Latest news with #iSharesS&P500GrowthETF
Mint
a day ago
- Business
- Mint
The market looks shaky. Put options can protect you, Goldman says.
Next Story Ian Salisbury , Barrons Markets' relative calm means put options are fairly inexpensive. A trader works on the floor of the New York Stock Exchange (NYSE). (Photo: AFP) Gift this article The stock market keeps climbing, seemingly impervious to a fragile U.S. economy, so investors may want to hedge their portfolios against a selloff. Put options may be an attractive way to do it, according to Goldman Sachs. The stock market keeps climbing, seemingly impervious to a fragile U.S. economy, so investors may want to hedge their portfolios against a selloff. Put options may be an attractive way to do it, according to Goldman Sachs. These days, it seems like nothing can hold back stocks. While the S&P 500 rose just 0.3% on Thursday, the index closed at its 18th record high for the year. The gains come despite worrisome recent economic data, pointing to slowing consumer spending and stubborn inflation. President Donald Trump's attacks on the Federal Reserve and unpredictable trade policies are additional risks. Another sign of the market's complacency is the Cboe Volatility Index, also known as the VIX. The indicator, often described as the market's fear gauge, has fallen to 14.7 from its peak at more than 52 on April 8, when worry over Trump's so-called Liberation Day tariffs was hammering the stock market. Its long-term average is 19.5. That relative calm provides a hedging opportunity for investors, according to a note from Goldman Sachs on Thursday. Prices for put options, which give stock investors the right to sell at a certain price on a future date, are closely tied to market volatility. That makes them look comparatively cheap right now, despite potential dangers. 'We believe markets at all-time highs and low volatility levels provide [an] attractive opportunity for investors [to] hedge against a drawdown," wrote the Goldman team, led by researcher Arun Prakash. Goldman also identified a number of stocks and exchange-traded funds that it says represent attractive candidates. The stocks and funds are all ones that have shown above-average sensitivity to U.S. economic growth, but still boast comparative cheap options prices. Three ETFs Goldman recommends are the iShares S&P 500 Growth ETF, SPDR S&P Regional Banking ETF, and VanEck Semiconductor ETF. Goldman looked at three-month puts that were 5% out of the money, meaning the target security's price would have to fall 5% for the options to pay off. To compare the cost of the put options, the bank expressed their prices as a percentage of the target security's share price. iShares S&P 500 Growth ETFs put options cost just 1.4% of the value of a fund share, compared with 3.1% for the regional banking ETF and 3.3% for the semiconductor fund. When it comes to individual stocks, Goldman recommends investors target three regional banks: KeyCorp, with put options priced at 2.1% the value of a share; Regions Financial, with puts priced at 1.7%; and Huntington Bancshares, priced at 1.8%. Regional banks, which lack large trading desks and wealth management arms, tend to be less diversified and more sensitive to interest-rate fluctuations than megabanks. They are another area where investors seem to be shrugging off the risk of a slowing economy. Despite worries about slowing growth, the SPDR S&P Regional Banking ETF has returned a solid 4% so far in 2025. An investor holding a put could benefit if it heads south. Write to Ian Salisbury at Topics You May Be Interested In Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
CNBC
02-07-2025
- Business
- CNBC
With stocks at record highs highs, financial advisors warn not to chase the market. Do this instead
With the stock market near record highs, investors may be itching to go all in — but the last thing they should be is reactionary, according to financial advisors. Stocks moved higher on Wednesday, with the S & P 500 hitting a new intra-day high. On Monday, both the S & P 500 and Nasdaq Composite closed at record levels. Despite the volatility that hit the market this year, the three major averages all ended the second quarter on Monday with solid gains. Growth stocks have outperformed value stocks so far this year, with the iShares S & P 500 Growth ETF returning 7.57% and the iShares S & P 500 Value ETF ahead 4.21%. Those that try to figure out what the market or different sectors may do next are taking the wrong approach, because you can't predict what is going to happen, said certified financial planner Carolyn McClanahan , founder of Life Planning Partners and a member of the CNBC Financial Advisor Council . "Sometimes things are going to cool off and you are going to regret trying to chase the market and making decisions based on current market behavior," she said. "The smart thing is to have an asset allocation already determined in advance — and that should be based not on what the market is doing but on what your goals and needs are." There tends to be general themes permeating the market at different times — and these days it is policy from Washington, D.C., said Adam Reinart, chief