|By PR Newswire||
|December 14, 2012 09:30 AM EST||
CHICAGO, Dec. 14, 2012 /PRNewswire/ -- Today, Zacks Investment Ideas feature highlights Features: Market Vectors Wide Moat ETF (AMEX:MOAT), PIMCO Total Return ETF (AMEX:BOND), PowerShares S&P 500 High Dividend Portfolio (AMEX:SPHD) and Emerging Markets Dividend Index Fund (AMEX:DVYE).
The 4 Best New ETFs of 2012
2012 will go down as another significant year in the history of ETF industry. Net inflows for the year through November surged to $159.1 billion, up 55.4% from the inflows for the same period last year. While the number of products launched this year was lower compared to recent years and the closures were higher, the assets under management increased.
Investors' appetite for fixed income and emerging markets assets increased significantly this year, resulting in many new products being added in these categories. (Read: Play Four Megatrends with These ETFs)
Of about 160 products launched this year through November, most are designed to follow the popular strategies that have worked so far, whereas few offer unique, innovative investing opportunities that were earlier unavailable to regular investors. Some will flourish while some will languish due to lack of investor interest.
Below we highlight four best ETFs launched this year that in our view will emerge as big winners in the industry in the days to come. (Read: 3ETFs to prepare for the fiscal cliff)
Market Vectors Wide Moat ETF (AMEX:MOAT)
The term "economic moat" was popularized by Warren Buffet who said that he seeks "economic castles protected by unbreachable 'moats'." In simple words moat is a unique competitive advantage that allows a company to outperform others in the same industry over time.
Thanks to Market Vectors Wide Moat ETF, investors can now own a diversified group of such potential winners. (Read: Invest like Warren Buffett with These ETFs)
Launched in April this year, MOAT tracks Morningstar Wide Moat Focus Index which gives equal-weighted exposure to 20 least-expensive wide-moat companies. These are mostly large-cap companies with sustainable competitive advantage in their respective industries. The ETF charges just 49 basis points in annual expenses and has already attracted almost $1 billion in assets.
The index strategy has worked so far. In five years through July, the Moat index gained 7.4% annualized, with dividends, versus a total return of 1.1% for the S&P index and 2.6% for the S&P 500 equal-weighted index.
PIMCO Total Return ETF (AMEX:BOND)
BOND is the ETF version of PIMCO's flagship blockbuster mutual fund—the PIMCO Total Return Institutional Fund. (Read: 3 Actively Managed Bond ETFs for Stability and Income)
BOND is a very popular product since it provides the opportunity of getting the portfolio management expertise of Bill Gross, one of the most respected investment managers in the world. The ETF has become the most successful ETF launch since GLD's launch in 2004.
The fund currently has $3.9 billion in AUM and charges an expense ratio of 55 basis points per year. Though the ETF does not use swaps or other similar derivative instruments which are in the mutual fund versions of the product (due to SEC rules), it has been outperforming its mutual fund counterpart since inception in March this year.
The portfolio currently holds 816 securities with an effective maturity of 7.6 years and effective duration of 4.8 years.
According to some industry experts actively managed bond ETFs are likely to become popular in future and further with time-proven success of PIMCO Total Return strategy, we expect this ETF to be an outperformer in the fixed income world.
PowerShares S&P 500 High Dividend Portfolio (AMEX:SPHD)
As the traditional fixed income instruments currently yield miniscule returns, yield-hungry investors have poured a lot of money into high-dividend yielding stocks and ETFs in the past couple of years. While we like the high-quality companies with strong fundamentals, which have consistently increased their pay-outs in the past, many high-yield stocks are fundamentally not so sound, exhibit high volatility and may ultimately result in losses.
Many academic studies have shown that low-volatility stocks outperform the broader market over longer period and they consistently deliver better risk-adjusted returns. (Read: 4 low volatility ETFs to hedge your portfolio)
While dividend paying stocks have taken a hit of late due to cliff related tax concerns, we believe that high-quality, low-volatility dividend payers still represent long-term value.
SPHD intends to combine two most desirable investment themes—high dividend and low volatility, which almost guarantees the long-term success of this ETF. The index is composed of 50 stocks that historically have provided high dividend yields and exhibited low volatility.
Launched in October this year, the fund has attracted more than $22 million in assets so far. It charges an expense ratio of 30 basis points and currently has a distribution yield of 5.03%.
