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The Zacks Analyst Blog Highlights RPG, FTC, QQQJ and PWB
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For Immediate Release
Chicago, IL – August 15, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Invesco S&P 500 Pure Growth ETF (RPG - Free Report) , First Trust Large Cap Growth AlphaDEX ETF (FTC - Free Report) , Invesco NASDAQ Next Gen 100 ETF (QQQJ - Free Report) and Invesco Dynamic Large Cap Growth ETF (PWB - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Rate Cut in the Cards? ETFs to Play
U.S. producer prices increased less than expected in July as a rise in the cost of goods was moderated by cheaper services, in a sign that inflation continued to ease. The producer price index (PPI) for final demand edged up 0.1% last month after rising by an unrevised 0.2% in June, the Labor Department's Bureau of Labor Statistics said on Tuesday. Economists polled by Reuters had forecast the PPI gaining 0.2%. In the 12 months through July, the PPI increased 2.2% after climbing 2.7% in June.
No wonder, financial markets are expecting an easing cycle by the Federal Reserve starting in September, prompted by slowing inflation and a cooling labor market. Concerns over labor market weakness have heightened following a surge in the unemployment rate to nearly a three-year high of 4.3% in July.
This situation has raised speculation that the Fed might consider a rate cut of 50 basis points, marking a departure from its year-long standpoint of keeping the benchmark overnight interest rate within the 5.25-5.50% range. This range had been established after a cumulative increase of 525 basis points throughout 2022 and 2023.
Growth ETFs in Focus
Cues of hefty Fed rate cuts bode well for growth investing. Traditionally, growth ETFs have performed well in periods of low interest rates as the borrowing costs for companies stay low, enabling them to invest in expansion and innovation.
However, we have highlighted low P/E growth ETFs that are still cheap in valuation as the investing backdrop is still edgy due to the latest tech slump on slight doubt over the faster success of investments in artificial intelligence.
The underlying S&P 500 Pure Growth Index measures the performance of securities that exhibit strong growth characteristics in the S&P 500 Index. The fund charges 35 bps in fees.
First Trust Large Cap Growth AlphaDEX ETF– Zacks Rank #2; P/E: 15.60X
The underlying Nasdaq AlphaDEX Large Cap Growth Index is an enhanced index that employs the AlphaDEX stock selection methodology to pick stocks from the Nasdaq US 500 Large Cap Growth Index. The fund charges 60 bps in fees.
Invesco NASDAQ Next Gen 100 ETF– Zacks Rank #3; P/E: 17.78X
The underlying Nasdaq Next Generation 100 Index comprises securities of the next generation of Nasdaq-listed non-financial companies, that is, the largest 100 Nasdaq-listed companies outside of the Nasdaq-100 Index. The fund charges 15 bps in fees.
Invesco Dynamic Large Cap Growth ETF– Zacks Rank #2; P/E: 22.28X
The underlying Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure. The fund charges 16 bps in fees.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights RPG, FTC, QQQJ and PWB
For Immediate Release
Chicago, IL – August 15, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Invesco S&P 500 Pure Growth ETF (RPG - Free Report) , First Trust Large Cap Growth AlphaDEX ETF (FTC - Free Report) , Invesco NASDAQ Next Gen 100 ETF (QQQJ - Free Report) and Invesco Dynamic Large Cap Growth ETF (PWB - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Rate Cut in the Cards? ETFs to Play
U.S. producer prices increased less than expected in July as a rise in the cost of goods was moderated by cheaper services, in a sign that inflation continued to ease. The producer price index (PPI) for final demand edged up 0.1% last month after rising by an unrevised 0.2% in June, the Labor Department's Bureau of Labor Statistics said on Tuesday. Economists polled by Reuters had forecast the PPI gaining 0.2%. In the 12 months through July, the PPI increased 2.2% after climbing 2.7% in June.
No wonder, financial markets are expecting an easing cycle by the Federal Reserve starting in September, prompted by slowing inflation and a cooling labor market. Concerns over labor market weakness have heightened following a surge in the unemployment rate to nearly a three-year high of 4.3% in July.
This situation has raised speculation that the Fed might consider a rate cut of 50 basis points, marking a departure from its year-long standpoint of keeping the benchmark overnight interest rate within the 5.25-5.50% range. This range had been established after a cumulative increase of 525 basis points throughout 2022 and 2023.
Growth ETFs in Focus
Cues of hefty Fed rate cuts bode well for growth investing. Traditionally, growth ETFs have performed well in periods of low interest rates as the borrowing costs for companies stay low, enabling them to invest in expansion and innovation.
However, we have highlighted low P/E growth ETFs that are still cheap in valuation as the investing backdrop is still edgy due to the latest tech slump on slight doubt over the faster success of investments in artificial intelligence.
ETFs in Focus
Invesco S&P 500 Pure Growth ETF– Zacks Rank #2 (Buy); P/E: 10.63X
The underlying S&P 500 Pure Growth Index measures the performance of securities that exhibit strong growth characteristics in the S&P 500 Index. The fund charges 35 bps in fees.
First Trust Large Cap Growth AlphaDEX ETF– Zacks Rank #2; P/E: 15.60X
The underlying Nasdaq AlphaDEX Large Cap Growth Index is an enhanced index that employs the AlphaDEX stock selection methodology to pick stocks from the Nasdaq US 500 Large Cap Growth Index. The fund charges 60 bps in fees.
Invesco NASDAQ Next Gen 100 ETF– Zacks Rank #3; P/E: 17.78X
The underlying Nasdaq Next Generation 100 Index comprises securities of the next generation of Nasdaq-listed non-financial companies, that is, the largest 100 Nasdaq-listed companies outside of the Nasdaq-100 Index. The fund charges 15 bps in fees.
Invesco Dynamic Large Cap Growth ETF– Zacks Rank #2; P/E: 22.28X
The underlying Dynamic Large Cap Growth Intellidex Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure. The fund charges 16 bps in fees.
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Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.