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The Zacks Analyst Blog Highlights SDY, VOO, BSV, VFH, and SMH
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For Immediate Release
Chicago, IL – June 6, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: SPDR S&P Dividend ETF (SDY - Free Report) , Vanguard S&P 500 ETF (VOO - Free Report) , Vanguard ShortTerm Bond ETF (BSV - Free Report) , Vanguard Financials ETF (VFH - Free Report) , and VanEck Semiconductor ETF (SMH - Free Report) .
Here are highlights from Friday’s Analyst Blog:
5 ETFs to Buy for June
May 2022 was downbeat for Wall Street, with only the last week staging a rally. Notably, June is not known for good returns. A consensus carried out from 1950 to 2021 shows that June ended up offering positive stock returns in 38 years and negative returns in 34 years, per moneychimp.com, with an average positive return of 0.8%.
Against this backdrop, we highlight a few ETF options that can come across as intriguing bets for the month.
Dividend Aristocrats – SPDR S&P Dividend ETF
The downfall in markets is showing no signs of abating. High inflation, supply chain woes and rising rate worries have hit Wall Street this year. Against this backdrop, dividend ETFs have acted as great safety bets. Be it a bull or a bear market, investors mostly love dividend-paying stocks. After all, who doesn't like a steady stream of current income along with capital appreciation?
With high-dividend ETFs sporting a richer valuation than divided aristocrats, investors may try out dividend-growing ETFs or aristocrats in June. SDY has a Zacks Rank #2 (Buy) (read: 10 High-Dividend ETFs Available at Cheaper Valuation).
S&P 500 – Vanguard S&P 500 ETF
If you are nervous about the single stock-picking approach in the current volatile environment, you can simply bet on the S&P 500 Index through a low-cost option like VOO. Warren Buffett is also a proponent of low-cost index fund investing. The average annualized total return for the S&P 500 Index over the past 90 years is around 10% before adjusting for inflation and the index gives exposure to 80% of the U.S. market cap, per financial veterans. It yields about 1.47% annually and charges only 3 bps in fees. The fund has a Zacks Rank #3 (Hold).
U.S. Short-Term Treasury – Vanguard ShortTerm Bond ETF
Higher rates might lead to huge losses for investors who do not hold bonds until maturity. As a result, a short-duration bond ETF like BSV acts as a better hedge to rising rates. The average maturity and effective duration are 2.8 years and 2.7 years, respectively. Yield-to-maturity is 3.03%. It charges 4 bps in annual fees. The fund currently yields 1.47% annually.
Financials – Vanguard Financials ETF
This has been a beaten-down space amid the pandemic. However, with easing social distancing restrictions, the return of risk-on trade sentiments and higher inflationary pressure, long-term bond yields have been riding higher in the near term. This should benefit financial stocks that perform well in a rising rate environment or when the yield curve steepens. The fund has a Zacks Rank #1.
Semiconductors – VanEck Semiconductor ETF
The demand is high for semiconductors/chips while the industry is reeling under supply shortage. The world's biggest foundries — including Taiwan Semiconductor Manufacturing Company, Samsung and Intel — are thus considering further price hikes, per a CNBC article. Forrester analyst Glenn O'Donnell told CNBC that he expects chip prices to rise about 10-15%, or roughly in line with inflation. McKinsey expects it to become a trillion-dollar industry by 2030 (read: Time for Semiconductor ETFs?).
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Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights SDY, VOO, BSV, VFH, and SMH
For Immediate Release
Chicago, IL – June 6, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: SPDR S&P Dividend ETF (SDY - Free Report) , Vanguard S&P 500 ETF (VOO - Free Report) , Vanguard ShortTerm Bond ETF (BSV - Free Report) , Vanguard Financials ETF (VFH - Free Report) , and VanEck Semiconductor ETF (SMH - Free Report) .
Here are highlights from Friday’s Analyst Blog:
5 ETFs to Buy for June
May 2022 was downbeat for Wall Street, with only the last week staging a rally. Notably, June is not known for good returns. A consensus carried out from 1950 to 2021 shows that June ended up offering positive stock returns in 38 years and negative returns in 34 years, per moneychimp.com, with an average positive return of 0.8%.
Against this backdrop, we highlight a few ETF options that can come across as intriguing bets for the month.
Dividend Aristocrats – SPDR S&P Dividend ETF
The downfall in markets is showing no signs of abating. High inflation, supply chain woes and rising rate worries have hit Wall Street this year. Against this backdrop, dividend ETFs have acted as great safety bets. Be it a bull or a bear market, investors mostly love dividend-paying stocks. After all, who doesn't like a steady stream of current income along with capital appreciation?
With high-dividend ETFs sporting a richer valuation than divided aristocrats, investors may try out dividend-growing ETFs or aristocrats in June. SDY has a Zacks Rank #2 (Buy) (read: 10 High-Dividend ETFs Available at Cheaper Valuation).
S&P 500 – Vanguard S&P 500 ETF
If you are nervous about the single stock-picking approach in the current volatile environment, you can simply bet on the S&P 500 Index through a low-cost option like VOO. Warren Buffett is also a proponent of low-cost index fund investing. The average annualized total return for the S&P 500 Index over the past 90 years is around 10% before adjusting for inflation and the index gives exposure to 80% of the U.S. market cap, per financial veterans. It yields about 1.47% annually and charges only 3 bps in fees. The fund has a Zacks Rank #3 (Hold).
U.S. Short-Term Treasury – Vanguard ShortTerm Bond ETF
Higher rates might lead to huge losses for investors who do not hold bonds until maturity. As a result, a short-duration bond ETF like BSV acts as a better hedge to rising rates. The average maturity and effective duration are 2.8 years and 2.7 years, respectively. Yield-to-maturity is 3.03%. It charges 4 bps in annual fees. The fund currently yields 1.47% annually.
Financials – Vanguard Financials ETF
This has been a beaten-down space amid the pandemic. However, with easing social distancing restrictions, the return of risk-on trade sentiments and higher inflationary pressure, long-term bond yields have been riding higher in the near term. This should benefit financial stocks that perform well in a rising rate environment or when the yield curve steepens. The fund has a Zacks Rank #1.
Semiconductors – VanEck Semiconductor ETF
The demand is high for semiconductors/chips while the industry is reeling under supply shortage. The world's biggest foundries — including Taiwan Semiconductor Manufacturing Company, Samsung and Intel — are thus considering further price hikes, per a CNBC article. Forrester analyst Glenn O'Donnell told CNBC that he expects chip prices to rise about 10-15%, or roughly in line with inflation. McKinsey expects it to become a trillion-dollar industry by 2030 (read: Time for Semiconductor ETFs?).
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.