VIG - VIG

Vanguard Div Appreciation ETF (ARCA: VIG)

最新ニュース Vanguard Div Appreciation ETF (ARCA:VIG)

Vanguard Div Appreciation ETF

Technology

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Industrials

Consumer Cyclical

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Basic Materials

Energy

Utilities

Communication Services

The fund employs an indexing investment approach designed to track the performance of the Nasdaq US Dividend Achievers Select Index, which consists of common stocks of companies that have a record of increasing dividends over time. The adviser attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.

Apple Inc.- Class A

Microsoft Corp

Broadcom Inc

Jpmorgan Chase & Co.

Exxon Mobil Corp.

Unitedhealth Group Inc.

Visa Inc

Procter & Gamble Company

Costco Wholesale Corp.

Mastercard Inc

Walmart, Inc.

Eli Lilly & Co.

Vanguard Dividend Appreciation ETF

Vanguard International Dividend Appreciation ETF

Vigil Neuroscience Inc

The detox phase may be over but don't expect investors to binge just yet. JPMorgan's equity strategy team, led by Dubravko Lakos-Bujas and Bhupinder Singh, thinks the worst <a href="https://www.benzinga.com/topic/tariffs">of tariff trauma</a> might be easing &#8211; though the business cycle hangover still lingers.
In a market update that channels equal parts caution and calculated optimism, the duo points to a subtle but significant pivot in policy tone. "The latest messaging from the Trump Administration seems to be shifting from tariffs to tax cuts and deregulation," they write a shift that may reduce the left tail risk that's had investors hiding in cash and hugging their low-leverage books.
But don't confuse hope with resolution. "Clarity and closure are still needed," JPMorgan warns, especially as trade chatter with China heats up again. Deals with Japan, Korea and India could serve as templates, but the big dragon in the room &#8211; China &#8211; remains the key.
President Donald Trump&#8216;s tariffs may come down, but will a complete rollback follow? Unlikely. Transshipment tricks and political posturing will keep some barriers in place.
<h2 class="wp-block-heading">Bearish Bias And Pain Trade</h2>
"Sentiment is very bearish," the strategists say, with many in the macro community brushing off positive trade signals thanks to "Trump exhaustion." Systematic portfolios have scaled back so aggressively that some are flirting with max short levels. Translation: the pain trade is up.
JPMorgan sees the S&amp;P 500 likely staying range-bound between 5,200 (base case) and 5,800 (bull case), driven by EPS estimates of $250 and $260, respectively, for 2025. But in the near term, the bias is upward as markets "preposition on tariff de-escalation."
For investors, that means playing defense might soon come at the cost of missing out. ETFs like the SPDR S&amp;P 500 ETF Trust (ARCA: SPY) and the Invesco QQQ Trust (NASDAQ: QQQ) could benefit if this pain trade reversal plays out.
Meanwhile, iShares MSCI USA Min Vol Factor TF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USMV#NYSE">USMV</a>) remains a favorite among those still clinging to Low Volatility strategies &#8211; just look at the "sharp rise in Low Vol crowding," the report notes.
Read Also: <a href="https://www.benzinga.com/etfs/specialty-etfs/25/04/44962489/vix-is-still-wild-but-not-for-long-3-volatility-etfs-to-grab-before-calm-returns">VIX Is Still Wild, But Not for Long: 3 Volatility ETFs To Grab Before Calm Returns</a>
<h2 class="wp-block-heading">Momentum Out, Buybacks In</h2>
Even with volatility, JPMorgan expects a corporate silver lining. "US corporates to deliver record buyback executions," thanks to recent equity swings. That should provide some cushion &#8211; especially as the dollar dips, energy prices fall and easier monetary policy lurks.
Still, don't count on a multiple re-rating to the euphoric 22-24x highs. JPMorgan thinks a "~20x upper bound multiple is more reasonable," citing high-quality fundamentals, AI-driven capex cycles, and capital returns.
<h2 class="wp-block-heading">ETF Plays For A Murky Macro</h2>
As market clarity remains elusive, the strategists highlight the subtle Trump Put &#8211; volatility may be self-inflicted, but now there's an incentive to walk it back. That leaves opportunities for investors willing to hold their noses and look past the noise.
For those leaning into the upside risk:
<ul>
<li>SPY and QQQ for broad market exposure,</li>
<li>USMV for safety-first plays,</li>
<li>Vanguard Dividend Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>) as buybacks and cash returns heat up,</li>
<li>iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>) for any surprise breakthroughs with Beijing.</li>
</ul>
The detox might be over, but the bull case is still waiting for its adrenaline shot. For now, investors may want to brace for a "range-bound" grind &#8211; with the pain trade whispering from the upside.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/equities/25/04/45004528/sp-500-could-crash-37-to-3700-if-tariff-fallout-triggers-recession-warns-wolfe-research">S&amp;P 500 Could Crash 37% To 3,700 If Tariff Fallout Triggers Recession, Warns Wolfe Research</a></li>
</ul>
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Trump Put Gets Louder, But Bulls Still Need A Map - JPMorgan Strategists See 'Pain Trade' To The Upside

As the Federal Reserve signals a one-and-done approach to <a href="https://www.benzinga.com/topic/interest-rates">rate cuts in 2025</a>, investors are being forced to rethink what "safe" really means.
According to Violeta Todorova, Senior Research Analyst at Leverage Shares, market participants face a complicated mix of "slowing growth, rising inflationary pressures, geopolitical tensions, and structural changes in the global demand for U.S. Treasuries."
"Historically viewed as a volatility hedge, Treasuries are facing a credibility test," Todorova told Benzinga. She also noted that recent tariff-induced volatility has triggered a selloff in U.S. government bonds, clouding their reliability.
Read Also: <a href="https://www.benzinga.com/trading-ideas/movers/25/04/44958259/bitcoin-reclaims-spotlight-while-gold-loses-luster-the-safe-haven-standoff-continues">Bitcoin Reclaims Spotlight While Gold Loses Luster: The Safe Haven Standoff Continues</a>
Investors worried about long-term U.S. debt and diminishing foreign demand might consider international bond ETFs: iShares International Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGOV#NYSE">IGOV</a>) or the SPDR Bloomberg International Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BWX#NYSE">BWX</a>) for broader fixed income exposure.
<h2 class="wp-block-heading">Equity Picks: AI, Defense, Energy</h2>
On the equity side, Todorova sees sector fundamentals taking the lead. "Sectors with pricing power or those benefiting from structural tailwinds (e.g., AI, defense, energy infrastructure) may be better positioned," she said. 
For exposure, investors might look at the Global X Robotics &amp; Artificial Intelligence ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BOTZ#NYSE">BOTZ</a>), the iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>) or the Alerian MLP ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMLP#NYSE">AMLP</a>).
When it comes to staying defensive but not missing upside, Todorova suggests a diversified approach: "The best way to stay defensive while still participating in potential upside is to maintain broad diversification, focusing on quality and resilience." 
Think dividend-paying large caps via the Vanguard Dividend Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>) or defensive plays like the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) and the Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>).
One final piece of advice: "Resist the urge to time the market or make aggressive moves in response to headlines." Sound familiar? 
That's because seasoned investors already know — cool heads often prevail.
Read Next: 
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<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/04/44886429/oils-not-dead-yet-smart-money-thinks-the-bottoms-in">Oil&#8217;s Not Dead Yet &#8211; Smart Money Thinks The Bottom&#8217;s In</a></li>
</ul>
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BOTZ

iShares S&P/Citigroup International Treasury Bond Fund

IGOV

iShares Dow Jones US Aerospace & Defense Index Fund

EXCLUSIVE: Fed's Tepid Cut Outlook Reshapes Portfolios, Here's How Smart Money Plays Defense

