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Follow T. Rowe Price With These Stocks And ETFs

With the Fed turning hawkish, several industry experts predicting 2016 as a down year for stocks, overvaluation concerns looming large and growth worries still brewing abroad, investors must be looking for the right pick in the markets. The broader U.S. market has lost over 1.2% so far this year (as of December 15, 2015) as denoted by Vanguard Total Stock Market ETF (NYSEARCA: VTI ) while global stocks are off about 4% as depicted by iShares MSCI ACWI (NASDAQ: ACWI ). At home, only tech stocks held their head high as indicated by tech-laden Nasdaq ETF’s (NASDAQ: QQQ ) 8.8% return. In such a situation, while several experts are coming up with varying views, investors can follow the American publicly owned investment firm T Rowe Price’s tech stock selections for 2016. Investors should note that none of the picks is Buy-rated as per Zacks (at the time of writing); in fact, some of these have a ‘Sell’ rating. So, if you follow T. Rowe Price’s picks, bets could be contrarian in nature. However, investors can go against the crowd via the ETF approach as it covers up one component’s weakness with another component’s strength and runs lesser risk. Below we highlight tech stock selections of T. Rowe Price and the ETFs having considerable exposure to those stocks. JD. Com (NASDAQ: JD ) – WisdomTree China ex-State-Owned Entpr ETF (NASDAQ: CXSE ) Beijing-based e-commerce company reported wider-than-expected loss in Q3 reported in November, but provided a better-than-expected fourth-quarter revenue guidance. The company’s revenues of RMB44.1 billion (US$6.9 billion) also represented a year-over-year jump of 52% in Q3. T. Rowe Price finds its valuation ‘very attractive’. The stock gained 9.6% in the last one month and is up 36.5% so far this year (as of December 15, 2015). However, the stock has a Zacks Rank #4 (Sell) as there were no upward estimate revisions by analysts in the last 7, 30 and 60 days for any of the quarters, at the time of writing. Thus, investors seeking to follow T. Rowe Price but with lower risks might opt for a basket or ETF approach. The stock has a top spot in WisdomTree China ex-State-Owned Enterprises ETF with 9.48% exposure. As the name suggests, the fund does not consider Chinese state-owned entities. Though CSXE also has a Zacks ETF Rank #4, the fund is up 0.6% in the last one month. Tesla (NASDAQ: TSLA ) – First Trust NASDAQ Clean Edge Green Energy ETF (NASDAQ: QCLN ) Electric vehicles maker Tesla has always been a hot stock, thanks to its relentless initiatives. Though its headline Q3 numbers were not very enthusiastic, Tesla is steady on deliveries of new automobiles. Also, the unveiling of Tesla’s new, more affordable Model 3 car in March 2016, may lead investors to place big bets on the stock. T. Rowe Price expects the usage of electric car to be common in 2016 and 2017. TSLA has a Zacks Rank #3 (Hold) and hails from an industry which is in the top 26% of the Zacks universe, at the time of writing. Tesla was up 3.2% in the last one month (as of December 15, 2015) but is off 0.6% year to date. The stock has 7.11% weight in the clean energy ETF QCLN. The fund has a Zacks ETF Rank #3 and was up 5.6% in the last one month but is down 12.4% year to date. In any case, the sailing should be smooth for clean energy ETFs ahead following the Paris climate summit wherein efforts to limit greenhouse emissions were widespread. Alphabet (NASDAQ: GOOGL ) (NASDAQ: GOOG ) – iShares U.S. Technology ETF (NYSEARCA: IYW ) As per T. Rowe Price, Alphabet – the publicly traded firm formerly known as Google – is gaining traction from mobile phones and the demand for YouTube. Solid revenues, stock repurchase plans and “very attractive valuation” makes Alphabet shares lucrative. This Zacks Rank #3 stock has a Growth score of ‘B’ and a Momentum score of ‘C’. GOOGL is up over 43% this year. The stock has 6.2% weight in the Zacks Rank #2 (Buy) ETF IYW. The fund is up over 3.5% so far this year (as of December 15, 2015). Applied Materials (NASDAQ: AMAT ) – Market Vectors Wide Moat Research ETF (NYSEARCA: MOAT ) Applied Materials is one of the world’s largest suppliers of fabrication equipment to semiconductor, LCD and solar PV cell manufacturers. The rise of mobile devices, better utilization of resources and the recently-announced merger with Tokyo Electron are the positives. AMAT was up over 14% in the last three months (as of December 15, 2015). This Zacks Rank #3 has a Value and Growth score of ‘B’. The stock has a 5.66% weight in the fund MOAT which is intended to offer exposure to the 20 most attractively priced companies with continued competitive advantages according to Morningstar’s equity research team. MOAT is up 1.1% in the last three months. NXP Semiconductors (NASDAQ: NXPI ) – Nasdaq CEA Cybersecurity ETF (NASDAQ: CIBR ) As per T. Rowe Price, this semiconductor company benefits big time from industrial and auto end markets. Its acquisition of Freescale Semiconductor also bodes well for the fund. The fund has a Zacks Rank #4 and a Growth score of ‘B’ and Value score of ‘C’. NXPI retreated 7.7% in the last three months. Apart from semiconductor ETFs, the stock has 5.9% weight in the cyber security ETF CIBR. The fund added over 0.1% in the last three months. Original Post

