Schwab US Dividend Equity ETF (ARCA: SCHD)

最新ニュース Schwab US Dividend Equity ETF (ARCA:SCHD)

Schwab US Dividend Equity ETF

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To pursue its goal, the fund generally invests in stocks that are included in the Dow Jones U.S. Dividend 100 Index. The Dow Jones U.S. Dividend 100 Index is designed to measure the performance of high dividend yielding stocks issued by U.S. companies that have a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios. The 100-component index is a subset of the Dow Jones U.S. Broad Market Index, excluding real estate investment trusts (REITs), master limited partnerships, preferred stocks and convertibles. It is modified market capitalization weighted.

Lockheed Martin Corp

Abbvie Inc.

Home Depot Inc/The

Blackrock Inc.

Amgen Inc.

Cisco Systems, Inc.

Coca Cola Co.

Texas Instruments Inc

Chevron Corporation

Pfizer, Inc.

The Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) has given back more than half of its one-year gains in the last month, with the ETF falling more than 7% in December. Here's a look at what may be <a href="https://www.benzinga.com/24/12/42528079/this-high-yield-dividend-etf-is-undergoing-a-harsh-reversal-signaling-bearish-trends-here-what-you-need-to-know">plaguing the fund. </a>
What To Know: The Schwab US Dividend Equity ETF is heavily weighted in the healthcare sector with four pharmaceutical stocks representing 15.83% of the fund's total holdings. The sector has underperformed recently as increased uncertainty emerged surrounding the potential appointments and <a href="https://www.benzinga.com/general/biotech/24/11/41822473/trumps-potential-health-czar-robert-f-kennedy-jr-rattles-vaccine-stocks-shoot-first-reaction">policy changes</a> that could come under President-elect Donald Trump.&nbsp;
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<h2 class="wp-block-heading">Healthcare Holdings</h2>
Bristol-Meyers Squibb Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMY#NYSE">BMY</a>) is the fund's top pharmaceutical holding, representing 4.64% of its assets. The stock is down 2.6% over the past month. 
Pfizer, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>) is also in the fund's top 10 holdings. It fell more than 5% following the presidential election as the vaccine-maker faces an uncertain political and regulatory environment ahead. 
AbbVie, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>) and Amgen, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMGN#NASDAQ">AMGN</a>) round out the dividend-focused fund's healthcare holdings.  AbbVie shares are down slightly, though Amgen shares are down by more than 10% in December following disappointing <a href="https://www.benzinga.com/content/42377651/amgen-stock-falls-on-weight-loss-drug-data-overreaction-or-fair">clinical trial </a>results from its weight-loss drug candidate, MariTide. 
Interest Rates: Another factor that could be affecting the Schwab dividend-focused fund is the uncertain interest rate environment. Dividends tend to become more attractive to investors in a low-interest rate environment. Recent comments from the Federal Reserve suggest a more hawkish outlook with inflation remaining sticky and above the Fed's target rate of 2%.&nbsp;
Additionally, the incoming Trump administration could again play a factor as Trump has pledged to raise tariffs on foreign imports which could reignite inflation and lead to interest rates staying higher for longer.&nbsp;
When interest rates are high, the yields on bonds and other fixed-income securities become more competitive, making dividend yields less appealing by comparison.&nbsp;
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SCHD

Schwab US Dividend Equity ETF Reverses In December: What's Going On?

According to the daily charts, this <a href="https://www.benzinga.com/etfs">exchange-traded fund</a> with a high dividend yield of 3.67% has been under pressure as it has fallen below its short-term moving averages in the oversold territory.
What Happened: Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>), which has an expense ratio of 0.06% and pays an annual dividend of $1.05 has declined 3.20% over the last month, as of Monday&#8217;s close. The ETF made its last dividend payment on Dec. 16, for the current year.
From a technical perspective, the analysis of daily moving averages indicates that the ETF may be under pressure in the short term.
The ETF ended at $27.87 apiece on Monday. This was below its eight and 20-day simple moving averages, of $28.30 and $28.82, respectively. As per <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>, its current price was also lower than the 50-day moving average at $28.65.
However, the stock was above its 200-day moving average of $27.15, which implies that it could still be in a long-term uptrend while it is testing fresh support levels near the average value.
This trend combined with a relative strength index of 31.22 could mean that the ETF must be experiencing a bearish short-term trend but a price reversal is possible as it is near the oversold levels.
There is a possibility that the ETF is taking a breather and it could stage a strong comeback. Historically, stocks and other assets often retreat after rising to a crucial level and then bounce back.
<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/17073739/SCHD-Chart-Tech-1024x576.png" alt="" class="wp-image-695645" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/17073739/SCHD-Chart-Tech-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/17073739/SCHD-Chart-Tech-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/17073739/SCHD-Chart-Tech-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/17073739/SCHD-Chart-Tech-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/17073739/SCHD-Chart-Tech.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
See Also: <a href="https://www.benzinga.com/analyst-ratings/price-target/24/12/42513306/elon-musks-tesla-nearly-5-times-more-expensive-than-industry-average-stock-surges-over-60-since-election">Elon Musk&#8217;s Tesla Nearly 5 Times More Expensive Than Industry Average: Stock Surges Over 60% Since Election</a>
Why It Matters: When compared to its peers, the Schwab U.S. Dividend Equity ETF has the highest dividend yield for the least amount of expense ratio, <a href="https://www.nasdaq.com/market-activity/etf/schd/dividend-history">according to Nasdaq&#8217;s data</a>.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Dividend ETFs </td>
<td>Expense Ratio </td>
<td>Dividend Yield </td>
<td>Annual Dividend</td>
</tr>
<tr>
<td>Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) </td>
<td>0.06% </td>
<td>3.67% </td>
<td>$1.058</td>
</tr>
<tr>
<td>Vanguard High Dividend Yield Index Fund ETF Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VYM#NYSE">VYM</a>) </td>
<td>0.06% </td>
<td>2.58% </td>
<td>$3.404</td>
</tr>
<tr>
<td>iShares Core Dividend Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DGRO#NYSE">DGRO</a>) </td>
<td>0.08% </td>
<td>2.54% </td>
<td>$1.6123</td>
</tr>
<tr>
<td>iShares Core High Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HDV#NYSE">HDV</a>) </td>
<td>0.08% </td>
<td>4.23% </td>
<td>$4.9179</td>
</tr>
<tr>
<td>SPDR S&amp;P Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SDY#NYSE">SDY</a>) </td>
<td>0.35% </td>
<td>2.27% </td>
<td>$3.1408</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption"><a href="https://www.nasdaq.com/market-activity/etf/schd/dividend-history">Source: Nasdaq</a></figcaption></figure>
However, on a year-to-date basis, Schwab U.S. Dividend Equity ETF has the poorest performance when compared to its peers.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Dividend ETFs </td>
<td>YTD Performance</td>
</tr>
<tr>
<td>Schwab U.S. Dividend Equity ETF</td>
<td>9.04%</td>
</tr>
<tr>
<td>Vanguard High Dividend Yield Index Fund ETF Shares </td>
<td>17.32%</td>
</tr>
<tr>
<td>iShares Core Dividend Growth ETF </td>
<td>17.14%</td>
</tr>
<tr>
<td>iShares Core High Dividend ETF </td>
<td>10.77%</td>
</tr>
<tr>
<td>SPDR S&amp;P Dividend ETF</td>
<td>9.44%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: Google Finance</figcaption></figure>
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This High Yield Dividend ETF Is Signaling Bearish Trends: Is Trouble Brewing?

