Does meta etf pay dividends1/13/2024 ![]() Learn more about SPLV at the Invesco provider site. ![]() All these are established blue chip stocks that are sure to withstand any short-term ups and downs in the market better than most other small and mid-cap stocks out there. However, it does allow for a more stable and defensive group of holdings based on market data.įor instance, the top three holdings in SPLV right now are soft drink giant Coca-Cola ( KO), fast-food chain McDonald's ( MCD) and personal care product maker Kimberly-Clark ( KMB). This vehicle is not a foolproof guarantee of future stability. ![]() Specifically, SPLV handpicks the top 100 stocks in the S&P 500 based on a ranking of which names have been the least volatile over the prior 12 months. As the name implies, the fund is formulated in a way that prioritizes companies that are less volatile than their peers – ideal for investors seeking out the best defensive ETFs. Learn more about RSP at the Invesco provider site.Īnother interesting approach to the standard S&P 500 fund is the Invesco S&P 500 Low Volatility ETF ( SPLV, $58.01). That could mean you leave some profits on the table if Big Tech soars, but you will avoid putting all your eggs in one basket and being disappointed when the sector stumbles. This is a much more diversified way to approach the stock market, as it's possible for a small number of big holdings to skew performance in an index. In other words, Apple should represent about 0.2% of the total assets – unlike the roughly 6% it typically takes up in the standard funds that weight holdings by market value. The "equal weight" in the name means that this fund rebalances regularly to hold as close to equal values in every single S&P 500 component, rather than placing a priority on the big guys. In fact, the S&P 500 Index is about 25% weighted toward information technology – and the Nasdaq-100 is even more reliant, at roughly 55%.īut for investors seeking out the best defensive ETFs, the Invesco S&P 500 Equal Weight ETF ( RSP, $137.01) is worth a closer look because it looks to balance the broad-market scales. It's not uncommon for Big Tech to be the dominant force behind an ETF, given that many of the largest companies in the world are in this sector. Learn more about QUAL at the iShares provider site. So, if you're looking for a defensive ETF, it might be beneficial to overlay a screen for quality instead of just picking the standard vanilla index fund. With many projecting a recession will hit later this year, a focus on quality is essential. The stocks that make up this fund are chosen based on factors like their return on equity and earnings growth. Right now, top holdings include credit card giant Visa ( V), Facebook parent Meta Platforms ( META) and semiconductor stock Nvidia ( NVDA). stocks that exhibit stronger fundamentals than their peers, as well as a historical tendency to outperform the competition. The ETF is composed of a focused list of about 125 large and mid-sized U.S. The iShares MSCI USA Quality Factor ETF ( QUAL, $131.47) embraces the power of these numbers. Theoretically, these key metrics are what result in the long-term appreciation of a stock's value rather than short-term measures of sentiment or the news cycle. Learn more about VTI at the Vanguard provider site.Īnother way to approach the best defensive ETFs is to find one with a focus on "fundamentals" – that is, the profit and sales performance of a stock as opposed to just how much its share price is moving. However, if you want to cast the widest possible net then VTI may be a good foundational holding in your portfolio. So if all of Wall Street takes a tumble as a group, then there's not much you can do to protect yourself – even with the best defensive ETFs out there. Consumer discretionary (14.4%) and industrial stocks (12.8%) come in at a distant second and third, respectively.Īs the name implies, this is a play on the entirety of the stock market. However, you'll also get mid-sized firms and small start-ups in the mix, too.Īs for sector exposure, tech stocks are most prevalent at nearly 30% of the portfolio. The larger stocks still lead the portfolio, with Apple ( AAPL) and Microsoft ( MSFT) as top holdings. exchanges, with a lineup of nearly 4,000 names. The Vanguard Total Stock Market ETF ( VTI, $208.47) holds a piece of nearly every publicly traded company listed on U.S. But there's a great big world of stocks out there, and sometimes the smaller and lesser-known names on Wall Street can help provide a bit of outperformance – or in times of trouble, some stability. When most investors pick an index fund, they tend to gravitate to the standard S&P 500 funds. Expenses: 0.03%, or $3 annually for every $10,000 invested.Assets under management: $299.7 billion.
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