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Yahoo
18 minutes ago
- Business
- Yahoo
Here's Why Gold ETFs Remain Strong Bets
Persistent economic uncertainty and a volatile global trade landscape have elevated investors' anxiety, providing strong tailwinds for gold. Mounting U.S. debt concerns, unfavorable inflation data and central banks' increasing purchases of the precious metal have contributed to gold's sustained appeal. Invest in Gold Thor Metals Group: Best Overall Gold IRA Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase American Hartford Gold: #1 Precious Metals Dealer in the Nation Favorable fundamentals can position gold for further gains through late 2025 and into 2026. In such a scenario, increasing exposure to gold remains a smart strategy. Investors should not be discouraged by any likely decline in gold prices. Rather, they should adopt a "buy-the-dip" strategy. Given the increasing macroeconomic uncertainty and geopolitical volatility, gold remains an essential hedge for all investors, regardless of their investment theme. Here is why gold ETFs remain a compelling choice for investors. Stubborn Inflation Boosts Gold's Safe-Haven Status Across extended investment periods, gold preserves its purchasing power, outpacing inflation and diversifying an investment portfolio due to its historical tendency to have a negative correlation with other asset classes. Economists' concerns about renewed inflationary pressures triggered by President Trump's tariffs have proven accurate. According to recent data by the Bureau of Labor Statistics, as quoted on CNBC, the Consumer Price Index rose 0.3% in June, lifting the annual inflation rate to 2.7%. Central Banks are Betting Big on Gold Central banks are increasingly moving to strengthen their gold reserves and sustained central bank buying may drive gold prices. According to CNBC, central banks are increasingly focused on strengthening their reserve buffers to guard against potential financial shocks amid rising global debt, persistent trade tensions and mounting geopolitical risks. Diversifying reserves, especially with assets like gold, offers critical stability in times of crisis. According to a survey by the World Gold Council ('WGC'), as quoted on CNBC, approximately 95% of the 73 central banks surveyed expect their global counterparts to increase gold holdings over the coming year, highlighting a strong signal of gold's enduring appeal as a strategic asset. According to Kitco, a major driver of gold's strength is the growing appetite among emerging market central banks to increase their gold reserves. Mounting US Debt Reignites Safe-Haven Demand Concerns over U.S. debt levels can add pressure to investor confidence, making investors risk-averse and increasing the demand for safe-haven assets. The passage of President Trump's tax-cut and spending bill has renewed concerns over the United States' mounting long-term debt risks. Lawmakers raised the U.S. government's borrowing limit by an additional $5 trillion, potentially adding at least $3 trillion to the already staggering $37-trillion U.S. debt load. Per analysts at WGC, as quoted on Kitco, gold prices are likely to benefit from soaring U.S. deficits and growing fiscal instability, even in the absence of an immediate crisis. Here's What Else is Fueling Gold's Bull Case The only word that can be used to describe the geopolitical landscape in 2025 is 'complicated.' The constant volatile situation in the Middle East continues to drive investor interest toward safe-haven assets, keeping the yellow metal an attractive choice. Amid the current economic and geopolitical climate, adopting a long-term passive investment strategy becomes the go-to approach for investors to weather short-term market storms. Following tariff-related announcements by President Trump, renewed fears of a potential global trade war bolstered the demand for the safe-haven asset. Additionally, as fiscal and political uncertainty continues to mount in the United States, gold is expected to gain traction, reaffirming its status as a go-to safe-haven asset. ETFs to Consider Investors can enhance their exposure to the precious metal to potentially boost portfolio gains and better prepare for an uncertain market environment going forward. Increasing exposure to the yellow metal stands out as a smarter play than attempting to time the market, an approach that many investors may be tempted to employ. Investors can consider SPDR Gold Shares GLD, iShares Gold Trust IAU, SPDR Gold MiniShares Trust GLDM, abrdn Physical Gold Shares ETF SGOL