Each week,&nbsp;Benzinga's Stock Whisper Index&nbsp;uses a combination of proprietary data and pattern recognition to showcase five stocks that are just under the&nbsp;<a href="https://www.benzinga.com/topic/stock-whisper-index" target="_blank" rel="noreferrer noopener">surface and deserve attention</a>.
Investors are constantly on the hunt for undervalued, under-followed and emerging stocks. With countless methods available to retail traders, the challenge often lies in sifting through the abundance of information to uncover new opportunities and understand why certain stocks should be of interest.
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Here&#8217;s a look at the Benzinga Stock Whisper Index for the week of Nov. 1:
Agilent Technologies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/A#NYSE">A</a>) saw increased interest from investors during the week, which comes ahead of several potential catalysts. The life sciences and diagnostics company is set to report fourth-quarter financial results on Nov. 25 and host an analyst day on Dec. 17. Recent <a href="https://www.benzinga.com/quote/A/analyst-ratings">analyst activity</a> on the stock saw Barclays maintain an Underweight rating while raising the price target from $135 to $145. Evercore ISI maintains an In-Line rating while raising the price target from $135 to $145. The stock was up over 3% in the last five trading days as shown on the <a href="https://www.benzinga.com/pro/?utm_source=BZprocontent110124&amp;t=be2bearmibe3na1">Benzinga Pro chart </a>below. It remains down around 2% year-to-date in 2024.
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/pro/?utm_source=BZprocontent110124&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1001" height="462" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143840/Screenshot-227.png" alt="" class="wp-image-626124" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143840/Screenshot-227.png 1001w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143840/Screenshot-227-300x138.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143840/Screenshot-227-768x354.png 768w" sizes="(max-width: 1001px) 100vw, 1001px" /></a></figure>
Trade Desk (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTD#NASDAQ">TTD</a>) saw increased interest from investors ahead of third-quarter financial results, which are set for Nov. 7. Analysts expect the company to report earnings per share of 39 cents and revenue of $619.8 million, compared to earnings of 33 cents per share and revenue of $493.3 million in last year's third quarter. Trade Desk has beaten earnings per share estimates in seven of the last eight quarters and beaten revenue estimates from analysts in more than 10 straight quarters.
Wedbush analyst Daniel Ives <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41144914/meta-trade-desk-amazon-digital-ad-titans-set-for-strong-2025-growth-tech-analyst-sa">recently highlighted </a>the growth potential for Trade Desk in the third quarter.
&#8220;Our survey showed accelerating growth for TTD in 3Q versus 2Q,&#8221; Ives said.
Trade Desk's <a href="https://www.benzinga.com/news/earnings/24/08/40267737/the-trade-desk-stock-climbs-after-better-than-expected-q2-results">second-quarter results</a> saw a customer retention rate of over 95%, continuing a 10-year streak. With potential strong growth and AI initiatives being integrated, the stock could generate some buzz with its third-quarter results.
The stock was down slightly over the last five days, but is up around 70% year-to-date.
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/pro/?utm_source=BZprocontent110124&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="997" height="499" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143856/Screenshot-228.png" alt="" class="wp-image-626125" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143856/Screenshot-228.png 997w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143856/Screenshot-228-300x150.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143856/Screenshot-228-768x384.png 768w" sizes="(max-width: 997px) 100vw, 997px" /></a></figure>
Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) made the list for the first time. The Stock Whisper Index typically highlights only stocks and leaves the ETFs out. But each week, ETFs like the SPY, QQQ and sometimes other well-known ETFs see rising interest based on volatility. Schwab tracks the Dow Jones U.S. Dividend 100 Index. It offers investors exposure to some of the largest U.S. companies that pay dividends and have a strong track record of paying out dividends. Top holdings in the ETF include Bristol Myers Squibb, Blackrock, Cisco Systems, Home Depot and Chevron.
With rising global tensions, macroeconomic uncertainties and the 2024 presidential election leaving some investors on edge, the ETF could be seeing increased interest thanks to its dividend income and positions in blue chip companies.
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/pro/?utm_source=BZprocontent110124&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="999" height="512" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143913/Screenshot-229.png" alt="" class="wp-image-626126" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143913/Screenshot-229.png 999w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143913/Screenshot-229-300x154.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143913/Screenshot-229-768x394.png 768w" sizes="(max-width: 999px) 100vw, 999px" /></a></figure>
Reinsurance Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RGA#NYSE">RGA</a>): The life and health reinsurance company saw increased interest over the week likely due to quarterly financial <a href="https://investor.rgare.com/news-releases/news-release-details/reinsurance-group-america-reports-record-third-quarter-results">results</a>. The company reported third-quarter earnings per share of $6.13 and revenue of $5.65 billion, beating Street consensus estimates according to Benzinga Pro. Reinsurance Group's third quarter had record financial results. The strong quarter could put the stock on investors radar for future growth opportunities.
Shares of the reinsurance company were up around 2% for the last five days and are up over 30% year-to-date in 2024.
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/pro/?utm_source=BZprocontent110124&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="995" height="501" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143928/Screenshot-230.png" alt="" class="wp-image-626127" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143928/Screenshot-230.png 995w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143928/Screenshot-230-300x151.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143928/Screenshot-230-768x387.png 768w" sizes="(max-width: 995px) 100vw, 995px" /></a></figure>
Sera Prognostics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SERA#NASDAQ">SERA</a>) is scheduled to report third-quarter financial results on Nov. 6. The company is behind the PreTRM test for pregnancy preterm testing. An investor presentation highlighted the company's future product pipeline to include a predictive analytics product and a time-to-birth test. Shares of the pregnancy diagnostics company were up 16% over the last five trading days.
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/pro/?utm_source=BZprocontent110124&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="999" height="505" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143943/Screenshot-231.png" alt="" class="wp-image-626128" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143943/Screenshot-231.png 999w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143943/Screenshot-231-300x152.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/01143943/Screenshot-231-768x388.png 768w" sizes="(max-width: 999px) 100vw, 999px" /></a></figure>
Stay tuned for next week's report, and follow Benzinga Pro for all the latest headlines and&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent102524&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">top market-moving stories here.</a>
Read the latest Stock Whisper Index reports here:
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Exclusives

SERA

Benzinga's 'Stock Whisper' Index: 5 Stocks Investors Secretly Monitor But Don't Talk About Yet

