This Moat ETF Topped VanEck Fund Flows the Past Month
Finding value makes for a strong long-term investment, which could be why the
Fundamental analysis involves finding value among companies that have a competitive advantage in their respective marketplace. This is where the MOAT strategy shines. Investors need not pore over market analysis reports.
MOAT does all the value-finding work through the convenience of an ETF wrapper. Additionally, the strategy looks for companies that can maintain their advantages over time, which is ideal for investors with a long-term investment horizon.
MOAT, which is up over 50% the past year and 17% thus far in 2021, seeks to replicate as closely as possible the price and yield performance of the Morningstar® Wide Moat Focus Index. The fund normally invests at least 80% of its total assets in securities that comprise the fund’s benchmark index.
These 3 High Yield Bond ETFs from VanEck Are Dominating YTD Inflows April 21, 2021
Fund flows can help indicate investors’ penchant for certain ETFs when it comes to bonds and right now, it’s high yield for ETF provider VanEck.
One reason could be the falling default rates. Thanks to this risk-reward ratio, investors may be opting for more high yield given the risk of default is lower.
“High-yield default rates have dropped for three straight quarters, sitting at 4.9% at the end of the first quarter. The rate was 2.9% in the year-ago period, but late in that quarter, COVID-19 forced governments to act,” a Pensions & Investments article noted.
Where Dividend Growth Was Strongest in 2020 Ten times as many U.S. companies were raising or initiating dividends in the fourth quarter of 2020 compared to those cutting or suspending dividends.
Dividend growth accelerated in the fourth quarter of 2020. There were only 57 negative dividend actions cuts or suspensions taken by U.S. companies in the three months ended December 2020, a significant decrease from the 102 occurring a quarter earlier according to S&P Dow Jones Indices and 74 a year earlier. Meanwhile, there were 620 positive dividend actions increases or initiations in the fourth quarter, up from 309 in the prior period but down from the 686 a year ago. The positive/negative fourth quarter breadth improved to 10.9 (from 9.3 a year ago) the highest fourth-quarter level since 2014 (14.5). However, there is still room for improvement in 2021 for companies suspending dividends in the second quarter of 2020, as the U.S. economy likely recovers in 2021 and companies adju
December 14, 2020
Government debt has typically been viewed through the lens of a solid safe haven play. One sector that’s been getting a closer look lately is municipal bonds. Investors can add high yield to the muni mix with
The fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Bloomberg Barclays Municipal Custom High Yield Composite Index. The fund normally invests at least 80% of its total assets in securities that comprise the benchmark index.
The index is comprised of publicly traded municipal bonds that cover the U.S. dollar denominated high yield long-term tax-exempt bond market. Overall, HYD offers: