)

Summary

  • Water doesn’t typically get the same focus that I put on other utilities like electric and gas companies.
  • Though, that doesn’t mean that investing in water ETFs doesn’t have its own merits; it certainly does as global demand rises, yet supply doesn’t go up.
  • Several of the funds also fit into the ESG investing category that can provide further thematic investing momentum.

Continue reading at Seeking Alpha right here: https://seekingalpha.com/article/4396237-etfs-5-funds-for-investing-in-water-vital-resource

 

Are you missing out on mid-caps? Six reasons not to!

Mid-cap stocks are the middle child of the stock market. Stuck in that awkward adolescence phase, they’re not as cool as big brother (the S&P 500) but also not as cute as little sister (small-caps).

But do they also deserve to be ignored? (j/k, love you, little brother!) Research by S&P Dow Jones Indices found that from 2003 to 2018 the number of mid-cap mutual funds decreased while the number of large and small-cap funds increased. Yet mid-cap stocks had the best performance over that very time frame!

Mid-cap stocks are shares of companies with market capitalizations between $2-$10 billion, though definitions vary. These companies are large enough to be familiar but small enough for continued growth. From 1972 to 2020, mid-cap stocks beat large- and small-cap stocks by 1.45% and 0.30%, respectively. Mid-caps make up only 10% of the total US stock market. Therefore, to capture their superior returns you must tilt your portfolio.

Investors have historically gone the opposite direction by over-weighting small- and large-cap stocks while avoiding mid-caps. Failing to capitalize on the mid-cap segment of the stock market means you’re likely leaving returns on the table for me to scoop up! 😉

Continue reading at Keep Investing $imple $tupid right here: https://keepinvestingsimplestupid.com/are-you-missing-out-on-mid-caps-six-reasons-not-to/?unapproved=580&moderation-hash=b06ed9e2ba27fc2a3653b517a76bc461#comment-580

First Trust Water ETF (FIW) 12/23/2020 declared dividend $0.1228 (yield 0.56%)

First Trust Water ETF (NYSE:FIW) on 12/23/2020 declared a dividend of $ 0.1228 per share payable on December 31, 2020 to shareholders of record as of December 28, 2020. Dividend amount recorded is an increase of $ 0.0277 from last dividend Paid.

First Trust Water ETF (NYSE:FIW) has paid dividends since 2007, has a current dividend yield of 0.5649717450% and has increased its dividends for 1 successive years.

Source: https://www.dividendinvestor.com/dividend-news/20201223/first-trust-water-etf-nyse-fiw-declared-a-dividend-of-$0.1228-per-share/

First Tr Dow Jones Global Select Dividend Index Fd (FGD) 12/23/2020 declared dividend $0.3481/sh (yield 6.18%)

First Tr Dow Jones Global Select Dividend Index Fd/First Trust Exchange-Traded Fund II (NYSE:FGD) on 12/23/2020 declared a dividend of $ 0.3481 per share payable on December 31, 2020 to shareholders of record as of December 28, 2020. Dividend amount recorded is an increase of $ 0.1065 from last dividend Paid.

First Tr Dow Jones Global Select Dividend Index Fd/First Trust Exchange-Traded Fund II (NYSE:FGD) has paid dividends since 2007, has a current dividend yield of 6.1756634712% and has increased its dividends for 3 successive years.

Source: https://www.dividendinvestor.com/dividend-news/20201223/first-tr-dow-jones-global-select-dividend-index-fd-first-trust-exchange-traded-fund-ii-nyse-fgd-declared-a-dividend-of-$0.3481-per-share/

First Trust Value Line Dividend Index Fund (FVD) 12/23/2020 declared dividend $0.2112/sh (2.34%)

First Trust Value Line Dividend Index Fund/First Trust Value Line Dividend Index Fund (NYSE:FVD) on 12/23/2020 declared a dividend of $ 0.2112 per share payable on December 31, 2020 to shareholders of record as of December 28, 2020. Dividend amount recorded is an increase of $ 0.0246 from last dividend Paid.

First Trust Value Line Dividend Index Fund/First Trust Value Line Dividend Index Fund (NYSE:FVD) has paid dividends since 2007, has a current dividend yield of 2.3396880627% and has increased its dividends for 4 successive years.