<ul>
<li>So far in 2024, SPYI has offered a higher yield at 8.9% against JEPI&#8217;s 5.1% and XYLD&#8217;s 6.9%.</li>
<li>Both XYLD and SPYI benefit from more favorable tax treatment due to Section 1256 contracts, which could mean more net income after taxes compared to JEPI.</li>
<li>JEPI has delivered a total return of 13.3% during the first nine months of 2024 — capturing only 58% of the S&amp;P 500 Index's total return.&nbsp;</li>
<li>If broad market strength continues, SPYI&#8217;s strategy seems better positioned due to its out-of-the-money calls and diversified holdings.&nbsp;</li>
<li>In volatile or declining markets, JEPI&#8217;s lower volatility might appeal to those prioritizing principal protection over total return.</li>
</ul>
<hr class="wp-block-separator has-alpha-channel-opacity" />
<h3 class="wp-block-heading">Introduction</h3>
2024 has been quite the year thus far — especially for income-focused investors.&nbsp;
We saw ETFs like the <a href="https://www.benzinga.com/quote/DIVO">Amplify CWP Enhanced Dividend Income ETF</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIVO#NYSE">DIVO</a>) and <a href="https://www.benzinga.com/quote/SCHD">Schwab U.S. Dividend Equity ETF</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) break out to new all-time-highs — driven by broad-based market breadth. While other riskier ETFs like the <a href="https://www.benzinga.com/quote/QQQY">Defiance Nasdaq 100 Enhanced Options 0DTE Income ETF</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQY#NASDAQ">QQQY</a>) lose -35% of their share price while delivering single-digit total returns year-to-date. 
It has never been harder for income-focused investors to balance perceived risk with long-term gains. In this post, I want to share a year-to-date update on my "perfect balance" income-focused ETF that holds over $100K of my hard earned money.
<img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXd1DL8sdKl6JGDeQ46rV_-vqgQBM8fMnA_WhA1UJwo95Uf7xX2HpUbRzKD1T_ESPxBw2WRIaGCrtGQsBLtPcXA05g5-DifRXMz1oJyM3mriturdyvFPtjZ5TlIgOjN3d3Lm1cKrrXM0DCBU8KLYNB_FyTMl?key=TKjopdpKAmsdThXU1FqezA" style="width: 624px;" />
<h3 class="wp-block-heading">2024 In Review</h3>
If you're an income-focused investor like me, your portfolio is anchored by covered call ETFs that are benchmarked against the total return of the S&amp;P 500. Unfortunately for some investors, 2024 is proving that not every S&amp;P 500 covered call ETF is made equal.&nbsp;
Now before you all come after me with "You can't compare JEPI to the S&amp;P 500 Index! JEPI doesn't hold the same stocks, it's a completely different strategy!"&nbsp;
You're right. However, the fund's investment objective as shared in their <a href="https://am.jpmorgan.com/JPMorgan/TADF/46641Q332/SP?site=JPMorgan">summary prospectus</a> states the following:
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">"The investment objective of the Fund is to seek current income while maintaining prospects for capital appreciation.&nbsp; The Fund seeks to achieve this objective by (1) creating an actively managed portfolio of equity securities comprised significantly of those included in the Fund's primary benchmark, the Standard &amp; Poor's 500 Total Return Index (S&amp;P 500 Index)&#8230;"
</blockquote>
And as shown below on Morningstar, JEPI's benchmark index is the S&amp;P 500.&nbsp;
<img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdidgXA3MHPTisk0cF0XnkQXpmy9scj33d_QapeP4CpD8ekOsSD4NrDBby6A3r-PdkXmXwHb3BVMsBjK09eOvuClpk98bSAQ_U1BEa-tVKtDLXTZHLb3cTcTmeOG-VceYTQYu8W-2f4vdnQbuKzwlSxQ9ZH?key=TKjopdpKAmsdThXU1FqezA" style="width: 624px;" />
Now that we're all on the same page, let's dive into the numbers, starting with JEPI.&nbsp;
<h3 class="wp-block-heading">JPMorgan Equity Premium ETF </h3>
<a href="https://www.morningstar.com/etfs/arcx/jepi/performance">The total return of JEPI thus far in 2024 is 13.3%</a>, capturing only 58% of the total return of the S&amp;P 500 Index. 
As we all know, the S&amp;P 500 Index was led higher in 2023 by the Magnificent Seven — seven stocks JEPI's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEPI#NYSE">JEPI</a>) fund managers understandably decided to leave out of the fund's holdings. In 2024, however, given the broad-based strength of the market JEPI was able to participate meaningfully more in the continued upside the S&amp;P 500 experienced. 
58% total return capture in 2024 is better than the fund's only 37% total return capture in 2023, but still not enough to excite an income-focused investor also looking for price appreciation.&nbsp;
As stated in the summary prospectus, "The Fund seeks a lower volatility level than the S&amp;P 500 Index." JEPI certainly achieved this, as the price of their shares only slipped -3.3% during the -7.9% drawdown the S&amp;P 500 experienced between July and August of 2024. And when you add monthly distributions to that figure, risk-averse investors become increasingly happier — a win in my book.&nbsp;
However, it's equally as important to ask yourself the question "Is the return I see the return I get?"
JEPI uses <a href="https://www.investopedia.com/terms/e/equity-linkednote.asp">Equity Linked Notes</a> (ELNs) to generate monthly income for their investors. In the eyes of the IRS, the income generated by these ELNs are taxed as ordinary income — meaning after taxes, this 13.3% figure might be materially lower for some folks depending on their tax brackets.&nbsp;
As a fellow JEPI investor, I'm constantly weighing my opportunity cost. By choosing JEPI over the next best thing, I'm capturing only 58% of the S&amp;P 500's total return. Sure, I'm doing so in an effort to smooth out the volatility of my portfolio while also generating monthly income — but at the expense of upside potential and higher taxes.&nbsp;
Let's move on.
<h3 class="wp-block-heading">Global X S&amp;P 500 Covered Call ETF</h3>
<a href="https://www.morningstar.com/etfs/arcx/xyld/performance">The total return of XYLD thus far in 2024 is 13.0%</a>, capturing only 57% of the total return of the S&amp;P 500 Index. XYLD marginally underperformed JEPI by -0.3%, which is weird considering the fund held "<a href="https://www.globalxetfs.com/prospectus-regulatory/?id=2954">all the equity securities in the S&amp;P 500 Index in substantially similar weight.</a>"
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">But if the fund held all of the constituents of the S&amp;P 500, why did it underperform the index by nearly half?
</blockquote>
Unfortunately for my fellow XYLD investors, because the fund wrote at-the-money (ATM) covered calls against their holdings their total upside was capped at just the premium generated by the option contracts. 
According to XYLD's <a href="https://www.globalxetfs.com/prospectus-regulatory/?id=2954">summary prospectus</a>…
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">"The Fund writes a single &#8220;at-the-money&#8221; call option, which is when the strike price is near to the market price of the underlying asset, as determined on the monthly option writing date of the Underlying Index in accordance with the Underlying Index methodology.&nbsp;
The Fund&#8217;s covered call options may partially protect the Fund from a decline in the price of the Reference Index through means of the premiums received by the Fund. However, when the equity market is rallying rapidly, the Underlying Index is expected to underperform the Reference Index."
</blockquote>
And underperform it did.&nbsp;
However, unlike JEPI, XYLD uses <a href="https://www.investopedia.com/terms/s/section-1256-contract.asp">Section 1256 contracts</a> to generate their monthly income for investors. These Section 1256 contracts are treated much more favorably than ELNs in the eyes of the IRS — with income to be taxed as 60% long-term capital gains and 40% short-term, allowing investors to keep more of that 9.7% yield come tax time in April.
<h3 class="wp-block-heading">NEOS S&amp;P 500 High Income ETF</h3>
<a href="https://www.morningstar.com/etfs/bats/spyi/performance">The total return on SPYI thus far in 2024 is 16.5%</a>, capturing over 72% of the S&amp;P 500 Index's total return. SPYI (BATS:<a class="ticker" href="https://www.benzinga.com/stock/SPYI#BATS">SPYI</a>) has been able to outperform both XYLD and JEPI in 2024 by 3.5% and 3.2%, respectively. SPYI is able to do this by "<a href="https://neosfunds.com/wp-content/uploads/SPYI-Prospectus.pdf">investing in a portfolio of stocks that make up the S&amp;P 500 Index</a>," while also implementing a covered call option strategy that writes covered call option contracts up to 5% out-of-the-money. 
Let's take a look at SPYI's holdings (as of 10/7/24) to get a better understanding as to why this covered call ETF outperformed its competitors by such a wide margin:
<img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfUp6gYNdynthT4MY4Kl4m6uUFXIl4bMYKjs4kPoTEMz3OiTCgRs0vlMOqKBY-H8SeGPrH1PdktkaN94fE0ew_Q9zCj4bCLIuNNHlh-Xj77zgqpJK6fbJNXXHHFgCJnQhgkpqiMP2cNPplhpeBxLajIqYhj?key=TKjopdpKAmsdThXU1FqezA" style="width: 624px;" />
As you can see above, the management team behind SPYI decided to write two covered call option contracts against the S&amp;P 500 expiring on November 11th at the strike prices of 5,840 and 5,910. Assuming these contracts are rolled monthly, something SPYI's management team has stated in <a href="https://youtu.be/8xykeGA5eJU?si=9Y6KrXuBpSPLNiQa">multiple interviews</a>, they were likely written early-October.&nbsp;
The S&amp;P 500 Index was trading around ~5,700 during this time frame — which means their management team wrote these option contracts 2.5% and 3.7% out-of-the-money. These percentage points might not seem like a big deal, but when we have weeks like we did when these contracts were written (new all-time-highs in the S&amp;P 500 Index), writing out-of-the-money contracts vs. at-the-money contracts can really move the needle from a total return perspective.&nbsp;
For added color, below are XYLD's covered call option contracts (as of 10/7/24) — choosing to write option contracts at the 5,690 strike price. At time of writing, the S&amp;P 500 is 5,750 — which would mean investors in XYLD aren't capturing any upside beyond 5,690 at the moment.
<img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXckN09FDJZqf2o-1N02rjU1_qrnNVqs1C0PldCsL6bIwTiwc4j3M5iOYJu96Dm-I0fB1PjWWe49QSChcFg50Uj_Td6mfgo2Q_wIUlsYh9rmwQ7NJ8zjnHuLFXoxjx7CYtPQUQ_Wai03XNzPMLETZgURiD0U?key=TKjopdpKAmsdThXU1FqezA" style="width: 624px;" />
Similar to XYLD, SPYI uses <a href="https://www.investopedia.com/terms/s/section-1256-contract.asp">Section 1256 contracts</a> to generate their monthly income for investors — allowing them to keep more of that 12.11% annual distribution yield in their pockets when Uncle Sam comes knocking.&nbsp;
All in all, SPYI has offered material outperformance against XYLD and JEPI thus far in 2024 — from an income generation, total return, and tax-efficiency perspective.&nbsp;
JEPI has paid out $3.05 per share so far this year, a 5.1% yield against their $59.11 closing price on September 30, 2024. XYLD has paid out $2.88 per share so far this year, a 6.9% yield against their $41.50 closing price on September 30, 2024. SPYI paid out $4.57 per share so far this year, an 8.9% yield against their $51.23 closing price on September 30, 2024.
That's a 3.8% higher yield than JEPI, and 2.0% higher yield than XYLD.
<h3 class="wp-block-heading">What Does Q4 Have In Store For Income-Focused Investors?</h3>
It's hard to say.&nbsp;
2023 was dominated by AI, as has been some aspects of 2024. However, I'd argue 2024 — especially after the Fed signaled upcoming rate cuts — was accompanied by broad-based strength as AI-related earnings acceleration by the Mag 7 has lapsed and the "S&amp;P 493" begins to deliver an uptick in earnings growth for the first time since 2021.
<img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcEIEyvvJLsYRawEg6qLpWi2a0XtJ2Xo3kZ80ZJnojGTm5OVaVO0HJhnkZw1TEvBfKzVvTAclDrR6V-1hxwIsZSIHs1JlmkXoBLczf9sqI3JWcnoeuN9rRwTiRmu0kPjtnSfu_bLttPeIip54cZigKMm-MB?key=TKjopdpKAmsdThXU1FqezA" style="width: 624px;" />
Additionally, BofA's Global Fund Manager Survey tells us that over half of FMS investors say no recession for the US in the next 18-months. Now you can agree or disagree with their assumption — that's not the point. The point is this is the assumption these money managers are using to position their portfolios.
<img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcuuerLV5qrJ-6LoXTApWpa_hb0cB1vxjSGwfXRZ25YCYKZcAqJZntllN66xpr8fCxsVrcWrKkzH1G0ZSPr5WfBiWoFddWPsB3zTdOkblO7h57TrICq9iZ18ZUI_M5N2kKKwkxHRG8VZXedlWkHnJThIOQ?key=TKjopdpKAmsdThXU1FqezA" style="width: 624px;" />
And as the Fed cuts rates, the most important factor to keep an eye on is if the US economy will avoid a recession or not. If we do, history tells us there's more upside to be had over the coming 12-24 months. If we do not, these covered call ETFs will become an increasingly larger position in my portfolio as I weather the storm.
<h3 class="wp-block-heading">Conclusion</h3>
As a fellow income-focused investor, I'm always weighing my options in efforts to determine the best possible way to invest my money. At time of writing, I'm not sure JEPI is the answer here.&nbsp;
If markets continue to rally because of broad-based strength, both XYLD and SPYI's underlying portfolios would likely benefit from their exposure to these types of companies. With that being said, I do acknowledge that XYLD's option contracts are written at-the-money, while JEPI and SPYI <a href="https://spotgamma.com/a-dive-into-jepi-options-strategy-from-the-manager-himself/">seem to be written</a> slightly out-of-the-money. If markets fall, both XYLD and SPYI offer a higher annualized distribution yield than JEPI, offsetting potential downward pressure on price. If markets rally, fall, trade sideways, or even in circles — both XYLD and SPYI will offer more tax-efficient income for their investors given their Section 1256 contracts.&nbsp;
Based on the factors shared in this analysis, I've chosen SPYI to be a six-figure core holding inside of my income-focused portfolio.
<hr class="wp-block-separator has-alpha-channel-opacity" />
Disclaimer: 
This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
Austin Hankwitz is a writer, which means he's not always right with his predictions or recommendations. Since that also applies to his grammar, please excuse any typos you may find. Also, this article is free: Written and distributed only to assist in research while providing a forum for second-level thinking. In some circumstances, he has a business relationship with a company whose stock is mentioned in this article.
Each investor is responsible to conduct their own due diligence and to understand the risks associated with any information that is reviewed. The information contained herein does not constitute and shouldn&#8217;t be construed as a solicitation of advisory services. Consult a registered financial advisor and/or certified financial planner before making any investment decisions.

