The market has been weak lately and nobody is
predicting a turnaround anytime soon.
What to do? Here are four
exchange-traded-funds (ETFs) that are currently generating positive
returns, plus they all have strong historical return records.
Consequently, they have a reasonable chance of
producing positive returns, even in this market.
Sound interesting? First a
little background.
As you probably know, ETFs are
similar to conventional mutual funds in that both track the
performance of portfolios of stocks, bonds, etc. One difference is
that ETFs trade just like stocks. Thus, they’re easier, and often
less expensive to buy and sell than conventional mutual funds.
Another difference between ETFs
and mutual funds is that unlike mutual funds, most ETFs list their
current portfolio holdings online every market day. So, I’ll include
each fund’s top five holdings in the write-ups. Thus if you’d rather
buy individual stocks than ETFs, you’ll have 20 worthwhile
individual stock ideas worth checking out.
Without further ado, here are
the details.
All performance data described below is as of
February 21. For comparison, as of that date, the S&P 500 had
returned +4.4% year-to-date, -6.6% over 12-months, and averaged
10.0% annually over the past five years.
•
Invesco KBW Property PI & Casualty Insurance (KBWP) tracks a
capitalization weighted index of U.S.-based property and casualty
insurance companies. Biggest holdings include Progressive
Corporation (PGR), Allstate Corporation (ALL), Travelers Companies (TRV),
American International Group (AIG), and Chubb (CB). The fund has
returned 4.8% year-to-date, 12.2% over the past 12-months, and
averaged 11% annually over the past five years. It pays quarterly
dividends equating to a 1.9% annual yield.
•
Global X U.S. Infrastructure Development (PAVE) holds U.S.-based
companies that it expects to benefit from the expected U.S.
government’s increased infrastructure spending. Specifically those
supplying raw materials, heavy equipment, engineering services, and
construction services. Biggest holdings include United Rentals
(URI), Parker Hannifin (PH), Eaton (ETN), Nucor (NUE) and Fastenal
(FAST). Global X has returned 8.1% year-to-date, 9.0% over
12-months, and averaged 12.3% annually over five years. Pays
semi-annual dividends (1.0% yield).
•
Invesco S&P SmallCap 600 Revenue (RWJ) holds the highest revenue
growth stocks in the S&P 600 SmallCap Index, which holds 600
“financially viable” small-cap stocks. Biggest holdings include
World Fuel Services (INT), United Natural Foods (UNFI), Community
Health Systems (CYH), Andersons, Inc. (ANDE), and Group 1 Automotive
(GPI). The fund has returned 11.2% year-to-date, 2.8% over
12-months, and averaged 13.1% annually over five years. Pays
quarterly dividends (0.9% yield).
•
Invesco S&P SmallCap 600 Pure Value (RZV) Picks members of the
S&P SmallCap 600 Pure Value Index, which picks holdings based on
price/book, price/earnings and price/sales ratios. Biggest holdings
include: Olympic Steel (ZEUS), M/1 Homes (MHO), Telephone :& Data
Systems (TDS), Genworth Financial (GNW), and AMC Networks (AMCX).
The fund has returned 12.5% year-to-date, 7.0% over 12-months and
averaged 8.4% annually over five years. It pays quarterly dividends
(1.4% yield).
As always, past performance doesn’t predict the
future. Do your due diligence. The more you know about your
holdings, the better your results.
published 2/28/23
