CODE|No|DESCRIPTION
SPY|15|SPY is one of the largest and most heavily-traded ETFs in the world, offering exposure to one of the most well known equity benchmarks. While SPY certainly may have appeal to investors seeking to build a long-term portfolio and include large cap U.S. stocks, this fund has become extremely popular with more active traders as a way to toggle between risky and safe assets. A look at SPY’s daily turnover reveals the short average holding period and the popularity with active traders.
IVV|15|IVV has become one of the largest ETFs in the world, offering exposure to one of the world’s best-known and most widely followed stock indexes. This ETF tracks the S&P 500 Index, which includes many large and well known U.S. firms. As a result, investors should think of this as a play on mega and large cap stocks in the American market. These securities are usually known as ‘Blue Chips’ and are some of the most famous and profitable companies in the country, including well known names such as ExxonMobil, Apple, IBM, and GE. Given this focus, IVV has obvious appeal as a core holding in a long-term, buy-and-hold portfolio; it offers cheap and relatively balanced exposure to many of the world’s largest companies, giving investors a way to own a basket of companies that makes up a sizable portion of global market cap.
VTI|15|This ETF offers broad exposure to the U.S. equity market, investing in thousands of different securities across all sectors. That makes VTI an appealing option for investors looking to simplify their portfolios and minimize rebalancing obligations, as this fund can serve as a core holding of a long-term portfolio. VTI can potentially be useful as a tool for establishing quick exposure to risky assets, though most shorter-term traders with that objective will gravitate towards products such as SPY instead. One of the most attractive aspects of VTI, in addition to the extremely broad base of holdings and balance of exposure, is the price. This ETF is one of the cheapest products available, and the ability to trade commission free within a Vanguard account further increases the appeal to cost-conscious investors. For those looking to minimize fees, VTI will fit right into a portfolio. One attribute worth noting, however, is the tilt towards large caps. While VTI includes companies of all sizes, the allocations to mid caps and small caps are not significant. Those seeking more balanced exposure to U.S. equities may want to use VTI alongside more targeted products focusing on smaller companies.
VOO|15|This ETF tracks the S&P 500 Index, one of the most famous benchmarks in the world and one that tracks some of America’s largest companies. As a result, investors should think of this as a play on mega and large cap stocks in the American market. These securities are usually known as ‘Blue Chips’ and are some of the most famous and profitable companies in the country, including well known names such as ExxonMobil, Apple, IBM, and GE. The fund is probably one of the safest in the equity world as the companies on this list are very unlikely to go under unless there is an apocalyptic event in the economy. However, these securities are unlikely to grow very much either as they are already pretty large and have probably seen their quickest growing days in years past, but most do pay out solid dividends which should help to ease the pain of this realization. Overall, VOO is a quality choice for investors seeking broad mega and large cap exposure and it is more diversified than most, containing just over 500 securities in total. As a result, this fund could serve as a building block for many portfolios making it an excellent choice for many buy and holders, especially for those looking to keep costs at a minimum.
QQQ|15|This ETF offers exposure to one of the world’s most widely-followed equity benchmarks, the NASDAQ, and has become one of the most popular exchange-traded products. The significant average daily trading volumes reflect that QQQ is widely used as a trading vehicle, and less as a components of a balanced long-term strategy. Of course, this fund can certainly be useful as part of a buy-and-hold approach for investors looking to maintain a tilt towards the potentially volatile tech sector.
VEA|15|This ETF offers exposure to developed markets outside of North America, including Western Europe, Japan, and Australia. As such, VEA is a core holding of many long-term portfolios, and can also be used as an efficient tool for overweighting ex-U.S. developed markets. Like many Vanguard funds, this ETF is impressive in both its depth of holdings (nearly 1,000 component securities) and cost efficiency (VEA is considerably cheaper than iShares’ EFA, which seeks to replicate the same index). While VEA is an excellent choice for EAFE exposure, there is no shortage of compelling alternatives; the equal-weighted EWEF may offer an attractive weighting methodology, as does the RAFI-weighted PXF (which also includes Canadian stocks). Like most international ETFs, VEA is heavy on exposure to large caps, introducing potential sector biases; the small cap focused SCZ can deliver complementary exposure, or may be desirable as a substitute for this fund.
