Latest news with #SPHQ
Yahoo
03-07-2025
- Business
- Yahoo
ETF Strategies to Follow in 2H 2025
Stocks staged a remarkable recovery from their April lows, closing out the first half of the year with strong gains. Both the S&P 500 and the Nasdaq Composite posted all-time highs, thanks to fading geopolitical tensions and ebbing tariff-related fears. There is a growingbelief among some investors that while President Trump often adopts a hard-hitting stance on tariffs, he frequently softens on his tone at the last moment. This perception has created a positive sentiment among traders, who are betting big on last-minute shifts in policy. With trade agreements reportedly in progress with both China and the UK ahead of Trump's self-imposed July 9 deadline, investors have increasingly priced in a "Goldilocks' scenario —where earnings remain strong, tariffs have minimal economic impact, and the Federal Reserve delivers interest rate cuts. Despite the buoyant mood, analysts on Wall Street are signaling caution. Some analysts believe that tariff increases are still on the table. This could add strain to an already fragile U.S. economy marked by weakening consumer demand and global manufacturing slowdowns. The economic data remains murky. A downward revision to Q1 GDP growth, a slight rise in PCE inflation, and continued jobless claims — now at their highest since 2021— point to softness in the labor market. Still, markets have largely brushed off those warning signs. Encouragingly, job openings in May rose to their highest level since November 2024, and economists noted that falling inflation in sectors like housing and energy could offset the effects of higher tariffs. One of the biggest open questions heading into the second half is whether the Federal Reserve will cut interest rates. President Trump has intensified pressure on the Fed to do so, but economists remain skeptical about the timing. Despite market expectations for a rate cut by September, Morgan Stanley expects the Fed to stay put till 2026, when a new, more dovish Fed chair may succeed Jerome Powell, as quoted on Yahoo Finance. JPMorgan similarly cautioned that the Fed is unlikely to cut rates unless private payroll growth falls below 100,000 in upcoming reports. The Bloomberg consensus estimates call for a 110,000 increase in nonfarm payrolls for June and a slight uptick in the unemployment rate to 4.3%, as quoted on Yahoo Finance. This would keep the Fed in 'wait-and-see' mode. Fed Chair Jerome Powell has reiterated the need for patience as the central bank evaluates the impact of new tariffs. Against this backdrop, below we highlight a few exchange-traded fund (ETF) strategies that could help investors in the second half of 2025. Focus on Quality and Stability In an environment marked by shifting policy, geopolitical risks, or unpredictable central bank messaging, quality-focused ETFs, such as iShares MSCI USA Quality Factor ETF QUAL or Invesco S&P 500 Quality ETF SPHQ could be good options. These ETFs offer exposure to companies with strong balance sheets, consistent earnings, and high return on equity. These firms are more likely to weather ambiguity with resilience. Embrace Low Volatility When volatility spikes, capital preservation often trumps growth. Low-volatility ETFs, such as iShares MSCI USA Min Vol Factor ETF USMV or Invesco S&P 500 Low Volatility ETF SPLV, aim to reduce downside risk without leaving the market entirely. Diversify Across Assets ETFs that blend asset classes can serve as a stabilizing force. Multi-asset ETFs, like iShares Core Growth Allocation ETF AOR soften help investors amid volatile market. The AOR ETF charges 15 bps in fees and yields 2.52% annually. The AOR ETF has advanced 6.8% so far this year (as of July 1, 2025). Dividend ETFs: All-Time Go-To Bets Dividends should be in one's portfolio in volatile times. FT Vest S&P 500 Dividend Aristocrats Target Income ETF KNG yields 8.92% annually and charges 75 bps in fees. High-dividend stocks and ETFs provide investors with avenues to make up for capital losses if that happens at all. Gold and Inflation Hedges Uncertainty often comes with inflation surprises or currency volatility. SPDR Gold Shares GLD is deemed the best safe haven asset right now (read: Why Gold ETFs Offer the Best Safe Haven Right Now). AI: The New Safe Haven The global AI market is experiencing rapid and transformative growth. The momentum is further accelerated by breakthroughs in AI robotics, autonomous systems, advanced sensors, computer vision, machine learning, natural language processing, and generative AI. Since we do not anticipate major flare-ups in the trade war during the second half of the year, we believe the AI trade will remain in fine fettle. Any economic slowdown is unlikely to hurt AI stocks or their peripheral investment areas. Dan Ives Wedbush AI Revolution ETF IVES, Defiance Quantum ETF QTUM and the tech-heavy Invesco QQQ QQQ are the best plays out here. Hedge With Global Diversification ETFs like Vanguard Total International Stock ETF VXUS or iShares MSCI Eurozone ETF EZU allow you to diversify globally. The ETF EZU is up 27% this year (read: International ETFs Hover Around One-Year High: 5 ETF Winners). 