Opinion

DIVO

JEPI

QQQY

SPYI

My $100,000 Dividend Portfolio Decision — JEPI, SPYI, Or XYLD

Imagine building a portfolio where your investments work for you to generate a steady stream of income without demanding constant attention. Passive income is a powerful financial tool that can help you achieve your financial goals and build long-term wealth. Dividend investing is a popular passive income strategy that offers a compelling way to earn regular cash flow from your portfolio. This strategy has many different approaches, but dividend ETFs are quickly emerging as a convenient and efficient option for investors.
<h2>Dividend ETFs: Streamlining Your Path to Passive Income</h2>
Dividend ETFs are exchange-traded funds (ETFs) that hold a basket of dividend-paying companies. By investing in a dividend ETF, you gain instant diversification across multiple stocks and stock sectors, mitigating the risk of owning individual securities. These ETFs track specific market indices or implement specialized strategies, aiming to provide a regular income stream through dividend payouts. This makes them an attractive option for investors of all levels, from beginners seeking simplicity to seasoned investors looking for efficient portfolio diversification.
Dividend ETFs offer numerous advantages besides diversification. Professional portfolio management ensures the ETF&#39;s holdings align with its investment objectives, and lower expense ratios compared to some actively managed funds contribute to potentially higher net returns. The ease of trading on major stock exchanges, like individual stocks, further enhances their accessibility and flexibility for investors.
<h2>Income or Growth? Finding the Right Dividend ETF&nbsp;</h2>
While dividend ETFs offer a simplified approach to generating passive income, not all are created equal. Each dividend ETF employs a distinct investment strategy, leading to variations in yield, potential for growth, and overall risk. You must review the ETF and its holdings to ensure that the ETF you choose aligns with your investment strategy.&nbsp;&nbsp;
<h3>Prioritizing Immediate Income: SPDR Portfolio S&amp;P 500 High Dividend ETF</h3>
For investors seeking to maximize current income, SPDR Portfolio S&amp;P 500 High Dividend ETF (ARCA:SPYD) presents an attractive option with its high dividend yield of 4.37%. This ETF tracks the S&amp;P 500 High Dividend Index, focusing solely on the top 80 yielding stocks within the S&amp;P 500.
However, investors should be aware of the potential trade-off: SPYD&#39;s emphasis on yield has historically come at the expense of share price appreciation, meaning its total return (dividends plus price growth) may lag behind the broader market.
SPYD currently holds around $7 billion in assets under management (AUM), indicating its popularity among income-focused investors.
<h3>Striking a Balance: Schwab US Dividend Equity ETF</h3>
Schwab US Dividend Equity ETF (ARCA:SCHD) caters to investors seeking a balanced approach, aiming to deliver consistent income and potential for capital appreciation. By tracking the Dow Jones U.S. Dividend 100 Index, SCHD holds 100 high-quality U.S. companies with a proven track record of paying and growing dividends.
This focus on quality and sustainability is reflected in its impressive dividend growth history.
With a 3.03% dividend yield and an exceptionally low expense ratio of 0.06%, SCHD ensures that a larger portion of your investment translates to returns. Its significant market capitalization, exceeding $59 billion, underscores its appeal to a broad range of investors.
<h3>Targeting Long-Term Growth: Invesco Dividend Achievers ETF</h3>
Invesco Dividend Achievers ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pfm#NASDAQ">PFM</a>) appeals to investors prioritizing long-term dividend growth and the potential for compounding returns.
This ETF tracks the NASDAQ US Broad Dividend Achievers Index, which consists of companies that have increased their dividends for at least ten consecutive years.
This rigorous selection process emphasizes financial strength and a commitment to rewarding shareholders. While PFM&#39;s current yield of 1.62% might appear modest, its focus on consistent dividend increases can translate to substantial long-term growth, potentially outpacing inflation and delivering significant wealth accumulation over time.
<h2>Strategic Portfolio Integration of Dividend ETFs</h2>
Integrating dividend ETFs into your portfolio requires that you align them with your financial roadmap, taking into account your investment goals, risk tolerance, and time horizon. Investors seeking immediate income streams to supplement their current lifestyle or cover expenses might find a higher-yielding ETF like SPYD suitable. However, it&#39;s essential to acknowledge that a higher yield may sometimes come at the cost of potential share price growth.&nbsp;
For those with a longer time horizon and a greater appetite for risk, SCHD, with its balanced approach to yield and capital appreciation, might prove a more compelling choice. Conversely, more conservative investors nearing retirement may find PFM&#39;s focus on stable, long-term dividend growth more attractive, even with its comparatively modest yield.
Remember, dividend ETFs are versatile instruments that can be strategically incorporated into a diversified portfolio. Depending on your individual risk profile, they can complement growth-oriented investments or serve as a stabilizing force within a more conservative allocation strategy.
<h2>Harnessing the Power of Compounding: The Long Game</h2>
Adopting a long-term investment strategy is vital to unlocking maximum returns regardless of your chosen dividend ETF. This is where the power of compounding comes into play. Rather than opting for immediate cash payouts, reinvesting your dividends allows those earnings to generate further income. This snowball effect, often called &quot;the eighth wonder of the world&quot; can significantly amplify your wealth over time. By reinvesting dividends consistently, you&#39;re buying more shares of the ETF, which, in turn, can generate even more dividends, creating a powerful growth cycle.
<h2>Charting Your Course to Passive Income</h2>
Dividend ETFs provide a simplified and effective avenue for building passive income streams and working toward financial freedom. However, investing in dividend ETFs requires a tailored approach. You should diligently research and compare ETFs, paying close attention to factors such as underlying indices, expense ratios, dividend histories, and overall investment strategies. By combining strategic decision-making with a long-term perspective, you can harness the full potential of dividend ETFs and embark on a rewarding journey toward passive income generation.
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/harness-the-power-of-dividend-etfs-for-steady-income-growth/">Harness the Power of Dividend ETFs for Steady Income Growth</a>&quot; first appeared on MarketBeat.

Earnings

Large Cap

Sector ETFs

Dividends

Management

PowerShares Exchange Traded Fund Trust Dividend Achievers Portfolio

SPYD

Harness the Power of Dividend ETFs for Steady Income Growth

In today&#39;s uncertain markets, investors increasingly turn to dividend-paying stocks as a reliable strategy for generating passive income and enhancing portfolio stability. Schwab US Dividend Equity ETF (ARCA:SCHD) stands out because it consistently delivers strong returns, outperforming the S&amp;P 500 for the past five years. SCHD leads the way when executing a dividend growth strategy and building a well-rounded, income-focused portfolio.
<h2>SCHD&#39;s Winning Formula: Quality and Growth</h2>
SCHD&#39;s success comes from a strict investment strategy that balances consistent income and long-term capital appreciation. This dividend exchange-traded fund (ETF) meticulously tracks the Dow Jones U.S. Dividend 100 Index, including 100 U.S. companies with proven dividend profiles and solid financial fundamentals.
The ETF&#39;s selection process prioritizes companies committed to rewarding shareholders through sustained and increasing dividend payouts. To be eligible for the fund, a company must have a history of at least ten consecutive years of uninterrupted dividend payments. This strict requirement eliminates companies with inconsistent dividend histories or susceptibility to economic fluctuations.
However, SCHD goes beyond dividend payment history, favoring companies with solid financial health. This includes strong balance sheets, sustainable dividend payout ratios, and the potential for earnings and dividend growth in the future. For example, SCHD considers a company&#39;s debt-to-equity ratio (D/E), which ideally should be low, indicating less reliance on borrowed funds. A higher return on equity (ROE) is another positive signal, suggesting efficient use of shareholder investment to generate profits. By emphasizing these factors, SCHD looks to minimize the risk of dividend cuts while maximizing the potential for share price growth to complement the dividend income.
Furthermore, SCHD&#39;s diversified sector allocation enhances its resilience. While primarily investing in U.S. large-cap stocks, the ETF strategically allocates across diverse sectors. This balanced approach mitigates sector-specific risks, ensuring the ETF&#39;s overall performance is not overly dependent on any single industry.
<h2>The Numbers Don&#39;t Lie: A Track Record of Impressive Returns</h2>
SCHD&#39;s historical performance reveals the ETF&#39;s legacy of consistent growth and market-beating returns. According to the fund prospectus, since its inception on October 19, 2011, the ETF has delivered an impressive average annual return of 13.4%. This performance surpasses the broader S&amp;P 500 Index, which has averaged approximately 11% over the same period. SCHD&#39;s track record shows the fund has a well-executed investment strategy, emphasizing dividend income and capital appreciation.
Investors seeking consistent income streams will find SCHD&#39;s current dividend yield of 3.03% particularly attractive, especially compared to the S&amp;P 500&#39;s average dividend yield of 1.32%. This high yield positions SCHD as a cost-effective way to access a diversified dividend income stream. Furthermore, the ETF boasts a remarkably low expense ratio of 0.06%, ensuring that a greater portion of investor returns remains in their pockets.
Recent events further reinforce SCHD&#39;s positive momentum. In September, the ETF achieved a new 52-week high of $85.24, driven by strong institutional buying and positive investor sentiment surrounding its solid strategy and well-established holdings. Additionally, SCHD recently announced a 3-for-1 stock split scheduled for Oct 11, 2024, making the ETF more accessible to a broader range of individual investors. This action is expected to enhance liquidity, making buying and selling shares easier and potentially contributing to increased future trading volume.
<h2>Outpacing the Competition: SCHD&#39;s Unique Advantages</h2>
SCHD stands out in a crowded field of dividend-focused ETFs because of its unique approach. Many dividend ETFs prioritize high current yields or focus exclusively on undervalued companies. However, SCHD takes a more balanced approach, carefully selecting companies based on a combination of factors that include a history of consistent dividend growth, robust financial health, and the potential for future earnings growth.
This well-rounded strategy, combined with its exceptionally low expense ratio of 0.06%, allows SCHD to deliver strong total returns, often exceeding the performance of its peers. By emphasizing quality, growth, and value, SCHD offers investors a compelling path to building long-term wealth while enjoying a steady dividend income stream.
<h2>A Strategic Building Block for Your Portfolio</h2>
SCHD&#39;s versatility and performance make it an ideal addition to a range of investment strategies. For income-focused investors seeking consistent cash flow, SCHD provides a reliable stream of dividend income without sacrificing the potential for long-term growth. Younger investors with a longer time horizon can benefit from SCHD&#39;s dual focus on income and capital appreciation, allowing their investments to compound over time and potentially outpace inflation.
SCHD can also serve as a stabilizing force within a balanced portfolio, complementing growth-oriented investments and reducing overall volatility. Regardless of individual objectives, investors should carefully consider their risk tolerance, time horizon, and financial goals when deciding how to allocate SCHD within their portfolios. It&#39;s also essential to remember that dividend income is generally taxable, and investors should consult with a financial advisor to understand the tax implications relevant to their situation.
<h2>SCHD: A Dividend Powerhouse Worth Investigating</h2>
SCHD consistently rises to the top when competitively analyzing ETFs. Its solid strategy, impressive track record, remarkably low costs, and potential for income and growth make it an exceptional investment vehicle. Investors seeking a simplified, professionally managed, and potentially highly rewarding way to participate in the dividend market should explore SCHD further. This involves conducting thorough research, including examining the ETF&#39;s underlying index, evaluating its top holdings, and assessing its long-term performance during various market cycles.
By carefully considering SCHD&#39;s features and aligning them with their own investment goals, investors can harness the power of this dividend powerhouse to potentially build long-term wealth.
The article &quot;<a href="https://www.marketbeat.com/originals/schd-etf-unlocking-passive-income-with-strong-returns/">SCHD ETF: Unlocking Passive Income With Strong Returns</a>&quot; first appeared on MarketBeat.