and Goldman Sachs Physical Gold ETF AAAU to increase their exposure to the yellow metal. With a one-month average trading volume of 9.45 million shares, GLD is the most liquid option, ideal for active trading strategies. However, implementing an active strategy in the current landscape may not be the most effective approach. GLD has also gathered an asset base of $102.12 billion, the largest among the other options. Performance across all funds has been largely consistent. The funds have gained 15.5% over the past three months and about 39.2% over the past year. Regarding annual fees, GLDM is the cheapest option, charging 0.10%, which makes it more suitable for long-term investing. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR Gold Shares (GLD): ETF Research Reports iShares Gold Trust (IAU): ETF Research Reports abrdn Physical Gold Shares ETF (SGOL): ETF Research Reports SPDR Gold MiniShares Trust (GLDM): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Business
- Yahoo
Dividend ETFs Look Attractive as Inflation Picks Up in June
Inflation in the United States accelerated in June, indicating the early impact of new tariffs. The Consumer Price Index grew 2.7% year over year, up from the 2.4% increase in May and marking the highest level at the fastest pace since February. Month over month, inflation climbed 0.3%, up from a 0.1% rise the previous imposed under President Donald Trump are raising the cost of everyday goods such as clothing, furniture and appliances, according to government data. Excluding volatile food and energy costs, so-called core prices ticked up to 2.9%, a slight increase from 2.8%.The inflation uptick coincides with sweeping tariffs enacted by the Trump administration: a blanket 10% levy on all imports, 50% duties on steel and aluminum, 30% on Chinese goods, and 25% on imported automobiles. Trump has also threatened to impose a new 30% tariff on European Union imports starting Aug.1. These tariffs are trickling down to consumer prices. Gasoline price rose 1% from May to June, grocery prices climbed 0.35%, and appliance prices increased for the third consecutive major companies, including Walmart, Nike and Mitsubishi, have acknowledged passing higher costs onto consumers. Some firms delayed price hikes earlier this year by stockpiling inventory, but that buffer is now such a scenario, dividend investing seems to be a viable strategy for several reasons:Income Generation: One of the primary benefits of dividend investing is the steady stream of income generated through dividend payouts. Even if the market is volatile due to trade and the Fed uncertainties, dividend-paying stocks can provide a consistent income stream. Potential for Dividend Growth: Companies with a strong history of dividend growth may continue to increase the same over time, which can help offset the impact of rising interest rates. These are typically established, profitable companies that have the financial flexibility to increase dividends even during economic downturns. Their ability to grow dividends can be a sign of financial health, which might provide some level of protection in an uncertain market (read: Best-Performing Dividend ETFs of 1H).Defensive Nature: Dividend-paying stocks are often found in sectors considered "defensive," such as utilities, consumer staples and healthcare. These sectors can hold up better during economic downturns as they produce essential goods and services that are in demand regardless of economic conditions. Therefore, they may provide some level of stability in a portfolio if there are concerns about potential economic impacts from future rate Returns: Reinvesting dividends can significantly enhance the power of compounding and can lead to exponential growth over the long Against Inflation: Dividend-paying stocks can also serve as a hedge against inflation. Companies that can pass on increased costs to customers can maintain or even increase their profitability during inflationary periods, which can support their ability to pay dividends. ETFs to Bet On While there are several funds available in the space, we have highlighted five ETFs that have a solid Zacks Rank #1 (Strong Buy) or 2 (Buy), which promise outperformance amid the current market conditions. Vanguard Dividend Appreciation ETF (VIG)Vanguard Dividend Appreciation ETF is the largest and the most popular ETF in the dividend space, with an AUM of $93 billion and an average daily volume of 804,000 shares. The fund follows the S&P U.S. Dividend Growers Index, which is composed of stocks of companies that have a record of