Source: https://www.dividendinvestor.com/dividend-news/20201223/first-trust-value-line-dividend-index-fund-first-trust-value-line-dividend-index-fund-nyse-fvd-declared-a-dividend-of-$0.2112-per-share/

Vanguard Extended Duration Treasury ETF declares monthly distribution of $0.7703 (yield 1.98%)

  • Vanguard Extended Duration Treasury ETF (NYSEARCA:EDV) – $0.7703, LTCG of $3.9889 and STCG of $1.3454
  • 30-Day SEC Yield of 1.59% as of Dec. 18.
  • Payable Dec 29; for shareholders of record Dec 24; ex-div Dec 23.

Source: https://seekingalpha.com/news/3646788-vanguard-extended-duration-treasury-etf-declares-monthly-distribution-of-0_7703

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”

FPX: A Diversified Approach To IPO Investing

Summary

  • FPX has benefited from strong momentum among high-growth IPO stocks in recent years.
  • While FPX has outperformed the broader market with an impressive 45% return in 2020, the fund has trailed the competitor ‘IPO ETF’ which is more concentrated on smaller companies.
  • We like the diversification of FPX which helps balance its risk and may ultimately prove to be the superior IPO investing strategy over the long-run.

Continue reading at Seeking Alpha right here: https://seekingalpha.com/article/4394968-fpx-diversified-approach-to-ipo-investing

Last Man Standing · Collaborative Fund

Amazon in 2014 was a puzzle. It was big. It was growing. It had market share and mindshare. Competitors feared it as much as customers loved it. What it didn’t have was a good business. Profit margins wobbled between negligible and negative. That might be acceptable for a young startup, but Amazon was two decades old at the time. The whole thing was easy to mock and call a bubble. Jeff Bezos had a different view: Margins don’t matter. Dollars do. A huge business with low margins was preferable to the opposite. He explained in 2014: Margins are not one of the things we are seeking to optimize. It’s the absolute dollar free cash flow per share that you want to maximize. Free cash flow [is] something that investors can spend. Investors can’t spend percentage margins … What matters always is dollar margins: the actual dollar amount. Companies are valued not on their margins, but on how many dollars they actually make. There are parts to quibble with here, but I just liked Bezos’s simple logic: The business with the most dollars wins. Not the best margins or the highest quarterly growth. Just how many dollars you generate over the long run. Let me propose the equivalent for individual investors. It might push you away trying to earn the highest returns because returns, like margins, don’t matter; generating wealth does. Everything worthwhile in investing comes from compounding. Compounding is the whole secret sauce, the rocket fuel, that creates fortunes. And compounding is just returns leveraged with time. Earning a 20% return in one year is neat. Doing it for three years is cool. Earning 20% per year for 30 years creates something so extraordinary it’s hard to fathom. Time is the investing factor that separates, “Hey, nice work,” from “Wait, what? Are you serious?” The time component of compounding is why 99% of Warren Buffett’s net worth came after his 50th birthday, and 97% came after he turned 65. Yes, he’s a good investor. But a lot of people are good investors. Buffett’s secret is that he’s been a good investor for 80 years. His secret is time. Most investing secrets are. Once you accept that compounding is where the magic happens, and realize how critical time is to compounding, the most important question to answer as an investor is not, “How can I earn the highest returns?” It’s, “What are the best returns I can sustain for the longest period of time?” That’s how you maximize wealth. And the most important point is that the best returns you can earn for the longest period of time are rarely the highest returns in any given year, or even decade. Charlie Munger says “the first rule of compounding is to never interrupt it unnecessarily.” Interrupting it can happen in many ways. The most common is finding a strategy that produces high returns for a period of time then abandoning it when it inevitably has a few bad years. Investing in a strategy or sector that produces great returns for five years but shakes your faith to the point of abandonment after a collapse in year six will likely leave you worse off than a strategy that produces merely good returns but you can stick with for years six, seven, eight, 10, 20, etc. This is especially true if, after abandoning a strategy in its down year, you move on to whatever the new hot thing is only to repeat the process. Complexity is another door to interruption. It can produce higher returns. But the more knobs you have to fiddle with, the more levers you have to pull, the higher the odds that something, at some point, will cause you to second-guess yourself, or reveal a risk you hadn’t considered, or tempt your clients to leave – all of which stops the clock of compounding and can outweigh any return advantage you had when the strategy worked. None of that is intuitive in the moment, because the pursuit of the best returns at all times feels like the best way to maximize wealth. It’s not until you consider the time factor of compounding that you realize maximizing annual returns in a given year and maximizing long-term wealth are two different things. Carl Richards once made the point that a house might be the best investment most people ever make. It’s not that housing provides great returns – it does not. It’s not even the leverage. It’s that people are more likely to buy a house and sit on it without interruption for years or decades than any other asset. It’s the one asset people give compounding a fighting chance to work. Everyone’s different, with varying levels of confidence and tolerance for what they can put up with in investing. But the idea that endurance is more important than annual returns even if annual returns get all the attention is something virtually every investor should think more about. Airbnb CEO Brian Chesky once said, “If you’re trying to win in the next year, and I’m trying to win in the next five years, we both might win. But I’m ultimately going to win.” That’s the whole idea. Bezos’s goal isn’t to have the best business. It’s to make the most dollars. Likewise, investors’ goals shouldn’t be the best annual returns. It should be to maximize wealth. And you get that through endurance – not to be the best in any given year, but to be the last man standing. This kid has it all figured out:
— Read on www.collaborativefund.com/blog/standing/

