Latest news with #SPDRS&P500ETF
Miami Herald
4 days ago
- Business
- Miami Herald
S&P 500 surges on Middle East update, near record highs
Didn't see that coming? You're likely not alone. A year of tariff tussles capped off with bombs flying in the Middle East probably had most worried about their stock market portfolios. Yet, despite the chaos, the S&P 500 has continued an epic run since it got oversold in early April following President Trump announcing tougher-than-thought tariffs on global trade partners. Related: Wall Street veteran analyst who predicted stock market rally resets forecast The SPDR S&P 500 ETF (SPY) has now marched more than 22.6% higher since President Trump paused implementing most reciprocal tariffs on April 9 for 90 days. The tech-heavy Nasdaq Composite has performed even better, rallying 30.4%. The S&P 500 is now only 1.1% below an all-time high. The Invesco Nasdaq 100 Trust (QQQ) , which comprises the biggest stocks in the Nasdaq, including Nvidia, is within 0.20% of an all-time high. I bet you didn't have that on your bingo card. Especially, last week, when worry mounted that the stock market's run would falter under the weight of rising geopolitical worry after Israel attacked Iran, prompting daily missile fires between the two countries. Michael M. Santiago/Getty Images The potential for the conflict to spread sent oil prices surging, and concerns seemed well founded when the US announced on June 22 it had dropped bunker busters on Iran's Fordow nuclear facility. Related: Analyst sends blunt 8-word message ahead of trade deal deadline Yet, the stock market largely looked beyond the concerns as big money investors made bets that the war would be measured in days not years. The S&P 500 retreated just 0.46% last week, while the Nasdaq 100 was essentially flat. On Monday, when markets opened after the US bombing, stocks found their footing, surging on hopes for a ceasefire. The gains continued on June 24, as investors increasingly became comfortable with tensions deescalating, The S&P 500 gained 1.1% on June 24 while the Nasdaq Composite gained 1.4% on the session. Initially, it appeared that tempers would overcome peace, given Iran and Israel both launched additional missiles after President Trump's ceasefire announcement. Those actions sparked a sharp rebuke from President Trump, who laid into both countries before boarding Marine One on the White House lawn. "I'm not happy with Israel...I'm not happy with Iran... We basically have two countries that have been fighting so long, so hard, that they don't know what the f--- they're doing," said Trump. The two sides seemed to move closer to ceasefire as the day progressed. On Polymarket, bets suggest currently suggest only a 4% chance that the important Strait of Hormuz, which handles 20% of global oil supply, would close before July. Similarly, Polymarket's data indicates less than a 1% chance that the US declares war on Iran, and a 6% chance of another US attack on Iran before month's end. On June 23, veteran analyst Tom Lee suggested that the risks associated with geopolitical conflict may be priced in, setting the stage for more upside. Ambarella (AMBA) was among the biggest gainers, rising 21% on takeover chatter. Coinbase (COIN) rallied 12% in the wake of stablecoin legislation. Related: Veteran fund manager sends dire message on stocks The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
30-05-2025
- Business
- Yahoo
Should Inspire 500 ETF (PTL) Be on Your Investing Radar?