investment officer at Marshall Financial. "Trying to time that has been a bit of a fool's errand this year," he said. Case in point is the nosedive the market took after President Donald Trump announced his reciprocal tariffs in early April, which caused some investors to shift more defensively, he said. But that wound up being the wrong move since the market recovered, he said. In fact, investors should check their allocations after the recent run up to maintain a diversified, all-weather strategy, Reinart said. "With recent equity performance obviously improving from April 2, if the equity portion of an investor's portfolio has appreciated and has skewed risk more aggressively, then it could be a good time to realign risk more in line with their risk tolerance," he said. Grabbing income with dividend stocks Dividend stocks become more appealing to investors during rocky markets. However, they can play a role in an overall diversified portfolio even when conditions are less turbulent. In fact, investors should think about the total return of their portfolio — income plus capital appreciation, said Marguerita Cheng , CEO of Blue Ocean Global Wealth, a certified financial planner and another member of the CNBC Financial Advisor Council. She cautions against only thinking about income when the markets get shaky or moves down. "Including dividend payers in your portfolio can level out the volatility, but I want people to think about total return investing — which means that you have growth and value in there — and that provides you a little bit more flexibility," she said. An allocation to dividend stocks may become more important as people approach retirement and need income. McClanahan likes passive index funds for equity allocations. That can include those that follow broad market indexes — such as the S & P 500, small-caps and international equities. For those who are seeking income, she prefers bonds over dividend-paying stocks. She likes municipal bonds, which are free of federal taxes, and investment-grade corporate bonds. Reinart also likes fixed income over dividend stocks for investors seeking income, since they are getting paid more with bond yields right now. He maintains a broad exposure to the fixed-income market, including corporate bonds and core bonds. Building buckets Chuck Failla, founder and CEO of Sovereign Financial Group and also a certified financial planner, breaks down clients' portfolios into buckets based on financial needs — and sticks with it. "We really think that you should never make any changes to your asset allocation in a reactionary way," he said. "If you're reacting to the market, in my opinion, it's already too late." "Your asset allocation should be driven by — when do you need to use that money," he said. Money earmarked for the next 12 months should not be in the stock market at all — and should instead be in a money market fund or certificates of deposit, he said. Money needed in one to two years typically is in 10% equities and 90% fixed income, he added. The bond portfolio should skew towards high-quality, short-duration assets, while the stock allocation should focus on blue chips and high-quality dividend payers with a proven track record of growing their payouts. For instance, the ProShares S & P 500 Dividend Aristocrats ETF is composed of companies that have grown their dividends each year for at least 25 years. NOBL 1Y mountain ProShares S & P 500 Dividend Aristocrats ETF year to date The next tranche of three to five years raises the equity portion to 30%, and for six to 10 years is a 50/50 split. However, that is where Failla is prone to shift allocations to 75% if there is a pullback in the S & P 500 and market conditions are right. Portfolios earmarked for use in 10 years hold up to 90% to 95% in equities and also includes allocations to alternative investments such as private equity and private credit. In the longer term buckets, more aggressive growth stocks can be added, he said.
Yahoo
28-05-2025
- Business
- Yahoo
DIA Attracts $167M in Assets as Dow Jumps 741 Points
The SPDR Dow Jones Industrial Average ETF Trust (DIA) pulled in $166.5 million Tuesday, increasing its total assets to $37.6 billion, according to data provided by FactSet. The inflows came as the Dow Jones Industrial Average surged 741 points after President Donald Trump delayed the proposed 50% tariffs on the European Union until July 9. The iShares Bitcoin Trust ETF (IBIT) attracted $430.8 million, while the iShares S&P 500 Growth ETF (IVW) gained $410.7 million as technology stocks like Tesla Inc. (TSLA) jumped 7%. The Vanguard Total International Bond ETF (BNDX) pulled in $257.6 million. The SPDR S&P 500 ETF Trust (SPY) experienced the largest outflows at $4.5 billion despite the S&P 500 rising 2.1%. The iShares Russell 2000 ETF (IWM) saw outflows of $1.3 billion, while the iShares 20+ Year Treasury Bond ETF (TLT) lost $304.2 million. International equity ETFs collected $660.9 million in inflows, while international fixed income gained $612.6 million. U.S. equity ETFs saw outflows of $5.8 billion. Overall, ETFs experienced outflows of $5.3 billion. Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change IBIT iShares Bitcoin Trust ETF 430.77 71,415.76 0.60% IVW iShares S&P 500 Growth ETF 410.68 55,102.05 0.75% BNDX Vanguard Total International Bond ETF 257.58 65,423.45 0.39% MSTY YieldMax MSTR Option Income Strategy ETF 178.71 3,939.63 4.54% DIA SPDR Dow Jones Industrial Average ETF Trust 166.52 37,567.58 0.44% QQQM Invesco NASDAQ 100 ETF 121.59 46,863.68 0.26% THRO iShares U.S. Thematic Rotation Active ETF 103.03 4,081.81 2.52% EFV iShares MSCI EAFE Value ETF 101.16 24,986.64 0.40% GSY Invesco Ultra Short Duration ETF 100.07 2,847.05 3.51% VEU Vanguard FTSE All-World ex-US Index Fund 98.23 43,988.96 0.22% Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change SPY SPDR S&P 500 ETF Trust -4,516.90 588,402.59 -0.77% IWM iShares Russell 2000 ETF -1,297.14 61,847.12 -2.10% QQQ Invesco QQQ Trust Series I -407.34 323,576.90 -0.13% BIL SPDR Bloomberg 1-3 Month T-Bill ETF -385.07 44,616.96 -0.86% RSP Invesco S&P 500 Equal Weight ETF -341.81 70,815.82 -0.48% TLT iShares 20+ Year Treasury Bond ETF -304.16 49,713.18 -0.61% IVV iShares Core S&P 500 ETF -203.65 572,253.42 -0.04% BND Vanguard Total Bond Market ETF -129.83 126,084.90 -0.10% TQQQ ProShares UltraPro QQQ -125.93 22,730.04 -0.55% HYLB Xtrackers USD High Yield Corporate Bond ETF -119.31 3,698.31 -3.23% Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives -10.81 10,031.53 -0.11% Asset Allocation -19.21 24,433.85 -0.08% Commodities ETFs 35.61 208,971.14 0.02% Currency 230.23 146,991.69 0.16% International Equity 660.88 1,776,243.25 0.04% International Fixed Income 612.62 288,501.57 0.21% Inverse -111.47 15,325.86 -0.73% Leveraged -114.30 115,268.18 -0.10% US Equity -5,830.15 6,665,735.58 -0.09% US Fixed Income -749.54 1,651,321.02 -0.05% Total: -5,296.13 10,902,823.64 -0.05% Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data are believed to be accurate; however, transient market data are often subject to subsequent revision and correction by the | © Copyright 2025 All rights reserved
Yahoo
05-04-2025
- Business
- Yahoo
3 Growth ETFs to Buy With $500 and Hold
Growth stocks can offer investors an exciting ride, but that ride can be wild (and scary) at times. Younger, faster-growing companies tend to produce higher investment returns but are often riskier. They don't always work out, and even the ones that do see some large price swings along the way. To help level out this volatility, smart investors turn to diversification, spreading their money across many growth stocks to keep one lousy pick from sinking the entire portfolio. That can be challenging if the investor is working on a budget. Exchange-traded funds (ETFs) offer a way to overcome that challenge because they represent groups of individual stocks that trade under a single ticker symbol. Even a small amount invested (say $500) in an ETF gives the buyer access to growth stocks but also some level of hedge against volatility. Here are three fantastic growth funds that offer solid upside and enough diversification to minimize risk. Best of all, investors can own all three for under $500. Growth stocks come in different flavors, so knowing what type of companies go into each growth ETF is helpful. For example, the iShares S&P 500 Growth ETF (NYSEMKT: IVW) is a great starting point for any investor. It includes growth stocks from the S&P 500 index, which is arguably the most famous index in the U.S. market. The index comprises 500 prominent U.S. companies, but it's a blend of growth and value stocks. The iShares S&P 500 Growth ETF focuses on the faster-growing companies in the index. The S&P 500 has strict inclusion criteria. Generally speaking, the index consists of blue chip U.S. stocks with large market caps. Larger companies are typically more established (and less volatile) than smaller up-and-coming ones. The ETF includes 211 holdings, primarily well-known growth stocks, including the "Magnificent Seven" stocks, Broadcom, and Eli Lilly. Technology is most prominent sector in this ETF, accounting for about 37% of the stocks. Communications, financials, and consumer discretionary sectors all have at least 10% weighting in the ETF. Overall, the iShares S&P 500 Growth ETF's emphasis on large caps makes it a great middle-ground for investors who want the upside of growth but aren't looking for too much risk and volatility. If you want more potential upside and are willing to stomach more risk and price volatility, the iShares Russell 2000 ETF (NYSEMKT: IWM) could be for you. This ETF tracks the Russell 2000, a market index of approximately 2,000 small-cap U.S. stocks. Small caps typically aren't household names, and it can be extremely challenging and tedious for an individual to research and manage them. Therefore, an ETF like this is a simple way to add diverse small-cap exposure to a portfolio. The largest holding in the iShares Russell 2000 ETF is Sprouts Farmers Market, at just 0.62%. The ETF currently has 1,956 individual holdings. There is also more sector balance than you'll find in most growth ETFs. Financials are the heaviest-weighted sector in the ETF, at 19.6%, followed by industrials (17.6%), healthcare (16.9%), and technology (12.4%). All the other sectors have weightings of less than 