increasing dividends over time. Vanguard Dividend Appreciation ETF holds 337 stocks in its basket and charges 5 bps in annual fees. It has a Zacks ETF Rank # High Dividend Yield ETF (VYM)Vanguard High Dividend Yield ETF provides exposure to high-yielding dividend stocks by tracking the FTSE High Dividend Yield Index. It has amassed $61.8 billion in its asset base while trading in volumes of 1.1 million shares a day on average. Vanguard High Dividend Yield ETF holds 582 stocks in its basket and charges 6 bps in annual fees. It has a Zacks ETF Rank # Core Dividend Growth ETF (DGRO)iShares Core Dividend Growth ETF provides exposure to 397 companies having a history of sustained dividend growth by tracking the Morningstar US Dividend Growth Index. It has AUM of $32.5 billion and trades in solid volumes of about 1.5 million shares. DGRO charges 8 bps in fees per year and has a Zacks ETF Rank #1 (read: 5 ETF Predictions for the Second Half of 2025).SPDR Portfolio S&P 500 High Dividend ETF (SPYD)SPDR Portfolio S&P 500 High Dividend ETF provides exposure to stocks with a high level of dividend income and the opportunity for capital appreciation by tracking the S&P 500 High Dividend Index. Holding 77 stocks in its basket, the fund has key holdings in real estate, utilities, financials, and consumer staples. SPDR Portfolio S&P 500 High Dividend ETF has AUM of $7 billion and trades in an average volume of 1.2 million shares. It charges 7 bps in annual fees and has a Zacks ETF Rank # U.S. Dividend Equity ETF (SCHD)Schwab U.S. Dividend Equity ETF offers exposure to 103 high-dividend-yielding U.S. companies that have a record of consistent dividend payments, supported by fundamental strength based on financial ratios and ample liquidity. This can be easily done by tracking the Dow Jones U.S. Dividend 100 Index. Schwab U.S. Dividend Equity ETF charges 6 bps in annual fees and trades in a solid volume of about 17 million shares a day. It has an AUM of $71.3 billion and a Zacks ETF Rank #2. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports Vanguard High Dividend Yield ETF (VYM): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports Schwab U.S. Dividend Equity ETF (SCHD): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Forbes
2 hours ago
- Business
- Forbes
Where Is The Tariff Shock? It's Complicated And Probably Still Coming
WASHINGTON, DC - APRIL 02: U.S. President Donald Trump holds up a chart while speaking during a ... More 'Make America Wealthy Again' trade announcement event in the Rose Garden at the White House on April 2, 2025 in Washington, DC. Touting the event as 'Liberation Day', Trump is expected to announce additional tariffs targeting goods imported to the U.S. (Photo by) Many people in economics, finance, business, and regular consumer life have been waiting for the forecast inflation, the tariff shock, that the Trump administration's tariff strategy was supposed to bring. And yesterday, the Consumer Price Index inflation numbers came out, with year-over-year numbers reaching 2.7%, which also was the median of Dow Jones-surveyed economists' estimates. Was that all the impact of tariffs? Probably not, and much of what might happen is likely still to come. There's some additional information as well, but let's start with CPI, because Breaking Down CPI And Tariff Shock The 2.7% overall year-over-year increase was up from 2.4% in May. Then there's core CPI, which takes into account prices without food and energy because of their volatility. A sudden change in either can throw off the entire average. In June 2025, gasoline was down 8.3% year over year, which makes a big impact. Oxford Economics said in an emailed note that tariffs were 'beginning to rear their ugly head' in the increase. But while that seems sensible, it may not be accurate. The Bureau of Labor Statistics, which reports the CPI data, said that the index for shelter — up 0.2% month-over-month in seasonally adjusted terms (economists change numbers in an attempt to account for normal seasonal changes) and up 3.8% year over year in non-seasonally adjusted terms — was the 'primary factor' in higher inflation. That may not make sense at first glance. Gasoline was down even more than shelter, which includes rental housing and a rent equivalent for owned homes, was up. The explanation goes back to how the government calculates CPI. Every month, government employees across the country check local prices on a pre-determined basket of goods and services. Each category represents a specific percentage of the whole basket's value. Shelter is the largest