Every parent wants to give their child a head start in life, especially if they grew up without <a href="https://www.benzinga.com/personal-finance/24/03/37878498/new-fidelity-study-reveals-58-of-women-aim-for-financial-security-as-their-ultimate-goal">financial security</a> themselves.
The desire to break such a generational curse is powerful, but so is the fear of making the wrong move, since a bad <a href="https://in.benzinga.com/personal-finance/25/03/44335110/stupid-20-year-investment-plan-investor-questions-200000-dividend-strategy-is-it-stupid-to-put-in-that-much-into-schd">investment</a> could derail years of careful planning. This is exactly what a Reddit user is faced with now.
The investor, a dad of a 2-year-old, has asked for advice on building a $1 million portfolio for his son with the goal of having him live comfortably off dividend income by age 34. The poster is determined to set his son up for financial freedom, so he&#8217;s already started a &#8220;mini portfolio&#8221; with a combo of dividend-oriented ETFs and speculative stocks: Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>), Astra Space (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASTR#NASDAQ">ASTR</a>), Virgin Galactic Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPCE#NYSE">SPCE</a>), and Vornado Realty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNO#NYSE">VNO</a>).
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<li>Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die."<a href="https://www.benzinga.com/money/warren-buffet-make-money-when-you-sleep"> Here&#8217;s how you can earn passive income with just $100.</a></li>
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&#8220;We are looking for blueprints or instructions on proper investing for our children. How to create wealth is more important than wealth itself. We really would like to make sure he is financially responsible beforehand,&#8221; the dad wrote.
His concerns involve picking the right investments to balance growth and dividends in the next 30-plus years, avoiding costly mistakes, and ensuring his son is financially responsible. The responses to the investor&#8217;s post were a mix of encouragement and caution, with many Redditors coming up with suggestions of assets.
Trending: The secret weapon in billionaire investor portfolios that you almost certainly don't own yet. <a href="https://www.benzinga.com/money/masterworks">See which asset class has outpaced the S&amp;P 500 (1995-2024) – and with near-zero correlation.</a>
<h2 class="wp-block-heading">$1 Million Portfolio for a 2-Year-Old&#8211;Reddit Advises Dad on Allocations</h2>
ETFs are Safe for the Long Run
Many commenters suggested individual stocks are too risky for a 30-year investment horizon, and recommended low-cost ETFs instead.
&#8220;Not an expert at all, but I&#8217;m thinking safe ETFs with high quality companies. Time will take care of everything. Thinking simple: SCHD, [SPDR S&amp;P 500 ETF Trust (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spy#NYSE">SPY</a>)],&#8221; a comment reads.
A Redditor suggested a mix between dividend-focused and tech assets, which provide both growth and regular payments.
&#8220;[Vanguard High Dividend Yield ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vym#NYSE">VYM</a>)], [Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>)], [Invesco QQQ Trust (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>)]. This is dividend + tech. That&#8217;s what I would bet on for 30 years. Dividend low-fee ETF + some growth inform of tech. I personally would pick stocks for the QQQ portion of the fund [(Apple (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>)] + [Microsoft Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>)] + [Alphabet (NASDAQ: GOOGL, GOOG)] + [Amazon&nbsp; (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>)]).&#8221;
&#8220;I remember someone showing the Top 30 or 20 companies by market cap in 1980/1990 and then the new list in 2020 and every one of them had changed/dropped off, bar 1. Might be a good argument for an ETF if you're thinking for the kid,&#8221; a Redditor advocated.
This user also advised the investor to choose ETFs instead of individual stocks because in such a long period, companies can change a lot.
&#8220;I would avoid single stocks and go with a few ETFs because you talking 16 years before they turn 18 and have that last many years, a lot can change with an individual company,&#8221; he said.
See Also: Have $200K saved?<a href="https://www.benzinga.com/money/have-200k-saved-heres-how-to-turn-it-into-lasting-wealth"> Here's how to turn it into lasting wealth</a>
Set Up a Trust
Several Redditors warned the poster that giving a young adult sudden wealth can backfire, so he should consider setting up a structured trust with gradual payouts.
&#8220;OP could set up a trust for their kid where a percentage is released at 18, another at 30, 100% at 50, or however he sees fit. It doesn't stop the kid from possibly becoming a d&#8211;k, but it would minimize the risk of them blowing everything before they're fully matured. He could even add in a clause that allows additional access to money at an earlier age for things such as education or buying a house,&#8221; a commenter wrote.
A Reddit user said he won&#8217;t tell his children about the money he set up for each of them until they&#8217;re 30.
&#8220;I'm not telling my kids about anything I'm putting aside for them until they're 30. Everyone I know that inherited large sums of money before 30 pissed it all up the wall,&#8221; he said.
&#8220;Be very careful what you tell him or her. There is a difference between being a wage slave but also learning the importance of hard work. Tell a kid that they got money coming mid-30s? I would have screwed around in my 20s and felt entitled to that money,&#8221; another comment reads.
Read Next:
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<li><a href="https://www.benzinga.com/money/mark-cubans-advice-for-lotto-winners">Many are surprised by Mark Cuban's advice for lotto winners: Cash or annuity?</a></li>
<li>Can you guess how many retire with a $5,000,000 nest egg? <a href="https://www.benzinga.com/money/5mil-nest-egg-adv">The percentage may shock you</a>.</li>
</ul>

Personal Finance

AAPL

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ASTR

MSFT

SCHD

SPCE

Dad With 'Mini Portfolio' And $1M Investment Plan Wants Son 'Living Off Of Dividend Income Comfortably' – Reddit Debates Best Stocks To Buy

As Trump tariffs take another spin through Mexico and Canada, investors are left navigating an increasingly <a href="https://www.benzinga.com/topic/tariffs">complex trade landscape</a>. 
While the long-term economic impact remains "indeterminate for both the U.S. and others," Sam Rines, macro strategist at WisdomTree, sees this as a pivotal stress test for economies and supply chains that have hardened over the past six years.
<h2 class="wp-block-heading">Mexico &amp; Canada: The First To React To Trump Tariffs</h2>
In a <a href="https://www.benzinga.com/government/regulations/25/02/43440692/us-mexico-agrees-on-one-month-tariffs-pause-stocks-rebound-peso-rallies">swift diplomatic maneuver</a>, Mexico and the U.S. have reached what Rines calls "a détente of sorts." It may not be a full-fledged trade agreement, but it's enough of a political win for Trump to delay and reassess.
Canada has also<a href="https://www.benzinga.com/25/02/43450261/trump-trudeau-strike-border-security-deal-tariffs-on-canada-paused-for-at-least-30-days"> reached a temporary agreement</a> with the U.S., while the EU is bracing for its turn in the trade spotlight. Interestingly, "India (and others) are not being mentioned in the same context," a nod to Prime Minister Narendra Modi's past alignment with Donald Trump.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/02/43432736/copper-stocks-on-shaky-ground-jpmorgan-analysts-say-tariffs-deepseek-cloud-outlook">Copper Stocks On Shaky Ground, JPMorgan Analysts Say: Tariffs, DeepSeek Cloud Outlook</a>
<h2 class="wp-block-heading">Dividend Payers Take Center Stage</h2>
So, who benefits from a protracted tariff skirmish? "The winners in a prolonged trade and tariff skirmish are U.S. domestically focused businesses," Rines notes, pointing to value stocks with limited exposure to trade volatility.
Dividend payers stand out as particularly "attractive," with Rines emphasizing their resilience over buyback-heavy firms. Those companies prioritizing stable income distribution are likely to emerge as the "biggest winners."
<h2 class="wp-block-heading">ETFs To Watch</h2>
For US investors looking to capitalize, ETFs such as the Vanguard Dividend Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>), iShares Select Dividend ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DVY#NASDAQ">DVY</a>), the WisdomTree U.S. High Dividend Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHS#NYSE">DHS</a>) and the WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DGRW#NASDAQ">DGRW</a>) could offer exposure to resilient, dividend-paying U.S. firms. 
Those betting on an America-first trade boom might look at Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) for companies committed to consistent payouts.
Rines leaves no doubt that this turbulence is far from over: "America First economic policies are seizing the attention of the markets… this is not going to abate in the near future and neither will the consequent volatility." Investors should buckle up, as the tariff rollercoaster shows no signs of slowing.
Read Next: 
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<li><a href="https://www.benzinga.com/government/regulations/25/02/43437906/constellation-brands-most-exposed-name-as-trump-tariffs-go-live-analysts-advise-adjusting-prices">Constellation Brands &#8216;Most Exposed Name&#8217; As Trump Tariffs Go Live: Analysts Advise Adjusting Prices</a></li>
</ul>
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Dividend Stocks Could Be 'Biggest Winners' As Trump's Trade Moves Shake Markets: WisdomTree Expert

Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) announced <a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/g43266690/broadcom-delivers-industrys-first-quantum-resistant-network-encryption-enabling-real-time-ransomwa" rel="noreferrer noopener">Emulex Secure Fibre Channel Host Bus Adapters (HBA)</a> on Wednesday. This cost-effective, easy-to-manage solution encrypts all data as it moves between servers and storage.
The cost of ransomware attacks continues to rise, with attacks in 2024 costing an average of $5.37 million per attack.
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/price-target/25/01/43110913/apples-iphone-dependence-remains-but-services-wearables-offer-growth-potential-analyst" rel="noreferrer noopener">Apple&#8217;s iPhone Dependence Remains, But Services, Wearables Offer Growth Potential: Analyst</a>
Upcoming generative AI and quantum computers magnify the risk if data is not encrypted at all points in the data center, including the network.
To address these cybersecurity issues, governments have responded with mandates that require enterprises to modernize their IT infrastructures with post-quantum cryptographic encryption algorithms and zero-trust architecture.
Today, data centers can deploy application encryption or network encryption to protect their data.
Network encryption offers several advantages over application-based encryption, including preserving storage array services.
Network encryption enables real-time ransomware detection, while application-based encryption hides ransomware attacks.
Reportedly, <a target="_blank" href="https://www.benzinga.com/news/24/10/41325429/chinese-researchers-use-quantum-computers-to-reportedly-crack-rsa-encryption-raising-alarms-in-cyber" rel="noreferrer noopener">quantum computers can</a> threaten data security and privacy for various enterprises.
Broadcom stock surged over 70% in the last 12 months, joining Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) in the&nbsp;<a target="_blank" href="https://www.benzinga.com/25/01/43191472/broadcom-powers-solidigms-high-capacity-ssds-key-driver-for-ai-and-data-intensive-growth" rel="noreferrer noopener">trillion-dollar market cap</a> club in 2024.
Needham&#8217;s N. Quinn Bolton projected upside for Broadcom from growth in XPUs.
JPMorgan&#8217;s Harlan Sur expects Broadcom <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43266292/broadcom-marvell-could-thrive-from-deepseeks-ai-breakthrough" target="_blank" rel="noreferrer noopener">to gain from</a> DeepSeek&#8217;s emergence as hyperscalers and cloud providers continue to push for greater AI capabilities, with cost and power performance becoming critical differentiators.
Investors can gain exposure to Broadcom through Vanguard Div Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>) and Vanguard Information Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>).
Price Actions:&nbsp;AVGO stock traded higher by 1.86% at $211.22 premarket at the last check on Wednesday.
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<li><a href="https://www.benzinga.com/25/01/43127416/anthropic-gains-big-with-google-backing-aiming-for-60-billion-valuation-and-surging-ai-revenue" target="_blank" rel="noreferrer noopener">Anthropic Gains Big With Google Backing, Aims for $60 Billion Valuation and Surging AI Revenue</a></li>
</ul>
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Broadcom Launches Secure Fibre Channel HBA, Boosting Data Encryption To Combat Rising Cyber Threats

International Business Machines Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>) showcased its latest <a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/n41420523/ibm-introduces-granite-3-0-high-performing-ai-models-built-for-business" rel="noreferrer noopener">advancement in artificial intelligence</a> with the release of Granite 3.0, the company&#8217;s most sophisticated family of AI models. The announcement was made during IBM&#8217;s annual TechXchange event.
The Granite 3.0 models address the growing demand for AI transparency, safety, and performance, particularly in enterprise settings.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41407196/openais-for-profit-structure-adds-valuation-complexity-to-microsoft-and-other-equity-investors-repor" rel="noreferrer noopener">OpenAI&#8217;s For Profit Structure Adds Valuation Complexity to Microsoft And Other Equity Investors: Report</a>
Available under the open-source Apache 2.0 license, Granite 3.0 aims to provide flexible AI solutions for businesses seeking cutting-edge performance with greater control and adaptability.
Open Source Initiative (OSI) called out Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) for <a target="_blank" href="https://www.benzinga.com/news/24/10/41388451/metas-ai-open-source-claims-draw-criticism-osi-pushes-for-transparency" rel="noreferrer noopener">labeling its AI models</a> as &#8220;open-source.&#8221; OSI head Stefano Maffulli reportedly accused Meta of misleading users about open-source technology, raising concerns about the company&#8217;s claims. Meanwhile, Meta chief Mark Zuckerberg has been a vocal supporter of open-source and criticized closed-source AI platforms, including ChatGPT parent OpenAI, for stifling creative freedom and development.
IBM&#8217;s Granite 3.0 series includes diverse models designed for various enterprise tasks.
The Granite 3.0 models, which support more than 12 natural and 116 programming languages, were developed using an innovative two-stage training method.
IBM continues emphasizing responsible AI development by introducing Granite Guardian 3.0, a family of models focused on safety and risk detection.
IBM aims to further support enterprise AI initiatives by integrating these models into various platforms, such as Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) NIM microservices and Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google Cloud&#8217;s Vertex AI Model Garden.
Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) recently introduced an <a target="_blank" href="https://www.benzinga.com/news/24/10/41139084/nvidia-expands-ai-offerings-with-new-open-source-models-and-unreal-engine-5-plugins" rel="noreferrer noopener">open-source AI</a> model. The NVLM 1.0 model offers advanced capabilities for vision and language tasks, enhancing the company&#8217;s AI toolkit for developers.
Wedbush analyst Dan Ives <a target="_blank" href="https://www.benzinga.com/markets/equities/24/10/41420779/dan-ives-acknowledges-nvidia-microsoft-as-core-drivers-of-ai-but-sees-palantir-ibm-amd-and-apple" rel="noreferrer noopener">highlighted IBM&#8217;s potential</a> driven by the AI boom, predicting that ongoing momentum, increasing enterprise spending, and a rebound in digital advertising will drive tech stocks upward by year-end.
IBM stock gained over 70% in the last 12 months. Investors can gain exposure to the stock through Vanguard Div Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>) and Vanguard High Dividend Yield ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VYM#NYSE">VYM</a>).
Price Action: IBM stock closed lower by 0.29% at $232.20 on Friday.
Photo Credit: Shutterstock
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Launched on 06/16/2006, the WisdomTree Global ex-U.S. Quality Dividend Growth ETF (ARCA:DNL) is a smart beta exchange traded fund offering broad exposure to the World ETFs 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 offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
<h2>Fund Sponsor &amp; Index</h2>
The fund is sponsored by Wisdomtree. It has amassed assets over $625.40 million, making it one of the larger ETFs in the World ETFs. DNL seeks to match the performance of the WisdomTree Global ex-U.S. Quality Dividend Growth Index before fees and expenses.
The WisdomTree Global ex-U.S. Quality Dividend Growth Index is a fundamentally weighted index that measures the performance of dividend paying stocks with growth characteristics in the developed and emerging markets outside of the United States.
<h2>Cost &amp; Other Expenses</h2>
For ETF investors, expense ratios are an important factor when considering a fund&#39;s return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.42%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.72%.
<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.
Looking at individual holdings, Taiwan Semiconductor Manufacturing Co Ltd&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tsm#NYSE">TSM</a>) accounts for about 6.47% of total assets, followed by Novo Nordisk A/s-B (OTC: <a class="ticker" href="https://www.benzinga.com/stock/nonof#OTC">NONOF</a>) and Roche Holding Ag (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rog#NYSE">ROG</a>).
<h2>Performance and Risk</h2>
The ETF has added about 6.31% so far this year and was up about 13.30% in the last one year (as of 09/17/2024). In the past 52-week period, it has traded between $31.84 and $40.81.
DNL has a beta of 0.96 and standard deviation of 18.66% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 325 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
WisdomTree Global ex-U.S. Quality Dividend Growth ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core Dividend Growth ETF (ARCA:DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (ARCA:VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $29.95 billion in assets, Vanguard Dividend Appreciation ETF has $85.25 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
<a href="https://www.zacks.com/stock/news/2336919/is-wisdomtree-global-ex-u-s-quality-dividend-growth-etf-dnl-a-strong-etf-right-now?cid=CS-BENZ-FT-smart_beta_etf-2336919">To read this article on Zacks.com click here.</a>

Large Cap

Small Cap

DGRO

NONOF

Is WisdomTree Global ex-U.S. Quality Dividend Growth ETF a Strong ETF Right Now?

International Data Corporation (IDC) rekindled optimism in smartphone makers like Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) with its latest market update. It expects global smartphone shipments to climb by 5.8% to 1.23 billion units in 2024, recuperating from two challenging <a target="_blank" href="https://www.idc.com/getdoc.jsp?containerId=prUS52550324" rel="noreferrer noopener">years</a>.
The research firm flagged the popularity of budget Android smartphones in China and emerging markets and the luxury markets&#8217; acceptance of generative artificial intelligence smartphones as potential catalysts.
IDC expects Android to grow nine times faster at 7.1% than Apple iOS due to higher competition in China.
However, IDC highlighted GenAI&#8217;s success with the upcoming iPhone 16 and Apple&#8217;s capability to forge <a target="_blank" href="https://www.benzinga.com/markets/asia/24/06/39434301/apples-ai-strategy-faces-hurdles-in-china-talks-with-local-firms-are-ongoing" rel="noreferrer noopener">local AI partnerships</a> in China as potential growth drivers for Apple.
IDC expects the iOS trajectory to improve in 2025 with 4% year-over-year growth courtesy of Apple Intelligence.
IDC expects GenAI smartphones to win an 18% market share by 2024, driven by the premiumization trend.
In&nbsp;2023,&nbsp;Apple&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/06/39164337/apples-streaming-ambitions-in-china-continue-despite-geopolitical-tensions" rel="noreferrer noopener">ramped up its</a> China-based suppliers and manufacturing sites&nbsp;and launched a new&nbsp;Apple store in Shanghai, reflecting its keenness in the market.
CEO Tim Cook attended the China Development Forum in Beijing. Apple&nbsp;also discussed integrating&nbsp;Baidu Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) advanced generative AI technology into&nbsp;its devices within China.
Apple stock gained 27% in the last 12 months. Investors can gain exposure to Apple through Vanguard Div Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>) and iShares Core S&amp;P Total U.S. Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITOT#NYSE">ITOT</a>).
<h2 class="wp-block-heading">Will Apple Stock Go Up?</h2>
When trying to assess whether or not Apple will trade higher from current levels, it's a good idea to take a look at analyst forecasts. 
Wall Street analysts have an average 12-month price target of $240.54 on Apple. The Street high target is currently at $300.0 and the Street low target is $164.0. Of all the analysts covering Apple, 38 have positive ratings, 7 have neutral ratings and 3 have negative ratings.
In the last month, 16 analysts have adjusted price targets. Here's a look at recent price target changes <a href="https://www.benzinga.com/quote/AAPL/analyst-ratings">[Analyst Ratings]</a>. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Apple have performed in recent history. 
Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Apple is 22.83% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.
For a broad overview of everything you need to know about Apple, visit <a href="https://www.benzinga.com/quote/AAPL">here</a>. If you want to go above and beyond, there's no better tool to help you do just that than <a href="https://pro.benzinga.com/">Benzinga Pro</a>. Start your free trial today.
Price Action: AAPL shares traded higher by 0.13% at $228.32 premarket at the last check on Wednesday.
Image via Shutterstock