Launched on 03/25/2024, the Inspire 500 ETF (PTL) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market. The fund is sponsored by Inspire. It has amassed assets over $325.13 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market. 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. Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments. Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same. Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space. It has a 12-month trailing dividend yield of 1.25%. While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. 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 25.50% of the portfolio. Industrials and Financials round out the top three. Looking at individual holdings, Broadcom Inc (AVGO) accounts for about 6.88% of total assets, followed by Palantir Techn-A (PLTR) and Exxon Mobil Corp (XOM). The top 10 holdings account for about 26.71% of total assets under management. PTL seeks to match the performance of the INSPIRE 500 INDEX before fees and expenses. The Inspire 500 Index is a market cap weighted, annually reconstituted index comprised of the stock of the 500 largest United States companies with Inspire Impact Scores greater than or equal to zero. The ETF return is roughly 3.68% so far this year and it's up approximately 13.94% in the last one year (as of 05/30/2025). In the past 52-week period, it has traded between $181.36 and $226.76. The ETF has a beta of 1.03 and standard deviation of 19.65% for the trailing three-year period. With about 454 holdings, it effectively diversifies company-specific risk. Inspire 500 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, PTL is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space. The SPDR S&P 500 ETF (SPY) and the Vanguard S&P 500 ETF (VOO) track a similar index. While SPDR S&P 500 ETF has $598.75 billion in assets, Vanguard S&P 500 ETF has $645.38 billion. SPY has an expense ratio of 0.09% and VOO charges 0.03%. 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. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inspire 500 ETF (PTL): ETF Research Reports Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Is the Vanguard S&P 500 Index ETF Right for Your Retirement Portfolio? 3 Better ETFs for Dividend Investors
The Vanguard S&P 500 Index ETF is a great choice for building wealth. But some investors, particularly retirees, may have different goals. They may want to look at these three dividend-focused ETFs instead. 10 stocks we like better than Schwab U.S. Dividend Equity ETF › Buying the S&P 500 index is a great wealth-building investment. One of the lowest-cost ways to do that today is with the Vanguard S&P 500 Index ETF, which has a tiny 0.03% expense ratio. But is this exchange-traded fund (ETF) the best option for all investors? Maybe not, particularly if you are retired and looking to live off of the income your portfolio generates. Here are three better choices for income-focused investors to consider. Before getting to the alternatives to the S&P 500 index, this broad-based market index needs to be given its due. As the chart below highlights, a $150,000 investment in Vanguard S&P 500 Index ETF at its founding in late 2010 would be worth over $500,000 today. It has been a powerful growth tool, and that's just the last 15 years or so. If you go back to the first S&P 500 index ETF to be put out -- the SPDR S&P 500 ETF, which was created in early 1993 -- getting to $1 million would have only required an investment at its launch of around $45,000. (The SPDR S&P 500 ETF's expense ratio is 0.09%, so it isn't as cost effective an investment as the Vanguard S&P 500 Index ETF today.) Both of the graphs here are showing total return, which assumes dividends are reinvested. This is basically how an investor looking to build wealth would look at investing. The problem is that not all investors are looking for big total returns. Some, particularly those who have reached retirement, are looking for income. Or, at the very least, a mix of income and capital growth. The goal for someone in retirement has likely shifted from building wealth to living off of the nest egg that they have created. If that's the stage of life you are in, you might want to consider buying the Schwab US Dividend Equity ETF (NYSEMKT: SCHD), SPDR Portfolio S&P 500 High Dividend ETF (NYSEMKT: SPYD), or Vanguard High Dividend ETF (NYSEMKT: VYM). Here's why. Shifting from a capital appreciation approach to one focused on generating passive income is probably easier today than at any time in Wall Street history thanks to exchange-traded funds. The problem is going to be figuring out which ETF will best fit your personal investment goals. For example, the Schwab US Dividend Equity ETF attempts to find a balance between high-quality growing companies and yield. It does this by starting the selection process with companies that have at least 10 annual dividend increases. It then creates a composite score that includes cash flow to total return, return on equity, dividend yield, and five-year dividend growth rate. The 100 stocks with the highest composite score get into the portfolio and are weighted by market capitalization. The yield is currently around 4% for this ETF, which basically does exactly what you would do (buying well-run companies with attractive yields) if you were trying to build a dividend stock portfolio from the ground up. If you wanted a bit more yield than that, you might