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3 High-Quality ETFs & Stocks Prescribed Ahead of Health Day
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Wall Street is off to a shaky start in Q2 and has been delivering weak performances. The S&P 500 and the Nasdaq are off 2% each in the past five days. A rally in oil prices and lower chances of sooner-than-expected Fed rate cuts kept the broader market edgy currently (read: 4 Reasons Why Oil & Energy ETFs Can Continue to Soar).
A rally in oil amid geopolitical tensions, a resilient U.S. economy and sluggish decline in the U.S. price inflation spread jitters among investors. Investors have been dumping high growth and high beta stocks thanks to valuation concerns, profit-taking activity and some sluggish global economic indicators like sluggish Euro zone economic data. Euro zone economic growth was flat in Q4 of 2023 against the previous quarter.
Meanwhile, Brent crude topped $90 a barrel as Israeli Prime Minister Benjamin Netanyahu said at a security cabinet meeting his country will operate against Iran and its proxies and will hurt those who seek to harm it. President Joe Biden told Netanyahu in a call that U.S. support for his war would be contingent on taking new steps to protect civilians., per Bloomberg.
Time for High-Quality ETFs & Stocks?
High-quality stocks are seen as relatively defensive and can provide safety to one’s portfolio during market downturns, like what we have been witnessing currently. In the midst of the conflicting market signals, quality investing presents itself as a strategic approach to weathering market turbulence.
Quality investing focuses on identifying companies with strong fundamentals, stable earnings, and durable competitive advantages. By investing in high-quality companies, investors can potentially mitigate the risks associated with economic downturns and market fluctuations. Hence, the space looks better ahead of the World Health Day on Apr 7.
3 ETFs in Focus
FlexShares International Quality Dividend Index (IQDF - Free Report) – Down 0.3% in the past five days
The underlying Northern Trust International Quality Dividend Index is designed to provide exposure to a high-quality income-oriented portfolio of long-only international securities issued by non-U.S.-based companies, with an emphasis on long-term capital growth and a targeted overall beta that is similar to that of the Northern Trust International Large Cap Index. The fund charges 47 bps and yields 5.65% annually.
VictoryShares Free Cash Flow ETF (VFLO - Free Report) – Down 0.3% in the past five days
The underlying Victory U.S. Large Cap Free Cash Flow Index measures the performance of US Large Cap profitable companies that exhibit high free cash flow yield and higher growth characteristics. The fundd charges 39 bps in fees and yields 0.96% annually.
FlexShares International Quality Dividend Dynamic ETF (IQDY - Free Report) – Down 0.60% in the past five days
The underlying Northern Trust International Quality Dividend Dynamic Index is designed to provide exposure to a high-quality income-oriented portfolio of long-only international securities issued by non-U.S.-based companies, with an emphasis on long-term capital growth and a targeted overall beta that is generally between 1.0 to 1.5 times that of the Northern Trust International Large Cap Index. The fund charges 47 bps in fees and yields 6.05% annually.
3 Stocks in Focus
M.D.C. – Up 0.02% in the past five days
The Zacks Rank #2 (Buy) M.D.C. Holdings, Inc. or MDC is engaged in homebuilding and financial services in the United States. The company’s revenues are generated from Homebuilding (accounting for 97.4% of 2023 total revenues) and Financial Services (2.6%) operations.
The stock has seen 6.72% increase in Zacks Consensus earnings estimate revision in the past seven days for the to-be-reported quarter. The dividend yield is 3.50% annually.
Kronos Worldwide (KRO - Free Report) – Up 0.34% in the past five days
The Zacks Rank #2 company is a leading producer and marketer of TiO2, a white pigment for providing whiteness, brightness and opacity that is used in a broad range of products. TiO2 is a key component of applications such as coatings, plastics and paper, inks, food and cosmetics and is the biggest commercially used whitening pigment.
The Zacks consensus earnings estimate for the to-be-reported quarter was up from a loss of 6 cents to a gain of 4 cents in the past one month. The dividend yield is 6.26% annually.
Kodiak Gas Services Inc. (KGS - Free Report) – Up 5.1% in the past five days
The Zacks Rank #2 company is an operator of contract compression infrastructure principally in the United States. The company focuses on operating horsepower compression units.
The stock has seen 28.6% increase in earnings estimate revision in the past 30 days for the to-be-reported quarter. The dividend yield is 5.56% annually.