BIDU

ITOT

Apple's Market Share Poised To Gain, GenAI And iPhone 16 Lead the Way: IDC

International Business Machines Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>)&nbsp;is laying off 1,000 employees as it shutters a fundamental research division in China.
The company is shuttering two business lines specializing in research, development, and testing, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-08-26/ibm-to-shut-china-r-d-in-move-affecting-1-000-staff-yicai-says?srnd=phx-technology&amp;sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
IBM proposes to serve private enterprises and select multinationals operating in China.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/08/40166316/ibm-leverages-generative-ai-to-boost-cybersecurity-services-details" rel="noreferrer noopener">IBM Leverages Generative AI To Boost Cybersecurity Services: Details</a>
The shutdown of operation mirrors that of a host of companies reducing exposure to China, grappling with a weak domestic economy and regulatory scrutiny.
IBM plans to migrate its Chinese R&amp;D functions to offices elsewhere, the Wall Street Journal <a target="_blank" href="https://www.wsj.com/business/ibm-shuts-china-r-d-operations-in-latest-retreat-by-u-s-companies-b37cd9a0?mod=tech_lead_story" rel="noreferrer noopener">reports citing</a> Jack Hergenrother, a company vice president. The company is also looking for more engineers and researchers in places like Bangalore, India.
IBM&#8217;s move follows intensifying semiconductor sanctions on China by the U.S. backed by the retaliation from China.
In July, IBM reported <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39943619/ibm-shares-climb-on-strong-q2-results-heres-the-details" rel="noreferrer noopener">second-quarter sales</a> of $15.8 billion, up by 2.1% year-on-year, beating the analyst estimate of $15.6 billion.&nbsp;EPS of $2.43 topped the consensus estimate of $2.19.
IBM stock is up over 34% in the last 12 months. Investors can gain exposure to the stock through Vanguard Div Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>) and Vanguard High Dividend Yield ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VYM#NYSE">VYM</a>).
Price Action: IBM stock is down&nbsp;0.11%&nbsp;at&nbsp;$195.89 premarket at the last check Monday.
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Photo via Shutterstock

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IBM Shuts Down China Operations, Shifts Research to Global Offices: Report

Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) has announced the launch of Catalyst, an Accelerate Program expansion designed to enhance the go-to-market strategies and customer relationships for its <a href="https://www.benzinga.com/pressreleases/24/08/g40337700/broadcom-introduces-catalyst-initiative-to-better-serve-symantec-and-carbon-black-customers-turboc" target="_blank" rel="noreferrer noopener">Symantec and Carbon Black portfolios</a>. The stock is trading higher Tuesday.
The global initiative involves critical partnerships with elite Enterprise Security Group (ESG) partners, who will take on primary roles in specific regions. The initial Catalyst Partners include TD SYNNEX for the Americas; Arrow Electronics for North, Central, and Southern Europe; MBCOM Technologies for Emerging Markets; Westcon-Comstor for the Asia Pacific; and Carahsoft Technology Corp. for the U.S. Federal Government, State, Local, and Education sectors.
The Catalyst initiative leverages Broadcom&#8217;s product innovation and a suite of enablement tools to help these partners drive substantial profit growth.
The program empowers local technical experts to provide value-added services and Tier 1 and Tier 2 support to customers using Symantec and Carbon Black security solutions.
Broadcom will continue to support these partners with product management, marketing, and sales operations resources, ensuring their success. Additionally, Broadcom will offer advanced Tier 3 customer support and engineering resources to maximize the benefits of its ESG solutions.
This initiative signifies Broadcom&#8217;s commitment to expanding its influence in the cybersecurity market through strategic partnerships.
JPMorgan analyst Harlan Sur predicted that Broadcom will have an artificial intelligence (AI) silicon market opportunity <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39793230/broadcom-has-over-150b-of-ai-silicon-opportunity-over-next-5-years-says-analyst" target="_blank" rel="noreferrer noopener">of over $150 billion</a> in the next five years.
Broadcom&nbsp;stock gained over 74% in the last 12 months. Investors can gain exposure to Broadcom through Vanguard Div Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>) and SPDR Select Sector Fund &#8211; Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>).
Price Action: AVGO shares traded higher by 2.58% at $152.45 at last check Tuesday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock

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Vanguard has become a towering figure <a href="https://www.benzinga.com/etfs">in the world of exchange-traded funds (ETFs)</a>. 
As investors increasingly turn to ETFs for their diversification, lower costs, and liquidity, understanding the offerings and strategies of major players like Vanguard is essential. 
Yet, amidst this expansive array of financial instruments, one notable absence in Vanguard&#8217;s portfolio raises eyebrows: the lack of a <a href="https://www.benzinga.com/topic/bitcoin-etf">Bitcoin ETF. </a>
Here, we delve into the five critical factors about Vanguard ETFs, also explaining why a Bitcoin ETF is deliberately missing from their portfolio lineup.
<h3 class="wp-block-heading">Vanguard&#8217;s Status In The ETF Arena</h3>
Vanguard ranks as the second-largest ETF issuer globally, overseeing a diverse portfolio of over a hundred ETFs and boasting an impressive $2.5 trillion in assets under management (AUM), just shy of BlackRock Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>), which leads with $2.7 trillion AUM.
The Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), with $426 billion in AUM as of Mar. 14, 2024, is not only Vanguard&#8217;s flagship fund but also the world&#8217;s second-largest ETF, trailing slightly behind the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) at $503 billion. 
Top 7 Vanguard&#8217;s ETFs By AUM
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF</th>
<th>AUM (bn)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Vanguard S&amp;P 500 ETF </td>
<td>426.87 </td>
</tr>
<tr>
<td>Vanguard Total Stock Market ETF </td>
<td>385.48 </td>
</tr>
<tr>
<td>Vanguard FTSE Developed Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEA#NYSE">VEA</a>)</td>
<td>130.07 </td>
</tr>
<tr>
<td>Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>)</td>
<td>119.81 </td>
</tr>
<tr>
<td>Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>)</td>
<td>115.14</td>
</tr>
<tr>
<td>Vanguard Total Bond Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BND#NYSE">BND</a>)</td>
<td>105.94</td>
</tr>
<tr>
<td>Vanguard Div Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>) </td>
<td>77.92</td>
</tr>
</tbody>
</table>
</figure>
<h3 class="wp-block-heading">Champion of Low Fees</h3>
In the competitive ETF marketplace, cost efficiency is a significant battleground. Vanguard emerges as a victor here, offering the lowest average expense fees among its funds—an AUM-weighted average expense ratio of a mere 0.05%, according to data from VettaFi. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Issuers</td>
<td>Expense Rank</td>
<td>Avg. Expense Ratio (%)</td>
</tr>
<tr>
<td>Vanguard</td>
<td>1</td>
<td>0.05%</td>
</tr>
<tr>
<td>BNY Mellon</td>
<td>2</td>
<td>0.05%</td>
</tr>
<tr>
<td>Charles Schwab</td>
<td>3</td>
<td>0.08%</td>
</tr>
<tr>
<td>Bondbloxx Investment Management Corp.</td>
<td>4</td>
<td>0.10%</td>
</tr>
<tr>
<td>GAMCO Investors, Inc.</td>
<td>5</td>
<td>0.11%</td>
</tr>
<tr>
<td>Humankind USA LLC</td>
<td>6</td>
<td>0.11%</td>
</tr>
<tr>
<td>State Street</td>
<td>7</td>
<td>0.12%</td>
</tr>
<tr>
<td>Deutsche Bank AG</td>
<td>8</td>
<td>0.13%</td>
</tr>
<tr>
<td>Goldman Sachs</td>
<td>9</td>
<td>0.15%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: VettaFi</figcaption></figure>
The cheapest ETFs issued by Vanguard are the Vanguard S&amp;P 500 ETF, Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>), and the Vanguard Total Bond Market ETF, all screening an expense ratio of just 0.03%.
<h3 class="wp-block-heading">Leading The 2024 Inflow Race</h3>
In 2024, Vanguard outshines its competitors in attracting investment flows. The issuer has seen a staggering $75 billion in inflows over the past three months, eclipsing BlackRock&#8217;s $55.7 billion, thereby securing its position as the top performer in fund flows thus far this year.
The Vanguard S&amp;P 500 ETF has attracted $21 billion over the past three months, topping the ranking among its peers. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Issuers</td>
<td>Fund Flow Rank</td>
<td>3-Month Fund Flow ($MM)</td>
</tr>
<tr>
<td>Vanguard</td>
<td>1</td>
<td>$70,097.57</td>
</tr>
<tr>
<td>BlackRock, Inc.</td>
<td>2</td>
<td>$55,791.59</td>
</tr>
<tr>
<td>Invesco</td>
<td>3</td>
<td>$20,380.07</td>
</tr>
<tr>
<td>State Street</td>
<td>4</td>
<td>$16,097.65</td>
</tr>
<tr>
<td>Dimensional</td>
<td>5</td>
<td>$9,362.99</td>
</tr>
<tr>
<td>JPMorgan Chase</td>
<td>6</td>
<td>$9,263.38</td>
</tr>
<tr>
<td>Fidelity</td>
<td>7</td>
<td>$9,240.89</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: VettaFi</figcaption></figure>
<h3 class="wp-block-heading">A Conservative Product Range</h3>
Unlike some of its peers, Vanguard has opted for a more conservative route in its ETF offerings. The company does not offer leveraged ETFs, sticking strictly to equity and fixed-income products. 
This strategic choice highlights Vanguard&#8217;s focus on traditional investment vehicles over speculative or alternative assets. Vanguard&#8217;s portfolio notably lacks any commodities, currency, or Bitcoin-related ETFs.
<h3 class="wp-block-heading">Absence of Bitcoin and Crypto ETFs</h3>
This absence isn&#8217;t due to oversight but a deliberate decision. Vanguard has explicitly stated it has no plans to introduce a Bitcoin ETF or any other crypto-related products, distinguishing itself from other major ETF issuers — such as BlackRock, VanEck, Franklin Templeton, WisdomTree, Invesco, Fidelity, Global X, 21 Shares and ProShares – who have embraced the crypto bandwagon.
Why No Bitcoin ETF? Vanguard&#8217;s Reasoning
Vanguard&#8217;s stance on Bitcoin and cryptocurrencies is grounded in a cautious approach to investment merit and client needs. Janel Jackson, global head of ETF Capital Markets and broker &amp; index relations at Vanguard, has expressed skepticism about the role of cryptocurrencies in long-term portfolios. 
Citing crypto&#8217;s speculative nature, lack of inherent economic value, and potential to disrupt portfolio stability, Vanguard sees crypto as an &#8220;immature asset class.&#8221; 
Instead, the company invests its interest in blockchain technology for its potential to enhance capital market efficiency, steering clear of cryptocurrencies as investment products.
Now Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/03/37712624/tightening-the-tap-regional-banks-tech-stocks-bitcoin-brace-for-liquidity-crunch-as-fed-li">Tightening The Tap: Regional Banks, Tech Stocks, Bitcoin Brace For Liquidity Crunch As Fed Lifeline Ends</a>

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5 Things You Need To Know About Vanguard ETFs: Why There's No Bitcoin ETF In Their Lineup?

The SPDR S&amp;P 500 ETF Trust (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spy#NYSE">SPY</a>) is off to a shaky start to 2022, down 5.1% year-to-date.
Investors are rightfully concerned about the potential for Federal Reserve interest rate hikes starting as soon as March, but history suggests the Fed&#39;s plan to begin reducing its balance sheet could be even more of a bearish catalyst for stock prices than rising rates.
Balance Sheet Expansion: The Federal Reserve&#39;s <a href="https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm">balance sheet</a> roughly doubled in size to an unprecedented $9 trillion during the pandemic thanks to aggressive monthly bond and mortgage-backed security purchases. That buying has contributed to elevated inflation levels and high stock market valuations.
The Fed has hinted it will begin its &quot;quantitative tightening&quot; process in the near future, but the last time the Federal Reserve sold assets, it didn&#39;t go well for stock market investors.
Prior to the financial crisis in late 2008, The Fed held less than $1 trillion in assets on its balance sheet. From Sept. 15, 2008 to Jan. 15, 2015, the Fed increased its balance sheet holdings to $4.51 trillion. During that same stretch, the S&amp;P 500 gained 65.7%.
<img alt="" src="https://www.benzinga.com/files/u81483/fed_assets_and_sp500.png" style="height:366px; width:625px" />
The Fed began its &quot;balance sheet normalization&quot; process in October 2017, allowing bonds <a href="https://money.usnews.com/investing/news/articles/2022-01-24/fed-could-resort-to-outright-asset-sales-to-reduce-balance-sheet-credit-suisse">to mature</a> without reinvesting the repaid principal into new securities. That process continued through Aug. 26, 2019, reducing the Fed&#39;s balance sheet to around $3.76 trillion. During that previous stretch of tightening, the S&amp;P 500 gained just 12.1%.
Related Link: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/02/25422060/us-adds-467-000-jobs-in-january-good-for-the-economy-but-not-for-markets">US Adds 467,000 Jobs In January: &#39;Good For The Economy, But Not For Markets&#39;</a>
Sector Performance: Some sectors of the market struggled during the previous tightening period more than others. The Utilities Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlu#NYSE">XLU</a>) more than doubled the S&amp;P 500&#39;s return during the previous tightening period, generating a total return of 30.6%. The Real Estate Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlre#NYSE">XLRE</a>) was also a top performer, generating a total return of 27.9%. On the other end of the spectrum, the Energy Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xle#NYSE">XLE</a>) generated a negative total return of 23.3% during quantitative tightening, while the Materials Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlb#NYSE">XLB</a>) generated a negative total return of 6.3%.
Growth and dividend stocks outperformed during the period. The <a href="https://www.benzinga.com/money/vanguard-review/">Vanguard</a> Growth Index Fund ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vug#NYSE">VUG</a>) generated a total return of 22.7%, while the Vanguard Dividend Appreciation Index Fund ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>) produced a 24.2% total return.
Small-cap stocks and value stocks underperformed during the previous balance sheet run-off. The Vanguard Value Index Fund ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vtv#NYSE">VTV</a>) generated just a 9.8% total return, while the Vanguard Small-Cap Index Fund ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vb#NYSE">VB</a>) generated an 8.1% total return.
Benzinga&#39;s Take: The biggest difference between the upcoming Fed tightening cycle and the previous one may happen if the Fed actually sells assets rather than simply letting them mature and run off naturally. Asset sales could drain bank balance sheet liquidity and potentially pressure both the credit market and stock market valuations, according to Credit Suisse.

