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Yahoo
25-06-2025
- Business
- Yahoo
Best-Performing Dividend ETFs of 1H
The first half of 2025 has witnessed massive market turbulence, largely driven by the new Trump administration's aggressive trade policies. After hitting a record high on Feb. 19, the S&P 500 tumbled sharply, nearing bear market territory by April 8. However, markets rebounded strongly in recent weeks. SPDR S&P 500 ETF Trust SPY has gained about 1.7% in the first half, SPDR Dow Jones Industrial Average ETF Trust DIA has lost about 0.5%, the Nasdaq-100 ETF Invesco QQQ Trust, Series 1 QQQ has added about 3.3% and iShares Russell 2000 ETF IWM has retreated about 5.3% (as of June 20, 2025). The U.S. long-term bond market faced pressure in the early phase of 1H, along with equities. Fears of China's treasury selling, inflation risks amid trade war, chances of a less-dovish Fed, and basis trade unwind hit the bond market in early April (read: ETFs to Play Amid Long-Term Yields' Best Week Since 1982). Moody's has also downgraded the U.S. sovereign credit rating by one notch, citing concerns over the country's ballooning $36-trillion debt burden. This move, following similar actions by Fitch in 2023 and S&P in 2011, raised alarm among investors about the nation's long-term fiscal sustainability (read: ETF Strategies to Follow on Moody's Downgrade of U.S. Debt). The market bottomed on April 8, but optimism over trade negotiations, strong corporate earnings, easing inflation and AI momentum triggered a sharp rebound. Technology stocks, especially the "Magnificent Seven," led the rally, making it the fastest S&P 500 recovery since 1982 (read: S&P 500 Turns Green in 2025: ETFs to Buy on Upbeat Prospects). Economic data reflects a stable growth outlook. Consumer sentiment rose in June for the first time in six months, indicating easing concerns over inflation and tariffs. The job market remained strong, with 139,000 new jobs added in May and unemployment steady at 4.2%. Inflation trends continue to improve. May's Consumer Price Index rose just 0.1% year over year, bringing the annual rate to 2.4%. Core inflation remained flat at 2.8%, with monthly core prices rising only 0.1%, undercutting expectations. Despite recent optimism, investor sentiment remains fragile. The Israel-Iran conflict reignited geopolitical fears, and uncertainty around Trump's trade direction and interest rate policy continues to rattle markets. In late June, the United States also attacked Iran's nuclear infrastructure, triggering fears of large-scale unrest in the Middle East. Defensive assets like gold and silver have seen renewed interest amid this backdrop. SPDR Gold Trust GLD has surged 26.4% so far this year (as of June 20, 2025), while iShares Silver Trust SLV has advanced 21.5%. However, President Trump announced a ceasefire between Israel and Iran on June 23. The fragile ceasefire between Israel and Iran has appeared to hold, at the time of writing. In such a volatile market, dividend ETFs normally come to the rescue. The hunt for dividends in the equity market is always on, irrespective of how it is behaving. If investors are mired in a web of equity market uncertainty, global growth worries and geopolitical crisis, the lure for dividend investing increases further. Note that SPDR S&P Dividend ETF SDY (up 2%) topped SPY so far this year (as of June 20, 2025). Investors should note that not all dividend stocks serve the same purpose. While the high-yield ones are known for offering hefty current income, stocks with dividend growth point to quality investing, a prerequisite to making money in this volatile environment. Against this backdrop, below we highlight a few of the dividend ETFs that have topped the S&P 500 so far this year (as of June 20, 2025). International dividend ETFs showed strength this time around. First Trust STOXX European Select Dividend Index Fund FDD – Up 37.2% Global X MSCI SuperDividend EAFE ETF EFAS – Up 30.9% iShares International Select Dividend ETF IDV – Up 26.5% WisdomTree International High Dividend Fund DTH – Up 23.3% WisdomTree Europe SmallCap Dividend Fund DFE – Up 22.8% 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 SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports iShares Silver Trust (SLV): ETF Research Reports SPDR S&P Dividend ETF (SDY): ETF Research Reports WisdomTree International High Dividend ETF (DTH): ETF Research Reports iShares International Select Dividend ETF (IDV): ETF Research Reports WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports First Trust STOXX European Select Dividend ETF (FDD): ETF Research Reports Global X Msci SuperDividend Eafe ETF (EFAS): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
13-06-2025
- Business
- Yahoo
S&P 500 ETFs Hover Near Record Highs: 5 Stocks Aiding the Rally
