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Final Trades: Cisco Systems, Arch Capital, Pfizer, and the COWZ
  + stars: | 2024-07-17 | by ( ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFinal Trades: Cisco Systems, Arch Capital, Pfizer, and the COWZThe Investment Committee give you their top stocks to watch for the second half.
Organizations: Cisco Systems, Arch Capital, Pfizer, Investment
Final Trades: Interactive Brokers, American Express and COWZ
  + stars: | 2024-04-17 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFinal Trades: Interactive Brokers, American Express and COWZThe Investment Committee share their top stocks to watch for the second half.
Organizations: Interactive, American Express, Investment
Final Trades: Citigroup, Google and COWZ
  + stars: | 2024-03-01 | by ( ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFinal Trades: Citigroup, Google and COWZToday’s ‘Halftime Report’ Investment Committee, Bryn Talkington, Jim Lebenthal and Steve Weiss give their top picks to watch for the second half.
Persons: Today’s, Bryn Talkington, Jim Lebenthal, Steve Weiss Organizations: Citigroup, Google, Investment
After several years of big swings in the market and the U.S. economy, investors may want to buckle down and focus on individual stocks rather than make bold predictions about 2024. A resilient economy in 2023 proved widespread projections of an imminent recession wrong, and the economic consensus is murkier heading into the new year. That scenario of an economy exiting a recession seems far away as the calendar turns to 2024 with the U.S. labor market still growing. And quality stocks showed in 2023 that they can have solid performance even if growth is what leads the market. Shifting to high quality stocks can give investors a measure of defense in their portfolio without piling into cash.
Persons: Tony DeSpirito, DeSpirito, Seder, George Mateyo Organizations: Wall, BlackRock, CNBC, Key Private Bank Locations: U.S
The ETF flowdown: 2023 is back on pace to be a solid year
  + stars: | 2023-12-15 | by ( Kirsten Chang | ) www.cnbc.com   time to read: +4 min
watch nowDespite a sluggish start to the year, a record number of product launches and a red-hot November have put 2023 back on pace to be a solid year for ETFs. Roughly $1 trillion has gone into money market funds this year, but some are questioning whether the solid year-end stock rally will attract some of those flows back into equities. "You saw that enormous cash pileup going into money markets, and ETF flows were muted. "We talked about the money market funds," he said. He pointed to strong inflows into high-yield ETFs such as the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and SPDR Bloomberg High Yield Bond ETF (JNK) and SPDR Bloomberg Short Term High Yield Bond ETF (SJNK) — along with dividend ETFs such as the Pacer U.S. Cash Cows 100 ETF (COWZ).
Persons: Ben Slavin, BNY Mellon, CNBC's, Andrew McOrmond, McOrmond, it'll, SPDR, Slavin Organizations: BNY, WallachBeth, SPDR Bloomberg, Pacer, Cash, Tech, RSP Locations: outflows
Small cap stocks have been left in the dust by this year's megacap tech rally, but at least one ETF of smaller companies is holding its own. Bank of America ETF strategist Jared Woodard said in a note to clients Tuesday that there is one small cap ETF in particular that "cuts out the junk" and is outperforming its benchmark. The Pacer US Small Cap Cash Cows 100 ETF (CALF) owns companies with high free cash flow, a key measure of quality," Woodard said. The CALF ETF works by identifying the 100 stocks in the S & P Small Cap 600 index with the highest free cash flow yield. CALF YTD mountain The CALF ETF has outperformed larger small cap funds this year.
Persons: Jared Woodard, Woodard, Russell, — CNBC's Michael Bloom Organizations: Bank of America, American Eagle Outfitters, Wire, Vanguard, Nvidia
The Invesco BuyBack Achievers ETF (PKW) has risen 10.7% over the past three months, accounting for more than 100% of its gains for the year. The SPDR S & P 500 ETF Trust (SPY), by comparison, is up 7.6% over the past three months. PKW 3M mountain The Invesco BuyBack Achievers ETF is outperforming the S & P 500 over the past three months. Over the past decade, the Invesco fund has an average annual total return of 10.8%. That is below the returns for the broad S & P 500 but better than that of the iShares S & P 500 Value ETF (IVE) and SPDR Portfolio S & P 500 Value ETF (SPYV) .
Persons: Nick Kalivas, Kalivas, Morgan Stanley Organizations: Trust, Nasdaq, Comcast, ConocoPhillips, Pacer U.S, Cash, CNBC Locations: U.S
A popular ETF focused on cash flow is finding its footing again after lagging the broader market in the first half of 2023. The Pacer U.S. Cash Cows ETF (COWZ) has set several recent highs over the past two weeks, including closing at a record $51.49 per share on Wednesday. The index consists of Russell 1000 stocks with the best free cash flow yield. "The rebalance every 90 day is sort of the key because it keeps the focus on the most current free cash flow yield, and the names with the highest free cash flow yield. "When you focus on high free cash flow yield names, you actually end up owning companies who grow their earnings faster than their index," he added.