IEFA|15|The iShares Core MSCI EAFE ETF (IEFA) is the younger, cheaper variation on BlackRock’s flagship iShares MSCI EAFE ETF (EFA). IEFA debuted in 2012 as part of the new ultra-low-cost iShares Core series, which was designed to attract buy-and-hold investors.
AGG|15|This ETF offers broad-based exposure to investment grade U.S. bonds, making AGG a building block for any investor constructing a balanced long-term portfolio as well as a potentially attractive safe haven for investors pulling money out of equity markets. While AGG can potentially be a one stop shop for fixed income exposure, a close look at the composition of this fund is advised. Many may find the significant allocations to MBS and Treasuries somewhat insufficient for their return objectives; increased corporate bond exposure through LQD may result in a better balance and more attractive return. While AGG includes hundreds of individual securities, this ETF actually only holds a fraction of the bonds that make up the underlying benchmark; the sampling strategy employed avoids illiquid issues, but may lead to tracking error. AGG is unmatched in terms of liquidity, but investors can achieve similar exposure at a lower cost; BND and LAG both seek to replicate the same benchmark but charge lower expense ratios. For investors looking to avoid compounding costs and tracking error, the broad-based BND may be a better option for U.S. fixed income exposure.
VTV|15|This ETF is linked to the MSCI US Prime Market Value Index, which offers exposure to large-cap companies that exhibit value characteristics within the U.S. equity market. Investors with a longer-term horizon should consider the importance of large cap value stocks and the benefits they can add to any well-balanced portfolio including dividends and rock solid stability. Companies within this segment are often considered some of the safest firms in the world and tend to be in more stable industries as well, potentially skewing some portfolios that are heavy in value securities. VTV is linked to an index consisting of roughly 400 holdings and exposure is tilted most heavily towards financials, energy, and industrials. Thanks to this fund’s solid level of diversification and rock-bottom price, investors could definitely make VTV a significant portion of their portfolios.
VUG|15|This ETF is linked to the MSCI US Prime Market Growth Index, which offers exposure to large-cap companies within the growth sector of the U.S. equity market. Investors with a longer-term horizon ought to consider the importance of growth stocks and the diversification benefits they can add to any well-balanced portfolio. Companies within the growth segment offer tremendous profit potential since they are still in the early stages of their life cycle, which in turn also raises the risk level associated with this asset class. Growth stocks may also appeal to those seeking capital appreciation versus dividend income, as these companies re-invest earnings. VUG is linked to an index consisting of just over 400 holdings and exposure is tilted most heavily towards technology, while industrials, health care, and consumer goods receive equal weightings. Viable alternatives with comparable holdings include IWF and SPYG.
VWO|15|VWO is one of the largest ETFs in the world, having been embraced by investors as an efficient way to establish exposure to emerging markets. Given the opportunity to establish broad-based exposure to the developing economies of the world, VWO may appeal to a number of different investors; this fund can be used as a short-term trading vehicle or as a core holding in a long-term, buy-and-hold portfolio. It should be noted, however, that VWO tends to attract longer-term investors; those with short time horizons gravitate towards EEM, which boasts a deep and active options market and generally experiences greater trading volumes.
BND|15|This popular ETF offers exposure to entire investment grade bond market in a single ticker, with holdings in T-Bills, corporates, MBS, and agency bonds. While it holds securities of all maturity lengths, it is heavily weighted towards the short end of the curve. BND could make for a good choice for investors who currently have little to no bond exposure and are looking to broadly increase their holdings in the segment across a variety of sectors.
IEMG|15|The iShares Core MSCI Emerging Markets ETF (IEMG) is the younger, cheaper variation on BlackRock’s flagship iShares MSCI Emerging Markets ETF (EEM). IEMG debuted in 2012 as part of the new ultra-low-cost iShares Core series, which was designed to attract buy-and-hold investors.