XLRE

What The Fed's Balance Sheet Reduction Will Mean For The S&P 500

Stock trading is fraught with risks, and it exposes traders to situations&nbsp;where they can end up losing all their money -- or end up laughing all the way&nbsp;to the bank.
Uncertain Backdrop: The current macroeconomic and geopolitical environment has created a fluid environment. Notwithstanding the uncertainties, the market has continued to grind higher despite the COVID-19 pandemic and sneak&nbsp;into record territory.
The broader S&amp;P 500 Index, which plunged sharply earlier this year amid the onset of the pandemic, has rebounded nicely after hitting a bottom in late-March. Since scaling a peak of 3,588.11 in early September, the broader gauge has gone into&nbsp;consolidation mode, assimilating the strong gains.
With the uncertainty surrounding the U.S. presidential election and the bickering among lawmakers on stimulus to kickstart the sagging economy, stocks began moving southwards in mid-October. This has conjured up visions of an imminent pullback, which could precipitate a crash. While the outcome of the election has lifted markets, rising COVID-19 cases could put a scare into the markets once again.
How should you prepare for a sudden downtown?
Identifying a Crash:&nbsp;A bear market is a pullback in excess of 20% from a recent high. A stock market crash can broadly be defined as a sudden and steep decline in stock prices within a very short interval of time. When stocks begin to fall, the already-weak investor sentiment worsens further. Fear becomes the dominant emotion, taking over from greed, and this leads to incessant selling, wiping away millions in market value from stocks.
History of Stock Market Crashes: Among the biggest recorded stock market crashes in the history of the U.S. are:
The stock market crash of 1929 
The stock market crash of 1987 
The dotcom bubble burst of 1999-2000 
The 2008 crash in the wake of the Great Recession that followed the<a href=" https://www.benzinga.com/news/20/09/14437130/this-day-in-market-history-lehman-brothers-collapses">&nbsp;Lehman Brothers&nbsp;bankruptcy</a>.
Related Link: <a href=" https://www.benzinga.com/trading-ideas/long-ideas/20/02/15418441/3-safe-etfs-if-a-stock-market-correction-comes-calling"> 3 &#39;Safe&#39; ETFs If A Stock Market Correction Comes Calling </a>
For those jittery investors, panicking over potential losses, here are a few guidance points that can help you to stay sane amid the pandemonium.
Allow the Turn of Events to Run Its Course: Having a clear mind is very important in investing. Knee-jerk reactions, which burn a hole in the pocket, should be avoided at any cost. Fear and panic should be kept in check.
It is better to keep in mind the maxim &quot;buy low and sell high.&quot;
Panicking and pressing the sell button at a time when the stock market crashes will only leave an investor poorer, shutting them&nbsp;out of the opportunity of capitalizing on a market rebound.
If we go back in history, stock markets around the globe have survived some serious crashes and have emerged stronger.
The most recent crash amid the Great Recession saw the S&amp;P 500 hitting a low of 666.79 on March 6, 2009. Cut to a little over a decade from there, the index has added more than 400%.
It&#39;s just a matter of waiting out the adversity with ample patience.
Stay Immune to the Noise Around: With the mushrooming of the so-called stock market pundits, who have an opinion at every turn of the stock market, it is quite natural to be swayed by their recommendations and warnings.
At least, in times of crises such as a market crash, it is advisable to shut out of the cacophony. Heeding the advice of every expert only lends to&nbsp;more confusion, making it harder&nbsp;to think rationally.
Instead, stay focused on investment goals and look at a longer time horizon to ride out the volatility.
Turn Adversity Into Opportunity: As the saying goes, an optimist finds opportunity even amid adversity. Be that optimist who still sees the rosier side of dark times. Here are some things an investor can do to capitalize on a market downturn:
Scout for stocks of profitable companies that pay out dividends. Dividends make for a steady stream of income that accrues to an investor. It is paid out of the net income earned by the company. Apart from coming in handy for meeting expenses, dividends can also be used for reinvesting.
One can invest in a fund or ETF investing purely in <a href=" https://www.benzinga.com/trading-ideas/long-ideas/20/03/15697866/7-safe-dividend-plays-for-2020"> dividend-paying stocks </a> such as the Vanguard Dividend Appreciation Index Fund ETF Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>) and SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sdy#NYSE">SDY</a>).
Consider bonds. Bonds also fetch fixed income in the form of interest.
Buy recession-proof or defensive stocks such as consumer staples that can withstand the stock market sell-off.
Diversify your risk by investing in a portfolio or an ETF.
Avoiding herd mentality, maintaining one&#39;s sanity in the face of adversity, cutting out noise and devising a prude investment plan for the down time will serve an investor well during times of a stock market crash.
Related Link: <a href=" https://www.benzinga.com/analyst-ratings/analyst-color/20/03/15518424/how-to-play-the-2020-stock-market-crash-like-1987-2000-or-2008"> How To Play The 2020 Stock Market Crash: Like 1987, 2000 Or 2008? </a>

Education

General

A Strange Year Prompts The Question: How To Survive A Stock Market Crash?

With interest poised to remain low and payout growth likely to expand this year, dividend stocks and the related exchange traded funds could be set to deliver for investors again in 2020.
<h3>What Happened</h3>
Enter the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>), the largest U.S. dividend ETF by assets. At the end of last year, <a href="https://investor.vanguard.com/etf/profile/portfolio/vig">VIG had $42.1 billion</a> in assets under management. Two of the primary reasons for VIG&#39;s popularity are its low fee and its emphasis on dividend growth stocks.
The Vanguard fund charges just 0.06% per year, or $6 on a $10,000 investment, making it one of the least expensive funds its category. Additionally, VIG follows the NASDAQ US Dividend Achievers Select Index, which requires that member firms have dividend increase streaks of at least 10 years.
That combination of low costs and an emphasis on dividend growth helps VIG earn <a href="https://www.cfraresearch.com/">CFRA Research&#39;s</a> focus ETF for February honors.
<h3>Why It&#39;s Important</h3>
&ldquo;Overall, CFRA&rsquo;s equity analysts find the stocks inside VIG to be attractively valued using CFRA STARS. Nine of the top-ten holdings at the end of 2019 were Buy or Strong Buy recommendations, including Abbot Laboratories&nbsp;and Comcast,&rdquo; said CFRA Director of ETF &amp; Mutual Fund Research Todd Rosenbluth in a note out Monday. &ldquo;In addition, the portfolio is deemed to incur low risk considerations based on consistent earnings, as well as dividend, records.&rdquo;
Home to 182 stocks, VIG allocates 26.70% of its weight to the industrial sector while the consumer services and healthcare sectors combine for 32% of the ETF&#39;s roster.
For now, VIG&#39;s tech exposure is just 9.40%, with over half that allocated to Microsoft (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>), but the fund&#39;s weight to that sector should increase as more technology stocks meet the 10-year payout hike requirement.
<h3>What&#39;s Next</h3>
&ldquo;VIG also stands out for owning more than a strong collection of holdings. The fund charges a minuscule 0.06% expense ratio and trades over one million shares daily with a tight bid/ask spread,&rdquo; said Rosenbluth. &ldquo;While the fund is designed to be a low volatility strategy, VIG&rsquo;s standard deviation is relatively low compared to its equity category.&rdquo;
CFRA has an Overweight rating on the Vanguard dividend fund. That&#39;s the highest rating the research firm assigns to ETFs in its coverage universe.
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Long Ideas

CMCSA

Time To Appreciate This Cheap Vanguard Dividend ETF

Plenty of dividend investors know about the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>), the largest domestic dividend exchange traded fund by assets. VIG has a noteworthy international counterpart: the Vanguard International Dividend Appreciation ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vigi#NASDAQ">VIGI</a>).
<h3>What Happened</h3>
VIGI, which is more than three years old, follows the NASDAQ International Dividend Achievers Select Index. Components in the international payout fund must have minimum dividend increase streaks of seven years, less than the 10 years required by the domestically-focused VIG&#39;s underlying index.
VIGI &ldquo;applies additional filters to eliminate stocks that may not be able to sustain their dividend growth,&rdquo; said Morningstar <a href="https://www.morningstar.com/articles/934959/a-growthfocused-dividend-strategy.html">in a recent note</a>. &ldquo;The index weights its holdings by market capitalization to help mitigate turnover and trading costs. It also limits individual stocks to 4% of the portfolio at the annual rebalance to improve diversification.&rdquo;
<h3>Why It&#39;s Important</h3>
VIGI is home to 400 stocks and the fund&#39;s selection universe includes developed and emerging markets equities, making the all-country world ex-U.S. indexes relevant comparisons. Year-to-date, the Vanguard fund is beating the MSCI ACWI ex USA Index by 643 basis points.
VIGI devotes 23.50% of its weight to emerging markets stocks and nearly 48% of its weight to European equities, <a href="https://investor.vanguard.com/etf/profile/portfolio/vigi">according to issuer data</a>. Those allocations, particularly the hefty Europe exposure, give the fund something of a value tilt because developing economies and European stocks trade at significant discounts to U.S. equity benchmarks.
&ldquo;Overseas companies that have a history of increasing their dividend payments are also likely to be those that have been consistently growing profitably,&rdquo; said Morningstar. &ldquo;These stable businesses should be less volatile than the broader market and are likely to hold up better during market downturns.&rdquo;
<h3>What&#39;s Next</h3>
VIGI has potential for long-term investors seeking international exposure, but there are some risks with this fund.
&ldquo;Screening for stocks with seven years of dividend growth is a strict hurdle that provides a big advantage,&rdquo; according to Morningstar. &ldquo;It indirectly targets companies that not only have the capacity to make dividend payments but also a willingness to do so. But this screen does have some downsides. It doesn&rsquo;t consider other metrics, such as debt levels and analyst earnings growth estimates, which may be indicative of a firm&rsquo;s capacity to continue making payments.&rdquo;
Morningstar has a Bronze rating on VIGI.
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VIGI

