What You May Have Missed This Week...
The best strategies for investing in high yield ETFs and the best ETFs from Invesco, Schwab, Vanguard and iShares.
In addition to the regular posts here on Substack, I also publish ETF research and notes over on my blog, ETF Focus.
In case you wanted to catch up on the latest research above and beyond what you’re reading here, this is a quick list of some of the most recent articles from the blog!
Two High-Yield Income ETFs That Have Been Flops So Far
Whether you're focused on generating income through investments or seeking growth opportunities, I think there's a common ground that unites us all: the significance of total returns.
To put it bluntly, it really doesn't matter if your profits are stemming from dividend payments, covered calls, share buybacks, or share price appreciation. At the end of the day, what we all desire is to see our investment line trend upwards over the long term.
This principle holds true even for income investors. Sure, the allure of high-yield income ETFs is undeniable, offering the promise of steady income streams. However, it's crucial to evaluate these investments based on their total returns.
Betting on Sports Betting with BETZ
You can’t turn on a sporting event on the TV without seeing an endless drowning of advertisements for sports betting from companies like Draft Kings or Fan Duel. Sports betting has been around for a long time—dating back to even the 18th century—when participants would make formal bets on horse racing.
As of the time of writing, there are more than 30 states that have legalized sports betting. When you combine this with the internet, smartphones, social media, and applications—it’s never been easier to place an online sports bet.
3 Best Invesco ETFs of 2024
When the name "Invesco" comes up in investment circles, many immediately think of QQQ, the flagship Nasdaq 100 ETF renowned for its substantial growth, with $249 billion in assets under management. Today, QQQ has become synonymous with tech-heavy investment strategies, offering significant exposure to the largest non-financial companies listed on the Nasdaq stock market.
However, concentrating solely on QQQ means overlooking the diverse range of ETFs that Invesco offers, each with unique strategies and potential benefits for investors. Beyond the behemoth that is QQQ, Invesco boasts a wide array of ETFs covering various sectors, themes, and investment approaches.
High Yield Covered Call ETFs: Using A "Rent, Don't Buy" Strategy
I’ve previously written about the potential for covered call ETFs to outperform in a flat/down market. The recent rally in the stock market has exposed the poor returns of covered call ETFs in a bull market. The S&P 500 Index has increased 20%+ in value since late October, meanwhile Global X’s S&P 500 Covered Call ETF (XYLD) has only increased about 6%.
So what’s the catch? It’s true that covered call ETFs pay a higher yield that most other opportunities in the ETF realm. However, prospective investors should keep a few things in mind:
3 Best Schwab ETFs of 2024
Schwab is widely recognized for its award-winning brokerage platform and the strategic acquisition of TD Ameritrade, solidifying its position as a titan in the investment services industry.
However, what often flies under the radar is Schwab's impressive footprint in the ETF marketplace. Far from being a mere side player, Schwab offers a plethora of low-cost ETFs designed to cater to a broad spectrum of investment strategies, making it a significant contender in the ETF domain.
5 ETFs That Could Juice Your Retirement Accounts In 2024
For retirement investors, that means a renewed focus on principal preservation. If you've got decades to let your retirement savings grow, you can be more tilted to the growth and tech side because you have years to make up for any potential losses. If you're older and/or closing in on retirement, you may not have that luxury. If you're overexposed to risk, any damage caused by a bear market could be too severe to recover from when you need the money. Balancing out your IRA or 401(k) with defensive equities could help limit some of that downside risk.
I actually believe there are some intriguing opportunities in equities right now. You just have to look outside of tech!
Is This S&P 500 ETF Better Than SPY And VOO?
In the world of ETFs, low cost is king. From an investor perspective, it's important to make sure that the fund's strategy is consistent with your goals & objectives. From an issuer perspective, they're well aware that low cost tends to attract investor money.
There is no better example of this than with the S&P 500 ETFs. The three largest ETFs in existence all track the S&P 500 - the SPDR S&P 500 ETF (SPY), the iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (VOO). Combined they account for more than $1.3 trillion of investor money.
But investors may not know that there's actually a fourth ETF that belongs in this club and it may actually be the best of the bunch.
3 Best Vanguard ETFs of 2024
Vanguard's lineup of ETFs continues to stand out in the market. With 86 options currently available, Vanguard’s offerings are predominantly characterized by broad diversification and a passive, index-based investment approach. True to Vanguard's reputation, these ETFs come with the low fees that investors have come to expect from the firm.
In the vast sea of Vanguard’s ETF options, there are a few that I believe are particularly noteworthy for my readers. Here are three standout Vanguard ETFs for 2024:
3 Best iShares ETFs of 2024
BlackRock iShares stands as a towering presence in the ETF marketplace, boasting a comprehensive suite of 425 ETFs that cover an expansive range of asset classes, including equities, bonds, commodities, derivatives, thematic investments, multi-asset solutions, and even cryptocurrency.
Navigating through the extensive selection of 425 funds, however, can be a daunting task, potentially leading to analysis paralysis among investors trying to identify the best options for their portfolios. To simplify this process and provide some direction, I'm spotlighting what I consider to be the three standout ETFs from iShares' lineup for 2024.