IWF|15|This ETF is linked to the Russell 1000 Growth Index, which offers exposure to large-cap companies within the growth sector of the U.S. equity market. Investors with a longer-term horizon ought to consider the importance of growth stocks and the diversification benefits they can add to any well-balanced portfolio. Companies within the growth segment offer tremendous profit potential since they are still in the early stages of their life cycle, which in turn also raises the risk level associated with this asset class. Growth stocks may also appeal to those seeking capital appreciation versus dividend income, as these companies re-invest earnings. IWF is linked to an index consisting of just over 600 holdings and exposure is tilted most heavily towards technology, while industrials, energy, and consumer goods receive equal weightings. Viable alternatives with comparable holdings include IVW and RPG, while VONG is the cheapest option.
IJR|15|This ETF is linked to an index which tracks the performance of small cap U.S. stocks. The investment thesis behind a small cap investment is the growth factor that comes along with these securities. While mega cap firms have already hit their peak, many of these companies may be well on their way to becoming the next large cap, and this product gives investors access to over 600 of them. The downside to small cap investing is that these companies carry a fair amount of risk; because they are so small, the slightest change in regulations or anything specific to an individual company could send share prices plummeting.  While some exposure to these small companies is healthy for a portfolio, the allocation should be kept low as this ETF will likely exhibit a high amount of volatility as well as being incredibly risky. IJR tends to spread its investments across several market sectors, though it slightly favors the technology and industrial segments. This fund will make for a good investment for traders looking for growth and are aware of the risks that come along with investing in a small cap ETF.
IWM|15|This ETF is one of several offering exposure to the Russell 2000 Index, a widely followed measure of small cap U.S. stocks. Given this investment objective, IWM may be useful in a number of different ways; more active investors may use this fund as a way to establish short-term exposure to a risky asset class when risk tolerance is expected to climb, while IWM can also be appealing as a way of accessing an asset class that should be included in any long-term, buy-and-hold portfolio.
IJH|15|This ETF is one of several ETFs available that offers exposure to mid cap U.S. stocks, an asset class that can make up a significant portion of long-term, buy-and-hold portfolios. As such, this ETF may be more appealing to those in the portfolio construction process as opposed to short term traders. IJH offers exposure to a balanced portfolio of stocks, including close to 400 individual names and spreading exposure relatively evenly. The expense ratio is competitive with the other options out there; in addition to cap-weighted choices such as this fund and MDY, there is the alpha-seeking FNX, ultra-cheap FMM, and equal-weighted EWRM.
VIG|15|This ETF tracks the performance of the NASDAQ US Dividend Achievers Select Index, which offers exposure to dividend paying large-cap companies that exhibit growth characteristics within the U.S. equity market. Investors with a longer-term horizon should consider the importance of large cap growth stocks and the benefits they can add to any well-balanced portfolio, including dividends. VIG is linked to an index consisting of roughly 180 holdings and exposure is tilted most heavily towards consumer staples, health care, and industrials. Securities are chosen for inclusion in the fund based on their history of increasing dividends; only companies that have increased payouts for at least ten consecutive years are included in the fund. Thanks to this focus, VIG only invests in companies that are most likely to continue to pay out dividends in the future making it a solid pick for dividend focused investors even if the diversification is a little lacking.
EFA|15|This ETF offers exposure to the major developed markets outside of North America, including Western Europe, Japan, and Australia. As such, EFA is a cornerstone of many long-term portfolios, delivering access to an asset class that provides valuable geographic diversification to equity allocations. It should be noted that this fund is tilted heavily towards large cap stocks; the small cap focused SCZ can be an excellent complement to the mega caps in this fund to provide more balanced exposure. EFA offers unrivaled liquidity, but there are several alternatives that may be more appealing to certain investors. Rydex offers an equal-weighted EAFE ETF (EWEF), while PowerShares offers a RAFI-weighted option. But the biggest competition may be from Vanguard’s VEA, which replicates the exact same index at a lower expense ratio and generally lower tracking error. That’s a tough offer to beat, unless you have access to this ETF commission free or value liquidity (and related option liquidity) above all else; it’s not surprising that EFA features much higher turnover, indicating a preference among more active traders.
