Latest news with #S&P500ETF
Yahoo
31-05-2025
- Business
- Yahoo
Suze Orman Thinks the Stock Market Will ‘Absolutely Skyrocket' This Year: 5 Types of Investments Poised To Benefit
Suze Orman is feeling optimistic about the stock market. On a mid-May episode of her 'Women & Money' podcast, she predicted that the market could 'absolutely skyrocket' through the end of 2025 and into early 2026, despite short-term volatility. In her view, long-term investors should avoid fear-based selling and instead focus on building wealth through smart, diversified investing. Learn More: Find Out: Orman emphasized the importance of spreading out your investments and staying consistent, especially if you're not a daily market watcher. 'One stock, three stocks, five stocks does not a portfolio make,' she said. 'You need to have at least 25, maybe even 50 individual stocks, so that you could have true diversification.' She recommended index ETFs as 'one of the best ways to invest.' Here are the types of investments she believes are best positioned to benefit as the market rises. Orman expects large growth stocks to outperform in the coming months, especially as the market gains momentum through the end of 2025. 'I think you will find that large growth stocks are stocks that increase in price these coming next few months,' she said. 'Many of the Magnificent Seven, not all, will participate. Some of the FAANG stocks will participate.' While she didn't name specific companies, the 'Magnificent Seven' and 'FAANG' groups include major tech players like Apple, Amazon, Meta, Alphabet and Microsoft — firms that have historically led market rallies. Check Out: Orman pointed to growth-oriented ETFs as a solid option for investors who prefer a simpler approach. These funds are composed entirely of companies expected to outperform the broader market. Two she specifically mentioned were: SPYG: S&P 500 Growth ETF VUG: Vanguard Growth ETF 'Those are ETFs that are made up 100% of your growth,' she explained. 'So you might want to mix a little bit in that for now.' Core holdings in broad-based index ETFs still play an important role in Orman's long-term strategy. Examples she highlighted include: SPY: S&P 500 ETF VOO: Vanguard S&P 500 ETF VTI: Vanguard Total Stock Market ETF 'They're really a blend of stocks,' she said. 'No matter what's happening in the market, you are participating.' Orman explained that while growth stocks may outperform now, value stocks could lead in future cycles, which is why blended ETFs offer useful all-weather exposure. While she once warned against crypto, Orman now believes bitcoin is here to stay. 'There is not a 40-year-old, a 30-year-old that I can talk to that doesn't want to put all their money into bitcoin,' she said. For those interested, she recommended gaining exposure through: IBIT: iShares Bitcoin Trust ETF MSTR: MicroStrategy, which mirrors bitcoin's performance But she warned that crypto remains highly volatile. 'Bitcoin will absolutely follow the Nasdaq 100. … If the Nasdaq 100 happens to go down, bitcoin is going to go down.' While she doesn't see gold taking off right now, Orman believes it's a good hedge against uncertainty. 'Gold is a safe haven, believe it or not,' she said. Her top pick? GLD, the SPDR Gold Shares ETF. She advised avoiding gold miners. 'I think you are better off investing in the ETF GLD versus the miners GOLD,' she said. 'The miner stocks are just not really functioning the way that they should be.' Orman's core philosophy hasn't changed: Consistent saving, emotional discipline and a long-term mindset are the keys to building real wealth. 'True wealth comes when you feel secure,' she said. 'And the reason you feel secure is that you know you have savings to get you by if certain things go wrong.' More From GOBankingRates These 10 Used Cars Will Last Longer Than an Average New Vehicle This article originally appeared on Suze Orman Thinks the Stock Market Will 'Absolutely Skyrocket' This Year: 5 Types of Investments Poised To Benefit 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
Mint
26-05-2025
- Business
- Mint
Investors pile into ETFs at record pace despite market turmoil
