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The Zacks Analyst Blog Highlights iShares U.S. Dividend And Buyback ETF, Invesco Buyback Achievers Portfolio, Technology Select Sector SPDR ETF, Financial Select Sector SPDR ETF and Consumer Discretionary Select Sector SPDR ETF
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For Immediate Release
Chicago, IL – March 23, 2022 – Zacks.com announces the list of ETFs 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 and stocks recently featured in the blog include: iShares U.S. Dividend And Buyback ETF (DIVB - Free Report) , Invesco Buyback Achievers Portfolio (PKW - Free Report) , Technology Select Sector SPDR ETF (XLK - Free Report) , Financial Select Sector SPDR ETF (XLF - Free Report) , Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) , Apple (AAPL - Free Report) , Meta , Alphabet (GOOGL - Free Report) , Bank of America (BAC - Free Report) and Microsoft (MSFT - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
ETFs to Tap Record S&P 500 Buybacks in Q4
Buyback announcements by U.S. companies reached a record level in the fourth quarter of 2021. There were share repurchases worth $270.1 billion, up 15.1% from Q3 2021's record $234.6 billion expenditure and up 106.8% from $130.6 billion in Q4 of 2020, going by the data from S&P Dow Jones Indices.
As many as 325 companies announced share repurchase of at least $5 million in the quarter, up from 309 in Q3 of 2021 and 244 in Q4 of 2020. Apple led the way with its $23.4-billion buyback, up 14.3% from $20.4 billion in Q3 of 2021. Other companies that trailed Apple were Meta, Alphabet, Bank of America and Microsoft.
In short, Technology (with about $74.9 million and taking up 27.7% of the total S&P 500 buyback) and Financials ($51.5 million worth of buyback and making up about 19.1% of the total) took the best two spots in the buyback. Communication Services (about $43.3 million and 16.0%), Consumer Discretionary ($30.9 million and 11.4%) and Healthcare (about $21.8 million and 8.1%) took the next three spots.
Not only buybacks, but dividend payments were also strong. The S&P 500's Q4 2021 dividends increased 3% to a record $133.9 billion from Q3 2021's $130.0 billion and were 10.1% higher than $121.6 billion recorded in Q4 of 2020. For 2021, dividends were a record $511.2 billion, up 5.8% year over year. Total shareholder return on buybacks and dividends was a record $404.0 billion in Q4 2021, up 10.8% sequentially and 60.2% year over year.
ETFs in Focus
Against this backdrop, investors can keep an eye on the following buyback ETFs.
iShares U.S. Dividend And Buyback ETF
The underlying Morningstar US Dividend and Buyback Index is composed of U.S. stocks with a history of dividend payments and/or share buybacks. The fund charges 25 bps in fees.
Invesco Buyback Achievers Portfolio
The product looks to track companies that have implemented a net reduction of 5% or more in shares outstanding in the last 12 months. The fund charges 64 bps in fees.
Technology Select Sector SPDR ETF
The underlying Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics. The Zacks Rank #1 (Strong Buy) fund charges 10 bps in fees.
Financial Select Sector SPDR ETF
The underlying Financial Select Sector Index seeks to provide an effective representation of the financial sector of the S&P 500 Index. This Zacks Rank #1 ETF XLF charges 10 bps in fees.
Consumer Discretionary Select Sector SPDR ETF
The underlying Consumer Discretionary Select Sector Index seeks to provide an effective representation of the consumer discretionary sector of the S&P 500 Index. This Zacks Rank #2 ETF XLY charges 10 bps in fees.
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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.
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The Zacks Analyst Blog Highlights iShares U.S. Dividend And Buyback ETF, Invesco Buyback Achievers Portfolio, Technology Select Sector SPDR ETF, Financial Select Sector SPDR ETF and Consumer Discretionary Select Sector SPDR ETF
For Immediate Release
Chicago, IL – March 23, 2022 – Zacks.com announces the list of ETFs 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 and stocks recently featured in the blog include: iShares U.S. Dividend And Buyback ETF (DIVB - Free Report) , Invesco Buyback Achievers Portfolio (PKW - Free Report) , Technology Select Sector SPDR ETF (XLK - Free Report) , Financial Select Sector SPDR ETF (XLF - Free Report) , Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) , Apple (AAPL - Free Report) , Meta , Alphabet (GOOGL - Free Report) , Bank of America (BAC - Free Report) and Microsoft (MSFT - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
ETFs to Tap Record S&P 500 Buybacks in Q4
Buyback announcements by U.S. companies reached a record level in the fourth quarter of 2021. There were share repurchases worth $270.1 billion, up 15.1% from Q3 2021's record $234.6 billion expenditure and up 106.8% from $130.6 billion in Q4 of 2020, going by the data from S&P Dow Jones Indices.
As many as 325 companies announced share repurchase of at least $5 million in the quarter, up from 309 in Q3 of 2021 and 244 in Q4 of 2020. Apple led the way with its $23.4-billion buyback, up 14.3% from $20.4 billion in Q3 of 2021. Other companies that trailed Apple were Meta, Alphabet, Bank of America and Microsoft.
In short, Technology (with about $74.9 million and taking up 27.7% of the total S&P 500 buyback) and Financials ($51.5 million worth of buyback and making up about 19.1% of the total) took the best two spots in the buyback. Communication Services (about $43.3 million and 16.0%), Consumer Discretionary ($30.9 million and 11.4%) and Healthcare (about $21.8 million and 8.1%) took the next three spots.
Not only buybacks, but dividend payments were also strong. The S&P 500's Q4 2021 dividends increased 3% to a record $133.9 billion from Q3 2021's $130.0 billion and were 10.1% higher than $121.6 billion recorded in Q4 of 2020. For 2021, dividends were a record $511.2 billion, up 5.8% year over year. Total shareholder return on buybacks and dividends was a record $404.0 billion in Q4 2021, up 10.8% sequentially and 60.2% year over year.
ETFs in Focus
Against this backdrop, investors can keep an eye on the following buyback ETFs.
iShares U.S. Dividend And Buyback ETF
The underlying Morningstar US Dividend and Buyback Index is composed of U.S. stocks with a history of dividend payments and/or share buybacks. The fund charges 25 bps in fees.
Invesco Buyback Achievers Portfolio
The product looks to track companies that have implemented a net reduction of 5% or more in shares outstanding in the last 12 months. The fund charges 64 bps in fees.
Technology Select Sector SPDR ETF
The underlying Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics. The Zacks Rank #1 (Strong Buy) fund charges 10 bps in fees.
Financial Select Sector SPDR ETF
The underlying Financial Select Sector Index seeks to provide an effective representation of the financial sector of the S&P 500 Index. This Zacks Rank #1 ETF XLF charges 10 bps in fees.
Consumer Discretionary Select Sector SPDR ETF
The underlying Consumer Discretionary Select Sector Index seeks to provide an effective representation of the consumer discretionary sector of the S&P 500 Index. This Zacks Rank #2 ETF XLY charges 10 bps in fees.
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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.