10% each. Almost every ETF charges an expense ratio to operate the fund. The iShares Russell 2000 ETF is a tad higher than many others at 0.19%. That's $0.19 charged every year on $100 invested. It seems like a reasonable fee for off-loading countless hours of research and work to stay involved in a vast small-cap space with far more losing stocks than winners. Spending most of your time on the U.S. stock market makes sense. It's the largest, with a cumulative market cap of approximately $57 trillion, many times larger than China's stock market, a distant second at just $7.6 trillion. However, ignoring the numerous high-quality companies outside the United States and Canada would be a mistake. The tricky part is that foreign companies may not trade on U.S. exchanges or may report in other currencies, making it difficult to stay up on them. Such a situation is resolved best with an ETF like the iShares MSCI EAFE Growth ETF (NYSEMKT: EFG). MSCI is the acronym of Morgan Stanley Capital International and EAFE is the acronym for Europe, Australasia, and the Far East. Together they form the MSCI EAFE Index, which tracks the performance of large- and mid-capitalization companies in the EAFE region. The ETF has 351 holdings, representing the world's most prominent international companies. Some of the top holdings are SAP, ASML Holding, Novo Nordisk, and LVMH Moët Hennessy-Louis Vuitton. These are leading software, semiconductor manufacturing, healthcare, and luxury goods companies. Like the iShares Russell 2000 ETF, the iShares MSCI EAFE Growth ETF commands a higher expense ratio (0.36%) due to the work involved in managing foreign stocks. Still, it's hard to beat the convenience here. Investors who want to diversify should strongly consider international stocks because you never know how political or economic circumstances can affect the U.S. market. Owning all three ETFs gives wide-ranging growth exposure with a diverse grouping of blue chips, small caps, and international stocks. You can confidently hold this combination and build on it, even if you have only $500 for an initial investment. Before you buy stock in iShares Trust - iShares S&P 500 Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and iShares Trust - iShares S&P 500 Growth ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $494,557!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $623,941!* Now, it's worth noting Stock Advisor's total average return is 781% — a market-crushing outperformance compared to 156% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 4, 2025 Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML. The Motley Fool recommends Broadcom, Novo Nordisk, and Sprouts Farmers Market. The Motley Fool has a disclosure policy. 3 Growth ETFs to Buy With $500 and Hold was originally published by The Motley Fool
Yahoo
22-03-2025
- Business
- Yahoo
3 Growth ETFs to Buy With $1,000 and Hold Forever
Are you looking for investment growth without all the monitoring and activity that growth portfolios usually require? Well, good news! It's possible. You just need to be willing to let someone else handle the stock selection and portfolio-maintenance duties. I'm talking about exchange-traded funds (or ETFs), of course, which are managed on your behalf by companies that understand the upside of a passive approach to stock picking. Here's a closer look at three different growth ETFs you can buy and hold forever. If you have $1,000 available to invest that isn't needed to pay bills, bolster an emergency fund, or reduce short-term debt, you might want to consider putting it toward shares in one of these ETFs. There are several obvious first choices in your hunt for a growth-oriented exchange-traded fund, like the Vanguard Growth ETF (NYSEMKT: VUG) or the iShares Russell 1000 Growth ETF (NYSEMKT: IWF). The same basic design flaw is evident in both of these ETFs though, along with most others like them. That is, these cap-weighted funds are still very top-heavy. Nearly one-third of these two ETFs' total values consist solely of their stakes in Apple, Microsoft, and Nvidia. Adding Amazon and Facebook parent Meta Platforms to the mix pumps their top five stocks' combined values up to nearly 50% of each fund's total assets. The iShares S&P 500 Growth ETF (NYSEMKT: IVW) doesn't quite have this same problem. While it's hardly a so-called "equal weight" fund (funds that hold equal-sized stakes in every stock they own regardless of the underlying companies' market capitalizations), it's nowhere near as top-heavy as other similar ETFs. The iShares fund's top five holdings only account for roughly one-third of its total assets, while its top three only make up one-fourth of this ETF's total value. Moreover, because it's based on the S&P 500 Growth Index, which considers momentum as one of its inclusion factors, its allocation looks different from those of more popular funds, too. Nvidia is actually this particular ETF's biggest position right now, followed by Microsoft, then Apple, then Meta, and Amazon. That's in measurably stark contrast with each of these companies' current market caps. It may not always matter. More often than not when one of these stocks is rising