February 23, 2021
Dividend stocks are coming back to into focus – thank low interest rates for that – but investors should still prioritize quality growth, which is accessible with the
NOBL tracks the S&P 500 Dividend Aristocrats Index and targets the cream of the crop, only selecting components that have increased their dividends for at least 25 consecutive years. Consequently, investors are left with a portfolio of high-quality, sustainable dividend payers.
The asset is an ideal exchange traded fund for investors to consider today because the worst of the payout downside wrought by the coronavirus pandemic may be in the rearview mirror.
“When the pandemic began, investors feared cuts en masse to dividends because of the many businesses forced to close or drastically alter operations. Thankfully, that worst-case scenario didn’t materialize for dividend-focused investors,” according to ProShares research. “While there were many companies that cut or suspended their
February 23, 2021
The debt market is a vast sea that investors often can’t simply navigate on their own. Novice bond investors can get complete exposure via ETFs like the
IUSB seeks to track the investment results of the Bloomberg Barclays U.S. Universal Index. The fund generally will invest most of its assets in the component securities of the index and may also invest in certain futures, options and swap contracts, cash and cash equivalents, including shares of money market funds advised by BFA or its affiliates, as well as in securities not included in the underlying index, but which BFA believes will help the fund track the underlying index.
February 23, 2021
The utilities sector was a 2020 laggard, but the group looks attractive today with exchange traded funds such as the
PUI tracks the DWA Utilities Technical Leaders Index. That index “is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 securities from the NASDAQ US Benchmark Index. Relative strength is the measurement of a security’s performance in a given universe over time as compared to the performance of all other securities in that universe,” according to Invesco.
While 2020 was a rough year for the normally stable sector, the group appears poised for better things in 2021.
February 23, 2021
Two-year inflation breakeven rate (the market’s future inflation view) is the highest in 12 years, raising the risk of an inflation surprise
Inflation isn’t a problem now, but financial markets are saying it could be soon. Traders are pricing in the possibility that Consumer Price Inflation (CPI) leaps to 2.66% from 1.4% today, judging by the two-year breakeven rate which has staged a stunning turnaround and sits at its highest point since 2008.
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Breakevens, a proxy for the CPI, are largely tracking the rise in oil prices, as energy is a large part of CPI. The key issue for fixed-income markets is whether inflation is more than just a jump in energy. Cornerstone Macro