The S&P 500 closed above 6,000 points on June 6, marking its first close above that level since February. As of June 12, the index stood at 6,045.26, somewhat below the all-time high reached earlier this year. The rally continues to push major indexes back toward record highs, following several weeks of pressure due to trade tensions. The SPDR S&P 500 ETF Trust SPY has gained about 3.3% year-to-date and is up 2.9% over the past month. The U.S. stock market has rebounded in recent weeks as investor worries over Trump's proposed tariffs have diminished, while corporate earnings and economic indicators have remained solid. Note that the S&P 500 recorded the strongest monthly performance in May since late 2023. Consumer prices in the United States rose modestly in May, indicating that President Donald Trump's tariffs have not yet had a significant impact on inflation. The Consumer Price Index (CPI) increased by just 0.1% in May, falling short of the 0.2% monthly increase forecasted by a Dow Jones survey, as quoted on CNBC. This puts the annual inflation rate at 2.4%, matching economists' expectations for the year. This kind of soft inflation data may help the Fed to cut rates in the near term and boost stocks (read: Sector ETFs Likely to Gain on May Inflation Data). Talks aimed at easing tensions between the United States and China have concluded with what President Donald Trump described as a "deal." According to Trump, China has agreed to supply U.S. companies with magnets and rare earth metals—key materials in the technology and defense sectors. In return, the United States will withdraw its threats to revoke visas for Chinese students, a point of disagreement in recent months. Small business owners grew more optimistic in May, reflecting improved expectations for business conditions and sales. The latest data revealed that the small business optimism index climbed to 98.8 in May, up from 95.8 in April. This marked the first rise since September (read: Small Business Optimism Grows: What's Ahead for ETFs?). Despite geopolitical uncertainty and macro headwinds, corporate America delivered better-than-expected first-quarter 2025 earnings. The tech sector, particularly, has shown robust revenue growth, fueled by AI adoption and cloud expansion. Citi analysts lifted their year-end target for the S&P 500 to 6,300. 'Renewed confidence in the AI-related opportunity" and "improved earnings growth expectations" headed into next year have been held responsible for the bullish revision in the price target. Several banks have recently boosted their own targets. Deutsche Bank also lately lifted its target to 6,550, as quoted on Yahoo Finance. Against this backdrop, below we highlight a few stocks that drove the S&P 500 index. Palantir Technologies PLTR – Up 80.0% YTD Palantir Technologies builds and deploys software platforms for the intelligence community to help in counterterrorism investigations and operations across the United States and internationally. Palantir's software is used in approximately 80 industries globally. The stock hails from top-ranked industry (top 20%) and top-ranked sector (top 44%). NRG Energy NRG – Up 62.8% YTD The company is engaged in the production, sale and delivery of energy and energy products and services to residential, industrial as well as commercial consumers in major competitive power markets in the United States. The stock comes from top-ranked industry (top 26%) and top-ranked sector (top 13%). Howmet Aerospace HWM – Up 54.8% YTD Howmet Aerospace Inc. provides engineered solutions for customers in the transportation and aerospace (both defense and commercial) industries. Notably, it offers forged wheels for commercial use in the transportation industry. It also provides aerospace fastening systems, components used in jet engines and structural parts made of titanium used in defense and aerospace applications. The stock comes from top-ranked industry (top 29%) and top-ranked sector (top 6%). Philip Morris International PM – Up 52.0% YTD The tobacco giant has been expanding in the reduced risk products (RRPs) or smoke-free products category, evident from the success of IQOS (a heating tobacco device) that counts amongst one of the leading RRPs in the industry. The stock belongs to a top-ranked industry (top 11%). GE Aerospace GE – Up 42.4% YTD GE Aerospace (erstwhile General Electric Company) is a leading designer, developer and producer of jet engines, components and integrated systems for military, commercial and business aircraft. The stock comes from top-ranked industry (top 29%) and top-ranked sector (top 6%).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 GE Aerospace (GE) : Free Stock Analysis Report NRG Energy, Inc. (NRG) : Free Stock Analysis Report Philip Morris International Inc. (PM) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report 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
04-06-2025
- Business
- Yahoo
S&P 500 ETFs Log Best May in 30+ Yrs on AI, Large-Cap Safety
The S&P 500 just posted its strongest May performance in more than three decades, largely driven by a surge in the "Magnificent Seven" tech stocks: Apple AAPL, Alphabet (GOOGL, GOOG), Microsoft MSFT, Amazon AMZN, Meta META, Tesla TSLA, and NVIDIA NVDA (read: 4 ETF Areas Up At Least 25% in May). The SPDR S&P 500 ETF Trust SPY gained 5.2% over the past month (as of Jun 2, 2025) while the Big-Tech heavy Nasdaq-100 ETF Invesco QQQ Trust, Series 1 QQQ advanced 7.7%. While easing trade tensions was the key behind the stock outperformance, Big Tech benefited the most from easing trade tensions. Following the initial tariff-induced downturn, signs of trade de-escalation began to emerge. The United States temporarily reduced tariffs on Chinese goods from 145% to 30%, while China responded by lowering its retaliatory duties on U.S. imports from 125% to 10%. This 90-day reduction period has helped ease investor concerns. Additionally, President Trump postponed a 50% tariff hike on EU goods, delaying implementation from June 1 to July 9. This move accelerated trade negotiations with European partners. The seven mega-cap companies accounted for 62% of the S&P 500's 6.2% gain in May. NVIDIA and Tesla led the charge with monthly gains exceeding 20%. Six out of the seven stocks outperformed the broader index, with Apple being the sole underperformer. Nicholas Colas, co-founder of DataTrek Research, noted that the resurgence of Big Tech is a sign the market has regained its confidence, as quoted on Yahoo Finance. A major reason behind the rally is strong earnings growth from Big Tech. In Q1, the Magnificent Seven posted a combined 27.7% earnings increase year-over-year, compared to 9.4% growth among the other 493 S&P 500 companies, according to FactSet's senior earnings analyst John Butters. Additionally, these companies outpaced analyst expectations, beating estimates by 11.7% on average—well above the 4.6% beat from the rest of the index, as quoted on Yahoo Finance. Overall, total Q1 earnings for the 477 S&P 500 members that have reported results are up +11.4% from the same period last year on +4.4% higher revenues, with 74.2% beating EPS estimates and 62.9% beating revenue estimates, per Earnings Trend issued on May 28, 2025. Citi US equity strategist Drew Pettit highlighted that these earnings surprises explain the group's recent outperformance, as quoted on Yahoo Finance. Over the past month, the Roundhill Magnificent Seven ETF MAGS rose approximately 11%, nearly double the S&P 500's return. After all, it was Big Tech that triggered the latest market downturn earlier this year, so it's not surprising to see these stocks bouncing back the most. Another factor boosting Big Tech is investor preference for large-cap stocks amid rising bond yields. With the 30-year Treasury yield nearing highs not seen since the financial crisis, large-caps have become a safer bet. 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 Alphabet Inc. (GOOG) : Free Stock Analysis Report Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
27-05-2025
- Business
- Yahoo
EU-US Trade Deal Hopes to Boost These ETFs
After logging a weekly decline, Wall Street is set to rebound on the likelihood of an EU-US trade deal following the tariff delays. SPDR S&P 500 ETF Trust SPY, Invesco QQQ QQQ, Technology Select Sector SPDR Fund XLK, Industrial Select Sector SPDR Fund XLI and Vanguard FTSE Europe ETF VGK are set for big moves. The European Union agreed to accelerate tariff negotiations with the United States, easing fears of a trans-Atlantic trade war. The decision came after President Trump announced that the United States would postpone the implementation of a 50% tariff increase on all EU products, from June 1 to July 9, to allow time for further a social media post on Friday, Trump threatened to impose a 50% tariff on EU goods, criticizing the 27-member bloc as 'very difficult to deal with' on trade and claiming that negotiations were 'going nowhere.' The tariffs were set to take effect on June 1. Additionally, Trump warned that all smartphones made outside the country, including Apple's AAPL iPhone and Samsung devices, could soon face a 25% import tax if not manufactured in the United States (read: Volatility ETFs Spike on Renewed Trump Tariff Threats). SPDR S&P 500 ETF Trust (SPY)SPDR S&P 500 ETF Trust holds 504 stocks in its basket, with each accounting for no more than 7% of the assets. This suggests a nice balance across each security and prevents heavy concentration. The fund is widely spread across sectors with information