WisdomTree Emerging Markets High Dividend Fd (DEM) 12/18/2020 declared dividend $0.2927/sh (yield 4.16%)

Emerging Markets High Dividend Fd/WisdomTree Trust (NYSE:DEM) on 12/18/2020 declared a dividend of $ 0.2927 per share payable on December 24, 2020 to shareholders of record as of December 22, 2020. Dividend amount recorded is a decrease of $ 0.6473 from last dividend Paid.

Emerging Markets High Dividend Fd/WisdomTree Trust (NYSE:DEM) has paid dividends since 2007, has a current dividend yield of 4.1576542854% and has increased its dividends for 3 successive years.

Source: https://www.dividendinvestor.com/dividend-news/20201218/emerging-markets-high-dividend-fd-wisdomtree-trust-nyse-dem-declared-a-dividend-of-$0.2927-per-share/

WisdomTree US MidCap Divid Fd (DON) 12/18/2020 declared dividend $0.22/sh (yield 2.77%)

US MidCap Divid Fd/WisdomTree Trust (NYSE:DON) on 12/18/2020 declared a dividend of $ 0.2200 per share payable on December 24, 2020 to shareholders of record as of December 22, 2020. Dividend amount recorded is an increase of $ 0.165 from last dividend Paid.

US MidCap Divid Fd/WisdomTree Trust (NYSE:DON) has paid dividends since 2006, has a current dividend yield of 2.7690553665% and has increased its dividends for 6 successive years.

Source: https://www.dividendinvestor.com/dividend-news/20201218/us-midcap-divid-fd-wisdomtree-trust-nyse-don-declared-a-dividend-of-$0.2200-per-share/

WisdomTree Emerging Mkts Smallcap Divid Fd (DGS) 12/18/2020 declared dividend $0.4875/sh (yield 3.69%)

Emerging Mkts Smallcap Divid Fd/WisdomTree Trust (NYSE:DGS) on 12/18/2020 declared a dividend of $ 0.4875 per share payable on December 24, 2020 to shareholders of record as of December 22, 2020. Dividend amount recorded is a decrease of $ 0.1425 from last dividend Paid.

Emerging Mkts Smallcap Divid Fd/WisdomTree Trust (NYSE:DGS) has paid dividends since 2007, has a current dividend yield of 3.6889541149% and has increased its dividends for 4 successive years.

Source: https://www.dividendinvestor.com/dividend-news/20201218/emerging-mkts-smallcap-divid-fd-wisdomtree-trust-nyse-dgs-declared-a-dividend-of-$0.4875-per-share/

3 Dividend-Paying ETFs to Consider Adding to You Portfolio (DEM)

Vanguard High Dividend Yield ETF(NYSE:VYM): While the stock markets are hovering around all-time-high levels, the U.S. economy is still uncertain, hamstrung by not knowing when exactly the COVID-19 pandemic will abate, and business and commerce will return to pre-pandemic activity. This is driving some anxiety among investors who would love to lock in a steady source of income. So, we think it may now be wise for them to invest in dividend-paying ETFs, such as Vanguard High Dividend Yield ETF (VYM), Vanguard Real Estate ETF (VNQ) and WisdomTree Emerging Markets High Dividend Fund (DEM), which stand out for their exceptional dividend yields.
— Read on stocknews.com/news/vym-vnq-dem-3-dividend-paying-etfs-to-consider-adding-to-you-portfolio/

iShares MSCI Pacific ex Japan ETF (EPP) 12/11/2020 declared dividend $0.5466/sh (yield 2.29%)

iShares MSCI Pacific ex Japan ETF/iShares Inc. (NYSE:EPP) on 12/11/2020 declared a dividend of $ 0.5466 per share payable on December 18, 2020 to shareholders of record as of December 15, 2020. Dividend amount recorded is an increase of $ 0.0033 from last dividend Paid.

