Closed Position in Natural Resources Equities (RTM) 1-18-22

Today we closed our position in the Invesco S&P 500® Equal Weight Materials ETF (RTM). Buy 103.84. Sell 177.19. I still believe RTM is a great ETF and a worthy investment, but we have found ourselves with 2 natural resources funds in our portfolio. So, we have opted to close our position in RTM and continue to invest the First Trust Water ETF (FIW). Read why we invest in FIW right here: The 4 Best Natural Resources Sector ETFs to Own Long-Term

The 4 Best Natural Resources Sector ETFs to Own Long-Term 1.5

  • 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: 8.77% CAGR

  • S&P 500 Performance: 7.98% CAGR

  • Back test timeframe: January 1999 – December 2021

  • Number of ETFs available in this asset class: 38

  • Number of ETFs in this asset class that are 10-years old or older: 25

XLB vs SPY: January 1999 – December 2021

XLB vs SPY: December 22, 1998 – January 14, 2022

Continue reading “The 4 Best Natural Resources Sector ETFs to Own Long-Term 1.5”

PHO / FIW: 2 Water ETFs that Will Benefit from Bipartisan Infrastructure Bill

Invesco Water Resources ETF(NASDAQ:PHO): The water utility industry is expected to generate solid growth in the coming years, fueled by the government’s efforts to repair aging water infrastructure. So, we think investors seeking to capitalize on the industry’s growth in a relatively less risky way could do worse than bet on famous water ETFs Invesco Water Resources ETF (PHO) and First Trust Water ETF (FIW). Read on.
— Read on stocknews.com/news/pho-fiw-2-water-etfs-that-will-benefit-from-bipartisan-infrastructure-bill/

Water ETFs: $111 Billion For Water Infrastructure $FIW

Summary

  • The Biden jobs bill has $111 billion for water infrastructure. An ETF is a good way to play this without a lot of investment in time.
  • There are a wide range of companies that will benefit, mostly large industrials with relatively small water units. There are a few water pure-plays.
  • Despite some problems with bad inclusions, I prefer FIW right now because of its flatter weighting structure.
  • I will follow up on individual companies, and eventually put together a jobs bill portfolio.

Continue reading at Seeking Alpha right here: https://seekingalpha.com/article/4419906-water-etfs-111-billion-for-water-infrastructure

 

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”

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”

Best Long-Term Performance Natural Resources Sector ETFs 1.2

  • The Natural Resource sector, also know as the Basic Materials sector has provide outstanding performance over the last 20 years
  • The oldest ETF in this sector has outperformed an S&P 500 index fund by 1.02% CAGR since its’ inception date
  • There are currently 31 ETFs available in the Natural Resources category. 14 of these ETFs have been available for 10 years or longer

Investopedia defines the Natural Resources sector this way: The basic materials sector is a category of stocks for companies involved in the discovery, development, and processing of raw materials. The sector includes companies engaged in mining and metal refining, chemical products, and forestry products. This sector has performed very well over the last 20 years. The Materials Select Sector SPDR® Fund (XLB) has an inception date of 12/16/1998. XLB is the oldest available ETF in this category. Since it’s inception date, it has outperformed an S&P 500 index fund by 1.02% CAGR. That’s a 78.47% greater gain in XLB than in the SPY ETF over 20 years. (See charts below)

XLB vs S&P 500 index fund: January 1999 – February 2019

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

Continue reading “Best Long-Term Performance Natural Resources Sector ETFs 1.2”

First Trust declares quarterly distributions (FXZ)

First Trust Consumer Discretionary AlphaDEX Fund (NYSEARCA:FXD) – $0.0712.

First Trust Consumer Staples AlphaDEX Fund (NYSEARCA:FXG) – $0.5624.

First Trust Energy AlphaDEX Fund (NYSEARCA:FXN) – $0.0452.

First Trust Financials AlphaDEX Fund (NYSEARCA:FXO) – $0.1325.

First Trust Industrials/Producer Durables AlphaDEX Fund (NYSEARCA:FXR) – $0.0634.

First Trust Utilities AlphaDEX Fund (NYSEARCA:FXU) – $0.0924.

First Trust Materials AlphaDEX Fund (NYSEARCA:FXZ) – $0.1125.

First Trust Small Cap Value AlphaDEX Fund (NASDAQ:FYT) – $0.1156.

First Trust Small Cap Core AlphaDEX Fund (NASDAQ:FYX) – $0.0932.

Payable Sept. 28; for shareholders of record Sept. 17; ex-div Sept. 14.

Source: https://seekingalpha.com/news/3390393-first-trust-declares-quarterly-distributions?app=1#email_link

First Trust declares quarterly distributions (FXZ)

First Trust Consumer Discretionary AlphaDEX Fund (NYSEARCA:FXD) – $0.1302.

First Trust Consumer Staples AlphaDEX Fund (NYSEARCA:FXG) – $0.1793.

First Trust Technology AlphaDEX Fund (NYSEARCA:FXL) – $0.0223.

First Trust Energy AlphaDEX Fund (NYSEARCA:FXN) – $0.0305.

First Trust Financials AlphaDEX Fund (NYSEARCA:FXO) – $0.1719.

First Trust Industrials/Producer Durables AlphaDEX Fund (NYSEARCA:FXR) – $0.0863.

First Trust Utilities AlphaDEX Fund (NYSEARCA:FXU) – $0.1876.

First Trust Materials AlphaDEX Fund (NYSEARCA:FXZ) – $0.1447.

Payable June 29; for shareholders of record June 22; ex-div June 21.

Source: Seeking Alpha – First Trust declares quarterly distributions

Best Long-Term Performance Natural Resources (Basic Materials) Sector ETFs 1.1

What is the ‘Basic Materials Sector’? Here’s a good definition of this sector as provided by Investopedia: “The basic materials sector is a category of stocks for companies involved in the discovery, development and processing of raw materials. The sector includes the mining and refining of metals, chemical products and forestry products. The basic materials sector is sensitive to changes in the business cycle. Because companies in this sector supply materials for construction, they depend on a strong economy.

XLB vs S&P 500: January 1999 – April 2018

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

Continue reading “Best Long-Term Performance Natural Resources (Basic Materials) Sector ETFs 1.1”