This year's volatile, trade war-obsessed market didn't shake American investors' fondness for exchange-traded funds. In fact, it only made them love them more. Investors have plowed a record $437 billion into U.S. ETFs so far this year, unfazed by the wildest markets since Covid. And if inflows maintain the current pace—historically, they accelerate in the summer and fall months—it will mark the second straight record year for U.S. ETF flows. That is happening in part because of the relentless flow of money out of mutual funds and into ETFs, which tend to offer lower fees and certain tax advantages that their older cousins can't match. But the decadelong trend doesn't fully explain this year's surge; indeed, when U.S. markets turned choppy, many began to double down on their bets on U.S. assets. And, now more than ever, they placed those wagers by buying ETFs. 'Investors are seeing selloffs as buying opportunities," said Todd Rosenbluth, head of research at data provider VettaFi. The hundreds of billions of dollars that investors poured into ETFs found their way into every major fund category: Stock funds and bond funds. Funds that track popular indexes continue to sell well, but so have those managed by professional stock and bond pickers, a relatively new corner of the ETF market that has gained momentum. No one fund benefited more from the surge than the ETF industry's new champ: Vanguard Group's S&P 500 ETF. The ultracheap index fund has soaked up a stunning $65 billion in net inflows this year, along the way becoming the world's biggest ETF by assets. Known by ticker symbol VOO, the fund more than doubled the previous annual ETF inflow record when it took in $116 billion last year. Now it is on pace to reset that mark again by October. VOO's rise illustrates how investors more broadly turned to ETFs this year. When stock-market volatility soared to a five-year high in April, Vanguard's S&P 500 fund reported its highest monthly inflows ever. Many investors had built up large cash holdings by then, and had been waiting for the right moment to shift money back into stocks, according to Greg Davis, president and chief investment officer at Vanguard. 'During that period of tumult in early April, we saw a 5-to-1 buy-to-sell ratio," Davis said. 'Investors have a tremendous amount of cash sitting on the sidelines and they know that if things are on sale, it is time to put money to work." Swelling ETF assets have been a windfall for Vanguard and BlackRock, the two largest U.S. fund managers. BlackRock Chief Executive Larry Fink has talked repeatedly about the opportunity for his firm to capitalize on a reallocation from cash to stock and bond funds. 'In the United States, there's $11 trillion sitting in money-market funds," Fink said at the Saudi-U. S. investment forum in Riyadh earlier this month. 'When there is uncertainty, you're going to keep more money in cash and that is what we witnessed." Several years after the Federal Reserve began lifting interest rates to combat inflation, the allure of cash is still strong for many investors. The second-most popular ETF this year has been a BlackRock 0-3 month Treasury bond fund, which has almost $17 billion in inflows. The cashlike fund has a 12-month trailing yield of 4.7%. A similar offering from State Street is also in the top 10 of the flows leaderboard. 'We are seeing some defensiveness on the fixed-income side," said VettaFi's Rosenbluth. 'With several short-term Treasury products in the top 10, that's a sign investors are happy being paid to wait." Still, equity funds have taken in a majority of this year's flows. Joining VOO in the top 10 are State Street's S&P 500 fund, Vanguard's total stock-market and equity growth funds, and two Nasdaq-100 funds from Invesco. An actively managed equity fund from JPMorgan that aims to reduce volatility and produce above-average dividend income through an options strategy also cracked the top 10. Part of a broader class of active funds that some analysts have dubbed 'boomer candy" thanks to their popularity with retirees, the JPMorgan fund is building on a breakout 2024. Actively managed funds continue to capture an outsize share of new assets. According to Trackinsight, 30% of this year's ETF flows have gone to active funds even though they make up less than 10% of the industry's total assets. Longtime mutual-fund giant Fidelity has been focusing on active ETF launches in recent years, and interest continues to grow, said Greg Friedman, Fidelity's head of ETF management and strategy. 'For the last 12 to 24 months, we've been seeing a very nice level of inflows with most of it on the active side," Friedman said. 'That has held up even during extreme volatility." For years, investors have been swapping their mutual funds for the tax benefits and liquidity offered by ETFs, boosting inflows. That trend could soon accelerate even further. Dozens of fund managers have filed applications with the Securities and Exchange Commission to offer new ETF share classes of existing mutual funds, which would allow them to offer popular strategies in the ETF wrapper without starting from scratch. SEC Commissioner Mark Uyeda said earlier this year he has told the agency's staff to give priority to the issue, and many in the industry are expecting approval as soon as this year. Write to Jack Pitcher at