consider the SPDR Portfolio S&P 500 High Dividend ETF. It is a very simple ETF to understand because all it does is buy the 80 highest yielding stocks in the S&P 500 index. The yield is around 4.5% today. The one caveat here is that the SPDR Portfolio S&P 500 High Dividend ETF will usually have a heavy concentration in utility, real estate, and finance stocks because these are sectors that traditionally have high yields. It may also contain some out of favor and turnaround situations. So far, the portfolios have been getting smaller and more focused. But if you like the idea of owning a large number of stocks for diversification purposes, then you might consider the Vanguard High Dividend ETF. It takes the entire U.S. investing universe of stocks that pay dividends. It then, roughly speaking, buys the highest yielding 50% of the list. There are two important outcomes from this broad approach. First, the ETF owns over 550 companies. Second, because there are so many companies it has to move down the yield spectrum and has "just" a 3% or so yield. That is, of course, more than twice the 1.3% yield of the S&P 500 index, but it is also lower than the other two ETFs noted above. In the end, there is no single investment that will be perfect for all investors. You have to consider your own personal situation and then attempt to find the investment that you believe will be the best fit. If you are building wealth, an S&P 500 index will be a great starting point. But if you are trying to live off of the wealth you have built, then you might want to consider dividend focused ETFs like the Schwab US Dividend Equity ETF, SPDR Portfolio S&P 500 High Dividend ETF, or Vanguard High Dividend ETF. The Schwab US Dividend Equity ETF is probably a solid middle-ground choice touching on both income and growth. But there are good reasons why you might want to pick the SPDR Portfolio S&P 500 High Dividend ETF or Vanguard High Dividend ETF, instead. Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF and Vanguard Whitehall Funds-Vanguard High Dividend Yield ETF. The Motley Fool has a disclosure policy. Is the Vanguard S&P 500 Index ETF Right for Your Retirement Portfolio? 3 Better ETFs for Dividend Investors was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Jim Cramer Recalls 2011's 6.7% Market Decline After US Debt Downgrade, Says It 'Ultimately Meant Nothing:' Dan Niles Sees Limited Downside Amid Tariff Rollbacks, FOMO
Moody's downgrade of U.S. debt from Aaa to Aa1 marks the country's loss of its last remaining top-tier rating, prompting market experts to weigh in on potential impacts. What Happened: CNBC's Jim Cramer recalled on Sunday that 'the market dropped 6.7% after the last downgrade back in 2011 but it, ultimately, meant nothing.' Despite weeks of market decline following that event, Cramer emphasized investors 'had to stay the course.'Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Dan Niles, founder of Niles Investment Management, expects less severe market reactions this time. 'Prior debt downgrades have been followed by S&P drops of 8-10%,' Niles noted, adding that 'today, tariff rollbacks is driving a pickup in the economy & the decline should be less.' Moody's joins Fitch and Standard & Poor's in downgrading U.S. debt below the highest 'triple-A' level. Fitch downgraded U.S. debt in August 2023, while S&P's historic first downgrade occurred in August 2011. The 2011 S&P downgrade shocked markets, coming after the S&P 500 had doubled from its 2009 Great Financial Crisis lows. The index plunged 6.7% the following trading day, ultimately falling 8% from the downgrade in October 2011. Fitch downgrade contributed to a 10% S&P 500 decline from July to October 2023, exacerbated by inflation concerns and rising 10-year yields. Niles believes current conditions differ significantly. 'Unlike in 2023 or 2011, the economic environment is improving around this debt downgrade,' he wrote, citing reduced China tariffs driving trade resumption. Why It Matters: Market support could come from retail investors experiencing FOMO (fear of missing out) and professional investors who missed the recent 20% rally from April lows. The AAII survey recently showed bulls surpassing bears for the first time during this rally, according to Niles. Moody's cited persistent fiscal deficits and rising government debt as key factors in its decision. The agency projects U.S. debt-to-GDP ratio will climb from nearly 100% in 2025 to around 130% by 2035. 'Even in a very positive and low probability economic and financial scenario, debt affordability remains materially weaker than for other Aaa-rated sovereigns,' Moody's stated. The SPDR S&P 500 ETF (NYSE:SPY) and Invesco QQQ Trust (NASDAQ:QQQ) both slipped in Friday's after-hours trading following the announcement. Read Next: Hasbro, MGM, and Skechers trust this AI marketing firm — Invest at $0.60/share before it's too late. Invest Where It Hurts — And Help Millions Heal: Invest in Cytonics and help disrupt a $390B Big Pharma stronghold. Photo courtesy: katz / Send To MSN: Send to MSN UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Jim Cramer Recalls 2011's 6.7% Market Decline After US Debt Downgrade, Says It 'Ultimately Meant Nothing:' Dan Niles Sees Limited Downside Amid Tariff Rollbacks, FOMO originally appeared on Sign in to access your portfolio
Yahoo
19-05-2025
- Business
- Yahoo
Is the Invesco S&P 500 Equal Weight ETF a Better Buy Than an S&P 500 ETF?
