Why a Pullback Could Still Prove Inviting for Municipal Bonds March 9, 2021
Municipal bonds are languishing amid the recent spike in Treasury yields, but that selling pressure could bring opportunities with exchange traded funds like the
MUB seeks to track the investment results of the S&P National AMT-Free Municipal Bond IndexTM. The fund generally will invest at least 90% of its assets in the component securities of the underlying index and may invest up to 10% of its assets in certain futures, options and swap contracts, cash, and cash equivalents. The index measures the performance of the investment-grade segment of the U.S. municipal bond market. Municipal bonds give debt market investors an extra layer of safety given that local government debt typically has a lower rate of default compared to corporate bonds.
With Dividends Back in Style, This Dog Could Have Its Day
High dividend strategies like the
ALPS Sector Dividend Dogs ETF (SDOG) are back in style, and the value resurgence and low interest rates are just two reasons why.
SDOG tries to reflect the performance of the S-Network Sector Dividend Dogs Index, which applies the “Dogs of the Dow Theory” on a sector-by-sector basis using the S&P 500 with a focus on high dividend exposure. SDOG’s equal-weight methodology is important because it reduces sector-level risk and dependence of some groups that are considered to be imperiled value ideas.
History shows that after high dividend stocks lag the broader market by wide margins, as was the case last year, they often enjoy long subsequent periods of outperformance.
When it comes to sustainability, money managers have vastly different takes on how to view ESG investments.
For example, BlackRock believes companies that respect the climate ought to be more expensive but aren’t, so there is an opportunity for bargain hunters to get in before valuations rise, James Mackintosh writes for the Wall Street Journal.
On the other hand, DWS views companies with positive environmental, social, and governance characteristics as already expensive after the recent run-up, but they will continue to be a good play since many will have more cash flow for buybacks.
Meanwhile, Amundi, Europe’s biggest money manager, argues that ESG-positive stocks are both more expensive, but also deserve to be more expensive still.
Not Seeing the Love in February? 2 iShares ETFs for March March 8, 2021
Inflation fears and rising yields mean investors haven’t gotten much love from the markets post-Valentine’s Day. That said, investors can strategically position their portfolios for March with a pair of iShares funds through the
Both funds recently made Forbes list of top dividend ETFs for March. Despite rising yields in safe haven Treasury notes, these ETFs can help investors stay steps ahead of still relatively low government yields in comparison.
HDV seeks to track the investment results of the Morningstar Dividend Yield Focus Index composed of relatively high dividend paying U.S. equities. The fund generally will invest at least 90% of its assets in the component securities of the underlying index and may invest up to 10% of its assets in certain futures, options and swap contracts, cash, and cash equivalents.
March 8, 2021
Mid cap equities are lauded for their ability to strike a balance between large cap stability and small cap growth. Rather than deep dive into a vast sea of mid cap equities, investors can narrow their exposure to the top 400 value-oriented mid caps with the
IJJ seeks to track the investment results of the S&P MidCap 400 Value IndexTM, which measures the performance of the mid-capitalization value sector of the U.S. equity market. The fund generally invests at least 90% of its assets in securities of the underlying index and in depositary receipts representing securities of the underlying index.