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3 High-Quality ETFs & Stocks Prescribed Ahead of Health Day
Wall Street is off to a shaky start in Q2 and has been delivering weak performances. The S&P 500 and the Nasdaq are off 2% each in the past five days. A rally in oil prices and lower chances of sooner-than-expected Fed rate cuts kept the broader market edgy currently (read: 4 Reasons Why Oil & Energy ETFs Can Continue to Soar).
A rally in oil amid geopolitical tensions, a resilient U.S. economy and sluggish decline in the U.S. price inflation spread jitters among investors. Investors have been dumping high growth and high beta stocks thanks to valuation concerns, profit-taking activity and some sluggish global economic indicators like sluggish Euro zone economic data. Euro zone economic growth was flat in Q4 of 2023 against the previous quarter.
A key Federal Reserve official signaled on Apr 4, 2024, that the central bank might not need to cut interest rates this yearif inflation fails to make further progress toward the 2% target, per a Bloomberg article. In a virtual event hosted by LinkedIn, Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, adopted a careful stance regarding the likelihood of interest rate reductions in the upcoming months.
Meanwhile, Brent crude topped $90 a barrel as Israeli Prime Minister Benjamin Netanyahu said at a security cabinet meeting his country will operate against Iran and its proxies and will hurt those who seek to harm it. President Joe Biden told Netanyahu in a call that U.S. support for his war would be contingent on taking new steps to protect civilians., per Bloomberg.
Time for High-Quality ETFs & Stocks?
High-quality stocks are seen as relatively defensive and can provide safety to one’s portfolio during market downturns, like what we have been witnessing currently. In the midst of the conflicting market signals, quality investing presents itself as a strategic approach to weathering market turbulence.
Quality investing focuses on identifying companies with strong fundamentals, stable earnings, and durable competitive advantages. By investing in high-quality companies, investors can potentially mitigate the risks associated with economic downturns and market fluctuations. Hence, the space looks better ahead of the World Health Day on Apr 7.
3 ETFs in Focus
FlexShares International Quality Dividend Index (IQDF - Free Report) – Down 0.3% in the past five days
The underlying Northern Trust International Quality Dividend Index is designed to provide exposure to a high-quality income-oriented portfolio of long-only international securities issued by non-U.S.-based companies, with an emphasis on long-term capital growth and a targeted overall beta that is similar to that of the Northern Trust International Large Cap Index. The fund charges 47 bps and yields 5.65% annually.
VictoryShares Free Cash Flow ETF (VFLO - Free Report) – Down 0.3% in the past five days
The underlying Victory U.S. Large Cap Free Cash Flow Index measures the performance of US Large Cap profitable companies that exhibit high free cash flow yield and higher growth characteristics. The fundd charges 39 bps in fees and yields 0.96% annually.
FlexShares International Quality Dividend Dynamic ETF (IQDY - Free Report) – Down 0.60% in the past five days
The underlying Northern Trust International Quality Dividend Dynamic Index is designed to provide exposure to a high-quality income-oriented portfolio of long-only international securities issued by non-U.S.-based companies, with an emphasis on long-term capital growth and a targeted overall beta that is generally between 1.0 to 1.5 times that of the Northern Trust International Large Cap Index. The fund charges 47 bps in fees and yields 6.05% annually.
3 Stocks in Focus
M.D.C. – Up 0.02% in the past five days
The Zacks Rank #2 (Buy) M.D.C. Holdings, Inc. or MDC is engaged in homebuilding and financial services in the United States. The company’s revenues are generated from Homebuilding (accounting for 97.4% of 2023 total revenues) and Financial Services (2.6%) operations.
The stock has seen 6.72% increase in Zacks Consensus earnings estimate revision in the past seven days for the to-be-reported quarter. The dividend yield is 3.50% annually.
Kronos Worldwide (KRO - Free Report) – Up 0.34% in the past five days
The Zacks Rank #2 company is a leading producer and marketer of TiO2, a white pigment for providing whiteness, brightness and opacity that is used in a broad range of products. TiO2 is a key component of applications such as coatings, plastics and paper, inks, food and cosmetics and is the biggest commercially used whitening pigment.
The Zacks consensus earnings estimate for the to-be-reported quarter was up from a loss of 6 cents to a gain of 4 cents in the past one month. The dividend yield is 6.26% annually.
Kodiak Gas Services Inc. (KGS - Free Report) – Up 5.1% in the past five days
The Zacks Rank #2 company is an operator of contract compression infrastructure principally in the United States. The company focuses on operating horsepower compression units.
The stock has seen 28.6% increase in earnings estimate revision in the past 30 days for the to-be-reported quarter. The dividend yield is 5.56% annually.