CNBC
23-05-2025
- Business
- CNBC
'Absolute tsunami' of ETFs to hit market, and investors need to prepare now, says fund expert
The world of exchange-traded funds is about to face an unprecedented storm of new product launches. A fund industry that has already seen enormous growth in recent decades may soon close to double its presence in the market — and do so in just one month. That's because of a long anticipated changed from the Securities and Exchange Commission allowing traditional mutual fund managers to offer an ETF share class of their existing funds — "a gamechanger," as it has been called by some already. To put the coming flood of ETFs into perspective by the numbers, consider the following: Currently, there are around 4,000 ETFs. That's a big number, or as financial futurist and ETF expert Dave Nadig put it on the "ETF Edge" podcast this week, "ETFs are the market now. It's where most of the action happens." And yet, Nadig expects that number to reach over 7,000 within a month or so, with his forecast for as many as 3,000 new launches as mutual fund managers add an ETF share class once the SEC light turns green. "We are facing an absolute tsunami of product," Nadig said. Already this year, 400 new ETFs have launched even without the share class change. That includes everything from single-stock ETFs to ETFs promising investors new ways to generate income while limited equities risk, and "it's about to get a lot worse," Nadig said. "Now more than ever, you need to do a lot more homework on what's out there," he added. Nadig estimates that 53 mutual fund firms have filed for the ETF share class, and the thousands of new funds covered created will lead to an "enormous burden on individual investors and advisor to wade through that stuff," he said. The popularity of ETFs has continued to soar for good reasons: daily trading and liquidity across every major asset class, relatively low fees, and tax-efficient trading, among them. This year, over $400 billion has flowed into ETFs. And it's important to note that even as ETFs get more esoteric, with the inverse and leverage single-stock funds and portfolios using options to limit volatility, a lot of the trading remains in core market exposure. Vanguard Group's S&P 500 ETF, VOO, is already on pace to break the exchange-traded fund record for annual inflows, which it just set last year. Nadig said that's something to remember about the flood of ETFs about to hit the market. "Most of these products that are just share classes are gonna be pretty boring," he said, such as large-cap growth and core equity income funds from mutual fund companies that have been running these strategies for a long time. "Lots of very traditional asset allocation products," he said. "They're not opening up giant new asset classes, the crypto, private credit stuff, the excess leverage is happening directly in the ETF wrapper," he added. But there are a few reasons for investors to be wary. The history of the mutual fund industry is one of active managers failing to beat the index (Vanguard has become a behemoth in both mutual funds and ETFs for a reason, as has Blackrock's iShares), and it's been a "fairly expensive" history, Nadig said, with active managers charging investors a lot more than index counterparts even as they struggle to generate benchmark-beating returns. The good thing about the ETF share class is that these managers should be offering the strategies at the lowest institutional fee level they charge, Nadig said. So, with the caveats about the history of active management in mind, "if you genuinely want access to one of these companies products, this will be best way to do it," he said. The straight-to-ETF strategies that are new remain the ones to be more cautious about jumping into, Nadig said, and there are signs that investors are moving more slowly in terms of adoption. Take private credit as an example, which has received a huge amount of attention since the first ETF launch in the asset class, and SEC friction over its introduction. State Street and Apollo Global Management teamed up to launch the first private credit ETF this year, under the ticker symbol PRIV, but so far, it's seen limited demand, Nadig said, raising roughly $54 million from investors, which would also include any money that the fund was seeded with by its managers at launch. "I don't think there is huge demand