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 Invesco QQQ (QQQ): ETF Research Reports SPDR Gold Shares (GLD): ETF Research Reports iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports Invesco S&P 500 Quality ETF (SPHQ): ETF Research Reports iShares MSCI Eurozone ETF (EZU): ETF Research Reports iShares MSCI USA Min Vol Factor ETF (USMV): ETF Research Reports iShares Core 60/40 Balanced Allocation ETF (AOR): ETF Research Reports Invesco S&P 500 Low Volatility ETF (SPLV): ETF Research Reports Vanguard Total International Stock ETF (VXUS): ETF Research Reports Defiance Quantum ETF (QTUM): ETF Research Reports Dan IVES Wedbush AI Revolution ETF (IVES): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
20-06-2025
- Business
- Yahoo
SPHQ Adds $3.7B in Assets as Investors Seek Quality
The Invesco S&P 500 Quality ETF (SPHQ) pulled in $3.7 billion on Wednesday, increasing its assets under management by 21% to $17.4 billion, according to data provided by FactSet. The ETF fell 0.9% on the day, while the S&P 500 ended Wednesday's session flat following the Federal Reserve's announcement that it will hold interest rates steady. The First Trust Rising Dividend Achievers ETF (RDVY) and the First Trust Morningstar Dividend Leaders Index Fund (FDL) added $1.5 billion and $1.3 billion, respectively, while the VanEck Morningstar Wide Moat ETF (MOAT) raked in $1.2 billion. The iShares Core Dividend Growth ETF (DGRO) saw inflows of $702.9 million, the popular Vanguard S&P 500 ETF (VOO) added $698.2 million and the iShares Bitcoin Trust (IBIT) followed up with $639.2 million of inflows. On the outflows side, the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) lost $669.2 million and $365.1 million, respectively, while the Vanguard Small-Cap ETF (VB) and Invesco QQQ Trust Series I (QQQ) each lost just under $300 million in assets. U.S. equity ETFs gained $15.9 billion on Wednesday, while international equity ETFs attracted $1.8 billion. Commodities ETFs pulled in $429.1 million, and currency ETFs gathered $270.4 million. Overall, ETFs added $18.4 billion for the day. Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change SPHQ Invesco S&P 500 Quality ETF 3,673.21 17,419.09 21.09% RDVY First Trust Rising Dividend Achievers ETF 1,492.61 15,927.19 9.37% FDL First Trust Morningstar Dividend Leaders Index Fund 1,331.08 6,733.10 19.77% MOAT VanEck Morningstar Wide Moat ETF 1,237.85 13,762.01 8.99% FJUN FT Vest U.S. Equity Buffer ETF - June 871.05 1,824.75 47.74% VFLO VictoryShares Free Cash Flow ETF 839.90 5,001.97 16.79% DGRO iShares Core Dividend Growth ETF 702.93 31,781.30 2.21% VOO Vanguard S&P 500 ETF 698.21 681,560.10 0.10% IBIT iShares Bitcoin Trust ETF 639.19 71,415.42 0.90% SDVY First Trust SMID Cap Rising Dividend Achievers ETF 596.52 8,515.90 7.00% Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change LQD iShares iBoxx $ Investment Grade Corporate Bond ETF -669.23 27,859.52 -2.40% HYG iShares iBoxx $ High Yield Corporate Bond ETF -365.08 16,635.09 -2.19% VB Vanguard Small-Cap ETF -298.69 63,053.42 -0.47% QQQ Invesco QQQ Trust Series I -290.93 337,425.50 -0.09% VOT Vanguard Mid-Cap Growth ETF -284.67 17,500.58 -1.63% FBTC Fidelity Wise Origin Bitcoin Fund -208.46 20,578.44 -1.01% MDY SPDR S&P Midcap 400 ETF Trust -207.00 22,075.58 -0.94% ARKB ARK 21Shares Bitcoin ETF Ben of Int -191.40 4,651.68 -4.11% VOE Vanguard Mid-Cap Value ETF -177.61 18,250.92 -0.97% PTIR GraniteShares 2x Long PLTR Daily ETF -103.77 479.18 -21.66% Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives -0.92 10,079.31 -0.01% Asset Allocation 41.99 24,165.03 0.17% Commodities ETFs 429.10 223,321.97 0.19% Currency 270.41 144,766.76 0.19% International Equity 1,839.01 1,817,314.32 0.10% International Fixed Income 143.85 297,763.97 0.05% Inverse 5.25 14,826.89 0.04% Leveraged 83.81 123,918.09 0.07% US Equity 15,867.28 6,907,344.18 0.23% US Fixed Income -255.98 1,672,820.70 -0.02% Total: 18,423.81 11,236,321.22 0.16% Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data are believed to be accurate; however, transient market data are often subject to subsequent revision and correction by the | © Copyright 2025 All rights reserved 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
23-05-2025
- Business
- Yahoo
U.S. Stocks Rebound Sharply in May: Can the Rally Continue?