IWD|15|This ETF is linked to the Russell 1000 Value Index, which offers exposure to large-cap companies that exhibit value characteristics within the U.S. equity market. Investors with a longer-term horizon should consider the importance of large cap value growth stocks and the benefits they can add to any well-balanced portfolio including dividends and rock solid stability. Companies within this segment are often considered some of the safest companies in the world and tend to be in more stable industries as well, potentially skewing some portfolios that are heavy in value securities. IWD is linked to an index consisting of roughly 650 holdings and exposure is tilted most heavily towards financials, energy, and health care. Thanks to this fund’s solid level of diversification and cheap price, investors could definitely make IWD a significant portion of their portfolio.
GLD|15|GLD is one of the most popular ETFs in the world, offering exposure to an asset class that has become increasingly important to the asset allocation process in recent years. GLD can be used in a number of different ways; some may establish short term positions as a way of hedging against equity market volatility, dollar weakness, or inflation. Others may wish to include gold exposure as part of a long-term investment strategy. GLD is a relatively straightforward product; the underlying assets consist of gold bullion stored in secure vaults. As such, the price of this ETF can be expected to move in lock step with spot gold prices. The physically-backed nature of this product eliminates any of the uncertainties introduced through futures-based strategies, though investors also have the option to approach this precious metal through futures-based funds such as UBG and DGL.
VO|15|This ETF is one of several ETFs available that offers exposure to mid cap U.S. stocks, an asset class that can make up a significant portion of long-term, buy-and-hold portfolios. As such, this ETF may be more appealing to those in the portfolio construction process as opposed to short term traders. Mid cap stocks are appealing to many because they still have significant growth potential but they are less risky than their small and micro cap brethren. VO offers exposure to a balanced portfolio of stocks, including close to 460 individual names and spreading exposure relatively evenly. The expense ratio is among the cheapest in the category making it an excellent choice for those looking to keep costs to an absolute minimum.  For those seeking other options in the space similar choices can be found in the MDY and IJH funds, the ultra-cheap FMM, and equal-weighted EWRM.
VGT|15|VGT tracks a broad index of companies in the information technology sector which the company considers to be the following three areas; software, consulting, and hardware. As a result, this fund tracks some of the most crucial companies in the technology sector across a wide range of market cap levels.  The fund focuses entirely on U.S. stocks, and is relatively top heavy; three securities make up 25% of the fund 54% of assets go to the top ten even though the fund holds over 425 securities in total. Investors should also note that this fund dedicates the majority of its assets to giant and large cap funds, meaning that it will be less volatile than some of the other products in the space that focus on relatively unproven companies and technologies. As a result, this fund will be more of a value play than one that presents strong growth opportunities. So while this is a decent fund for those looking to achieve broad exposure to the tech sector without the influence of semiconductors, most investors should look to broader fund which take into account all sectors of the technology industry instead for their portfolios.
VXUS|15|This ETF is offers broad exposure to equity markets outside of the U.S., including both developed and emerging markets. As such, VXUS may be useful as a core holding in a long-term portfolio, potentially functioning as one stop exposure for international equity allocations. It should be noted, however, that the split between developed and emerging markets may require some fine tuning based on individual risk tolerance and investment objectives. Moreover, VXUS is heavy on large cap companies; there is little in the way of mid cap or small cap exposure (VSS can be a nice complementary holding in this regard). For investors seeking ex-U.S. equity exposure, VXUS scores well in terms of both balance of holdings and cost efficiency; this fund has thousands of individual stocks from dozens of different countries, and is among the cheapest options on the market. VXUS is likely most appealing to long-term buy-and-holders, but could also potentially be useful as a short-term “risk on” play or as part of a long/short pairs trade. Other options for similar exposure include VEU and ACWX.
