Go All In on Value with the iShares FOVL ETF March 1, 2021
In times of heavy volatility, it helps to invest in the value factor. While value doesn’t guarantee a surefire avenue to protect against losses, it can help ease the pain. Consider funds like the
What’s in value that helps mute losses in a downturn? It’s the quality of companies the value factor focuses on, and an eye towards the long-term investing horizon by understanding intrinsic value.
“Value investing is a long-term, conservative approach to investing. When you invest in value stocks, you’re looking to buy and hold companies whose share prices are currently lower than their intrinsic value, ” a Forbes article explained. “To calculate intrinsic value and determine good buys, value investors analyze the fundamentals of a company’s performance things like earnings, revenue, cash flow and price-to-earnings ratios, along with a host of other financial information.”
The NRG Energy Earnings Beat Lifts Utilities ETFs March 1, 2021
Utilities sector-related exchange traded funds lit up after NRG Energy (NYSE: NRG) revealed better-than-expected fourth-quarter results and claimed it was able to shake off the financial setback from the cold storm in Texas.
On Monday, the
Utilities Select Sector SPDR (NYSEArca: XLU), the largest utilities sector-related ETF, advanced 3.1%. The three funds were testing their long-term support at the 200-day simple moving average.
NRG Energy shares jumped 14.2% on Monday. NRG makes up 4.6% of FXU’s underlying portfolio, 4.4% of RYU, and 3.3% of XLU.
NRG reported fourth-quarter earnings of $2.10 per share, up from $1.27 in the year-earlier quarter, TheStreet reports. In comparison, analysts surveyed by FactSet predicted earnings of 45 cents per share.
More COVID Relief Will Give an Added Boost to These 2 Stocks
More COVID-19 relief could soon be on the way.
The House Budget Committee just approved a $1.9 trillion coronavirus aid bill. As things stand now, $1,400 in stimulus has been earmarked for most Americans.
Labor Department data shows that the $600 checks sent out in December went right to work in the economy. Retail sales jumped 5.3% in January, which was 5X higher than expected.
With the next round of individual stimulus more than twice as large as the last, it will add even more juice to the recovering economy. Plus, COVID-19 cases are declining. This one-two punch of positivity should have long-lasting effects.
February 25, 2021
Small-capitalization stocks and related ETFs have been outperforming their large cap counterparts by the widest margin in over two decades as investors shift out of coronavirus pandemic plays and look to a broad economic recovery.
The
iShares Russell 2000 ETF (IWM), which tracks the widely observed Russell 2000 Index, increased 15.8% so far this year and jumped 42.1% over the past year. Meanwhile, the
iShares Core S&P 500 ETF (NYSEArca: IVV), which tracks the benchmark S&P 500 Index, gained 4.8% year-to-date and advanced 23.8% over the past year.
Through the end of last Friday, the Russell 2000 index of small companies climbed 15% and set 10 closing records in 2021, well above the S&P 500’s 4% gain, marking the widest such gap between the two indices through Feb. 19 since 2000, the Wall Street Journal reported.
Yields on benchmark 10-year Treasury notes hit a one-year high of 1.53%, triggering a broad selloff on some of the high-flying growth stocks due to valuation concerns, Reuters reports.
“The concern is that we haven’t been in an environment of persistently rising inflation expectations so it creates this new dynamic for investors,” Max Gokhman, head of asset allocation at Pacific Life Fund Advisors, told Reuters. “The market is stretched, a lot of forward growth expectations have been baked in and that’s creating some of the excuse to blow up steam for some investors who were a little too bullish.”