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A growing U.S. economy, solid labor market, decent cash balances both at the household and corporate levels should make Valentine’s Day merrier this year. About 53% of American adults are planning to celebrate this Valentine’s Day. Total spending would be a total of $25.8 billion (an average of $185.81 per person), per NRF.
While expenditures on significant others and family members remain consistent with last year, a growing number of consumers are aiming to express gratitude towards other important relationships in their lives. Out of the $17 rise in per-person spending, $14 is attributed to purchases for pets, friends, co-workers, as well as classmates or teachers.
Exchanging chocolates, greeting cards, flowers, gifting precious metals have been common. So why not surprise your valentine with some financially-sensitive gifts like ETFs and make the event more purposeful (especially with red-hot inflation burning a hole in the pocket!).
When removing the volatile food and energy categories, U.S. consumer Price Index (CPI) showed "core" prices increased 0.4% in January, their largest monthly gain since April 2023. On a headline basis, prices rose 3.1%, above economist estimates but a slowing-down from a 3.4% annual gain in December.
Let’s delve a little deeper.
Global X Cloud Computing ETF (CLOU - Free Report) – Zacks Rank #1 (Strong Buy)
The cloud computing corner of the broad stock market has been an area to watch lately, given rising demand. Advancements in cloud tech like AI and cybersecurity have broadened cloud service applications, drawing in a wider customer demographic. Additionally, growing investments in cloud infrastructure have played a pivotal role in driving growth. Gartner Forecasts global end-user spending on public cloud services is forecast to grow 20.4% to total $678.8 billion in 2024, up from $563.6 billion in 2023 (read: Forget Chocolates, Gift 4 Top-Ranked ETFs to Your Valentine).
As the jobs market remained solid, consumers are spending more on discretionary items. As a result, retail companies have been reporting upbeat revenue growth. About 13% of the S&P 500 market cap has come up with earnings result. The sector has reported 6.8% revenue growth in Q4 while its revenue beat ratio is 62.5%, per Earnings Trends issued on Jan 31, 2023. Moreover, the Fed is likely to cut rates in late 2024. If this happens, the move would favor retail and tech stocks (read: 5 Sector ETFs to Play for Revenue Growth in Q4).
SPDR S&P 400 Mid Cap Value ETF (MDYV - Free Report) – Zacks Rank #2
The mid-cap space of the broad U.S. stock market has been an area to watch lately given the soaring stock market. However, overvaluation of large-cap U.S. stcoks is a concern. Meanwhile, the IMF has upped the global growth forecasts. Mid-caps offer exposure to both U.S. and global economy. Moreover, mid-cap funds offer the best of both worlds — small-cap’s growth and large-cap’s stability. If this was not enough, value stocks perform better in a high rate environment (read: Mid-Cap ETF (XMHQ) Hits New 52-Week High).
The underlying S&P U.S. Dividend Growers Index consists of common stocks of companies that have a record of increasing dividends over time. Dividend growth or aristocrat ETFs like VIG are quality bets and offer a safer exposure in an uncertain investing backdrop. The fund yields 1.82% annually and charges 6 bps in fees.
As rates remained elevated and is likely to stay strong in the near term due to hot January inflation report and a hawkish Fed, it is intriguing to bet on high income ETFs like JEPI. The fund provides defensive equity portfolio employs a time-tested, bottom-up fundamental research process with stock selection based on our proprietary risk-adjusted stock rankings. The fund charges 35 bps in fees and yields 7.97% annually.
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Forget Chocolates, Gift 5 ETFs to Your Valentine
A growing U.S. economy, solid labor market, decent cash balances both at the household and corporate levels should make Valentine’s Day merrier this year. About 53% of American adults are planning to celebrate this Valentine’s Day. Total spending would be a total of $25.8 billion (an average of $185.81 per person), per NRF.
While expenditures on significant others and family members remain consistent with last year, a growing number of consumers are aiming to express gratitude towards other important relationships in their lives. Out of the $17 rise in per-person spending, $14 is attributed to purchases for pets, friends, co-workers, as well as classmates or teachers.
Exchanging chocolates, greeting cards, flowers, gifting precious metals have been common. So why not surprise your valentine with some financially-sensitive gifts like ETFs and make the event more purposeful (especially with red-hot inflation burning a hole in the pocket!).
When removing the volatile food and energy categories, U.S. consumer Price Index (CPI) showed "core" prices increased 0.4% in January, their largest monthly gain since April 2023. On a headline basis, prices rose 3.1%, above economist estimates but a slowing-down from a 3.4% annual gain in December.
Let’s delve a little deeper.
Global X Cloud Computing ETF (CLOU - Free Report) – Zacks Rank #1 (Strong Buy)
The cloud computing corner of the broad stock market has been an area to watch lately, given rising demand. Advancements in cloud tech like AI and cybersecurity have broadened cloud service applications, drawing in a wider customer demographic. Additionally, growing investments in cloud infrastructure have played a pivotal role in driving growth. Gartner Forecasts global end-user spending on public cloud services is forecast to grow 20.4% to total $678.8 billion in 2024, up from $563.6 billion in 2023 (read: Forget Chocolates, Gift 4 Top-Ranked ETFs to Your Valentine).
SPDR S&P Retail ETF (XRT - Free Report) – Zacks Rank #2 (Buy)
As the jobs market remained solid, consumers are spending more on discretionary items. As a result, retail companies have been reporting upbeat revenue growth. About 13% of the S&P 500 market cap has come up with earnings result. The sector has reported 6.8% revenue growth in Q4 while its revenue beat ratio is 62.5%, per Earnings Trends issued on Jan 31, 2023. Moreover, the Fed is likely to cut rates in late 2024. If this happens, the move would favor retail and tech stocks (read: 5 Sector ETFs to Play for Revenue Growth in Q4).
SPDR S&P 400 Mid Cap Value ETF (MDYV - Free Report) – Zacks Rank #2
The mid-cap space of the broad U.S. stock market has been an area to watch lately given the soaring stock market. However, overvaluation of large-cap U.S. stcoks is a concern. Meanwhile, the IMF has upped the global growth forecasts. Mid-caps offer exposure to both U.S. and global economy. Moreover, mid-cap funds offer the best of both worlds — small-cap’s growth and large-cap’s stability. If this was not enough, value stocks perform better in a high rate environment (read: Mid-Cap ETF (XMHQ) Hits New 52-Week High).
Vanguard Dividend Appreciation ETF (VIG - Free Report) – Zacks Rank #1
The underlying S&P U.S. Dividend Growers Index consists of common stocks of companies that have a record of increasing dividends over time. Dividend growth or aristocrat ETFs like VIG are quality bets and offer a safer exposure in an uncertain investing backdrop. The fund yields 1.82% annually and charges 6 bps in fees.
JPMorgan Equity Premium Income ETF (JEPI - Free Report)
As rates remained elevated and is likely to stay strong in the near term due to hot January inflation report and a hawkish Fed, it is intriguing to bet on high income ETFs like JEPI. The fund provides defensive equity portfolio employs a time-tested, bottom-up fundamental research process with stock selection based on our proprietary risk-adjusted stock rankings. The fund charges 35 bps in fees and yields 7.97% annually.