A Cost-Effective Idea For International Dividends

Home to $32.8 billion in assets under management at the end of the first quarter, the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>) is the largest U.S. dividend exchange traded fund.
VIG has attained that massive following due part to its emphasis on dividend growth stocks. The fund&#39;s underlying index, the NASDAQ US Dividend Achievers Select Index, requires member firms to have boosted payouts for at least 10 consecutive years.
<h3>What Happened</h3>
Over the past three years, VIG is lagging the S&amp;P 500 by 200 basis points, but the dividend fund has been less volatile than broader domestic equity benchmarks over that period. While dividend strategies will lag the broad market from time-to-time, VIG&#39;s focus on steady payout growth comes with plenty of advantages for income investors.
&ldquo;This strategy focuses on dividend growth rather than dividend yield,&rdquo; said Morningstar <a href="https://www.morningstar.com/articles/926589/a-dividendgrowth-fund-to-ride-out-market-downturns.html">in a recent note</a>. &ldquo;This approach reduces the fund&#39;s exposure to firms with weak fundamentals that may not be able to sustain their dividend payments, which is a risk that often accompanies a narrow focus on yield.&rdquo;
<h3>Why It&#39;s Important</h3>
VIG is home to 185 stocks with a median market capitalization <a href="https://investor.vanguard.com/etf/profile/portfolio/vig">of $87.7 billion</a>, accentuating the fund&#39;s status as large/mega-cap fund. With the 10-year dividend increase streak requirement, VIG is lightly allocated to some sectors that are traditionally viewed as high-yield destinations, sectors that have only recently started boosting dividends and groups that have recently negative dividend action -- think banks during the financial crisis or energy companies during the 2015 oil bear market.
Industrial and consumer staples stocks combine for 47.6 percent of VIG&#39;s weight while the financial services and health care sectors combine for 23.6 percent. VIG&#39;s top 10 holdings combine for 34.1 percent of the fund&#39;s weight. Six of those stocks, including the top five, are members of the Dow Jones Industrial Average.
&ldquo;As of this writing, the strategy&#39;s dividend yield of 2 percentage points annually matches the dividend yield of the Russell 1000 Index,&rdquo; according to Morningstar. &ldquo;But the strategy&#39;s tilt toward more-stable stocks has helped it shine during market downturns. Its drawdown during the bear market from October 2007 through March 2009 measured 9 percentage points less than the Russell 1000 Index&#39;s drawdown.&rdquo;
<h3>What&#39;s Next</h3>
To be precise, VIG yields 1.96 percent, which is close to the dividend yields on the S&amp;P 500 and the Russell 1000 Index. Focusing on dividend growth over yield, however, can lead to a portfolio with companies sporting better balance sheets than high yielders and, as VIG proves, less volatility.
Morningstar has a Gold rating on VIG.
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A Golden Dividend ETF

With the government shutdown now in its fourth week&nbsp;and 800,000 federal workers on furlough, the risk of recession has increased significantly. The shutdown occurred due to lack of progress in passing a spending bill, wherein Trump demanded funding for $5.7&nbsp;billion for a border wall that is being opposed by the Democrats.
With the average pay loss being $5,000 for 800,000 federal employees, the shutdown has begun to harm the economy through&nbsp;lower consumer spending and investment. Additionally, tax refunds and mortgage applications have been delayed, hampering the housing sector. Public companies are struggling to get approval to raise capital, the Women, Infants, and Children nutrition program went unfunded, and the Food and Drug Administration delayed approval of drugs and medical devices.
The Trump administration&#39;s revised estimates have&nbsp;doubled the cost of the government shutdown. It now projects the closure will subtract 0.1 percentage point from growth every week compared with the previous projection of 0.1 percentage point reduction every two weeks. Jamie Dimon, the CEO of J.P. Morgan Chase believes that the partial shutdown could wipe out growth from the world&#39;s biggest economy if it continues through the first quarter of the year.
<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" frameborder="0" height="315" src="https://www.youtube.com/embed/kKQvfzDnofY?rel=0" width="560"></iframe>
Apart from the shutdown, U.S.-China trade tensions and global growth worries added to fears of recession. Additionally, growth in the world&#39;s biggest economy has started to slow down as gauges of manufacturing and consumer sentiment have fallen in the recent weeks.
Deutsche Bank warned&nbsp;that the combination of the U.S.-China trade war and government shutdown may result in recession as soon as this year. According to a <a href="https://www.wsj.com/articles/ceos-say-recession-is-top-worry-for-2019-11547672460">new survey</a> of chief executives from the Conference Board, the possibility of a global recession ranks as the top concern on the minds of corporate leaders as they head into 2019. Analysts surveyed by Bloomberg put the risk of a U.S. recession at the highest in more than six years. They see a 25 percent&nbsp;chance of a slump in the next 12 months, up from 20 percent&nbsp;in the December survey.
In such a backdrop, investors should stash their cash in some conventionally secure and recession proof corners of the broad market. Below, we have highlighted a few ETFs from these areas:
SPDR Gold Trust ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gld#NYSE">GLD</a>)
In difficult market environments, gold is considered a great store of value and hedge against market turmoil. With AUM of $33.2 billion, the ultra-popular GLD tracks the price of gold bullion measured in U.S. dollars, and kept in London under the custody of HSBC Bank USA. It charges 40 bps in fees per year from investors and trades in heavy volume of nearly 8 million shares a day. The fund has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
iShares 20+ Year Treasury Bond ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tlt#NASDAQ">TLT</a>)
Though the fund was out of investors&#39; favor due to rising yields last year and has an unfavorable Zacks ETF Rank #5 (Strong Sell) with a High risk outlook, the recession risk has brought back some lure. This is because the products tracking the long end of the yield curve often provide a safe haven. TLT provides exposure to long-term Treasury bonds by tracking the ICE U.S. Treasury 20+ Year Bond Index. It is one of the most popular and liquid ETFs in the bond space with AUM of $9.3 billion and average daily volume of 8.9 million shares. Expense ratio comes in at 0.15 percent.
Utilities Select Sector SPDR (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlu#NYSE">XLU</a>)
Being the low-beta sector, utility is relatively protected from large swings (ups and downs) in the stock market and is thus considered a defensive investment or safe haven amid economic or political turmoil. While there are several options in the space, the ultra-popular XLU seems a good bet. With AUM of $8.4 billion, it provides exposure to a small basket of 29 securities by tracking the Utilities Select Sector Index. The product charges 13 bps in annual fees and sees heavy volume of around 19 million shares on average. XLU has a Zacks ETF Rank #3 with a Medium risk outlook.
iShares U.S. Healthcare Providers ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ihf#NYSE">IHF</a>)
Healthcare generally outperforms during periods of low growth and high uncertainty. The demand for healthcare services remains intact even in the deteriorating economic fundamentals. IHF follows the Dow Jones U.S. Select Healthcare Providers Index with exposure to companies that provide health insurance, diagnostics and specialized treatment. In total, the fund holds 45 securities in its basket and has amassed $863.6 million in its asset base. Volume is good at about 116,000 shares per day on average. The product charges 43 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Consumer Staples Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xlp#NYSE">XLP</a>)
The consumer staples sector is also viewed as defensive as it includes a variety of items like food &amp; beverages, non-durable household goods, hypermarkets and consumer supercenters that are essential for daily needs. These products see steady demand even during an economic downturn due to their low level of correlation with economic cycles. This is the most-popular consumer staples ETF with AUM of $9.6 billion and follows the Consumer Staples Select Sector Index. It holds about 33 securities in its basket and charges 13 bps in fees per year from investors. The fund trades in heavy volume of nearly 18.2 million shares a day and has a Zacks ETF Rank #3 with a Medium risk outlook.
Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>)
Dividend paying securities are the major source of consistent income for investors to create wealth when returns from the equity market are at risk. Dividend-focused products offer safety in the form of payouts while at the same time providing stability as mature companies are less volatile to large swings in stock prices. VIG is the largest and most popular ETF in the dividend space with AUM of $30 billion and average&nbsp;daily volume of about 1.1 million shares.&nbsp;It holds 182 securities in the basket and charges 8 bps in annual fees. The product has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
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iShares Dow Jones US Health Care Provides Index Fund

