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Larry Swedroe, who is considered one of the market's most esteemed researchers, thinks Warren Buffett's investment style doesn't work well anymore. "Warren Buffett was generally considered the greatest stock picker of all time. And, what we have learned in the academic research is Warren Buffett really was not a great stock picker at all," Swedroe told CNBC's "ETF Edge" this week. "What Warren Buffett's 'secret sauce' was, he figured out 50, 60 years before all the academics what these factors were that allowed you to earn excess returns." In his latest book, Swedroe likens the stock market to sports betting and active managers to bookies.
Persons: Larry Swedroe, Warren, Warren Buffett, Swedroe, CNBC's, Warren Buffett's, Cliff Asness, Buffett, Buffett's, who's Organizations: Wall Street, Alpha, CNBC, Buckingham Wealth Partners Locations: AQR, Bridgeway, BlackRock
Last fall, BlackRock filed to launch an ESG municipal bond exchange-traded fund. It is in essence an ESG version of its major $32 billion municipal bond fund. The delay for the world's largest ETF provider has puzzled some in the industry. This year Goldman Sachs launched its first municipal bond ETF, which takes into account social and environmental factors. BlackRock's ESG municipal bond ETF has another wrinkle.
Persons: Larry Fink, Wesley Gray, Matthew Tuttle, they've, Goldman Sachs, Fink, Salim Ramji, Tony Kelly Organizations: BlackRock, Securities and Exchange Commission, SEC, HIP Muni Bond ETF, Alpha, Republican, Tuttle Capital Management, Goldman, HIP Investor, HIP Locations: York, Arizona , Texas, South Carolina, BlackRock, Connecticut
He came up with a quantitative system that filters for growing and cash-generating companies. These 30 stocks are considered the most undervalued bets based on Risenhoover's methodology. In 2014, he turned to Dr. Wesley Gray, CEO and CIO of the asset-management firm Alpha Architect, to backtest the model. At the time, Gray had just co-authored a book on quantitative value investing that informed much of Risenhoover's thinking. Risenhoover recommends reviewing the stock's chart and its price action to decide whether you're comfortable with it.
Persons: Wilton Risenhoover, Risenhoover, Wesley Gray, Gray, Russell, Stocks, that's, I've Organizations: University of California, Alpha Locations: Los Angeles
The biggest momentum ETF, the iShares MSCI USA Momentum ETF (MTUM) , rebalanced in the final days of May and now has Nvidia as the biggest holding in its portfolio, at about 6.3%. MTUM YTD mountain The biggest momentum ETF has struggled in 2023. How the index works The MSCI USA Momentum Index attempts to capture hot stocks, with the hope their rally will continue over the coming months. The MSCI USA Momentum Index is rebalanced every six months, with the most recent update taking effect June 1. There are other momentum funds with different methodologies that rebalance more frequently, such as the Invesco DWA Momentum ETF (PDP) and the Alpha Architect U.S. Quantitative Momentum ETF (QMOM) , which have outperformed MTUM this year, but those two funds are still trailing the S & P 500.
Persons: MTUM, Todd Sohn, Abhishek Gupta, Roman Mendoza, Strategas, Sohn, we've Organizations: Nvidia, ExxonMobil, Chevron, Meta, Microsoft, ETF, Alpha Architect
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