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REIT ETFs That Can Help You Sleep Well At Night (REZ)

Summary

  • ETFs are so simple, as they limit the amount of career risk for advisors, who can blame the movements of broad indices, not their own stock-picking ability.
  • The ability to mimic the indices, without the risk of deviating far from them, has been a boon for financial advisors.
  • I can hear the advisor now: “We’ll just put you in a REIT ETF like VNQ and be done with it.”
  • For DIY investors, it’s important to maintain tactical diversification, to take advantage of property sectors and sub-sectors with the most upside.

Continue reading at Seeking Alpha right here:   https://seekingalpha.com/article/4238816-reit-etfs-can-help-sleep-well-night

 

 

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The Best ETF To Play Biotech (FBT)

Summary

  • Big pharma stocks have underperformed and are likely to continue buying biotech companies for growth.
  • The charts also show large cap biotech companies are underperforming their mid/small cap counterparts.
  • The potential for big pharma and large cap biotech companies looking for needle moving companies points to mid-cap biotech companies being attractive targets for both.
  • Not surprisingly, the biotech ETF with the largest exposure to mid-cap biotech companies has the best performance over the past 1-, 2-, 3- and 5-year periods.

The recently announced deal of Bristol-Myers Squibb (BMY) acquiring Celgene (CELG) got me thinking about biotech & big pharma stocks. The following chart perfectly sums up why I believe big pharma will continue to be acquirers of large-cap biotech companies and small/mid cap companies. Slowing growth due to generic competition and increased scrutiny of drug prices has caused shares of big pharma companies to underperform biotechs and the overall healthcare sector. As you can see below, big pharma as represented by the SPDR S&P Pharmaceuticals ETF (XPH), has gone nowhere since the beginning of 2016, while biotech as represented by the SPDR Biotech ETF (XBI) is up substantially, as is the Health Care Select Sector SPDR ETF (XLV). Simply put, given this vast underperformance, I expect big pharma to go on a spending spree to buy future growth and I will be detailing the current ETF options available in the biotech sector.

Continue reading at Seeking Alpha right here:  https://seekingalpha.com/article/4238204-best-etf-play-biotech

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Mid-Cap Value: The Most-Hipster Asset Class (DON)

Summary

  • Mid-cap value has been one of the most consistently performing asset classes over the last 25 years.
  • Investors may be starting to realize the struggles of active managers in mid-cap value.
  • Over the last 12+ years, DON has been a remarkably consistent outperformer in an unexpectedly consistent asset class.

By Joseph Tenaglia

With a market segment that is often overlooked, and in an investment style that the markets seem to hate, mid-cap value may be the most hipster equity-style box out there.

Continue reading the complete article at Seeking Alpha right here:  https://seekingalpha.com/article/4239011-mid-cap-value-hipster-asset-class

 

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Best Long-Term Performance International Large Cap Value ETFs 1.2

  • The International Large Cap Value asset class has been a good place to invest for long-term investors wishing to invest beyond the U.S.
  • There are currently 38 ETFs available in the Morningstar Foreign Large Value category
  • Twelve of these Foreign Large Value funds have been available for 10 years or longer

The International Large Cap Value asset class has been around much longer than ETFs have been available. This asset class is typically underutilized in most American’s equity portfolios. That is unfortunate because International Large Cap Value stocks tend to garner a long-term risk premium over growth stocks, just as U.S. Large Cap Value stocks do. This asset class has done poorly vs a typical S&P 500 fund since it’s availability as an ETF, but when looking back further than 2002, this asset class has produced superior returns over very long periods. Index Fund Advisors is an excellent website to get a long-term view of the performance of many asset classes.

Continue reading “Best Long-Term Performance International Large Cap Value ETFs 1.2”

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Best Long-Term Performance U.S. Mid Cap Blend ETFs 1.2

  • The U.S. Mid Cap Blend asset class has been one of the most profitable equity asset classes for over 46 years, outperforming the S&P 500 by 1.62% CAGR.
  • The oldest available Mid Cap Blend ETF has outperformed an S&P 500 index fund by 1.72% CAGR over the last 23 years
  • There are currently 41 ETFs available in the Mid Cap Blend Morningstar category. Sixteen of these ETFs have been available for 10 years or longer
  • Nine of these older ETFs have outperformed an S&P 500 index fund since their inception dates
  • Most ETFs in this asset class offer massive diversification in size of companies, broad sector exposure, and include both value & growth stocks
  • The middle of the stock market might just be the best place to invest

U.S. Mid Cap Blend vs U.S. Large Cap Blend (aka S&P 500): January 1972 – December 2018

Source: https://www.portfoliovisualizer.com/
Continue reading “Best Long-Term Performance U.S. Mid Cap Blend ETFs 1.2”

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Know What You Own: ETF Deathwatch for December 2018

For the month of December, the ETF Deathwatch decreased in size. Nine exchange-traded products (“ETPs”) were added to the list and 17 funds were removed, making December a busier month in terms of removals. Of the removals, 13 were removed due to increased health and only four were due to asset managers closing their funds. It’s possible that many fund companies were more concerned with recent market action than looking at their product lineups.

Read the full article at Invest with an Edge right here:  http://investwithanedge.com/etf-deathwatch-december-2018

See the complete List of 430 ETFs and ETNs on ETF Deathwatch for December 2018 right here: http://investwithanedge.com/etf-deathwatch-for-december-2018

 

 

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REZ: A House Tour Of The iShares Residential REIT ETF

Summary
  • Among the most popular real estate “sub-sector” ETF, the iShares Residential Real Estate Capped ETF offers focused exposure to 44 of the largest rental landlords in the United States.
  • “Renter Nation” has been very good to REZ investors. Residential REITs have outperformed the broader sector over nearly every recent measurement period.
  • This run of outperformance is no coincidence. The effects of the historic underinvestment in new home construction continues to put upward pressure on rent growth and border housing inflation.
  • The mounting housing shortage is amplified by a large demographic wave of young millennials hitting the housing market.  Rent growth was impressive in 2018 despite record apartment supply growth.
  • There are some idiosyncrasies that investors should be aware of. The ETF is quite “top-heavy” and invests in property types not typically associated with “residential”, including hospitals and medical office buildings.

Read the full article at Seeking Alpha right here:  https://seekingalpha.com/article/4233664-rez-house-tour-ishares-residential-reit-etf