However, the real story resides in the relative performance of the chart. That trend has been reversed to the upside, which suggests that investors are finally moving money to this group at the expense of other areas of the market, Michael Kahn of Barrons says of PSCH. Although the combination of small-caps and health care often prompts investors to think of high risk-high reward biotechnology stocks, PSCH does not feature a large weight to biotech. PSCHs exposure to services providers is proving useful at a time when that industrys stocks are among the best performers in the broader health care space. [A Healthy Obamacare ETF] Of PSCHs top-10 holdings, a group that combines for about 36% of the ETFs weight, only two stocks have traded lower over the past month. Of the eight that have risen, four have posted double-digit gains.
Growth is still worth owning, but only at reasonable prices. That means you should be looking overseas in your ETF selection process . You can get a basket of profitable Asian corporations for a price that you might have paid three years ago. You can listen to theETF Expert Radio Show LIVE, via podcast or on your iPod. You can follow me onTwitter @ETFexpert.
Retirement Strategy: ETF Portfolio Vs. The Stock Only Portfolio: Surprise, Surprise! | Seeking Alpha
But capitalization weighted indexes are not the most efficient way of investing, as they give higher weights to bigger and often over-priced companies. Further as a stock rises in value, its weight in the index increases and when it falls, its weight in the index also comes down-somewhat similar to buying high and selling low-making these strategies inefficient. The 1,000 equities with the highest fundamental strength are weighted by their fundamental scores. Exxon Mobil, Chevron and AT&T are among the top holdings but the asset base is pretty well spread out, with top 10 holdings accounting for just 18% of the total. The fund has about 38% allocation to large cap value stocks, followed by large cap blend stocks at 25%. In terms of sectors, financials, energy and information technology occupy the top three spots. The product charges an expense ratio of 39 basis points.
Source: <a reference href=’http://www.nasdaq.com/article/beat-the-market-with-fundamentally-strong-etfs-etf-news-and-commentary-cm357730′ >http://www.nasdaq.com/article/beat-the-market-with-fundamentally-strong-etfs-etf-news-and-commentary-cm357730
ETFOP Had A Good Month The ETFOP currently consists of the following ETFs: Vanguard High Dividend Yield Index Fund ( VYM ), SPDR S&P Dividend ETF ( SDY ), WisdomTree LargeCap Dividend Fund ( DLN ), Vanguard Dividend Appreciation ETF ( VIG ) and Schwab U.S. Dividend Equity ETF ( SCHD ). These ETFs are widely recognized to be the best of breed for dividend growth investors who seek to have a position in a very wide assortment of stocks without having to do anything but own the ETF. The passive nature of this approach lends itself to many folks who do not care to be bothered with managing their own portfolios, and will leave the decision making up to the ETF manager. This type of portfolio is also appealing to those folks who are already retired and might be feeling the stress of aging when it comes to being actively involved in portfolio management.