Tag Archives: history

IVE: Why To Get Back Into Value With This ETF

By Jonathan Jones and Tom Lydon The value factor is starting to shake off several years of slack performance to outpace its growth and momentum counterparts as investors yearn for safer destinations in 2016, according to industry analyst ETF Trends . That is proving to be good news for exchange traded funds such as the $9.4 billion iShares S&P 500 Value ETF (NYSEArca: IVE ) . “It’s got a nice 2.5% dividend and when you are stuck in a trading range you want to be in value,” said Brock Moseley, president of Miracle Mile Advisors, of IVE in an interview with TheStreet.com . As the market cools off and moves toward more stable growth, exchange traded funds that track the value style may outperform. “Should economic conditions continue to stabilize, value stocks may be one of the bigger beneficiaries,” according to Russ Koesterich, Global Chief Investment Strategist and Head of the Model Portfolio & Solutions Business at BlackRock . “Value typically outperforms during periods when economic conditions are improving.” Value stocks typically trade at cheaper prices relative to fundamental measures of value, such as earnings and the book value of assets. In contrast, growth stocks tend to run at higher valuations since investors expect rapid growth in those company measures. IVE holds nearly 370 stocks, almost 24% of which are financial services names. Energy stocks account for over 12% of IVE’s weight and healthcare and industrial stocks each command allocations of more than 11%. The S&P 500 Value ETF showed a 14.62 price-to-earnings and a 1.65 price-to-book. In contrast, the S&P 500 Growth ETF has a 19.34 P/E and a 3.99 P/B while the S&P 500 Index ETF was trading at a 16.7 P/E and a 2.34 P/B. Plain vanilla index ETFs that track the value theme has outperformed so far this year, or at least have not done as poorly as broader benchmarks. Nevertheless, potential investors should still look under the hood of these value stock ETFs as no two are created alike and offer varying performances. iShares S&P 500 Value ETF Click to enlarge Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

3 Best-Rated Dreyfus Mutual Funds To Consider

The Dreyfus Corporation – a segment of BNY Mellon – was founded in 1951 and has around $286 billion of assets under management allocated across a wide range of equity and fixed-income mutual funds. Meanwhile, established in 1784 by Alexander Hamilton, BNY Mellon currently has nearly $1.6 trillion assets under management invested throughout the globe. It provides services including investment management, investment services and wealth management across 35 countries. Below we share with you three top-rated Dreyfus mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. To view the Zacks Rank and past performance of all Dreyfus mutual funds, investors can click here to see the complete list of Dreyfus funds . Dreyfus Global Equity Income A (MUTF: DEQAX ) invests a large portion of its assets in equity securities. DEQAX invests in dividend-paying companies situated in the United States, Canada, Japan, Australia, Hong Kong and Western Europe. DEQAX may invest a maximum 30% of its assets in emerging markets. DEQAX seeks total return. The Dreyfus Global Equity Income A fund has a three-year annualized return of 7.1%. As of January 2016, DEQAX held 55 issues with 5.52% of its assets invested in Philip Morris International Inc. (NYSE: PM ). Dreyfus International Equity A (MUTF: DIEAX ) seeks capital appreciation over the long run. DIEAX invests the majority of its assets in securities of foreign companies. DIEAX focuses on companies that are located in Canada and countries included in the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) Index. The Dreyfus International Equity A fund has a three-year annualized return of 2.3%. DIEAX has an expense ratio of 1.12% compared to the category average of 1.22%. Dreyfus Municipal Bond (MUTF: DRTAX ) invests a major portion of its assets in municipal debt securities that are expected to provide return exempted from federal income tax. DRTAX invests the majority of its assets in securities that are rated A or higher. DRTAX is believed to maintain a dollar-weighted average maturity of more than 10 years. The Dreyfus Municipal Bond fund has a three-year annualized return of 3.5%. Daniel Marques is one of the fund managers of DRTAX since 2009. Original Post

Why Investors May Be Turning To Healthcare

By Jonathan Jones and Tom Lydon The Health Care Select Sector SPDR ETF (NYSEArca: XLV ) is up 2.3% over the past month and the largest healthcare exchange traded fund has shown some signs of awakening out of a long slumber, but some traders are not convinced, according to industry analyst ETF Trends . For XLV and rival healthcare ETFs, the good news is that the U.S. economy moving into the late-cycle phase, overall growth may slow and signs of an economic slowdown could pop up. Consequently, investors may also turn to defensive sectors that are less economically sensitive, such as health care. Looking ahead, in the years through 2024, spending growth is projected to average 5.8% and peak at 6.3% in 2020. Additionally, the actuaries calculated that around 8.4 million Americans became insured in 2014 and noted their increased use of medical services. The number of people on Medicaid is projected to increase to 78.1 million by 2024, outstripping Medicare, which is expected to have 70.3 million enrolled. Those anecdotes and data points apply to the long-term. In the near-term, some options traders are expressing doubt regarding XLV’s upside. “optionMONSTER’s tracking program detected the sale of 5,000 March 65 puts sold for $0.06 and the purchase of 5,000 April 65 puts for $0.69 today. Volume was below open interest in the near-term contracts, which expire at the end of this week, indicating that a bearish position was rolled forward by a month,” according to optionMONSTER . XLV is heavily allocated to blue-chip pharmaceuticals names, such as Dow components Johnson & Johnson (NYSE: JNJ ), Merck (NYSE: MRK ) and Pfizer (NYSE: PFE ), but the ETF also devotes more than 20% of its weight to biotechnology stocks. “Puts outnumbered calls by a bearish 4-to-1 ratio” in XLV on Wednesday, according to optionMONSTER. Health Care Select Sector SPDR Click to enlarge Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.