Best Long-Term Performance Utilities Sector ETFs

As most portfolio managers know, building a broadly diversified portfolio has one key building block. Low or negatively correlated assets. Ideally, if each of these building blocks has low correlation to the others, one or more will be falling in value while the others are going up in value. This ideal scenario lends itself to arbitrage opportunities and the ability to buy assets when the market has placed them ‘on-sale’. With that said, have you considered diversifying a portion of your portfolio into the Utilities sector? If you want low correlated assets in your portfolio, I would suggest considering the Utilities sector. The utilities sector has maintained a very low correlation to the U.S. Stock Market over the last 19 years, at just 0.39. I wrote more in depth about this low correlation phenomena right here:  Which Equity Asset Class has the Lowest Correlation to the U.S. Stock Market?

Utilities Sector Correlation to U.S. Markets January 1999 – December 2017

Source: Portfolio Visualizer

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Don’t Ignore The Opportunities In Undervalued Small Caps (VBR) |

“One of my favorite ETFs in the space is the Vanguard Small-Cap Value (NYSE:VBR). It carries an ultra-low expense ratio of just 0.07%, the lowest in the small cap value group, and is broadly diversified, holding around 850 different names with financials and industrials making up half of the portfolio.”

Read the full article at right here: Don’t Ignore The Opportunities In Undervalued Small Caps (VBR) |

Discovering Value in the Top 3 Energy ETFs

How would you like to own a fund that has outperformed the S&P 500 by over 3% compounded annual growth rate (CAGR) over the last 18 years? Wouldn’t it be even better if you could purchase such a fund at a 28% discount from it’s all-time-high (ATH). Can such a fund be found in today’s raging bull market? The answer is a definite yes. The fund I’m talking about is The Energy Select Sector SPDR ETF XLE. (see also PXI & VDEContinue reading “Discovering Value in the Top 3 Energy ETFs”