VB|15|VB seeks to replicate a benchmark which offers exposure to small cap firms in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on both value and growth securities, could provide more of a diversified play than products that just focus on ‘growth’ or ‘value’ securities within this segment. Thanks to this broad focus, VB has an extremely large number of securities— close to 1,720 in total— and does a great job of dividing up assets among the components as no one company makes up more than 30 basis points of total assets. Thanks to this high level of diversification and VB’s low expense ratio, the fund could make for a quality addition to portfolios of investors who are looking for small cap exposure and do not have a preference in terms of value or growth equities.
XLK|15|State Street’s XLK grants investors the opportunity to gain exposure to numerous powerhouse tech firms all under a single ticker. To be included in this ETF, a company must be one of numerous sectors under the technology umbrella. This includes market segments like IT services, wireless telecommunication services, and semiconductors to name just a few. The fund invests in the who’s-who of the U.S. tech sector, with major holdings in companies like Apple and IBM. The fund splits its assets mainly between the technology and communication services sectors, while allocating mainly to giant and large cap firms. One of the major strengths of this ETF is the fact that it does not single out a particular sector; rather it invests in companies from all across the technology sector. This makes the fund and ideal choice for investors who want tech exposure, but are unsure as to which particular segment of this broad market that they feel will perform the best.
XLF|15|This ETF, one of the powerhouse SPDR products, provides exposure to an index that includes companies from the following industries: diversified financial services; insurance; commercial banks; capital markets; real estate investment trusts; thrift & mortgage finance; consumer finance; and real estate management & development. XLF contains the who’s-who of the financial players in the domestic economy, including JP Morgan, Wells Fargo, and others. This makes it an ideal play on the U.S. financials world, which has not always been stable. After the 2008 U.S. recession, many of the financial companies in the U.S. came under a great deal of scrutiny for irresponsible practices that lead to the downfall of the economy. Since then, the government has not been shy about imposing new regulations and legislation on these big name banks and institutions. Investors looking into this product show be aware that it will likely be very effected by U.S. policy as we aim to ensure that another crisis of this magnitude does not repeat itself. Investors should also note that XLF pays out a decent dividend, which may provide steady income in times of market downturns.
VCIT|15|VCIT offers exposure to investment grade corporate bonds that fall in the middle of the maturity spectrum, thereby delivering a moderate amount of both interest rate and credit risk. Like most Vanguard ETFs, VCIT is among the most cost-efficient in its ETFdb Category. VCIT might be useful for investors looking to enhance fixed income returns but hesitant to lengthen duration too much.
BNDX|15|PendingDownload the FactSet Analyst Insight Reporthere.
VNQ|15|The Vanguard Real Estate Trust (VNQ) offers broad exposure to U.S. equity REITs, alongside a small allocation to specialized REITs and real estate firms. Real estate has historically been embraced because of its ability to deliver excess returns during bull markets and for its low correlation with traditional stock and bond investments. REITs might appeal to investors seeking current income, as these trusts must distribute at least 90% of their income to investors. The fund offers an efficient way for investors to gain indirect exposure to real estate prices (as opposed to direct exposure gained through ownership of a residential property).
ITOT|15|This ETF gives investors an option for achieving low cost exposure to a broad basket of domestic stocks; the underlying index essentially is created by combining the S&P 500 with popular small cap (600 stocks) and mid cap (400 stocks) indexes as well. As such, ITOT can be a one stop shop for domestic equity exposure, including equities across a number of different sectors and companies of various sizes as well. Relative to other broad-based funds such as IWV and SCHB, this ETF may have a heavier tilt towards large cap companies, making it appealing for investors looking for an equity profile tilted towards the larger companies in an economy. ITOT may be an efficient tool for investors looking for a certain type of U.S. equity exposure, but be advised that there are cheaper options available (such as SCHB, VTI and FMU).
BSV|15|This popular ETF offers exposure to the short end of the maturity curve, with exposure to all types of bonds that have maturities between one and five years. BSV is light on both interest rate risk and credit risk, and as such will generally deliver a relatively low expected return. BSV can be a great safe haven to park assets in volatile markets, and is likely to offer more in terms of yield than comparable funds focusing on T-Bills.
