RWW is up 1.5% over the past month, up 5.6% over the last three months and up 39.7% year-to-date. The broader financial industry is up 13.9% year-to-date. The fund is 10.1% above its 200-day exponential moving average. The ETF ranks holdings by top line revenue, instead of the traditional market-capitalization methodology. RWW also rebalances each quarter to update revenue data.
BlackRock: 2013 ETF Industry Surprises
Fixed income experienced a duration rotation but kept growing. Heightened scrutiny of the Feds next steps pushed many investors to seek solutions to reduce interest rate risk. Short duration ETPs took in nearly $35 billion in new assets. 6. The pace of new ETF launches moderated, but still attracted significant assets.
They have already enjoyed years of strong performance as a relatively safe harbor during economic crises, and could prove to be laggards in a rising-rate environment. Investors have flung some $37 million at the fund since its October inception. The attraction: Since May 2005, when the S&P 500 Dividend Aristocrats Index began, it has boasted just under 10 percent in total annual returns, besting the broader S&P 500 by a little more than 3 percentage points a year. “It’s an alternative to an S&P 500 index fund, or to actively-managed large-cap funds, and appeals to people who are looking for a good source of income.” New additions to visit website the aristocrats index this year: Chevron Corp, Cardinal Health Inc, AbbVie Inc, and Pentair Ltd. Meanwhile, firms including Pitney Bowes, grocery chain SuperValu, and Eli Lilly have been booted from the index in recent years for failing to raise their dividends annually. Of course dividend investing features its own menu of potential pitfalls.
New ETF offers the cream of the dividend crop
It comprises expenses paid by an ETF to cover management fees, trustee’s fees, license fees and other operational costs such as trading and custody. It does not include the commissions paid to brokers on the purchase and sale of ETF. / Ref. Amount Reference Expense Amount($)? Ref. Expense Amount is the estimated annual expense for holdings of 10 shares of a given ETF.
ETF Preview: ETFs Trim Losses, Futures Look to Open Firmer As Q3 GDP Revised Upward to 4.1%
stock futures are higher, and look to open the regular session in the positive territory. Market sentiment is up on the report that Q3 gross domestic product was revised up to 4.1% from the previous estimate of 3.6%, versus the expectations of an upward revision of 3.7%. Consumer spending is revised up to 2% from the prior estimate of 1.4%. Meanwhile, among stocks, Blackberry (BBRY) and Walgreen (WAG) are in the spotlight as the two companies report their financial results. Among semiconductor ETFs, SPDR S&P Semiconductor (XSD) and Semiconductor Sector Index Fund (SOXX) are unchanged after being in negative territory in the previous session. SPDR S&P International Technology Sector ETF (IPK) remains unchanged as well.
ETF Performance: Why do we see a renewed appetite for riskier assets?
On 12/24/13, First Asset Can-Financials Covered Call ETF (TSX: FXF.TO ) will trade ex-dividend, for its quarterly dividend of $0.15, payable on 1/6/14. As a percentage of FXF’s recent stock price of $10.30, this dividend works out to approximately 1.46%, so look for shares of First Asset Can-Financials Covered Call ETF to trade 1.46% lower all else being equal when FXF shares open for trading on 12/24/13. Below is a dividend history chart for FXF, showing historical dividends prior to the most recent $0.15 declared by First Asset Can-Financials Covered Call ETF: In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from FXF is likely to continue, and whether the current estimated yield of 5.83% on annualized basis is a reasonable expectation of annual yield going forward. In Friday trading, First Asset Can-Financials Covered Call ETF shares are currently trading flat on the day. Select the service that is right for you!
Reminder – First Asset Can-Financials Covered Call ETF (FXF) Goes Ex-Dividend Soon
For example, XLF (Financials Sector SPDR) has outperformed XLP (Consumer Staples Sector SPDR), with a YTD total return of 29% vs. 22% respectively. However, the financial sector has had to claw back from significant drawdowns in the 07-09 period. Consequently if we take a longer term (10 year) view, we see that XLF has actually had a marginally negative annualized total return over the period.