Stock Split

SCHD ETF: Unlocking Passive Income With Strong Returns

Launched on 01/07/2014, the First Trust Rising Dividend Achievers ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rdvy#NASDAQ">RDVY</a>) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by First Trust Advisors. It has amassed assets over $11.71 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
<h2>Why Large Cap Value</h2>
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
<h2>Costs</h2>
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.49%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.83%.
<h2>Sector Exposure and Top Holdings</h2>
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund&#39;s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 42% of the portfolio. Information Technology and Consumer Discretionary round out the top three.
Looking at individual holdings, D.r. Horton, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dhi#NYSE">DHI</a>) accounts for about 2.41% of total assets, followed by Mueller Industries, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mli#NYSE">MLI</a>) and Aflac Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/afl#NYSE">AFL</a>).
The top 10 holdings account for about 22.38% of total assets under management.
<h2>Performance and Risk</h2>
RDVY seeks to match the performance of the NASDAQ US Rising Dividend Achievers Index before fees and expenses. The NASDAQ US Rising Dividend Achievers Index is designed to provide access to a diversified portfolio of companies with a history of paying dividends.
The ETF has added roughly 12.45% so far this year and was up about 23.75% in the last one year (as of 09/17/2024). In the past 52-week period, it has traded between $43.44 and $58.75.
The ETF has a beta of 1.11 and standard deviation of 19.70% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
First Trust Rising Dividend Achievers ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, RDVY is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Schwab U.S. Dividend Equity ETF (ARCA:SCHD) and the Vanguard Value ETF (ARCA:VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $60.60 billion in assets, Vanguard Value ETF has $126.51 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
<h2>Bottom-Line</h2>
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
<a href="https://www.zacks.com/stock/news/2336911/should-first-trust-rising-dividend-achievers-etf-rdvy-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2336911">To read this article on Zacks.com click here.</a>

Mid Cap

Analyst Ratings

RDVY

Should First Trust Rising Dividend Achievers ETF Be on Your Investing Radar?

As the Federal Reserve transitions from a restrictive monetary policy to a more accommodative stance, investors are questioning how this regime change will <a href="https://www.benzinga.com/topic/interest-rates">impact various asset classes. </a>
The central bank&#8217;s shift towards lower interest rates can have far-reaching implications across equities, bonds, and other markets.
Historically, stocks have tended to perform well following the Fed&#8217;s initial rate cuts—but with a crucial caveat: the economy must avoid slipping into a recession. An <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40855247/fed-rate-cuts-and-s-p-500-the-why-matters-most-data-shows">analysis by Goldman Sachs</a> reveals that the S&amp;P 500 has experienced significant declines even after rate cuts if the U.S. economy entered a recession during those periods.
When it comes to bonds, lower interest rates have generally led to a decrease in bond yields, thus driving up bond prices. Unlike equities, this dynamic has historically played out somewhat independently of the economic cycle. However, &#8220;what's past is prologue&#8221; is not always a guarantee in financial markets.
<h2 class="wp-block-heading">&#8216;Quality Can Be Found Across Asset Classes&#8217;</h2>
According to Bank of America&#8217;s latest Research Investment Committee (RIC) report, investors can identify quality opportunities across various asset classes, particularly in today&#8217;s shifting market landscape.
BofA analysts suggest that in the U.S. equity space, investors should adopt a defensive stance, focusing on companies with high free cash flow.
Savita Subramanian, head of U.S. equity &amp; quantitative strategy at BofA, notes that S&amp;P 500 valuations indicate low price returns for the next decade, making dividend payouts more crucial for total returns.
<ul>
<li>Utilities: Recently <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40823561/this-under-the-radar-defensive-ai-sector-quietly-outperforms-all-others-despite-rec">upgraded to Overweight by BofA, </a>the utilities sector stands out for its defensive characteristics and competitive yield. Subramanian indicates that growing power demand driven by AI-linked data centers bolsters the outlook for utility companies. ETFs like the First Trust Utilities AlphaDEX ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXU#NYSE">FXU</a>) and the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) are potential plays in this space.</li>
<li>Real Estate: Offering higher quality yield than before, with 70% of the sector rated B+ or better, the real estate sector provides attractive options. BofA notes that the S&amp;P 500 real estate segment has relatively low office exposure, which could mitigate some risks. Recommended ETFs include the Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) and iShares Cohen &amp; Steers REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ICF#NYSE">ICF</a>).</li>
<li>Consumer Staples: BofA finds the consumer staples sector tactically attractive, especially ETFs like the Consumer Staples Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>), which has substantial exposure to resilient companies like The Procter &amp; Gamble Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>), Costco Wholesale Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COST#NASDAQ">COST</a>), Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>). Another sector play here is the iShares U.S. Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYK#NYSE">IYK</a>). </li>
<li>Value, Quality, Dividends, and Buybacks: The bank is also bullish on factor-based ETFs, recommending exposure in value, quality, dividend, and buyback amid a strong free cash flow yield and potential for higher payouts than the broader S&amp;P 500 index. ETFs in this category include the Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>), Pacer US Cash Cows 100 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COWZ#NYSE">COWZ</a>), Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>), and iShares Core Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIVB#NYSE">DIVB</a>).</li>
</ul>
Outside the U.S., Bank of America is bullish on Japanese equities as effective corporate reforms are expected &#8220;to unleash a mountain of cash.&#8221; The WisdomTree Japan Hedged Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DXJ#NYSE">DXJ</a>) is a top pick in this market, having gained 125% since 2019. This ETF also offers protection against the yen&#8217;s devaluation. 
In the fixed-income market, BofA suggests exposure to AAA-rated collateralized loan obligations (CLOs) and long-dated Treasury bonds.
<ul>
<li>CLOs: BofA recommends the Janus Henderson AAA CLO ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JAAA#NYSE">JAAA</a>), viewing these loans as quality yield options that have withstood stress during both the 2008 financial crisis and the 2020 pandemic-induced downturn.</li>
<li>Long-Dated Treasuries: Investors looking for duration exposure can consider the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>), which tracks long-dated Treasury bonds with a 17-year duration.</li>
</ul>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Asset Class</th>
<th>Name</th>
</tr>
</thead>
<tbody>
<tr>
<td colspan="3">Equities</td>
</tr>
<tr>
<td>Utilities</td>
<td>First Trust Utilities AlphaDEX ETF</td>
</tr>
<tr>
<td>Utilities </td>
<td>Utilities Select Sector SPDR Fund</td>
</tr>
<tr>
<td>Real Estate</td>
<td>Real Estate Select Sector SPDR Fund </td>
</tr>
<tr>
<td>Real estate</td>
<td>iShares Cohen &amp; Steers REIT ETF</td>
</tr>
<tr>
<td>Consumer staples</td>
<td>Consumer Staples Select Sector SPDR ETF </td>
</tr>
<tr>
<td>Consumer staples</td>
<td>iShares U.S. Consumer Staples ETF</td>
</tr>
<tr>
<td>Value</td>
<td>Vanguard Value ETF</td>
</tr>
<tr>
<td>Quality</td>
<td>Pacer US Cash Cows 100 ETF </td>
</tr>
<tr>
<td>Dividend</td>
<td>Schwab US Dividend Equity ETF</td>
</tr>
<tr>
<td>Buybacks</td>
<td>iShares Core Dividend ETF </td>
</tr>
<tr>
<td>Japan</td>
<td>Wisdom Tree Japan Hedged Equity ETF</td>
</tr>
<tr>
<td colspan="3">Fixed income</td>
</tr>
<tr>
<td>Credit</td>
<td>Janus Henderson AAA CLO ETF</td>
</tr>
<tr>
<td>Duration</td>
<td>iShares 20+ Year Treasury Bond ETF </td>
</tr>
</tbody>
</table>
</figure>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40887448/long-dated-treasury-bond-etf-hits-14-month-highs-ahead-of-imminent-fed-rate-cut">Long-Dated Treasury Bond ETF Hits 14-Month Highs Ahead Of Imminent Fed Rate Cut</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Analyst Color