or falling, the rest of them are rising or falling with it. To the extent it does matter though, the iShares S&P 500 Growth ETF is a better-balanced fund than comparable alternatives, and given enough time, every little nuance matters. The longer time marches on, in fact, the more these little things matter. Odds are good that nearly every growth stock you own (or have at least considered buying) is a large-cap name. And that's fine. These are also the tickers you're likely hearing the most about. This approach, however, excludes a wide swath of stocks with higher odds of better growth. That's mid-cap stocks, and especially mid-cap growth stocks. There are several such exchange-traded funds to choose from, including the iShares S&P Mid-Cap 400 Growth ETF (NYSEMKT: IJK), which includes all the growth names found in Standard & Poor's MidCap 400 Index. These of course are the stocks that aren't quite big enough to qualify as an S&P 500 constituent, but are bigger than the small caps that make up the S&P 600 Small Cap index. These companies are often in their high-growth phase following their wobbly start-up period but before their sheer size makes it difficult to steer the organization. That's how and why the S&P 400 index -- and the S&P 400 Growth index in particular -- boasts a long track record of outperforming the S&P 500. These outfits are in their sweet spot for growth. Given the choice between owning the aforementioned iShares S&P Mid-Cap 400 Growth ETF and the Vanguard Mid-Cap Growth ETF (NYSEMKT: VOT) though, you're arguably at least a bit better off with the latter. See, the iShares mid-cap fund is limited to stocks within the S&P 400, but those 400 stocks aren't the market's only mid-cap names. They're hand-picked by Standard & Poor's for inclusion in the index. The Vanguard Mid-Cap Growth ETF, on the other hand, is built to reflect the holdings and performance of the CRSP (Center for Research in Security Prices) US Mid-Cap Growth Index, which consists of fewer stocks, but also arguably offers better sector-based balance and a higher overall quality of holdings. Names found within the Vanguard Mid-Cap Growth ETF that aren't held by the iShares S&P Mid-Cap 400 Growth ETF include Constellation Energy and Palantir Technologies. The former has been a strangely productive utility ticker since 2022, and the latter has been one of the market's best-performing artificial intelligence stocks since 2023. Long-term holders of the Vanguard fund may not always be so lucky. Given the limitations of what's allowed to be in the S&P 400 Mid Cap Growth index though, Vanguard's option may be the better bet more often than not. Finally, add the Technology Select Sector SPDR Fund (NYSEMKT: XLK) to your list of exchange-traded funds you can buy and hold forever if you've got $1,000 you can commit toward reaching a growth goal. You'll notice it's the only sector-based fund to earn a spot on this list. There's a reason. That is, while every sector's got its risk-adjusted upside, tech companies have historically offered investors the greatest potential for growth. The bulk of the world's most meaningful and most lucrative sociocultural advancements like personal computers, mobile phones, and artificial intelligence have all ultimately been rooted in technology. That's just the nature of the business. And that's not likely to change anytime soon. There's one not-so-small detail to consider if you're planning on stepping into this particular exchange-traded fund. It's not especially well-balanced. Like the aforementioned Vanguard Growth ETF and iShares Russell 1000 Growth ETF, this one's pretty top-heavy. Apple, Nvidia, and Microsoft collectively make up 40% of this fund's assets. Adding its positions in Broadcom and Salesforce makes its top five holdings worth nearly half of the ETF's total value. That's not a level of diversification most people would be happy with if they were picking individual stocks for their portfolio. This is one of those cases, however, where investors are just going to have to hold their nose and dive in, trusting that the premise makes long-term sense even if shuffles in the market's leading technology names are going to create above-average short-term volatility. Again, you're not looking for certain individual stocks. You're looking to hold a long-term stake in an entire world-changing sector. That requires a bigger-picture mindset with slightly different expectations. It also helps if the Technology Select Sector SPDR Fund isn't the only ETF you own. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $304,759!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,808!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $517,445!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of March 18, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Palantir Technologies, Salesforce, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard Index Funds-Vanguard Mid-Cap Growth ETF. The Motley Fool recommends Broadcom and Constellation Energy and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 3 Growth ETFs to Buy With $1,000 and Hold Forever was originally published by The Motley Fool Sign in to access your portfolio