VCSH|15|VCSH offers exposure to investment grade corporate bonds that fall towards the short end of the maturity spectrum, thereby delivering a moderate amount of credit risk but limiting exposure to rising interest rates. Like most Vanguard ETFs, VCSH is among the most cost-efficient in its ETFdb Category. VCSH might be useful for investors looking to enhance fixed income returns through additional credit risk but also interested in shortening up effective duration.
VYM|15|This ETF is linked to the FTSE High Dividend Yield Index, which offers exposure to dividend paying large-cap companies that exhibit value characteristics within the U.S. equity market. Investors with a longer-term horizon should consider the importance of large cap value stocks and the benefits they can add to any well-balanced portfolio including dividends and rock solid stability. Companies within this segment are often considered some of the safest firms in the world and tend to be in more stable industries as well, potentially skewing some portfolios that are heavy in value securities. VYM is linked to an index consisting of roughly 440 holdings and exposure is tilted most heavily towards consumer, energy, and industrials. Securities are chosen for inclusion in the fund based on their current yield; only the highest yielding companies are chosen. Thanks to this focus, VYM offers investors broad exposure to dividend paying companies, giving investors a much wider net than the other dividend focused firms in the space. As a result, VYM could be a better pick for long-term buy and hold investors than some of the other products, plus it has a much lower expense ratio to boot.
LQD|15|This ETF is the most popular option for investors looking to gain exposure to investment grade corporate bonds, making it a useful tool for those looking to access a corner of the bond market that should be a core component of any long-term, buy-and-hold portfolio. LQD is probably of limited use for short term traders, who will prefer to utilize more extreme ends of the risk spectrum to capitalize off of short term movements in asset prices and risk tolerance. This ETF should, however, be very useful to those building a long-term portfolio; exposure to corporate bonds can deliver attractive yields without excessive risks. LQD can specifically be helpful for those with holdings in AGG or BND, beefing up the relatively minor allocations those aggregate products make to corporate debt (those ETFs are dominated by government bonds). While LQD is spread out across the maturity spectrum, investors do have options for more granular exposure to long term (VCLT) or short term (SCPB, VCSH) corporate debt.
IVW|15|This ETF offers exposure to large-cap companies within the growth sector of the U.S. equity market. Investors with a longer-term horizon ought to consider the importance of growth stocks and the diversification benefits they can add to any well-balanced portfolio. Companies within the growth segment offer tremendous profit potential since they are still in the early stages of their life cycle, which in turn also raises the risk level associated with this asset class. Growth stocks may also appeal to those seeking capital appreciation versus dividend income, as companies re-invest earnings. IVW is linked to an index consisting of just over 300 holdings and exposure is tilted most heavily towards technology, while industrials, health care, and consumer goods receive equal weightings. Viable alternatives with comparable holdings include IWF and VOOG, while SCHG is the cheapest option.
VEU|15|This ETF offers broad-based exposure to equity markets outside of the U.S., including both developed and emerging markets. As such, VEU can be a useful tool for many investors constructing long-term portfolios, or as a tactical tilt for those looking to beef up international allocations. VEU is impressive in both its cost efficiency and depth of holdings, and does a nice job of balancing exposure across a number of ex-U.S. economies. Like all Vanguard ETFs, VEU may be available commission free in Vanguard accounts, further enhancing the appeal of this fund to cost-conscious investors. It should be noted that the balance between emerging and developed markets may not be consistent with all investment objectives; further fine tuning may be required in some instances. Also, VEU consists primarily of large cap stocks; complementary exposure through VSS will result in a more balanced portfolio that includes smaller firms with potentially greater capital appreciation possibilities.