Inside The Recent Surge In Clean-Energy ETFs

Thanks to the oil price collapse and global slowdown concerns, the renewable energy space has performed appallingly this year. But positive trends have started building up in the space lately, especially after the historic Paris climate deal and the U.S. tax credit extension. This has started pushing the stocks and the ETFs higher, reflecting strong momentum and bullish sentiments going into the New Year. Paris Climate Deal About 195 countries agreed to a landmark treaty in Paris to curb global warming to a maximum limit of two degrees Celsius with a goal of lowering it further to about 1.5 degrees as soon as possible. Per the pact, the rich countries like the U.S. and those in Europe pledge to provide $100 billion per year to poorer nations to help them to eliminate greenhouse gasses by 2020. This is expected to bring an end to the fossil fuel era and alleviate global climatic conditions. The Paris deal will invariably motivate renewable energy companies to step up their investments in new technologies, boosting the industry’s future growth prospects. Tax Credit Extension Last week, the U.S. government surprisingly approved a five-year extension to the Investment Tax Credit (ITC) and Production Tax Credit (PTC) for solar and wind companies. It also approved a one-year extension for a range of other renewable energy technologies. Under the new plan, the 30% solar tax credit (ITC), which was due to expire on January 1, 2017, has been extended for another three years. But after that ITC will decline steadily to 10% in 2022. Subsequently, the credit for residential solar installations will be abolished, while commercial installers would continue claiming the credits at 10%. Additionally, the wind credit (PTC) of 2.3%, which had already expired at the end of 2014, has been extended for another year for the new projects that came online this year. However, PTC will start declining 20% each year until it expires in 2020. Further, other renewable energy sources like geothermal, landfill gas, marine energy, and incremental hydro also receive a one-year PTC extension. The extension has been a huge boon to the entire renewable energy space, as it will reduce project financing costs and increase profit margins in the sector. As per GTM Research, the extension of the ITC would result in a 54% jump in U.S. solar installations through 2020 and add 25 gigawatts of additional solar capacity over the next five years. On the other hand, the American Wind Energy Association expects the PTC extension to drive tens of gigawatts of new wind projects through 2020. Sound Industry Fundamentals Depletion of fossil fuel reserves, global warming and high fuel emission issues, new and advanced technologies, and more efficient applications are making clean power more feasible. Rising demand for renewable sources for electricity generation across the globe has added to the sector’s strength. According to the International Energy Agency (IEA), green energy will be the largest source of electricity growth over the next five years buoyed by declining technology cost and aggressive expansion in the emerging economies. Notably, global power generation through clean energy would rise to more than 26% by 2020 from 22% in 2013. Most of the growth will especially come from higher demand in China, India and Brazil. Given the bright outlook, the recent bullish run in the space is likely to continue into 2016. As such, investors seeking to ride out this booming trend want to tap the space in the ETF form. For those investors, we have highlighted five ETFs that could be worth a look given increasing green energy efficiency. Guggenheim Solar ETF (NYSEARCA: TAN ) This ETF targets the solar corner of the broad clean energy space by tracking the MAC Global Solar Energy Index. Holding 31 stocks in the basket, the fund is concentrated in the top two firms – First Solar (NASDAQ: FSLR ) and SolarCity (NASDAQ: SCTY ) – with 10% and 7.8% shares, respectively. Other firms hold no more than 6.02% of assets. American firms dominate the fund’s portfolio with nearly 50.9% share, followed by Hong Kong (19.8%) and China (17.5%). The product has amassed $299.5 million in its asset base and trades in solid volume of around 221,000 shares a day. It charges investors 70 bps in fees per year. The fund gained 19% in the past week. PowerShares WilderHill Clean Energy Portfolio Fund (NYSEARCA: PBW ) This product provides exposure to companies engaged in the business of advancement of cleaner energy and conservation. It follows the WilderHill Clean Energy Index and holds about 45 stocks in its basket, which are pretty well spread out across various securities as each makes up for less than 6.9% of total assets. Information technology takes the top spot at 50%, while industrials takes a quarter share. The fund has amassed $113.5 million in its asset base and sees moderate volume of nearly 90,000 shares a day. Expense ratio came in at 0.70%. PBW was up 11.9% last week. Market Vectors Global Alternative Energy ETF (NYSEARCA: GEX ) This ETF provides global exposure to about 31 stocks that are primarily engaged in the business of alternative energy by tracking the Ardour Global Index. The fund holds about 31 stocks in its basket with AUM of $89.6 million, while charging 62 bps in fees per year. Average daily volume is paltry for this fund. The product is highly concentrated in the top two firms – Vestas Wind Systems ( OTCPK:VWDRY ) and Eaton Corp (NYSE: ETN ) – with 12.1% and 10.4% of assets, respectively, while other firms make up for single-digit allocation. From a sector perspective, industrials takes the largest share at 47%, while information technology (28.1%) and utilities (13.5%) round off the next two spots. In terms of country exposure, the fund is skewed toward the U.S. with 49.2% share, followed by Denmark and China. The ETF has gained 8.6% in the same period. First Trust NASDAQ Clean Edge Green Energy Index Fund ( QCLN ) This fund provides exposure to the U.S. clean-energy companies across a wide range of industries, including solar power, biofuels, advanced batteries, as well as the installation of new technological systems. It tracks the Nasdaq Clean Edge Green Energy Index and manages assets worth $65.5 million. It charges 60 bps in fees per year, while volume is light at nearly 23,000 shares. In total, the product holds 46 securities with none holding more than 8% share in its basket. From a sector look, technology firms dominate this ETF, accounting for nearly 30% of the assets while oil and gas companies take another one-fourth share. QCLN added 8.6% over the past week. Original post