U.S. equities have posted strong gains in May, with the S&P 500 rising more than about 15% from its lows in April. Markets have stabilized following a temporary truce in U.S.-China trade tensions, which were previously rattled by President Donald Trump's renewed push for reciprocal tariffs. Investor sentiment improved on the back of paused tariff actions, a temporary U.S.-China trade ceasefire, and moderate inflation data. Although the S&P 500 remains about 3% below its all-time highs, momentum has turned positive across broader indices. Federal Reserve Governor Christopher Waller indicated that interest rate cuts could be considered if the Trump administration keeps its tariff policies relatively restrained. Speaking to Fox Business, Waller suggested monetary policy may turn more accommodative should trade tensions ease further. On the macroeconomic front, data released this week showed strength. U.S. business activity accelerated in May, signaling growing demand and business confidence. Initial jobless claims declined, pointing to continued strength in the labor market. These indicators support the view that the U.S. economy remains on stable footing despite trade-related headwinds. According to LSEG data, traders now expect at least two 25-basis-point interest rate cuts by the end of the year, suggesting strong belief that the Fed will move to counterbalance any slowdown triggered by external pressures. The House of Representatives narrowly passed a sweeping tax cut bill on May 22. A new analysis from the Congressional Budget Office (CBO) estimates that the tax provisions would add $3.8 trillion to the federal deficit over the next decade. This may boost U.S. treasury yields and weigh on the equity market. Despite headline gains, market breadth remained weak. The S&P 500 registered one new 52-week high and nine new lows on May 22, while the Nasdaq Composite saw 34 new highs and 83 new lows. While tariff fears were blamed for the April selloff, the market was likely due for a pullback after a strong run late last year and into early 2025. Either way, it presented a buying opportunity, just like most pullbacks and corrections do. Since 1950, whenever the S&P 500 fell 10% in just two days (like what happened in April 2025), it has offered at least 18% returns over the next 12 months, with the highest being 59% (in 2020). On average, the S&P 500 has bounced back by 32.6% within the next 12 months, following all double-digit, two-day declines. We expect history to repeat itself this year (read: What's Next for S&P 500 ETFs? History and Valuation Offer Clues). SPDR S&P 500 ETF Trust SPY fell 1.4% over the past five days, while SPDR Portfolio S&P 500 Value ETF SPYV and SPDR Portfolio S&P 500 Growth ETF SPYG dropped 1.5% and 1.4%, respectively, on May 22. Meanwhile, Invesco S&P 500 Quality ETF SPHQ retreated 0.8% on the day. Amid the current uncertain investing backdrop, it's wise to stay focused on high-quality ETFs like SPHQ for short-term investment purposes, especially as uncertainty around the tax bill and trade developments persists. However, regardless of threats emerging right now, history indicates that staying optimistic about the S&P 500 with a long-term view pays off 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 SPDR S&P 500 ETF (SPY): ETF Research Reports Invesco S&P 500 Quality ETF (SPHQ): ETF Research Reports SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports SPDR Portfolio S&P 500 Value ETF (SPYV): ETF Research Reports 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