single portion of the basket, at about a third. And so, an increase in shelter has an oversized impact on CPI values and inflation. However, this, too, can be misleading. Getting updated information on shelter, particularly apartment rents, can take many months. Higher volumes of apartment construction has reduced rents over time in some markets, but that isn't clear. So, it could be that inflation is a bit lower than the calculations suggest. Next, PPI And Tariff Shock On Wednesday, June 16, 2025, the Producer Price Index for final demand was released. Both headline (overall) and core were flat from May to June. These measures represent how prices change for businesses providing goods and services to others, so wholesale inflation. Expectations were for a seasonally adjusted 0.2% month-over-month change, so there was less wholesale inflation. PPI year-over-year (non-seasonally adjusted) was 2.3%. In May, it was 2.7%. Core PPI was up 2.5% compared to 2.8% in May. According to Oxford Economics, this was the second decline in the last three months. But don't take that as good or bad news about tariffs. Economist Ernie Tedeschi, a former chief economist at the White House Council of Economic Advisors and now director of economics at The Budget Lab at Yale, posted on social media about a misunderstanding of PPI. 'Unlike the Consumer Price Index (CPI), the Producer Price Index (PPI) doesn't include imports,' he wrote. 'Tariffs only indirectly affect PPI through later stages of the production process.' Tedeschi did say that deeper in the CPI data were signs that tariffs were affecting 'prices of import-exposed goods.' 'Apparel, which had seen cool inflation the last 2 months, grew 0.4% in June,' Tedeschi wrote. 'Household furnishings grew 1%. Video & audio electronics grew 1.1%.' He also said that the difference between month-over-month actual growth and what the Fed had expected, 'the excess is almost entirely because of core goods, the piece most exposed to tariffs.' Perhaps things will be fine, but it will take more time to know one way or the other about the arrival of tariff shock.
Time of India
4 hours ago
- Business
- Time of India
Crisis-driven rally? Bitcoin and Gold soar as inflation looms and political heat rises
As the United States grapples with mounting debt and inflation concerns, investors are flocking to assets that have served as safe havens in uncertain times, Bitcoin and gold, as per a report. Bitcoin Hits a New High Amid Market Jitters This week, Bitcoin surged past $123,000, climbing more than $10,000 in just a few days and hitting a new all-time high, as reported by GuruFocus. It's already up 14% for July, driven by growing anxiety over the US economy and the government's ballooning fiscal deficit, according to the report. A $316 billion shortfall in May has rekindled fears over long-term sustainability, prompting many to seek safety outside of traditional markets, according to the GuruFocus report. Explore courses from Top Institutes in Select a Course Category Healthcare Management Others Design Thinking Public Policy CXO Data Science Product Management Technology Degree Data Analytics healthcare Data Science Project Management Operations Management MBA Leadership others MCA Finance PGDM Digital Marketing Artificial Intelligence Cybersecurity Skills you'll gain: Financial Analysis in Healthcare Financial Management & Investing Strategic Management in Healthcare Process Design & Analysis Duration: 12 Weeks Indian School of Business Certificate Program in Healthcare Management Starts on Jun 13, 2024 Get Details According to trading expert Keith Alan, the price action fits a textbook "Cup and Handle" pattern, a signal of continued momentum, as per GuruFocus. But beyond technicals, it's deeper economic worries that seem to be driving the move, concerns over increased Treasury issuance, a wavering US dollar, and rising calls for Federal Reserve Chair Jerome Powell to step down, according to the report. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Comment devenir un investisseur visionnaire eToro Market Updates En savoir plus Undo ALSO READ: Stock rally sparks bold words from trading legend — his unexpected take is going viral Gold Joins Bitcoin in Safe-Haven Surge Alongside Bitcoin, gold is also gaining ground as a safe-haven asset, with both markets reacting to a tense mix of political pressure, inflation jitters, and monetary uncertainty, as per GuruFocus. Live Events Bitcoin Recovers Quickly After Brief Dip on CPI Release Inflation data released this week didn't ease any of those concerns, as the Consumer Price Index for June showed a 2.7% increase year over year, which is slightly higher than May's 2.4%, as per the AInvest report. Core inflation, which excludes food and energy, rose to 2.9%, according to the report. The crypto market wobbled just before the inflation report came, with Bitcoin briefly dipping below $116,000, as per AInvest. But it quickly bounced back, climbing past $118,000 once the numbers were out, with traders still betting on a potential rate cut in September, but the next round of data, specifically the Producer Price Index, could either reinforce or upend those expectations, according to the AInvest report. ALSO READ: No Reddit, no visa? Indian's US entry blocked after failing to share account details Altcoins Join Bitcoin in Broad-Based Crypto Rally While Bitcoin was not the only cryptocurrency moving higher, even Ethereum rose over 6% in the past 24 hours, XRP, Binance Coin (BNB), Solana, and Dogecoin also saw gains, as reported by AInvest. XRP increased 3%, BNB by 2.4%, and both Solana and Dogecoin gained 5%, according to the report. FAQs Why is Bitcoin suddenly rising so fast? Because people are nervous about inflation, debt, and political turmoil—and Bitcoin is seen as a safe place to park money during uncertainty, as per the GuruFocus report. Why is gold also going up? Gold, like Bitcoin, is considered a hedge during times of inflation or market instability.
Yahoo
4 hours ago
- Business
- Yahoo
What analysts and investors want to hear from CFOs this earnings season
Good morning. As the Q2 2025 earnings season begins, CFOs are navigating a landscape shaped by new tariffs, shifting consumer demand, and heightened market scrutiny. The first quarter benefited from a pull-forward of demand ahead of anticipated tariffs. In contrast, the second quarter will test companies' ability to manage margin pressure, supply chain disruptions, and evolving trade policy risks. Major U.S. banks are among the first to report results this week. For all companies reporting, analysts will be 'laser-focused' on how President Donald Trump's import taxes are affecting corporate profits, according to Morningstar. A key theme is the impact of tariffs and trade policy uncertainty, with analysts closely watching for margin pressures, signs of slowing consumer demand, how companies are preparing for new tariffs, and how they are handling levies that have already been implemented. Markets have remained relatively calm heading into Q2, with major indices like the S&P 500 and Nasdaq recently reaching new highs. Morningstar notes that Q2 earnings are expected to reveal trends among firms in tariff-affected industries. Companies with higher costs and tighter margins may be forced to absorb more tariff expenses, while those with stronger competitive advantages may be able to pass more costs onto consumers. The momentum that propelled the S&P 500 to nearly an 11% gain in Q2 and more than 7% year-to-date will be tested this week, according to Saira Malik, chief investment officer at global investment manager Nuveen. Malik highlighted in a LinkedIn post on Monday two key dynamics: Q2 earnings reports from the financial sector, and a series of U.S. economic data releases, such as the Consumer Price Index (CPI) scheduled for release this morning. Malik adds, 'While overall earnings growth is expected to decelerate from last quarter, estimates have stabilized in recent weeks after falling sharply in early April. Still, the Q2 earnings bar is relatively low.' On the economic front, Josh Hirt, senior U.S. economist at Vanguard, expects core CPI to increase 0.25% month over month (2.9% year over year) and headline CPI to rise 0.29% month over month (2.6% year over year), reflecting moderate strength following May's soft print. 'While tariff-related pressures are beginning to show in select goods categories in the PCE, the overall pass-through into CPI remains limited for now as firms hold off on retail price hikes,' he said in an emailed statement. Regarding CFO sentiment, Deloitte's Q2 2025 CFO Signals report, released last week, found that growth expectations declined across every key operational metric, with finance chiefs lowering projections for revenue, earnings, and capital investments. However, Steve Gallucci, global and U.S. leader of Deloitte's CFO Program, described the current environment as a recalibration, not a retreat. Finance leaders are doubling down on fundamentals: sharpening focus on growth drivers, managing controllable risks, and staying active in M&A. Sheryl This story was originally featured on
