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The Zacks Analyst Blog Highlights QUS, MOAT, USMV, SDY and GCOW
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For Immediate Release
Chicago, IL – April 08, 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. ETF recently featured in the blog include SPDR MSCI USA StrategicFactors ETF (QUS - Free Report) , VanEck Vectors Morningstar Wide Moat ETF (MOAT - Free Report) , iShares MSCI USA Min Vol Factor ETF (USMV - Free Report) , SPDR S&P Dividend ETF (SDY - Free Report) , and Pacer Global Cash Cows Dividend ETF (GCOW - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
How to Play Uncertainties in Q2 with ETFs?
The global market is at a critical juncture right now. The pandemic-driven supply-chain woes and the resultant red-hot inflation, the Russia-Ukraine war that has led to the Western sanctions and the resultant hit to the commodity market, and the central banks' policy tightening in the developed world to fight inflation may push the global economy into recession over the medium term, if we go by some analysts.
China went back to lockdown mode due to a spike in COVID-19 cases. The United States stopped Russian bond payments, raising risk of default. The Fed's fight against inflation will trigger a recession in the United States that begins late next year, Deutsche Bank warned on Apr 5.
The probability of a U.S. recession next year may be as high as 35%, according to economists at Goldman Sachs Group Inc. per a Bloomberg article, quoted on a Yahoo Finance article in mid-March. There's a 35% chance that the S&P 500 could fall into a bear market, per Bank of America, as quoted on CNBC.
The broader market has become extremely volatile and news-driven. Bond Yields are going up and down every day. Accordingly, value and growth investing are flexing muscles alternatively. So, with a number of deterrents doing the rounds in the market, it is wise to look for quality while picking stocks. Market watchers and participants are thus trying out different investing techniques to land upon trustworthy stocks. In this regard, below we highlight a few interesting strategies.
Quality ETFs
No wonder, such a volatile environment calls for quality investments.SPDR MSCI USA StrategicFactors ETF measures the equity market performance of large and mid-cap companies across the U.S. equity market. It aims to represent the performance of a combination of three factors: value, quality, and low volatility.
There is VanEck Vectors Morningstar Wide Moat ETF. The fund follows an index which tracks the overall performance of the "attractively priced companies with sustainable competitive advantages." As a result, this fund calls for quality exposure. MOAT tracks the overall performance of the 20 most attractively priced companies with sustainable competitive advantages.
Low-Volatility ETFs
Low-volatility ETFs have the potential to outpace the broader market in an uncertain environment providing significant protection to the portfolio. This is because these funds include more stable stocks that have experienced the least price movement in their portfolio. Further, these allocate more to defensive sectors that usually have a higher distribution yield than the broader markets. iShares MSCI USA Min Vol Factor ETF is an example in this regard.
Dividend Growth ETFs & High Dividend- Low Volatility ETFs
Companies that have the willingness and ability to pay and grow their dividend over time are called dividend aristocrats. Such activities make them quality picks. U.S.-based dividend growth ETFs include SPDR S&P Dividend ETF, which charges 35 bps in fees and yields 2.61% annually.
Cash-Cow ETFs
Per Investopedia, "a cash cow can refer to a business, product or asset that, once acquired and paid off, will produce consistent cash flow over its lifespan." In other words, these companies are known for continuous positive cash flows, reflecting their inherent strength. Since we know that a cash cushion is always needed in a rough market, one can easily look at the indicators related to cash flows to measure a company's performance.
Pacer Global Cash Cows Dividend ETF offers exposure to global companies with high dividend yields backed by a high free cash flow yield. The United States (32.33%), United Kingdom (18.74%) and Japan (13.97%) hold the top three spots in the fund. The fund charges 60 basis points (bps) in fees and yields 4.11% annually.
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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 QUS, MOAT, USMV, SDY and GCOW
For Immediate Release
Chicago, IL – April 08, 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. ETF recently featured in the blog include SPDR MSCI USA StrategicFactors ETF (QUS - Free Report) , VanEck Vectors Morningstar Wide Moat ETF (MOAT - Free Report) , iShares MSCI USA Min Vol Factor ETF (USMV - Free Report) , SPDR S&P Dividend ETF (SDY - Free Report) , and Pacer Global Cash Cows Dividend ETF (GCOW - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
How to Play Uncertainties in Q2 with ETFs?
The global market is at a critical juncture right now. The pandemic-driven supply-chain woes and the resultant red-hot inflation, the Russia-Ukraine war that has led to the Western sanctions and the resultant hit to the commodity market, and the central banks' policy tightening in the developed world to fight inflation may push the global economy into recession over the medium term, if we go by some analysts.
China went back to lockdown mode due to a spike in COVID-19 cases. The United States stopped Russian bond payments, raising risk of default. The Fed's fight against inflation will trigger a recession in the United States that begins late next year, Deutsche Bank warned on Apr 5.
The probability of a U.S. recession next year may be as high as 35%, according to economists at Goldman Sachs Group Inc. per a Bloomberg article, quoted on a Yahoo Finance article in mid-March. There's a 35% chance that the S&P 500 could fall into a bear market, per Bank of America, as quoted on CNBC.
The broader market has become extremely volatile and news-driven. Bond Yields are going up and down every day. Accordingly, value and growth investing are flexing muscles alternatively. So, with a number of deterrents doing the rounds in the market, it is wise to look for quality while picking stocks. Market watchers and participants are thus trying out different investing techniques to land upon trustworthy stocks. In this regard, below we highlight a few interesting strategies.
Quality ETFs
No wonder, such a volatile environment calls for quality investments.SPDR MSCI USA StrategicFactors ETF measures the equity market performance of large and mid-cap companies across the U.S. equity market. It aims to represent the performance of a combination of three factors: value, quality, and low volatility.
There is VanEck Vectors Morningstar Wide Moat ETF. The fund follows an index which tracks the overall performance of the "attractively priced companies with sustainable competitive advantages." As a result, this fund calls for quality exposure. MOAT tracks the overall performance of the 20 most attractively priced companies with sustainable competitive advantages.
Low-Volatility ETFs
Low-volatility ETFs have the potential to outpace the broader market in an uncertain environment providing significant protection to the portfolio. This is because these funds include more stable stocks that have experienced the least price movement in their portfolio. Further, these allocate more to defensive sectors that usually have a higher distribution yield than the broader markets. iShares MSCI USA Min Vol Factor ETF is an example in this regard.
Dividend Growth ETFs & High Dividend- Low Volatility ETFs
Companies that have the willingness and ability to pay and grow their dividend over time are called dividend aristocrats. Such activities make them quality picks. U.S.-based dividend growth ETFs include SPDR S&P Dividend ETF, which charges 35 bps in fees and yields 2.61% annually.
Cash-Cow ETFs
Per Investopedia, "a cash cow can refer to a business, product or asset that, once acquired and paid off, will produce consistent cash flow over its lifespan." In other words, these companies are known for continuous positive cash flows, reflecting their inherent strength. Since we know that a cash cushion is always needed in a rough market, one can easily look at the indicators related to cash flows to measure a company's performance.
Pacer Global Cash Cows Dividend ETF offers exposure to global companies with high dividend yields backed by a high free cash flow yield. The United States (32.33%), United Kingdom (18.74%) and Japan (13.97%) hold the top three spots in the fund. The fund charges 60 basis points (bps) in fees and yields 4.11% annually.
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.