Persons: COWZ, Russell, Sean O'Hara, Morningstar, O'Hara Organizations: The Pacer U.S, Cash, Nasdaq, Energy, Chevron, Booking Holdings
The 60/40 portfolio doesn't work anymore, according to Bank of America. If the 60/40 portfolio was on life support last year, this year its demise is now "confirmed," Woodard wrote. Bonds require 40% of the assets in a 60/40 portfolio but have delivered only 25% of the returns since 1920, he noted. Weak bond returns will lead to "another lost decade" for the 60/40 portfolio, in Woodard's words. For income, Bank of America's researchers unveiled a strategy called "dynamic prudent yield" that promises to beat bond indexes while carrying less risk.
Persons: Bonds, Jared Woodard, Woodard, Woodward, Schwab Organizations: Bank of America, Bank of, RSP, Vanguard, Energy, P Metals, Mining, Uranium, Research, Government Bond ETF, First Trust, Income, Muni Bond ETF, Muni, Blackstone Senior Loan, of America, Bond, SPDR Bloomberg Convertible Securities ETF, US, iShares, Securities ETF, VanEck Preferred Securities, Financials, Bloomberg, Treasury Bond ETF, Treasury
The rally in growth and tech stocks in the first quarter caught much of Wall Street off-guard, but many ETF strategists are sticking to their call and not chasing the hot sectors quite yet. The big winners in the stock market during the first quarter were found among growth stocks. QQQ YTD mountain Growth stocks rebounded in the first quarter. One area that is popular among value investors is income funds, which can help investors offset market declines by generating cash. To be sure, the iShares strategy team has an improving view of growth stocks, at least in high quality names.
February's reversal for stocks and renewed climb higher in benchmark interest rates resulted in more cautious investors, as shown by some of the month's most popular ETFs. The list of the most popular equity ETFs for the past month, measured by net inflows, shows a defensive tilt and suggests investors 'appetite for income funds remains strong. The next two funds on the list are from JPMorgan, including one red hot income fund. Other popular income funds include the Schwab US Dividend Equity ETF (SCHD) and the Pacer US Cash Cows 100 ETF (COWZ) . Outside of equity funds, the hunt for yield showed up in demand for short-term bond ETFs .
International equities have outperformed their U.S. counterparts by more than 4%, but investors should choose carefully, said Jared Woodard, investment and ETF strategist at Bank of America, in a note to clients on Monday. "International dividends ( GCOW ), emerging markets ex-China ( EMXC ), and Canada ( FLCA ) should comprise long term international holdings," the note said. The global version is already off to a solid start in 2023, with a total return of about 6%. The fund, which has $3 billion in assets and an expense ratio of 0.25%, already has a total return of more than 5% in 2023. The Canada fund has a total return of more than 8% year to date.
They're emphasizing growth right now," van Eck said at the Exchange ETF conference in Miami. The iShares MSCI China ETF (MCHI) had a total return of more than 10% this year, through Feb. 3. MCHI YTD mountain This popular China ETF is outperforming in 2023. Van Eck pointed to the outsized growth of major U.S. tech firms as a key reason for that outperformance, but said that era appears to be over. "We've got a decade where you're really taking a risk if you're under invested overseas," van Eck said.
A pair of factor ETFs are on a hot streak that should continue early in the new year, according to Bank of America. Free cash flow to enterprise value is the best metric for determining quality, Bank of America said. After the first week of the year, the COWZ fund has a total return of 8.2% over the past three months, while the QLV fund is up 7.8%. "COWZ has a top weights in energy and materials, where P/E ratios have come down from summer highs and remain below average. Similarly, QLV has high weights in Apple and Microsoft whose P/E ratios have both returned to pre-Pandemic levels," he added.
Here's how some ETF experts are viewing the year and what types of funds could be winners in 2023. … In 2023, investors should be a lot more selective," said Pedro Palandrani, director of research at Global X ETFs. While those areas would be negatively affected by a recession, infrastructure spending approved earlier in the Biden administration could help create solid demand even if the U.S. consumer weakens. Similarly, iShares highlighted the U.S. Infrastructure ETF (IFRA) and the MSCI Global Agriculture ETF (VEGI) in its 2023 outlook as potential winners, in part due to their inflation-hedging properties . In iShares' 2023 outlook, the firm identified its MSCI USA Value Factor ETF (VLUE) and Core S & P Small-Cap ETF (IJR) as two funds that could benefit from a low-growth environment.
Others are blaming the World Cup, and indeed many trading desks seem obsessed with watching every game. But beneath the lower volumes has been some strong activity in many exchange-traded funds, as well as inflows. China is still rallying on the reopening headlines, so emerging market ETFs like KraneShares China Internet (KWEB) have seen inflows. The TSLA Bear 1x ETF (TSLS), which gives you the daily inverse performance of Tesla, has seen big inflows since launching in August. Since October, volumes have exploded as Tesla has moved down on the Twitter deal — it's up 40% since early October.
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