REIT

Bonds

Broad U.S. Equity ETFs

New ETFs

Treasuries

Econ #s

Real Estate

COST

COWZ

DIVB

WisdomTree Trust Japan Total Dividend Fund

iShares Trusthen & Steers Realty Majors Index Fund

iShares Trust Dow Jones USnsumer Goods Sector Index Fund

JAAA

iShares Trust Barclays 20+ Year Treasury Bond Fund

XLRE

13 ETFs To Own As Fed Set To Cut Rates: Analysts Highlight Utilities, Real Estate, And More

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco Dividend Achievers ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pfm#NASDAQ">PFM</a>) is a passively managed exchange traded fund launched on 09/15/2005.
The fund is sponsored by Invesco. It has amassed assets over $697.06 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
<h2>Why Large Cap Value</h2>
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
<h2>Costs</h2>
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.53%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.65%.
<h2>Sector Exposure and Top Holdings</h2>
It is important to delve into an ETF&#39;s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 21.40% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc&nbsp;accounts for about 4.31% of total assets, followed by Microsoft Corp and Broadcom Inc.
The top 10 holdings account for about 26.99% of total assets under management.
<h2>Performance and Risk</h2>
PFM seeks to match the performance of the NASDAQ US Broad Dividend Achievers Index before fees and expenses. The NASDAQ US Broad Dividend Achievers Index is designed to identify a diversified group of dividend-paying companies which have increased their annual dividend for 10 or more consecutive fiscal years.
The ETF has gained about 16.28% so far this year and it&#39;s up approximately 23.33% in the last one year (as of 09/16/2024). In the past 52-week period, it has traded between $35.25 and $46.01.
The ETF has a beta of 0.83 and standard deviation of 13.92% for the trailing three-year period, making it a medium risk choice in the space. With about 426 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
Invesco Dividend Achievers ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PFM is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Schwab U.S. Dividend Equity ETF (ARCA:SCHD) and the Vanguard Value ETF (ARCA:VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $60.01 billion in assets, Vanguard Value ETF has $125.50 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
<h2>Bottom-Line</h2>
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
<a href="https://www.zacks.com/stock/news/2336235/should-invesco-dividend-achievers-etf-pfm-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2336235">To read this article on Zacks.com click here.</a>

Tech

Should Invesco Dividend Achievers ETF Be on Your Investing Radar?

The Schwab Fundamental U.S. Large Company ETF (ARCA:FNDX) made its debut on 08/13/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
<h2>What Are Smart Beta ETFs?</h2>
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it&#39;s possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
<h2>Fund Sponsor &amp; Index</h2>
The fund is managed by Charles Schwab. FNDX has been able to amass assets over $16.17 billion, making it one of the largest ETFs in the Style Box - Large Cap Value. FNDX, before fees and expenses, seeks to match the performance of the Russell RAFI US Large Co. Index.
The RAFI Fundamental High Liquidity US Large Index measures the performance of large U.S. companies based on their fundamental size and weight.
<h2>Cost &amp; Other Expenses</h2>
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.25% for this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.75%.
<h2>Sector Exposure and Top Holdings</h2>
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund&#39;s holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
FNDX&#39;s heaviest allocation is in the Financials sector, which is about 19.50% of the portfolio. Its Information Technology and Healthcare round out the top three.
Looking at individual holdings, Apple Inc accounts for about 4.40% of total assets, followed by Microsoft Corp&nbsp;and Berkshire Hathaway Inc Class B.
The top 10 holdings account for about 20.23% of total assets under management.
<h2>Performance and Risk</h2>
The ETF has gained about 11.42% and it&#39;s up approximately 20.30% so far this year and in the past one year (as of 09/09/2024), respectively. FNDX has traded between $53.46 and $70.84 during this last 52-week period.
FNDX has a beta of 0.99 and standard deviation of 15.80% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 738 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
Schwab Fundamental U.S. Large Company ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Schwab U.S. Dividend Equity ETF (ARCA:SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (ARCA:VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $58.84 billion in assets, Vanguard Value ETF has $122.62 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
<a href="https://www.zacks.com/stock/news/2333159/is-schwab-fundamental-u-s-large-company-etf-fndx-a-strong-etf-right-now?cid=CS-BENZ-FT-smart_beta_etf-2333159">To read this article on Zacks.com click here.</a>

Asset Sales

FNDX

Is Schwab Fundamental U.S. Large Company ETF a Strong ETF Right Now?

Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the First Trust Value Line Dividend ETF (ARCA:FVD), a passively managed exchange traded fund launched on 08/19/2003.
The fund is sponsored by First Trust Advisors. It has amassed assets over $9.72 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
<h2>Why Large Cap Value</h2>
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
<h2>Costs</h2>
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.60%, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 2.12%.
<h2>Sector Exposure and Top Holdings</h2>
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 19.50% of the portfolio. Utilities and Consumer Staples round out the top three.
Looking at individual holdings, Kellanova (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/k#NYSE">K</a>) accounts for about 0.62% of total assets, followed by Erie Indemnity Company (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/erie#NASDAQ">ERIE</a>) and Lockheed Martin Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lmt#NYSE">LMT</a>).
The top 10 holdings account for about 5.55% of total assets under management.
<h2>Performance and Risk</h2>
FVD seeks to match the performance of the Value Line Dividend Index before fees and expenses. The Value Line Dividend Index is a modified equal dollar weighted index comprised of U.S. exchange listed securities of companies that pay above-average dividends and have potential for capital appreciation.
The ETF has added about 11.07% so far this year and is up about 16.28% in the last one year (as of 09/04/2024). In the past 52-week period, it has traded between $36.09 and $44.80.
The ETF has a beta of 0.79 and standard deviation of 13.51% for the trailing three-year period, making it a medium risk choice in the space. With about 208 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
First Trust Value Line Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FVD is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The Schwab U.S. Dividend Equity ETF (ARCA:SCHD) and the Vanguard Value ETF (ARCA:VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $59.94 billion in assets, Vanguard Value ETF has $123.92 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
<h2>Bottom-Line</h2>
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
<a href="https://www.zacks.com/stock/news/2331114/should-first-trust-value-line-dividend-etf-fvd-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2331114">To read this article on Zacks.com click here.</a>

ERIE

First Trust Value Line Dividend Index Fund ETF

Should First Trust Value Line Dividend ETF Be on Your Investing Radar?

Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) <a href="https://www.benzinga.com/pressreleases/24/08/g40311428/verizon-to-upgrade-sd-wan-at-49-national-labor-relations-board-locations" target="_blank" rel="noreferrer noopener">inked a new</a> Enterprise Infrastructure Solutions (EIS) deal with the National Labor Relations Board (NLRB), an independent federal agency that focuses on the rights of <a href="https://www.benzinga.com/topic/telecom">private sector employees</a>.
Under the $4 million contract, Verizon will reconfigure and upgrade NLRB&#8217;s Software-Defined Wide Area Network (SD-WAN) at all 48 branch offices, including its headquarters.
Additionally, Verizon&#8217;s solution includes new distributed security infrastructure and cloud hosting services.
&#8220;The NLRB win reaffirms Verizon&#8217;s market position as the premier provider of EIS services to federal agencies,&#8221; said Michael Adams, Associate Vice President, Federal Civilian Business at Verizon.
A software-defined wide area network helps these organizations in quality and cost control.
In July, Verizon reported <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39883078/verizon-q2-earnings-wireless-revenue-and-broadband-subs-gain-traction-sales-fall-short-of-expectati" rel="noreferrer noopener">second-quarter sales</a> of $32.8 billion, which was below the consensus estimate of $33.1 billion. Verizon Consumer revenue was $24.9 billion and Verizon Business revenues stood at $7.3 billion.
Verizon Communications stock gained over 21% in the last 12 months. Investors can gain exposure to the stock through Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) and SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
Price action:&nbsp;VZ shares traded higher by&nbsp;0.17% at $40.82 premarket at the last check Monday.
Now Read:
<ul>
<li><a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/08/40314918/markets-experience-best-and-worst-days-since-2022-whats-next-in-wall-streets-rollercoa">Markets Experience Best And Worst Days Since 2022: What&#8217;s Next In Wall Street&#8217;s Rollercoaster Ride?</a></li>
</ul>

