|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.
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often un...
Feb. 19, 2017 08:00 PM EST Reads: 2,662
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
Feb. 19, 2017 06:45 PM EST Reads: 2,987
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
Feb. 19, 2017 06:15 PM EST Reads: 936
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
Feb. 19, 2017 06:00 PM EST Reads: 1,246
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Feb. 19, 2017 05:45 PM EST Reads: 787
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
Feb. 19, 2017 05:00 PM EST Reads: 8,002
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
Feb. 19, 2017 05:00 PM EST Reads: 1,462
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Feb. 19, 2017 05:00 PM EST Reads: 7,893
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
Feb. 19, 2017 05:00 PM EST Reads: 772
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Feb. 19, 2017 04:15 PM EST Reads: 1,922
In his session at @ThingsExpo, Sudarshan Krishnamurthi, a Senior Manager, Business Strategy, at Cisco Systems, will discuss how IT and operational technology (OT) work together, as opposed to being in separate siloes as once was traditional. Attendees will learn how to fully leverage the power of IoT in their organization by bringing the two sides together and bridging the communication gap. He will also look at what good leadership must entail in order to accomplish this, and how IT managers ca...
Feb. 19, 2017 02:30 PM EST Reads: 1,064
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Feb. 19, 2017 02:00 PM EST Reads: 898
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
Feb. 19, 2017 01:15 PM EST Reads: 738
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Feb. 19, 2017 12:45 PM EST Reads: 1,010
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, 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.
Feb. 19, 2017 11:45 AM EST Reads: 987
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you...
Feb. 19, 2017 11:30 AM EST Reads: 880
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
Feb. 19, 2017 11:15 AM EST Reads: 1,686
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Feb. 19, 2017 11:15 AM EST Reads: 1,604
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buyers...
Feb. 19, 2017 11:00 AM EST Reads: 1,571
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, Cloud Expo and @ThingsExpo are two of the most important technology events of the year. Since its launch over eight years ago, Cloud Expo and @ThingsExpo have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, I provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading the...
Feb. 19, 2017 10:45 AM EST Reads: 7,674