TIP|15|This ETF offers broad-based exposure to TIPS, bonds issued by the U.S. government featuring principal that adjusts based on certain measures of inflation. TIP has become tremendously popular as a way of protecting asset values against upticks in inflation, and as such can be used in different ways by a number of different types of investors. This ETF may have appeal as a tactical play when concerns about inflationary pressures intensify, or may be used as a core holding in a long-term, but-and-hold portfolio. As a very low risk asset, TIP will generally feature a relatively meager yield. TIP is one of several broad TIPS ETFs; and it is arguably the most famous of the bunch as it has by far the most assets in the Category. This fund is competitive from a cost perspective and offers up unmatched liquidity, making it worthy of consideration for any investors seeking exposure to this corner of the bond market.
SCHX|15|This ETF tracks the Dow Jones U.S. Large-Cap Total Stock Market Index, a benchmark consisting of some of America’s largest companies. As a result, investors should think of this as a play on mega and large cap stocks in the American market. These securities are usually known as ‘Blue Chips’ and are some of the most famous and profitable companies in the country, including well known names such as ExxonMobil, Apple, IBM, and GE. The fund is probably one of the safest in the equity world as the companies on this list are very unlikely to go under unless there is an apocalyptic event in the economy. However, these securities are unlikely to grow very much either as they are already pretty large and have probably seen their quickest growing days in years past, but most do pay out solid dividends which should help to ease the pain of this realization. Overall, VONE is a quality choice for investors seeking broad mega and large cap exposure and it is more diversified than most, containing just over 750 securities in total. As a result, this fund could serve as a building block for many portfolios making it an excellent choice for many buy and holders, especially for those seeking to keep costs to an absolute minimum.
IXUS|15|PendingDownload the FactSet Analyst Insight Reporthere.
IWB|15|This ETF tracks the Russell 1000 Index, a benchmark consisting of some of America’s largest companies. As a result, investors should think of this as a play on mega and large cap stocks in the American market. These securities are usually known as ‘Blue Chips’ and are some of the most famous and profitable companies in the country, including well known names such as ExxonMobil, Apple, IBM, and GE. The fund is probably one of the safest in the equity world as the companies on this list are very unlikely to go under unless there is an apocalyptic event in the economy. However, these securities are unlikely to grow very much either as they are already pretty large and have probably seen their quickest growing days in years past, but most do pay out solid dividends which should help to ease the pain of this realization. Overall, IWB is a quality choice for investors seeking broad mega and large cap exposure and it is more diversified than most, containing just under 1,000 securities in total. As a result, this fund could serve as a building block for many portfolios making it an excellent choice for many buy and holders.
EEM|15|EEM is one of the most popular ETFs in the world, and is one of the oldest products on the market offering exposure to stock markets of emerging economies. Given this objective, EEM can be used in a number of different ways; this ETF can be equally useful as a short-term trade to increase exposure to risky assets or as a core holding in a long-term, buy-and-hold portfolio. EEM certainly qualifies as a portfolio “building block” given the importance of the asset class covered, but it also has some noteworthy flaws.
IWR|15|This ETF is one of several ETFs available that offers exposure to mid cap U.S. stocks, an asset class that can make up a significant portion of long-term, buy-and-hold portfolios. As such, this ETF may be more appealing to those in the portfolio construction process as opposed to short term traders. Mid cap stocks are appealing to many because they still have significant growth potential but they are less risky than their small and micro cap brethren. IWR offers exposure to a balanced portfolio of stocks, including close to 780 individual names, among the most in this particular Category. The expense ratio is pretty cheap, although there are several funds that do offer a lower cost. For those seeking other options in the space similar choices can be found in the MDY and IJH funds, the ultra-cheap FMM, and equal-weighted EWRM.
RSP|15|This ETF is linked to the S&P 500 Index, however its unique weighting methodology will make it useful for some, while impractical for active traders. Like many Rydex products, RSP is linked to an equal-weighted index, meaning that component companies receive approximately equal allocations. That results in exposure that is considerably more balanced than other alternatives such as SPY, and a methodology that some investors believe will add value over the long haul. In return for this unique exposure you can expect higher fees; this ETF is considerably more expensive  and less liquid than both SPY and IVV, though it is still extremely cost efficient compared to most mutual funds.
