For Long-Term Value Fans, Early Investments May Be Paying Off
The
VanEck Vectors Morningstar Wide Moat ETF (MOAT) isn’t a dedicated value exchange traded fund, but it is among the ETFs benefiting from the resurgence of value stocks this year.
MOAT tracks the Morningstar Wide Moat Focus Index, which features quality leanings. The quality/value combination is proving potent in 2021, and it has helped MOAT’s performance remain impressive for several years because the fund took on a value tilt before it was fashionable to do so.
“The Morningstar Wide Moat Focus Index’s value bias has now been in place since early 2018. Admittedly, the shift towards value was a bit early, as growth has soundly outperformed value in recent years,” said Morningstar Director of Equity Research Andrew Lane in a recent note. “However, despite that value tilt, the Index has still outperformed the broad market over the last five years thanks in part to favorable stock selection. In 2021, the Ind
December 21, 2020
The coronavirus pandemic has changed the world we live in and the markets exchange traded fund investors should be looking into.
“The COVID-19 pandemic has accelerated profound shifts in how economies and societies operate. These transformations run across four dimensions: sustainability, inequality, geopolitics and the joint fiscal-monetary policy revolution,” according to the BlackRock Investment Institute (BII).
“Three of BII’s new investment themes The new nominal, Globalization rewired and Turbocharged transformations reflect these shifts. Taken together, they call for a fundamental and immediate rethink of portfolio allocations.”
BlackRock argued that the pandemic has added fuel to pre-existing structural trends like the increased focus on sustainability, rising inequality within and across nations, and the dominance of e-commerce at the expense of traditional retail.
Key takeaways
The prospect of middling economic growth and low rates makes income-generation challenging for many investors.
A potential rise in inflation may lead to lower real yields, highlighting the greater importance of equities as a way to access portfolio income.
High-yield and dividend-growth strategies each offer equity income with an emphasis on “quality” companies, and the two strategies can be used together in the same portfolio.
Investing for regular income seems like it should be a straightforward proposition.
And yet, there is more to income investing than many appreciate. Income investment strategies come in all different shapes and sizes, including stocks, bonds, bond-like stocks, and stock-like bonds. And the effectiveness of each strategy at delivering income can vary with market conditions.
Quality Stocks, Low Cost: Examining the iShares QUAL ETF December 15, 2020
Getting quality at a low cost can be a challenging endeavor when it comes to any product or service. In the world of ETFs, look no further than the
QUAL seeks to track the investment results of the MSCI USA Sector Neutral Quality Index composed of U.S. large- and mid-capitalization stocks with quality characteristics as identified through certain fundamental metrics. 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.