iShares Trust Barclays 20+ Year Treasury Bond Fund

Prolonged Shutdown Raises Recession Risk: ETFs To Consider

The S&amp;P 500 closed lower on an annual basis in 2018, weighing on dividend exchange traded funds in the process, but it was still a good year for dividend growth.
S&amp;P 500 dividends hit a record $14.19 per share on a quarterly basis, or $119.80 billion. The SPDR S&amp;P 500 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spy#NYSE">SPY</a>), the world&#39;s largest ETF, has a trailing <a href="https://us.spdrs.com/en/etf/spdr-sp-500-etf-SPY">12-month dividend yield </a>of 2.04 percent.
<h3>What Happened</h3>
With the Federal Reserve having raised interest rates four times in 2018, it&#39;s unsurprising that some dividend stocks and ETFs struggled. The upside to that scenario is that some companies may have been compelled to boost dividends to compete with the higher yields offered by less risky U.S. government debt.
The &ldquo;average Q4 2018 dividend increase in the S&amp;P 500 was 10.24 percent, down from 10.41 percent&nbsp;during Q4 2017; 2018 average is 13.48 percent, up from 2017&rsquo;s 11.36 percent,&rdquo; <a href="http://www.indexologyblog.com/">according to S&amp;P Dow Jones Indices</a>.
Last year, the aggregate dividend increase was slightly off 2017&#39;s level, but so were dividend cuts.
&ldquo;For Q4 2018, aggregate increases amounted to $11.9 billion, down from Q4 2017&rsquo;s $12.4 billion,&rdquo; said S&amp;P Dow Jones. &ldquo;Aggregate dividend cuts decreased to $4.5 billion from $7.9 billion for Q4 2017.&rdquo;
<h3>Why It&#39;s Important</h3>
Amid 2018&#39;s backdrop of rising interest rates, dividend growth ETFs fared less poorly than their high dividend counterparts. The Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>) and the SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sdy#NYSE">SDY</a>) posted an average loss of 2.4&nbsp;percent last year.
VIG requires member firms to have dividend increase streaks of at least a decade, while SDY components must have dividend increase streaks of <a href="https://us.spdrs.com/en/etf/spdr-sp-dividend-etf-SDY">at least 20 years</a>.
Conversely, the Vanguard High Dividend ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vym#NYSE">VYM</a>) and the iShares Select Dividend ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dvy#NASDAQ">DVY</a>) &mdash; both high dividend strategies &mdash; posted an average annual decline of about 6 percent last year.
High dividend ETFs could find some support this year if the Federal Reserve slows its pace of rate hikes or if investors embrace defensive sectors&nbsp;such as consumer staples and utilities. Utilities stocks account for nearly a third of DVY&#39;s weight.
<h3>What&#39;s Next</h3>
The stage is set for more dividend growth in 2019.
&ldquo;Based on their current payout policies, S&amp;P 500 2019 dividends already have a 3.5-percent&nbsp;tailwind built in, setting the stage for potentially another record year, with the increase again expected to outpace wage growth and inflation,&rdquo; said Howard Silverblatt, senior index analyst at S&amp;P Dow Jones Indices.
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Dividends Eclipsed More Records In 2018 Even As ETFs Fell

Volatility and uncertainty surrounding global economic growth and rising yields have made investors defensive. This has increased the appeal for products that provide safety and stability in a rocky market.
Dividend-focused products offer both safety in the form of payouts and stability in the form of mature companies that are less volatile to the large swings in stock prices. The dividend-paying securities are the major sources of consistent income for investors when returns from equity markets are at risk. Further, these products are proven outperformers over the long-term.
While there are plenty of options in the dividend ETF world, honing in on the &quot;dividend aristocrats&quot;&nbsp;could be the most beneficial way to ride out the current market volatility, resulting from political and geopolitical worries.<iframe allow="autoplay; encrypted-media" frameborder="0" height="315" src="https://www.youtube.com/embed/GpC1-r4xYsQ?rel=0" width="560"></iframe>
<h3>Why Dividend Aristocrats?</h3>
Dividend aristocrats are&nbsp;blue-chip dividend-paying companies, which have a long history of raising dividend payments each year. These generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis. Additionally, aristocrats tend to skew the portfolio to less volatile sectors and mature companies.
Investors should note that the dividend aristocrat funds offer more dividend growth opportunities when compared to the other products in the space but might not necessarily have the highest yields. Further, these products lead to a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend paying stocks or those with high yields.
As a result, these products provide a nice combination of annual dividend growth and capital appreciation opportunity and are mainly suitable for risk adverse long-term investors. For them, we have highlighted some popular ETFs that could be excellent choices:
Vanguard Dividend Appreciation ETF&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vig#NASDAQ">VIG</a>)
This is the largest and most-popular ETF in the dividend space with AUM of $28.9 billion and average daily volume of about 596,000 shares. The fund follows the NASDAQ US Dividend Achievers Select Index, which is composed of high quality stocks that have a record of raising dividend every year. It holds 182 securities in the basket, with none accounting for more than 4.5% share. The fund charges 8 bps in annual fees.
iShares Select Dividend ETF&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dvy#NASDAQ">DVY</a>)
This fund provides exposure to the companies with a consistent 5-year history of dividend payments. It follows the Dow Jones U.S. Select Dividend Index and holds 98 securities in its basket with each accounting for less than 2.6% of assets. The ETF has AUM of $16.7 billion and average daily volume of more than 489,000 shares. It charges 39 bps in fees per year from investors.
SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sdy#NYSE">SDY</a>)&nbsp;
With AUM of $15.4 billion and average daily volume of 377,000 shares, this fund provides a well-diversified exposure to 111 U.S. stocks that have been consistently increasing their dividends every year for at least 20 years. This can be done by tracking the S&amp;P High Yield Dividend Aristocrats Index. Each firm accounts for less than 2.5% of assets. The fund charges 35 bps in fees.
Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schd#NYSE">SCHD</a>)
With AUM of $7.8 billion, this product offers exposure to 108 high-dividend yielding U.S. companies that have a record of consistent dividend payments supported by fundamental strength based on financial ratios and ample liquidity. This can be easily done by tracking the Dow Jones U.S. Dividend 100 Index. The fund is well spread across components, with none holding more than 4.8% of assets. It charges 7 bps in annual fees and trades in solid volume of around 758,000 shares a day.
Related Links:
<a href="https://www.benzinga.com/news/18/07/12084608/what-it-takes-to-be-a-dividend-king">What It Takes To Be A Dividend King</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/03/11429074/a-new-aristocrats-etf-with-added-income">A New Aristocrats ETF With Added Income</a>

An Investors' Guide To Dividend Aristocrat ETFs

S&amp;P 500 member firms delivered some solid dividend growth numbers in the first half of 2018.
&ldquo;Aided by strong earnings and corporate management&#39;s confidence in the future, more than 40 percent of the S&amp;P 500 constituents raised their dividends in the first half of 2018,&rdquo; said <a href="https://newpublic.cfraresearch.com/">CFRA Research</a> Director of ETF &amp; Mutual Fund Todd Rosenbluth in a note out Wednesday. &ldquo;Dividend hikes occurred in various sectors, highlighting the benefits of using diversified funds to gain equity income exposure.&rdquo;
<h3>What To Know</h3>
With the Federal Reserve boosting interest rates twice in the first half of the year, some dividend exchange traded funds struggled relative to the broader market. The Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vig#NYSE">VIG</a>) and the SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sdy#NYSE">SDY</a>) are up 2.3 percent and 1 percent, respectively, year-to-date.
VIG and SDY are two of the largest U.S. dividend ETFs and both focus on dividend growth. SDY follows the High Yield Dividend Aristocrats Index, which requires member firms to have minimum dividend increase streaks of at least 20 years. VIG&#39;s underlying index has a minimum dividend hike streak requirement of a decade.
<h3>Why It&#39;s Important</h3>
&ldquo;According to Howard Silverblatt, Senior Index Analyst of S&amp;P Dow Jones Indices, there have been 216 dividend increases by S&amp;P 500 companies, with 84 occurring in the second quarter,&rdquo; said Rosenbluth. &ldquo;The average second quarter increase was 14 percent, up from 12 percent a year earlier, indicating greater optimism.&rdquo;
More than 400 members of the S&amp;P 500 pay dividends. As of July 10, the S&amp;P 500 <a href="https://us.spdrs.com/en/etf/spdr-sp-500-etf-SPY">yielded 1.90 percent</a>, a level surpassed by some sectors and lagged by others. Health care is an example of a sector that yields less than the S&amp;P 500 (1.8&nbsp;percent), but is also home to robust dividend growth.
SDY devotes 5.81 percent of its weight to health care stocks while that sector represents 12.1&nbsp;percent of VIG making it the Vanguard fund&#39;s third-largest sector allocation.
<h3>What&#39;s Next</h3>
With U.S. companies sitting on mountains of repatriated cash following last year&#39;s tax reform legislation, buybacks and dividends are proving to be among the strategies for deploying some of that cash.
More interest rate hikes could weigh on dividend ETFs, but VIG is lightly allocated to rate-sensitive sectors as utilities and telecommunications names combine for just 3.2&nbsp;percent of the fund&#39;s weight.
CFRA has Overweight ratings on both SDY and VIG.
Related Links:
<a href="https://www.benzinga.com/news/earnings/18/07/12003016/go-back-to-school-shopping-with-this-etf">Back-To-School With This ETF</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/07/11989151/reconsidering-high-grade-corporate-bond-etfs">Considering Corporate Bond ETFs</a>

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