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The Zacks Analyst Blog Highlights: QUAL, SPHQ, BFOR, QDF and QUS
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For Immediate Release
Chicago, IL – May 6, 2020 – 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. Stocks recently featured in the blog include: (QUAL - Free Report) , (SPHQ - Free Report) , (BFOR - Free Report) , (QDF - Free Report) and (QUS - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Beat Coronavirus Blues with These Quality ETFs
The coronavirus pandemic continues to spread in the United States even though the economy has started to reopen in phases. On May 4, the United States recorded 22,247 new cases and 1,240 deaths, according to Johns Hopkins University. The United States alone has recorded more than 1.1 million cases and a death toll of more than 68,000. A model, often mentioned by the White House, predicts a death toll of 134,000 from the pandemic in the United States by August, almost doubling from the previous forecast, per a CNN report.
The outbreak has caused an unprecedented collapse of economic activities as governments are forced to shut down commerce and implement social distancing measures in an effort to contain the spread of the virus. The job market is also getting disrupted as Americans are consistently filing claims for unemployment benefits. The total U.S. weekly jobless claims now exceed 30 million over the last six weeks. With rising unemployment levels, the spending capacity of consumers is, undoubtedly, getting compromised to a great extent.
However, optimism is being observed among investors as the U.S. economy begins to reopen in phases. Going on, Treasury Secretary Steven Mnuchin is targeting to increase U.S. borrowing from April through June by around $3 trillion to support the economy that has been hammered by the pandemic, per a Bloomberg article. He has also said that “the economy really bounce back in July, August and September” after reopening in May and June, according to a MarketWatch article.
Combat the Pandemic With Quality ETFs
Quality stocks are rich in value characteristics with a healthy balance sheet, high return on capital, low volatility and high margins. They also have a track record of stable or rising sales and earnings growth. In comparison to plain vanilla funds, these products help in lowering volatility and perform rather well during market uncertainty. Further, academic research has proven that high-quality companies constantly provide better risk-adjusted returns than the broader market over the long term.
Given this, we have highlighted five ETFs targeting this niche strategy. These could enjoy smooth trading and generate market-beating returns in the current market environment.
iShares Edge MSCI USA Quality Factor ETF
This fund provides exposure to large and mid-cap stocks exhibiting positive fundamentals (high return on equity, stable year-over-year earnings growth and low financial leverage) by tracking the MSCI USA Sector Neutral Quality Index (read: 6 Healthy ETFs Amid Coronavirus-Hit Economy).
Expense Ratio: 0.15%
AUM: $16.29 billion
Invesco S&P 500 Quality ETF
This fund tracks the S&P 500 Quality Index, a benchmark of S&P 500 stocks that have the highest-quality score based on three fundamental measures — return on equity, accruals ratio and financial leverage ratio.
Expense Ratio: 0.15%
AUM: $1.73 billion
Barron's 400 ETF
This ETF seeks investment results that correspond generally, before fees and expenses, to the performance of the Barron's 400 Index.
Expense Ratio: 0.66%
AUM: $99.1 million
FlexShares Quality Dividend Index Fund
This ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Quality Dividend Index.
Expense Ratio: 0.37%
AUM: $1.26 billion
SPDR MSCI USA StrategicFactors ETF
This fund offers exposure to stocks that have a combination of value, low volatility and quality factor strategies. This is done by tracking the MSCI USA Factor Mix A-Series Index.
Expense Ratio: 0.15%
AUM: $725.2 million
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: QUAL, SPHQ, BFOR, QDF and QUS
For Immediate Release
Chicago, IL – May 6, 2020 – 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. Stocks recently featured in the blog include: (QUAL - Free Report) , (SPHQ - Free Report) , (BFOR - Free Report) , (QDF - Free Report) and (QUS - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Beat Coronavirus Blues with These Quality ETFs
The coronavirus pandemic continues to spread in the United States even though the economy has started to reopen in phases. On May 4, the United States recorded 22,247 new cases and 1,240 deaths, according to Johns Hopkins University. The United States alone has recorded more than 1.1 million cases and a death toll of more than 68,000. A model, often mentioned by the White House, predicts a death toll of 134,000 from the pandemic in the United States by August, almost doubling from the previous forecast, per a CNN report.
The outbreak has caused an unprecedented collapse of economic activities as governments are forced to shut down commerce and implement social distancing measures in an effort to contain the spread of the virus. The job market is also getting disrupted as Americans are consistently filing claims for unemployment benefits. The total U.S. weekly jobless claims now exceed 30 million over the last six weeks. With rising unemployment levels, the spending capacity of consumers is, undoubtedly, getting compromised to a great extent.
However, optimism is being observed among investors as the U.S. economy begins to reopen in phases. Going on, Treasury Secretary Steven Mnuchin is targeting to increase U.S. borrowing from April through June by around $3 trillion to support the economy that has been hammered by the pandemic, per a Bloomberg article. He has also said that “the economy really bounce back in July, August and September” after reopening in May and June, according to a MarketWatch article.
Combat the Pandemic With Quality ETFs
Quality stocks are rich in value characteristics with a healthy balance sheet, high return on capital, low volatility and high margins. They also have a track record of stable or rising sales and earnings growth. In comparison to plain vanilla funds, these products help in lowering volatility and perform rather well during market uncertainty. Further, academic research has proven that high-quality companies constantly provide better risk-adjusted returns than the broader market over the long term.
Given this, we have highlighted five ETFs targeting this niche strategy. These could enjoy smooth trading and generate market-beating returns in the current market environment.
iShares Edge MSCI USA Quality Factor ETF
This fund provides exposure to large and mid-cap stocks exhibiting positive fundamentals (high return on equity, stable year-over-year earnings growth and low financial leverage) by tracking the MSCI USA Sector Neutral Quality Index (read: 6 Healthy ETFs Amid Coronavirus-Hit Economy).
Expense Ratio: 0.15%
AUM: $16.29 billion
Invesco S&P 500 Quality ETF
This fund tracks the S&P 500 Quality Index, a benchmark of S&P 500 stocks that have the highest-quality score based on three fundamental measures — return on equity, accruals ratio and financial leverage ratio.
Expense Ratio: 0.15%
AUM: $1.73 billion
Barron's 400 ETF
This ETF seeks investment results that correspond generally, before fees and expenses, to the performance of the Barron's 400 Index.
Expense Ratio: 0.66%
AUM: $99.1 million
FlexShares Quality Dividend Index Fund
This ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Quality Dividend Index.
Expense Ratio: 0.37%
AUM: $1.26 billion
SPDR MSCI USA StrategicFactors ETF
This fund offers exposure to stocks that have a combination of value, low volatility and quality factor strategies. This is done by tracking the MSCI USA Factor Mix A-Series Index.
Expense Ratio: 0.15%
AUM: $725.2 million
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
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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 http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.