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The Zacks Analyst Blog Highlights: Cambria Value and Momentum, PowerShares S&P 500 Value With Momentum, Schwab 1000 Index, IQ Chaikin U.S. Large Cap and CurrencyShares Euro
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For Immediate Release
Chicago, IL – Jan 03, 2018 – 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. Stocks recently featured in the blog include Cambria Value and Momentum ETF (VAMO - Free Report) , PowerShares S&P 500 Value With Momentum (SPVM - Free Report) , Schwab 1000 Index ETF (SCHK - Free Report) , IQ Chaikin U.S. Large Cap ETF and CurrencyShares Euro ETF (FXE - Free Report) .
After a great 2017 (for stocks), investors will now be mulling over what’s in store for this year. Chances are high that optimism will be quelled a bit. Trump bump is largely baked in now and the Fed is less likely to cause much upheaval this year. The global economy including the United States has picked up momentum.
Against this backdrop, we have made some ETF predictions for 2018.
Stocks to be Bullish Overall
The year can be attributed to stocks. The first and foremost reason for this is a pickup in corporate earnings. Along with earnings improvement, stabilization in the oil patch after a prolonged rout and a Trump-induced fiscal boost along with lower taxes should augur well for stocks this year.
Still, with markets appearing overvalued by some measure, cautious investors with a long-term notion can opt for value ETFs over growth. Cambria Value and Momentum ETF and PowerShares S&P 500 Value With Momentum could be a good picks in this regard.
Recurrence of Success in U.S. Large-Caps
Moderate dollar strength and upbeat global economy will put large-cap stocks in a sweet spot again in 2018. Investors’ fondness toward large-caps can be verified from solid asset gains by new funds like Schwab 1000 Index ETF (the owner of $202 million making a debut in October) and IQ Chaikin U.S. Large Cap ETF (which amassed about $46.8 million in assets entering the market only in December).
Goldman Sachs expects commodities to rise almost 10% in 2018, against its previous forecast of 4% returns. Additionally, the tightening monetary policy in the United States will support the rally as commodities perform well during periods of rising interest rates (read: ETFs to Gain/Lose if Fed Turns Hawkish for 2018).
Along with Goldman, we too expect copper to turn around in 2018. Owing to the Chinese government’s crackdown on pollution, state run Jiangxi Copper was asked to cut production. China is the largest consumer of copper. So, such a move matters a lot in copper investing (read: Copper ETFs in Focus on Rising Demand).
Euro Will Likely Repeat 2017’s Success
The year 2017 can easily be credited to euro in the currency ETF world. CurrencyShares Euro ETF gained about 14.5% in 2017. Investors are betting on a likely strengthening in the single currency in 2018 after a great 2017, “its best year versus the greenback since 2003.”
Goldman Sachs is also bullish on euro. After all, in a historic meeting in October, the ECB announced that it would extend its asset-purchase program through September 2018 at a reduced rate.The meeting marked the ECB’s first withdrawal of stimulus. The year 2018 could also mark the start of rate hike by the ECB. If this happens, euro ETFs will soar (read: After a Stellar 2017, Will Euro ETFs Beat Greenback in 2018?).
Bitcoin ETFs Have High Chance of Hitting Market
The year 2017 was all about bitcoin’s momentous journey. The investing world is now in two minds. One group thinks that the cryptocurrency will keep on crossing milestones in 2018 as well and another thinks the asset will finally crash (read: Bitcoin ETFs: What Lies Ahead in 2018?).
The first futures contract on Chicago Board Options Exchange (CBOE) is already launched on Dec 10 and many issuers have filed products, either futures based or on physical asset. We expect, at least an ETF will see the day of the light, though at the cost of more regulations.
International Bond ETFs May See decent Capital Gains
The Fed has currently forecast three rate hikes in 2018. However, there are several international bond ETFs that offered great returns during 2017 and may do so this year too. Since most of the developed economies are still practicing a low interest rate policy, international bonds got a chance to perform well.
iShares International High Yield Bond ETF, PowerShares International Corporate Bond Portfolio and SPDR Bloomberg Barclays International Corporate Bond ETF are some of the products that are poised for gains (read: 5 Best Bond ETFs of 2017).
India, China to Prevail
India economy is back on track as it has emerged from the short-term adverse impact of the goods and services tax and remaining after-effects of demonetization. On the other hand, the largest economy of the developing nation, China, is trying to maintain a 6.5% growth rate.
Though this high standard doesn't give the administration much opportunities for “structural reforms”, Chinese policymakers indicated at a transition to an agenda of checking pollution and financial risks over economic growth at any cost. Overall, India and China ETFs like iShares India 50 ETF and WisdomTree China Ex-State-Owned Enterprises Fund are set to gain.
Be Bullish on Brent
Oil prices logged their most solid opening to a year since 2014, thanks to geopolitical crisis in Iran and ongoing output cuts led by OPEC and Russia. Higher global growth and declining inventories, should support Brent crude in 2018 (despite steady U.S. crude output). United States Brent Oil may thus scale higher after gaining 17.6% in the last one year (as of Dec 29, 2017).