for private credit but there is a huge supply of private credit," he said. PRIV launched "against the SEC's wishes, the only time that has ever happened," Nadig said. And to date, the ETF is only trading volume in the "thousands of dollars a day," he added. "It's absolutely fallen off a cliff," he said, and one lesson may be that investors view it as "just another expensive bond fond." Nadig says there are new asset classes with new forms of risk that are more attractive in the retail investor landscape, such as ETFs that provide investors with access to privately held companies such as SpaceX and Klarna, such as XOVR, the ERShares Private-Public Crossover ETF. It's important to note that no fund can invest more than 15% in illiquid securities, so even an ETF like XOVR holds many publicly traded stocks. But SpaceX is its largest holding at near 10% of the fund, well ahead of the size of its second-biggest private stock position, fintech Klarna, at roughly 0.5%. It is a roughly $300 million fund. "There is real demand there," Nadig said. "I think private equity has real retail cache," he added. But Nadig said with any more complicated trading strategy, investors do need to keep in mind two important questions. One, is the ETF structure really the right one for this investment idea? For many illiquid securities, it makes more sense to use interval funds or closed-end funds, and in fact, Nadig noted that the SEC recently indicated it is looking to increase the retail availability of closed-end funds and other private investments. "That's an appropriate response to get people into the less liquid vehicles," Nadig said, adding, "I'm kind of a seller on the 'everything should be an ETF' narrative." There is also the issue of capacity constraint in illiquid and smaller niches of the market. As a fund grows, the manager can become capacity constrained in finding securities they can buy to meet their stated mandate, and can also run into trading stress at times of heightened volatility. When investors are running for the exits in a credit crisis and a manager is holding a significant chunk of an illiquid market, the ETF structure may experience its own unique form of stress. "You can't close the fund, you cant shut an ETF, or if you do, it will trade like wild, a crazy pattern with big discount-premium swings," Nadig said. In the end, he said, while many traditional asset classes coming to the ETF world will lead investors back to the longstanding challenge of whether active manager performance is worth the price, some of the new innovations push the limits on another questions. "It's really a mismatch problem with trying to take illiquid vehicles and put them in millisecond trading vehicles," Nadig said. Disclaimer
CNBC
23-05-2025
- Business
- CNBC
A trading strategy for this market after Trump causes volatility to spike again
Trade tariff negotiations are not over yet. President Donald Trump threatened to raise tariffs up to 50% (starting June 1 st ) on the EU as talks have seemingly stalled. Equity markets immediately sold off. European equity markets tanked by 2% on the news. I want to use this surprising drop as an opportunity to create income in the S & P 500 ETF (SPY) as I believe the S & P 500 is still on track to retest its all-time highs in June. SPY YTD mountain SPDR S & P 500 ETF Trust (SPY) I'm not sure if Peter Navarro took over the White House boombox this morning, but it feels like the epic 80s Whitesnake song titled, "Here I Go Again," was blaring and put some spirit into POTUS and his trade tariff negotiations. Along with the EU threat, he swiveled and also posted directly at Tim Cook, threatening to impose a 25% tariff on Apple if the company does not start manufacturing iPhones domestically. Not the ideal way to kick off the holiday weekend with Memorial Day on Monday. I want to use technicals to help be my guiding light on what levels I want to utilize in selling a put spread. By selling a put spread, I define my risk, but present a bullish view as I believe this dip will be bought. The S & P 500 has bounced roughly 17.5% after the 2025 lows were established on April 7. The 200-day moving average level of $575 should serve as support as volatility comes back to the marketplace with the Cboe Volatility Index rising up to 22 off of this tariff news. The Trade Sold the $575 6/20/2025 Put for $11.50 Bought the $560 6/20/2205 Put for $7.25 Collecting $4.25 or $425 per one put spread This trade was executed when SPY was roughly trading $576 ISCLOSURES: Long SPY, Sold this put spread All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Yahoo
20-05-2025
- Business