technology, financials, healthcare and consumer discretionary accounting for a double-digit allocation each. SPDR S&P 500 ETF Trust has an AUM of $608 billion and charges 9 bps in fees per year. It trades in an average daily volume of 65 million shares and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (see: all the Large Cap Blend ETFs here).Invesco QQQ Trust (QQQ)Invesco QQQ Trust provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. It is one of the largest and most popular ETFs in the large-cap space, with an AUM of $330.5 billion and an average daily volume of 44.3 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk Sector SPDR Technology ETF (XLK)Select Sector SPDR Technology ETF is the most popular and liquid ETF in the technology space, with AUM of $72.4 billion and an average daily volume of 5 million shares. It offers broad exposure to the technology sector and follows the Technology Select Sector Index. Select Sector SPDR Technology ETF holds about 69 securities in its basket and charges 8 bps in fees per year from investors. It has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: 3 ETF Strategies to Follow on Temporary U.S.-China Trade Deal).Industrial Select Sector SPDR (XLI)Industrial Select Sector SPDR targets the broad industrial sector and follows the Industrial Select Sector Index. XLI holds 79 stocks in its basket and is well spread out across sectors, with aerospace & defense, machinery, and ground transportation making up for a double-digit share each. Industrial Select Sector SPDR is the most popular ETF with AUM of $21 billion and an average daily volume of around 7 million shares. It charges 8 bps in fees per year and has a Zacks ETF Rank #1 with a Medium risk FTSE Europe ETF (VGK)Vanguard FTSE Europe ETF offers exposure to companies located in the major markets of Europe by tracking the FTSE Developed Europe All Cap Index. It holds a broad basket of 1241 stocks with key holdings in financials, industrials, health care, and consumer discretionary sectors. Vanguard FTSE Europe ETF has AUM of $25.1 billion and trades in an average daily volume of 3.5 million shares. It charges 6 bps in annual fees and has a Zacks ETF Rank #1 with a Medium risk outlook. While the delay in tariff implementation has provided a temporary reprieve, investors should brace for more volatility ahead as the potential for a trade war has not completely dissipated. 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 Apple Inc. (AAPL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports Industrial Select Sector SPDR ETF (XLI): ETF Research Reports Vanguard FTSE Europe ETF (VGK): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
16-05-2025
- Business
- Yahoo
The retail buy-the-dip move paid off. What that crowd of investors is doing now, according to JPMorgan.
A pullback is shaping up, as investors hunt fresh rationale to keep buying and excitement fades over the U.S.-China tariff pause. Retail will be in focus with data and Walmart earnings ahead. Timing stock market ups-and-downs is a tricky feat, but congratulations are in order for retail investors, who appear to have done well in recent weeks by tearing a page out of Warren Buffett's 'be-greedy-when-others-are-fearful' playbook. 'My wife says no': I'm 57 and ready to retire next year on $7,500 a month. Who's right? My wife and I paid off my stepdaughter's $415K mortgage in exchange for her house, but it's now worth $310K. Should we sue? My second wife says her 2 kids should inherit our estate, but I also have 2 kids. Is that fair? My husband and I spend more money on our daughter and her family than on my single son. Do we compensate him? 'We're not wealthy': My niece is marrying out of state and she has a honeymoon fund. Is that cheeky? 'The buy-the-dip strategy in early April has clearly paid off,' said a team of JPMorgan strategists led by Emma Wu. 'We estimate retail investors' portfolio is up 15.1% since April 8, closely aligning with the market performance of +15.8%.' Investors bought $50 billion in stocks as the market bounced from the S&P 500's SPX 52-week low of 4982.77 reached April 8, said the JPMorgan team. 