The S&P 500 index is the benchmark for the broader market. The Invesco S&P 500 Equal Weight ETF changes the index approach in an important way. The ETF has outperformed the oldest S&P 500 tracking ETF over the longer term. 10 stocks we like better than Invesco S&P 500 Equal Weight ETF › The first exchange-traded fund (ETF) created was the SPDR S&P 500 ETF. It was a logical first step for what has now become a massive product category. There are multiple ways to use ETFs in a portfolio, but one of the best ways for long-term investors is still to simply buy the broad-based S&P 500 index. But before you do that, consider the Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP), a better performing S&P 500 index variant. From a big-picture perspective, the S&P 500 index isn't actually meant to track the market. The 500 or so stocks in the index are hand-selected by a committee to be representative of the U.S. economy. In keeping with that goal, the stocks in the index are market-cap weighted. This means that the largest companies have the greatest impact on the performance of the index and index-tracking ETFs like the Vanguard 500 Index ETF (which has a lower management fee than the SPDR S&P 500 Index ETF). That's basically what would happen with the real world, too. It just so happens that tracking the U.S. economy has worked out well over time. And, thus, the S&P 500 index has been adopted as the key benchmark for the U.S. market. History is very clear that over time, even if you bought at market peaks, just owning the S&P 500 index, via a low-cost mutual fund or ETF, has worked out very well. As the graph below highlights, even deep downturns and recessions (represented by the shaded areas) now appear to be little more than blips along the S&P 500 index's climb higher. That includes the crash at the turn of the century, when the Y2K bug had investors worried about the risk of a technology collapse, and the deeply troubling financial crisis around the Great Recession, when the potential for a global economic collapse was the worry. If all you did was buy the S&P 500 index, and kept buying it to benefit from dollar-cost averaging, you would probably end up pretty happy when you retired. But there is a potentially better alternative, which is just a minor variation on the same index. You can own it as an exchange-traded fund via the purchase of the Invesco S&P 500 Equal Weight ETF. The nice part about the Invesco Equal Weight ETF is that it owns all of the same stocks as the S&P 500 index. So it remains broadly representative of the U.S. economy. The only difference is in the way the stocks in the ETF are weighted. As the name suggests, every stock is given the same weight as every other stock. This means that every stock has the same impact on performance. It is an important twist. One of the problems with market-cap weighting is that the hottest stocks are often bid up to the point where they are the largest stocks. This is great during bull markets, but it can end up leaving the index overweight in some sectors. If a bear market comes around and the hot sectors cool off, the market can take a big hit. Equal weighting avoids this issue. A second problem with market-cap weighting is that smaller, faster growing companies don't affect the index as much as larger companies. Equal weighting helps to increase the benefit over time from companies that are quickly growing, but smaller. And the Invesco S&P 500 Equal Weight ETF will tend to have a higher yield than a market-cap weighted S&P 500 ETF because larger, popular stocks often have lower yields. By investing more in smaller, higher yielding stocks, the Invesco S&P 500 Equal Weight ETF boosts the overall portfolio's yield by around 30 basis points. As the chart above highlights, the Invesco S&P 500 Equal Weight ETF has outperformed SPDR S&P 500 ETF on both a price-only basis and on a total-return basis, which assumes the reinvestment of dividends. You can argue that the differences here aren't that large given the long time periods being considered, which is true. However, if you are looking for any edge you can get, the Invesco S&P 500 Equal Weight ETF's approach has, over time, proved to be the better choice for passive long-term investors. Before you buy stock in Invesco S&P 500 Equal Weight ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Invesco S&P 500 Equal Weight ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy. Is the Invesco S&P 500 Equal Weight ETF a Better Buy Than an S&P 500 ETF? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