5 Best-Ranked Fidelity Mutual Funds To Watch For

With $1.5 trillion (excluding money market assets) of mutual fund assets under management and a wide variety of mutual funds spanning various sectors, Fidelity Investments is one of the largest and oldest mutual fund companies in the world. The company provides investment advice, discount brokerage services, retirement services, wealth management services, securities execution and clearance and life insurance products to its clients. Fidelity provides potential investment avenues worldwide for its investors after extensive and in-depth research by a large group of investment professionals. Fidelity Investments carries out operations in the U.S. through 10 regional offices and over 180 Investor Centers. It also has a presence in eight other countries of North America, Europe, Asia and Australia. Below, we share with you 5 top-ranked Fidelity mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy), and we expect the funds to outperform their peers in future. To view the Zacks Rank and past performance of all Fidelity mutual funds, click here . Fidelity Select Biotechnology Portfolio No Load (MUTF: FBIOX ) seeks capital appreciation. FBIOX invests a large chunk of its assets in companies primarily involved in research, development, manufacture, and distribution of various biotechnological products. Factors such as financial strength and economic conditions are considered to invest in companies located all over the world. The Fidelity Select Biotechnology Portfolio No Load is a non-diversified fund and has returned 8.8% over the past one year. FBIOX has an expense ratio of 0.74% as compared to a category average of 1.37%. Fidelity Small Cap Growth Fund No Load (MUTF: FCPGX ) invests the majority of its assets in securities of small cap companies that are believed to have impressive growth prospects. FCPGX focuses on acquiring common stocks of both US and non-US firms. The Fidelity Small Cap Growth Fund No Load has returned 5.6% over the past one year. As of July 2015, FCPGX held 176 issues, with 2.40% of its assets invested in 2U Inc. (NASDAQ: TWOU ). Fidelity Select Software & Comp Portfolio No Load (MUTF: FSCSX ) seeks growth of capital. The fund invests a lion’s share of its assets in companies whose primary operations are related to software or information-based services. FSCSX primarily focuses on acquiring common stocks of both domestic and foreign companies. It uses fundamental analysis to select companies for investment purposes. The Fidelity Select Software & Comp Portfolio No Load is a non-diversified fund and has returned 8.6% over the past one year. Ali Khan is the fund manager of FSCSX since 2014. Fidelity Select Construction & Housing Portfolio No Load (MUTF: FSHOX ) invests a major portion of its assets in the common stocks of companies principally engaged in the design and construction of residential, commercial, industrial, and public works facilities, as well as companies engaged in the manufacture, supply, distribution, or sale of products or services to these construction industries. It invests in securities issued through the globe. The Fidelity Select Construction & Housing Portfolio No Load is a non-diversified fund and has returned 7% over the past one year. FSHOX has an expense ratio of 0.82% as compared to a category average of 1.41%. Fidelity Select Consumer Discretionary Portfolio No Load (MUTF: FSCPX ) seeks capital growth. The fund heavily invests in securities of companies mostly involved in the consumer discretionary sector. It primarily invests in common stocks of companies all over the globe. Factors including financial strength and economic conditions are considered before investing in a company. The Fidelity Select Consumer Discretionary Portfolio No Load is a non-diversified fund and has returned 6.8% over the past one year. As of October 2015, FSCPX held 60 issues, with 9.45% of its assets invested in Amazon.com Inc. (NASDAQ: AMZN ). Original Post