Government

Verizon Secures $4M Federal Contract, Touts New Security Infrastructure

BlackRock, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) is selling $2.5 billion in U.S. investment-grade bonds to help pay for its <a href="https://www.benzinga.com/markets/equities/24/07/39570007/blackrocks-aladdin-gets-smarter-3-2b-deal-adds-preqins-private-markets-data">$3.2 billion acquisition</a> of private-markets data company Preqin.
What Happened: According <a href="https://www.bloomberg.com/news/articles/2024-07-17/blackrock-taps-blue-chip-bond-market-to-fund-preqin-purchase?srnd=markets-vp&amp;sref=TBDibEcD">to</a> Bloomberg, citing an anonymous source, BlackRock Funding plans to sell the notes in three tranches.
The longest part of the deal matures in 30 years. It expects to yield one percentage point above Treasuries.
BlackRock did not immediately respond to Benzinga&#8217;s request for comment on the reported transaction.
BlackRock agreed to acquire London-based Preqin as part of an effort to grow its presence in private-markets investing. In January, the firm spent $12.5 billion to take over Global Infrastructure Partners.
Also Read: <a href="https://feeds2.benzinga.com/markets/equities/24/07/39603383/blackrocks-preqin-acquisition-to-drive-revenue-synergies-analyst-sees-expansion-in-emerging-priv">BlackRock&#8217;s Preqin Acquisition To Drive Revenue Synergies: Analyst Sees Expansion In Emerging Private Markets</a>
Private markets are rapidly growing and expected to reach nearly $40 trillion by decade's end. This sector's data market, currently valued at $8 billion, is growing 12% annually and is projected to reach $18 billion by 2030.
The Preqin acquisition is expected to close by the end of this year. Bank of America Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) and Wells Fargo &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) are leading the bond sale.
The three-year portion of the notes offering comes with a special mandatory redemption clause, which means BlackRock will buy back the notes at 101% if the Preqin deal fails to close by Sept. 2, 2025.
Price Action: BlackRock dipped 0.54% to $839.40 by late-afternoon trading on Wednesday, while exchange-traded funds that hold the stock rose and fell.
Fidelity Disruptive Finance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FDFF#NASDAQ">FDFF</a>) lost 0.35% as Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) gained 1.32% and The Nightview Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NITE#NYSE">NITE</a>) slipped 3.1%. Madison Dividend Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIVL#NYSE">DIVL</a>) edged up 0.92% and Copper Place Global Dividend Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDVD#NYSE">GDVD</a>) rose 0.52%.GDVD
Read Now: 
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/07/39791571/blackrock-analysts-raise-their-forecasts-following-upbeat-earnings">BlackRock Analysts Raise Their Forecasts Following Upbeat Earnings</a></li>
</ul>

Financing

DIVL

FDFF

GDVD

NITE

BlackRock Sells $2.5B In Bonds To Help Fund Preqin Deal: Report

Investment giant&nbsp;BlackRock, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) shares are trading higher after the company reported&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/b39767432/blackrock-reports-second-quarter-2024-earnings" rel="noreferrer noopener">second-quarter&nbsp;FY24 results</a>.
Revenue growth of 8%&nbsp;Y/Y to&nbsp;$4.805 billion, missing the consensus of&nbsp;$4.849 billion.&nbsp;
Investment advisory, administration fees, and securities lending revenues increased to&nbsp;$3.875 billion&nbsp;from&nbsp;$3.611 billion&nbsp;a year ago, led by positive organic base fee growth and the impact of market beta on average AUM.
Technology services revenue increased to&nbsp;$395 million&nbsp;from&nbsp;$359 million&nbsp;the prior year, reflecting continued demand for Aladdin technology offerings.
Related: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39570007/blackrocks-aladdin-gets-smarter-3-2b-deal-adds-preqins-private-markets-data" rel="noreferrer noopener">BlackRock&#8217;s Aladdin Gets Smarter: $3.2B Deal Adds Preqin&#8217;s Private Markets Data</a>
BLK stated that the net inflow stood at&nbsp;$82 billion&nbsp;in the quarter, resulting in a 3% organic base fee growth.
Laurence D. Fink, Chairman, and CEO said, &#8220;Organic growth was driven by private markets, retail active fixed income, and surging flows into our ETFs, which had their best start to a year on record.&#8221;
Read: <a target="_blank" href="https://www.benzinga.com/markets/cryptocurrency/24/05/39068825/blackrocks-bitcoin-etf-dominates-market-with-nearly-20b-in-assets-report" rel="noreferrer noopener">BlackRock&#8217;s Bitcoin ETF Dominates Market with Nearly $20B in Assets: Report</a>
Adjusted operating income rose&nbsp;12%&nbsp;Y/Y to&nbsp;$1.88 billion, with the margin expanding to&nbsp;44.1%&nbsp;from&nbsp;42.5%&nbsp;a year ago.
Adjusted EPS increased&nbsp;12%&nbsp;Y/Y to&nbsp;$10.36,&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">beating the consensus of&nbsp;$9.93.</a>
Total AUM stood at&nbsp;$10.6 trillion in AUM, up $1.2 trillion year-over-year, driven by consistent organic growth and positive market movements.
BLK&#8217;s Board of Directors paid a quarterly cash dividend per share of&nbsp;$5.10&nbsp;and repurchased shares worth&nbsp;$500 million&nbsp;in the quarter.&nbsp;
Fink added, &#8220;We are on pace to close our planned acquisition of Global Infrastructure Partners in the third quarter of 2024, which is expected to double private markets base fees and add approximately $100 billion of infrastructure AUM. And just a few weeks ago, we announced our agreement to acquire Preqin, a leading private markets data provider.&#8221;
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39603383/blackrocks-preqin-acquisition-to-drive-revenue-synergies-analyst-sees-expansion-in-emerging-priv" rel="noreferrer noopener">BlackRock&#8217;s Preqin Acquisition To Drive Revenue Synergies: Analyst Sees Expansion In Emerging Private Markets</a>
Investors can gain exposure to the stock via&nbsp;Fidelity Disruptive Finance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FDFF#NASDAQ">FDFF</a>) and&nbsp;Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>).
Price Action: BLK shares are up 0.60% at $832.90 premarket at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by rafapress on Shutterstock

Movers

BlackRock Q2 Earnings: ETF Boom, Record Inflows And Private Market Drive Growth

Launched on 05/22/2000, the iShares Russell 1000 Value ETF (ARCA:IWD) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $55.66 billion, making it the largest ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Investors should also pay attention to an ETF&#39;s expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.19%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.96%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund&#39;s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 23% of the portfolio. Industrials and Healthcare round out the top three.
Looking at individual holdings, Berkshire Hathaway Inc Class B&nbsp;accounts for about 3.54% of total assets, followed by JPMorgan Chase &amp; Co&nbsp;and Exxon Mobil Corp&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>).
The top 10 holdings account for about 17.89% of total assets under management.
Performance and Risk
IWD seeks to match the performance of the Russell 1000 Value Index before fees and expenses. The Russell 1000 Value Index measures the performance of the large-capitalization value sector of the U.S. equity market.
The ETF has added about 6.18% so far this year and is up about 13.62% in the last one year (as of 07/09/2024). In the past 52-week period, it has traded between $143.69 and $179.11.
The ETF has a beta of 0.95 and standard deviation of 15.18% for the trailing three-year period, making it a medium risk choice in the space. With about 851 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell 1000 Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWD is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Schwab U.S. Dividend Equity ETF (ARCA:SCHD) and the Vanguard Value ETF (ARCA:VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $54.39 billion in assets, Vanguard Value ETF has $115.94 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
<a href="https://www.zacks.com/stock/news/2298260/should-ishares-russell-1000-value-etf-iwd-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2298260">To read this article on Zacks.com click here.</a>

Should iShares Russell 1000 Value ETF Be on Your Investing Radar?

Whirlpool Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WHR#NYSE">WHR</a>) shares are trading lower today. The stock pulled back after soaring higher yesterday due to news of Robert Bosch GmbH reportedly <a target="_blank" href="https://www.benzinga.com/m-a/24/06/39502758/home-appliances-giant-whirlpool-stock-is-soaring-on-wednesday-heres-why" rel="noreferrer noopener">considering a bid for the company</a>.
Goldman Sachs analyst Susan Maklari rated the stock <a target="_blank" href="https://www.benzinga.com/quote/WHR/analyst-ratings" rel="noreferrer noopener">as Buy and price target of $118</a>.
The analyst writes that while Robert Bosch holds a 6% share in the global major appliance market, its presence in North America is significantly smaller at 1.5%, while Whirlpool leads with approximately 25% market share in North America and 10% globally based on 2023 volumes.
Maklari says that a potential deal would enable Bosch to enhance its competitive position both globally and regionally.
This development coincides with European companies&#8217; increasing interest in expanding into the US building products industry to mitigate challenges in their local economies, writes the analyst.
However, the analyst expects regulatory hurdles to be anticipated due to current geopolitical dynamics.
The analyst notes that the company&#8217;s revenues and adjusted EBITDA decreased by 12% and 46%, respectively, from 2021 to 2023, which weighs on the valuation.
Whirlpool stock has lost over 32% in the last 12 months. Investors can gain exposure to the stock via&nbsp;the iShares Core S&amp;P Mid-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJH#NYSE">IJH</a>)&nbsp;and&nbsp;the Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>).
Price Action: WHR shares are down 1.95% at $99.92 at the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Grzegorz Czapski via Shutterstock