iShares MSCI Pacific ex Japan ETF/iShares Inc. (NYSE:EPP) has paid dividends since 2001, has a current dividend yield of 2.2889542580% and has increased its dividends for 0 successive years.

Source: https://www.dividendinvestor.com/dividend-news/20201211/ishares-msci-pacific-ex-japan-etf-ishares-inc.-nyse-epp-declared-a-dividend-of-$0.5466-per-share/

iShares MSCI Sweden ETF (EWD) 12/11/2020 declared dividend $0.2946/sh (yield 0.98%)

iShares MSCI Sweden ETF/iShares Inc. (NYSE:EWD) on 12/11/2020 declared a dividend of $ 0.2946 per share payable on December 18, 2020 to shareholders of record as of December 15, 2020. Dividend amount recorded is an increase of $ 0.1991 from last dividend Paid.

iShares MSCI Sweden ETF/iShares Inc. (NYSE:EWD) has paid dividends since 1996, has a current dividend yield of 0.9838546515% and has increased its dividends for 0 successive years.

Source: https://www.dividendinvestor.com/dividend-news/20201211/ishares-msci-sweden-etf-ishares-inc.-nyse-ewd-declared-a-dividend-of-$0.2946-per-share/

iShares Morningstar Mid-Cap Growth ETF (JKH) 12/11/2020 declared dividend $0.0400/sh (yield 0.94%)

iShares Morningstar Mid-Cap Growth ETF/iShares Trust (NYSE:JKH) on 12/11/2020 declared a dividend of $ 0.0400 per share payable on December 18, 2020 to shareholders of record as of December 15, 2020. Dividend amount recorded is a decrease of $ 0.0395 from last dividend Paid.

iShares Morningstar Mid-Cap Growth ETF/iShares Trust (NYSE:JKH) has paid dividends since 2004, has a current dividend yield of 0.0948047042% and has increased its dividends for 1 successive years.

Source: https://www.dividendinvestor.com/dividend-news/20201211/ishares-morningstar-mid-cap-growth-etf-ishares-trust-nyse-jkh-declared-a-dividend-of-$0.0400-per-share/

iShares Residential & Multisector Real Estate ETF (REZ) 12/11/2020 declared dividend $0.7092/sh (yield 3.23%)

iShares Residential & Multisector Real Estate ETF/iShares Trust (NYSE:REZ) on 12/11/2020 declared a dividend of $ 0.7092 per share payable on December 18, 2020 to shareholders of record as of December 15, 2020. Dividend amount recorded is an increase of $ 0.2385 from last dividend Paid.

iShares Residential & Multisector Real Estate ETF/iShares Trust (NYSE:REZ) has paid dividends since 2007, has a current dividend yield of 3.2262907028% and has increased its dividends for 0 successive years.

Source: https://www.dividendinvestor.com/dividend-news/20201211/ishares-residential–multisector-real-estate-etf-ishares-trust-nyse-rez-declared-a-dividend-of-$0.7092-per-share/

iShares MSCI South Korea ETF (EWY) 12/11/2020 declared dividend $0.6303/sh (yield 1.52%)

iShares MSCI South Korea ETF/iShares Inc. (NYSE:EWY) on 12/11/2020 declared a dividend of $ 0.6303 per share payable on December 18, 2020 to shareholders of record as of December 15, 2020. Dividend amount recorded is a decrease of $ 0.6773 from last dividend Paid.

iShares MSCI South Korea ETF/iShares Inc. (NYSE:EWY) has paid dividends since 2001, has a current dividend yield of 1.5175237656% and has increased its dividends for 1 successive years.

Source: https://www.dividendinvestor.com/dividend-news/20201211/ishares-msci-south-korea-etf-ishares-inc.-nyse-ewy-declared-a-dividend-of-$0.6303-per-share/