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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: Cambria Value and Momentum, PowerShares S&P 500 Value With Momentum, Schwab 1000 Index, IQ Chaikin U.S. Large Cap and CurrencyShares Euro
For Immediate Release
Chicago, IL – Jan 03, 2018 – 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. Stocks recently featured in the blog include Cambria Value and Momentum ETF (VAMO - Free Report) , PowerShares S&P 500 Value With Momentum (SPVM - Free Report) , Schwab 1000 Index ETF (SCHK - Free Report) , IQ Chaikin U.S. Large Cap ETF and CurrencyShares Euro ETF (FXE - Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Tuesday’s Analyst Blog:
8 ETF Predictions for 2018
After a great 2017 (for stocks), investors will now be mulling over what’s in store for this year. Chances are high that optimism will be quelled a bit. Trump bump is largely baked in now and the Fed is less likely to cause much upheaval this year. The global economy including the United States has picked up momentum.
Against this backdrop, we have made some ETF predictions for 2018.
Stocks to be Bullish Overall
The year can be attributed to stocks. The first and foremost reason for this is a pickup in corporate earnings. Along with earnings improvement, stabilization in the oil patch after a prolonged rout and a Trump-induced fiscal boost along with lower taxes should augur well for stocks this year.
Still, with markets appearing overvalued by some measure, cautious investors with a long-term notion can opt for value ETFs over growth. Cambria Value and Momentum ETF and PowerShares S&P 500 Value With Momentum could be a good picks in this regard.
Recurrence of Success in U.S. Large-Caps
Moderate dollar strength and upbeat global economy will put large-cap stocks in a sweet spot again in 2018. Investors’ fondness toward large-caps can be verified from solid asset gains by new funds like Schwab 1000 Index ETF (the owner of $202 million making a debut in October) and IQ Chaikin U.S. Large Cap ETF (which amassed about $46.8 million in assets entering the market only in December).
Commodity ETFs to Stay Strong
A pickup in global growth with every major economy witnessing growth in almost a decade led to bullishness in the commodity space lately (read: Follow Goldman to Invest in Commodity ETFs for 2018).
Goldman Sachs expects commodities to rise almost 10% in 2018, against its previous forecast of 4% returns. Additionally, the tightening monetary policy in the United States will support the rally as commodities perform well during periods of rising interest rates (read: ETFs to Gain/Lose if Fed Turns Hawkish for 2018).
Along with Goldman, we too expect copper to turn around in 2018. Owing to the Chinese government’s crackdown on pollution, state run Jiangxi Copper was asked to cut production. China is the largest consumer of copper. So, such a move matters a lot in copper investing (read: Copper ETFs in Focus on Rising Demand).
Euro Will Likely Repeat 2017’s Success
The year 2017 can easily be credited to euro in the currency ETF world. CurrencyShares Euro ETF gained about 14.5% in 2017. Investors are betting on a likely strengthening in the single currency in 2018 after a great 2017, “its best year versus the greenback since 2003.”
Goldman Sachs is also bullish on euro. After all, in a historic meeting in October, the ECB announced that it would extend its asset-purchase program through September 2018 at a reduced rate.The meeting marked the ECB’s first withdrawal of stimulus. The year 2018 could also mark the start of rate hike by the ECB. If this happens, euro ETFs will soar (read: After a Stellar 2017, Will Euro ETFs Beat Greenback in 2018?).
Bitcoin ETFs Have High Chance of Hitting Market
The year 2017 was all about bitcoin’s momentous journey. The investing world is now in two minds. One group thinks that the cryptocurrency will keep on crossing milestones in 2018 as well and another thinks the asset will finally crash (read: Bitcoin ETFs: What Lies Ahead in 2018?).
The first futures contract on Chicago Board Options Exchange (CBOE) is already launched on Dec 10 and many issuers have filed products, either futures based or on physical asset. We expect, at least an ETF will see the day of the light, though at the cost of more regulations.
International Bond ETFs May See decent Capital Gains
The Fed has currently forecast three rate hikes in 2018. However, there are several international bond ETFs that offered great returns during 2017 and may do so this year too. Since most of the developed economies are still practicing a low interest rate policy, international bonds got a chance to perform well.
iShares International High Yield Bond ETF, PowerShares International Corporate Bond Portfolio and SPDR Bloomberg Barclays International Corporate Bond ETF are some of the products that are poised for gains (read: 5 Best Bond ETFs of 2017).
India, China to Prevail
India economy is back on track as it has emerged from the short-term adverse impact of the goods and services tax and remaining after-effects of demonetization. On the other hand, the largest economy of the developing nation, China, is trying to maintain a 6.5% growth rate.
Though this high standard doesn't give the administration much opportunities for “structural reforms”, Chinese policymakers indicated at a transition to an agenda of checking pollution and financial risks over economic growth at any cost. Overall, India and China ETFs like iShares India 50 ETF and WisdomTree China Ex-State-Owned Enterprises Fund are set to gain.
Be Bullish on Brent
Oil prices logged their most solid opening to a year since 2014, thanks to geopolitical crisis in Iran and ongoing output cuts led by OPEC and Russia. Higher global growth and declining inventories, should support Brent crude in 2018 (despite steady U.S. crude output). United States Brent Oil may thus scale higher after gaining 17.6% in the last one year (as of Dec 29, 2017).
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. Get it free >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
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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.