- Yahoo
Big ETF Inflows of Last Week: VOO, QQQ & More
ETFs across various categories pulled in $31.1 billion in capital last week, pushing year-to-date inflows to $400 billion. This has put 2025 on track to be one of the biggest years ever for ETF demand.U.S. equity ETFs led the way with $23.3 billion in inflows, followed by $3.81 billion in international ETFs and $3.79 billion in U.S. fixed-income ETFs. Vanguard S&P 500 ETF VOO, Invesco QQQ Trust QQQ, iShares 20+ Year Treasury Bond ETF TLT, Vanguard Mid-Cap ETF VO and Invesco NASDAQ 100 ETF QQQM dominated the top creation list last solid inflows came on the stunning S&P 500 comeback. The S&P 500 returned to positive territory for 2025 last week, wiping out all its losses after the index tumbled to near bear market levels on April 8, courtesy of President Trump's aggressive tariff plans. The S&P 500 jumped more than 5% last week while the Dow Jones Industrial Average gained more than 3%. The tech-heavy Nasdaq Composite also climbed more than 7% (read: S&P 500 Makes the Fastest Recovery Since 1982: 5 Best ETFs).The 90-day U.S.-China trade truce and strong earnings, especially from tech giants, renewed market optimism. The trade optimism more than offset the weak consumer data, which revealed that consumer sentiment hit the second-lowest reading on inflation data also supported the bullish sentiment. U.S. inflation in April cooled to the lowest level since February 2021. The Consumer Price Index, which tracks a variety of costs throughout the economy, rose 2.3% year over year in April, down slightly from 2.4% in March. The softer-than-expected data bolstered the case for the easing by the Federal have detailed the ETFs S&P 500 ETF (VOO)Vanguard S&P 500 ETF is the top asset creator, pulling in $4.8 billion in capital. It tracks the S&P 500 Index and holds 505 stocks in its basket, each accounting for no more than 6.8% of the assets. Vanguard S&P 500 ETF is heavy on the information technology sector, while financials, healthcare and consumer discretionary round off the next three spots with a double-digit allocation S&P 500 ETF charges investors 3 bps in annual fees. It has an AUM of $654.5 billion and trades in an average daily volume of 6 million shares. VOO sports a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: Moody's Downgrades U.S. Rating: What's Next for S&P 500 ETFs?).Invesco QQQ Trust (QQQ)Invesco QQQ Trust saw an inflow of $4.6 billion in its asset base. It provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with an AUM of $329.3 billion and an average daily volume of 42.5 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk 20+ Year Treasury Bond ETF (TLT)iShares 20+ Year Treasury Bond ETF has gathered $2.1 billion in its asset base. It provides exposure to long-term Treasury bonds by tracking the ICE U.S. Treasury 20+ Years Bond Index. iShares 20+ Year Treasury Bond ETF holds 41 securities in its basket and charges 15 bps in annual fees. It has an average maturity of 25.48 years and an effective duration of 15.63 years. TLT is one of the most popular and liquid ETFs in the bond space, with an AUM of $48.7 billion and an average daily volume of 32 million shares. iShares 20+ Year Treasury Bond ETF has a Zacks ETF Rank #4 (Sell) with a High risk Mid-Cap ETF (VO)Vanguard Mid-Cap ETF has gathered $1.4 billion in its asset base. It offers exposure to the mid-cap segment of the broad U.S. stock market and tracks the CRSP US Mid-Cap holds a well-diversified portfolio of 307 stocks, with each firm holding no more than 1.2% of the total assets. Vanguard Mid-Cap ETF has key holdings in industrials, financials, consumer discretionary and technology. With an AUM of $81 billion, Vanguard Mid-Cap ETF charges investors 4 bps in fees per year and trades in an average daily volume of 869,000 shares. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Here's Why You Should Buy Top-Ranked Mid-Cap ETFs Now).Invesco NASDAQ 100 ETF (QQQM)Invesco NASDAQ 100 ETF saw an inflow of $1.2 billion. It is identical to QQQ tracking the NASDAQ-100 Index but comes with lower annual fees of 15 bps. It holds 106 securities in its basket, with a higher concentration on the top three firms. Invesco NASDAQ 100 ETF accumulated $47.7 billion in its asset base. It trades in an average daily volume of 3 million shares and has a Zacks ETF Rank #3. 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 iShares 20+ Year Treasury Bond ETF (TLT): ETF Research Reports Invesco QQQ (QQQ): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports Vanguard Mid-Cap ETF (VO): ETF Research Reports Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