'Notably, their buy-the-dip strategy and gradual buying during the subsequent rally (with a reduced pace) has historically been profitable,' said the strategists. That was the situation in 2020: retail buyers made some 31% from the March low to the June high, basically doubling the market performance, the JPMorgan said. Retail investors were the main driver behind the market rally in the last week of April, with institutional activity subdued and low positioning by momentum-trading commodity trading advisers. Their market share reached 36% in late April, versus a year-to-date average of 21% and long-term share of 12%. As for what that savvy bunch of traders has been up to lately, JPMorgan says a shift may be under way. Wu and her colleagues noted that Monday marked the first time they've seen profit-taking flow — $555 million — since the market recovery, with $2 billion profits taken on options and the 'largest outflow in history' for Nvidia NVDA, to the tune of $894 million. After Tuesday's softer-than-forecast inflation numbers, retail investors came back in, though at a slower pace. Inflows in the latest week were entirely driven by exchange-traded funds, chiefly broad market ones such as the SPDR S&P 500 ETF Trust SPY, said Wu and colleagues. They also saw a sector rotation: value to growth, small cap to large cap, healthcare to industrials, gold and silver to base metals, while demand for international equities remained a theme. Over the past week, investors took profits on Nvidia, Palantir PLTR and Tesla TSLA, with continued heavily selling of Apple AAPL since last July, though buying for other Magnificent 7 group names. U.S. stocks SPX DJIA COMP have opened lower, with Treasury yields BX:TMUBMUSD30Y BX:TMUBMUSD10Y dropping. Oil prices CL00 NQ00 are down nearly 3% on rising bets of a U.S.-Iran nuclear deal. . Key asset performance Last 5d 1m YTD 1y S&P 500 5892.58 4.64% 11.69% 0.19% 11.01% Nasdaq Composite 19,146.81 7.94% 17.41% -0.85% 14.36% 10-year Treasury 4.536 15.50 20.60 -4.00 15.50 Gold 3131.9 -7.14% -6.72% 18.66% 30.94% Oil 61.5 6.13% -0.71% -14.43% -22.02% Data: MarketWatch. Treasury yields change expressed in basis points Fed Chairman Jerome Powell has warned that inflation could be more volatile in future. He spoke just ahead of a big data drop that showed producer prices falling a bigger-than-forecast 0.5% and the most since the pandemic, though that won't last. April retail sales rose a scant 0.1% as expected, after a revised up 1.7% gain in May, while the latest weekly jobless claims held steady at 229,000. Due later, industrial production is scheduled for 9:15 a.m., followed by business inventories and a home builders confidence index at 10 a.m. Consumer bellwether Walmart WMT reported forecast-beating results and maintained its full-year outlook, but warned tariffs are pressuring prices. Shares have turned lower. China e-commerce group Alibaba BABA reported weaker-than-forecast results and shares are down. Deere DE reported an earnings beat and share are up, but it also trimmed guidance. UnitedHealth shares UNH are off 6% after a report of a DOJ probe. Foot Locker FL shares are up 80% after Dick's Sporting Goods DKS said it will buy the sneaker chain in a $2.4 billion deal, confirming a Wednesday report. Coinbase stock COIN is slipping after suffering a cyber attack after overseas workers were bribed to steal customer data. Cisco Systems CSCO posted an earnings beat on growing AI demand for networking products. CoreWeave CRWV is falling on disappointing guidance. At a news conference, President Donald Trump gave the kiss of death to the idea of a U.S. sovereign wealth fund. He also said India offered to drop tariffs on the U.S. to zero. Bags of cash from drug cartels flood teller windows at U.S. banks. Microsoft layoffs hit coders hardest with AI costs on the rise. As investors pile into private assets, this storied firm expects slowdown. Gold could be setting up for a 'spectacular fall,' as the U.S.-China tariff pause and talks planned between Russia and Ukraine take war risk out of commodity prices, said Ben Emons, founder of Fed Watch Advisors, in a Substack post. His chart shows gold and the Energy Select Sector SPDR XLE both pointing lower. 'Gold has 'crashed' before, such as in 2012-13 when the Euro crisis ended, and after 2020, resulting in a drawdown of 30 to 40 percent in each case. Secondly, there is energy, with XLE and WTI stopping short of the 50-day moving average, while the broader market remains in a risk-on momentum,' he said. These were the most active tickers on MarketWatch as of 6 a.m.: Ticker Security name NVDA Nvidia TSLA Tesla UNH UnitedHealth GME GameStop PLTR Palantir Technologies SMCI Super Micro Computer AAPL Apple AMD Advanced Micro Devices AMZN TSM Taiwan Semiconductor Manufacturing The real deal. Harvard Law School's $27.50 Magna Carta copy. Meet Buster and Geno, America's favorite pets. The Eurovision song contest won't let the European Union flag on stage. The retail buy-the-dip move paid off. What that crowd of investors is doing now, according to JPMorgan. These $5,000 bonds can help you fix a stock-heavy portfolio How Europe's best investor picks stocks including GE Aerospace and Microsoft I have $50,000 in credit-card debt after my divorce, but received $30,000 after a car wreck. Do I buy a used Lexus? 'I am scared to death that I'll run out of money': My wife and I are in our 50s and have $4.4 million. Can we retire early?