Price Target

Reiteration

Bosch Bid Hype Fades, But Analyst Sees Whirlpool's Potential

Robert Bosch GmbH is reportedly considering a bid for U.S. appliance manufacturer Whirlpool Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WHR#NYSE">WHR</a>), according to three individuals familiar with the situation.
If successful, this acquisition would enhance Bosch&#8217;s presence in the white goods market, Reuters reports.
Whirlpool stock soared Wednesday on the news.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/23/11/36020529/strategic-divestiture-whirlpool-to-partially-reduce-ownership-in-indian-subsidiary-in-2024" rel="noreferrer noopener">Strategic Divestiture: Whirlpool To Partially Reduce Ownership In Indian Subsidiary In 2024</a>
Bosch has been consulting with potential advisers regarding a possible offer for Whirlpool, which currently holds a market capitalization of approximately $4.8 billion.
Whirlpool has undergone significant restructuring recently, including merging its European operations into a new entity controlled by Turkish competitor Arçelik and selling off its Middle Eastern and African businesses.
The acquisition of Whirlpool, one of the largest global white goods producers, would significantly bolster Bosch&#8217;s home appliance division. This move is seen as a strategic effort to enhance market position and compete more effectively against growing Asian market players.
Whirlpool stock has lost over 39% in the last 12 months. Investors can gain exposure to the stock via the iShares Core S&amp;P Mid-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJH#NYSE">IJH</a>) and the Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>).
Price Action: WHR shares traded higher by 17.50% at $102.24 at the last check on Wednesday.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/23/08/34038695/burned-by-delay-whirlpool-settles-for-millions-over-hazardous-cooktops" rel="noreferrer noopener">Burned By Delay: Whirlpool Settles For Millions Over Hazardous Cooktops</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Grzegorz Czapski via Shutterstock

Media

Home Appliances Giant Whirlpool Stock Is Soaring On Wednesday - Here's Why

China has reportedly imposed sanctions on several subsidiaries and senior executives of Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) in response to <a target="_blank" href="https://www.benzinga.com/topic/taiwan" rel="noreferrer noopener">U.S. arms sales to Taiwan</a>.
The sanctions include freezing the assets of Lockheed Martin&#8217;s senior executives, including Chairman James Donald Taiclet, and banning their entry into China, reported Reuters.
China&#8217;s foreign ministry announced that the sanctions target Lockheed Martin Missile System Integration Lab, Lockheed Martin Advanced Technology Laboratories, and Lockheed Martin Ventures, per the report.
Beijing has repeatedly urged the U.S. to cease its arms sales to Taiwan, a self-governed island that China claims as its own.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39429701/us-and-china-confront-taiwan-issue-in-first-informal-nuclear-talks-in-5-years-report" rel="noreferrer noopener">US And China Confront Taiwan Issue In First Informal Nuclear Talks In 5 Years: Report</a>
This latest round of sanctions is part of a broader effort by China to counter foreign actions against it, especially those related to Taiwan. China&#8217;s sanctions law, enacted in 2021, aims to provide legal grounds for retaliatory measures.
This is not the first time China has sanctioned U.S. defense contractors for their dealings with Taiwan. In <a target="_blank" href="https://www.benzinga.com/markets/equities/23/09/34609264/china-sanctions-lockheed-martin-and-northrop-grumman-concerning-arms-sales-to-taiwan-report" rel="noreferrer noopener">September last year</a>, China sanctioned Lockheed Martin and Northrop Grumman Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>).
Prior to that, Lockheed Martin and RTX Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) Raytheon faced sanctions in 2019, 2020, 2022, and 2023, with the 2022 sanctions being the first under China&#8217;s anti-foreign sanctions law.
Earlier in May, the Biden administration imposed new tariffs on Chinese imports, targeting sectors such as <a target="_blank" href="https://www.benzinga.com/economics/macro-economic-events/24/05/38813115/biden-targets-chinese-imports-with-huge-tariff-hikes-ahead-of-election" rel="noreferrer noopener">electric vehicles, batteries, and semiconductors</a>.&nbsp;
Investors can gain exposure to the stock via IShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>).
Price Action: LMT shares are trading higher by 0.23% at $467.43 at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/05/38913623/boeing-trades-nearly-1-lower-as-china-imposes-symbolic-sanctions-on-airplane-maker-and-other-us-" target="_blank" rel="noreferrer noopener">Boeing Trades Nearly 1% Lower as China Imposes Symbolic Sanctions On Airplane Maker And Other US Defense Firms Over Taiwan Arms Sales</a>
Photo Courtesy: AlmostViralDesign On Shutterstock.com

iShares Dow Jones US Aerospace & Defense Index Fund

China Sanctions Lockheed Martin Subsidiaries, Executives Over Taiwan Arms Sales: Report

Ford Motor Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) is reportedly planning additional job cuts across its operations in Germany, <a target="_blank" href="https://www.benzinga.com/quote/F" rel="noreferrer noopener">Spain, and the U.K.</a>
This development is part of a broader strategy to streamline its workforce in Europe, particularly as the company shifts its focus towards electric vehicle (EV) production.
According to Benjamin Gruschka, the head of the workers&#8217; council at Ford&#8217;s Cologne plant, the specifics of the job cuts in Germany remain unclear but are expected to be defined by the end of June, reported Reuters.
The decision comes in addition to a previous restructuring initiative.
Ford has already implemented significant workforce reductions, having completed half of its planned 2,300 job cuts in Germany, reducing its staff to 13,000.
Also Read: <a target="_blank" href="https://www.benzinga.com/top-stories/24/06/39321797/ford-to-allow-all-us-dealers-to-sell-electric-vehicles-scraps-model-e-program" rel="noreferrer noopener">Ford To Allow All US Dealers To Sell Electric Vehicles, Scraps Model E Program</a>
Ford recently announced plans to cut up to 1,600 jobs at its Valencia plant as part of ongoing adjustments to optimize<a target="_blank" href="https://www.benzinga.com/news/24/06/39315574/whats-happening-with-fords-shares-on-thursday" rel="noreferrer noopener"> its production capacity and efficiency.</a>
Last year, Ford disclosed plans to eliminate 3,800 jobs across Europe due to the operational needs of EV production, which typically requires fewer personnel compared to <a target="_blank" href="https://www.benzinga.com/news/23/02/30893180/ford-plans-to-cut-3-800-jobs-in-europe" rel="noreferrer noopener">traditional car manufacturing.</a>
This move reflects Ford&#8217;s strategic pivot toward sustainable automotive solutions and aligns with industry-wide trends toward electric mobility.
&nbsp;Ford sold a total of 8,966 EVs in the U.S. in May, marking a near 65% jump <a target="_blank" href="https://www.benzinga.com/news/24/06/39179259/ford-again-defies-elon-musks-tough-quarter-gloom-as-ev-sales-keep-surging-after-q1-boom" rel="noreferrer noopener">from 2023 when it sold just 5,444 units.</a>
For 2024, Ford expects its EV division to post an EBIT loss between $5.5 billion and $5 billion, wider than the <a target="_blank" href="https://www.benzinga.com/news/24/06/39159541/really-an-incredible-person-jim-farley-says-theres-respectful-rivalry-with-tesla-ceo-elon-musk-outli" rel="noreferrer noopener">$4.7 billion loss recorded in 2023.</a>
Ford stock has lost more than 16% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) and IShares MSCI USA Value Factor ET (BATS:<a class="ticker" href="https://www.benzinga.com/stock/VLUE#BATS">VLUE</a>).
Price Action: F shares are trading lower by 0.34% at $11.80 at last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

VLUE

Ford Plans Further Job Reductions in Germany, Spain, And UK: Report

Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) shares are <a href="https://www.benzinga.com/topic/automotive">ticking lower on Thursday</a>.
The auto company announced further job cuts at its Valencia, Spain, assembly plant, totaling up to 1,600 positions, following a previous reduction of 1,100 staff last year.
The decision reflects ongoing adjustments in Ford&#8217;s European operations, reported Reuters.
The automaker, which currently employs about 4,700 workers at the Valencia facility, communicated to unions that 600 jobs would be cut permanently.
However, discussions are ongoing about potentially rehiring 1,000 workers in the future, as Ford plans to ramp up production with a new vehicle launch slated for 2027. 
Negotiations may lead to a temporary arrangement for the 1,000 workers affected, bridging the period until the new vehicle&#8217;s production begins.
Also Read: <a href="https://www.benzinga.com/news/24/06/39137548/whats-happening-with-fords-shares-today">Ford plans Level 3 autonomous driving By 2026</a>
The Valencia plant is set to start manufacturing a new hybrid passenger car aimed at the European and other markets starting in 2027, with an <a href="https://www.benzinga.com/news/24/05/38759934/ford-to-increase-production-at-valencia-plant-with-new-model">expected annual output of 300,000 unit</a>s.
Ford&#8217;s Valencia plant, located in the Almussafes district, currently produces the Kuga compact sports utility vehicle, having phased out other models in recent years. 
The plant's transition to new model production represents a significant strategic shift for Ford in Europe, focusing on hybrid technology to align with evolving market demands and regulatory standards.
These job cuts mark the second major workforce reduction at the Valencia facility within two years.
Ford stock has lost more than 15% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) and IShares MSCI USA Value Factor ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/VLUE#BATS">VLUE</a>).
Price Action: Ford shares are trading lower by 1.57% at $11.89 at last check on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/news/24/06/39179259/ford-again-defies-elon-musks-tough-quarter-gloom-as-ev-sales-keep-surging-after-q1-boom">Ford Again Defies Elon Musk&#8217;s &#8216;Tough Quarter&#8217; Gloom As EV Sales Keep Surging After Q1 Boom</a>

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