Emerging Markets Dividend Index Fund (AMEX:DVYE)
The investment case for Emerging Markets Dividend ETFs is pretty strong now since the investors can benefit from the higher growth potential in the emerging markets with the steady flow of dividend income in addition to 'escape' from the "fiscal-cliff" issues in the US.
This ETF is designed to compete with the very popular WisdomTree ETF DEM, providing a lower cost alternative to the investors, while fulfilling similar investment objective. (Escape the Cliff with These Dividend ETFs)
The fund seeks to replicate the Dow Jones Emerging Markets Select Dividend Index. DVYE has much less exposure to the volatile Financials sector (15.2%) compared to DEM (27.1%), with top weighting assigned to Industrials (17.7%) and Telecom (15.4%).
Taiwan leads the country allocation with 22.6% weight, followed by South Africa (10.5%) and Turkey (9.6%). The fund holds 101 stocks and thus focuses on a smaller group of companies compared with DEM (293 holdings).
The ETF currently charges 0.49% to the investors compared with 0.63% for DEM. This product pays out a yield of 3.28% currently. In terms of returns, it has managed to outperform DEM with an impressive 15.1% return for the past 26 weeks compared with 10.7% for DEM.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. The company continually processes stock reports issued by 3,000 analysts from 150 brokerage firms. It monitors more than 200,000 earnings estimates, looking for changes.
Then when changes are discovered, they're applied to help assign more than 4,400 stocks into five Zacks Rank categories: #1 Strong Buy, #2 Buy, #3 Hold, #4 Sell, and #5 Strong Sell. This proprietary stock picking system; the Zacks Rank, continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter Profit from the Pros. In short, it's your steady flow of profitable ideas GUARANTEED to be worth your time. Get your free subscription to Profit from the Pros at: http://at.zacks.com/?id=7298
Follow us on Twitter: http://twitter.com/ZacksResearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE Zacks Investment Research, Inc.
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at the same time reduce Time to Market (TTM) by using plug and play capabilities offered by a robust IoT ...
Jun. 29, 2015 06:00 PM EDT Reads: 1,727
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Jun. 29, 2015 12:19 PM EDT Reads: 626
SYS-CON Events announced today that BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust IT industrialization – allowing customers to provide amazing user experiences with optimized IT per...
Jun. 29, 2015 12:15 PM EDT Reads: 2,530
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Jun. 29, 2015 11:00 AM EDT Reads: 2,092
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
Jun. 29, 2015 11:00 AM EDT Reads: 1,854
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Jun. 29, 2015 10:00 AM EDT Reads: 2,010
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will addresses this very serious issue of profound change in the industry.
Jun. 29, 2015 09:45 AM EDT Reads: 2,396
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
Jun. 28, 2015 11:00 AM EDT Reads: 2,153
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Jun. 27, 2015 10:00 AM EDT Reads: 2,174
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fillin...
Jun. 26, 2015 12:00 PM EDT Reads: 2,164
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
Jun. 26, 2015 10:00 AM EDT Reads: 2,025
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
Jun. 25, 2015 02:00 PM EDT Reads: 1,969
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
Jun. 25, 2015 01:30 PM EDT Reads: 2,118
SYS-CON Events announced today that the "Second Containers & Microservices Conference" will take place November 3-5, 2015, at the Santa Clara Convention Center, Santa Clara, CA, and the “Third Containers & Microservices Conference” will take place June 7-9, 2016, at Javits Center in New York City. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
Jun. 22, 2015 02:15 PM EDT Reads: 2,639
SYS-CON Events announced today that the "First Containers & Microservices Conference" will take place June 9-11, 2015, at the Javits Center in New York City. The “Second Containers & Microservices Conference” will take place November 3-5, 2015, at Santa Clara Convention Center, Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
Jun. 20, 2015 12:00 PM EDT Reads: 3,818
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
Jun. 15, 2015 08:45 PM EDT Reads: 4,051
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
Jun. 15, 2015 07:15 PM EDT Reads: 3,839
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
Jun. 15, 2015 10:15 AM EDT Reads: 5,901
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discusses the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
Jun. 11, 2015 08:00 AM EDT Reads: 2,297
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Jun. 10, 2015 06:00 PM EDT Reads: 3,288