XLV|15|This ETF is one of the most popular options for gaining exposure to the U.S. health care sector, and as such might be an attractive option for investors looking to tilt exposure towards lower risk industries. XLV is among the cheapest ways to gain access to health care companies, and offers impressive depth of holdings as well. XLV can be a good option for a sector rotation strategy or as a means of establishing a long term tilt towards the health care sector.
DIA|15|This ETF tracks the Dow Jones Industrial Average, one of the most famous benchmarks in the world and one that tracks some of America’s largest companies. As a result, investors should think of this as a play on mega and large cap stocks in the American market. These securities are usually known as ‘Blue Chips’ and are some of the most famous and profitable companies in the country, including well known names such as ExxonMobil, Caterpillar, IBM, and GE. The fund is probably one of the safest in the equity world as the companies on this list are very unlikely to go under unless there is an apocalyptic event in the economy. However, these securities are unlikely to grow very much either as they are already pretty large and have probably seen their quickest growing days in years past, but most do pay out solid dividends which should help to ease the pain of this realization. Overall, DIA is a decent choice for investors seeking broad mega and large cap exposure, but it is less diversified than most, containing just 30 securities in total. As a result, investors may want to look to other more diversified funds— such as VONE or VOO— in order to accomplish their goals in the large and giant cap space.
SCHD|15|This ETF offers exposure to dividend-paying U.S. equities, making SCHD a potentially useful tool for either enhancing current returns derived from the equity portion of a portfolio or for scaling back risk exposure within a portfolio. While there are dozens of funds offering exposure to dividend-paying stocks, SCHD offers a somewhat unique approach to this strategy. The underlying index methodology requires a long track record of distributions, meaning that this product is unlikely to include small, speculative firms that are offering an attractive distribution yield because their stock price has been depressed. The methodology also considers multiple metrics, including dividend growth and dividend yield, resulting in a portfolio that should offer a substantial upgrade in payout compared to the broader market.
SCHF|15|This ETF offers exposure to large and mid cap stocks from about 20 developed markets outside of the U.S., making SCHF one option for accessing an asset class that is a cornerstone of many long-term balanced portfolios. SCHF is an excellent choice for a number of reasons. With close to 1,000 individual holdings, this ETF brings immediate diversification, especially since exposure is balanced across individual stocks, sectors, and countries. Moreover, SCHF includes exposure to Canada, a region that many EAFE ETFs, such as EFA and VEA, overlook entirely. That can result in more balanced exposure, and the inclusion of the resource-rich Canadian economy (albeit in a relatively small dose) can be valuable in certain environments.Finally, SCHF is extremely cost efficient; the bargain basement expense ratio and ability to trade commission free in certain accounts should appeal to any cost-conscious investors. There are a number of alternatives to SCHF, but few (if any) make a better pick for a long-term balanced portfolio.
IAU|15|This fund offers exposure to one of the world’s most famous metals, gold. IAU is designed to track the spot price of gold bullion by holding gold bars in a secure vault, allowing investors to free themselves from finding a place to store the metal. While IAU isn’t the most liquid way to gain exposure to gold, it does have among the lowest expense ratios, making it a solid choice for cost-conscious investors.
XLE|15|This ETF offers exposure to the U.S. energy industry, including many of the world’s largest oil producers. While XLE probably doesn’t make sense for those constructing a long-term buy-and-hold portfolio, it can be potentially useful as a tactical overlay for those looking to shift exposure towards a sector that thrives when oil prices show strength. Compared to other energy options, XLE is impressive in terms of both cost efficiency and liquidity; investors can generally expect to execute at penny wide spreads. But like many funds offering exposure to the energy sector, XLE maintains some concentration issues, as a few stocks account for big chunks of the total portfolio. Those seeking to avoid this issue may like the equal weighted RYE; the alpha-seeking FXN may also be an intriguing option for energy exposure.
USMV|15|This ETF is one of several products available to investors looking to achieve targeted exposure to a specific “factor,” which in the case of USMV is low volatility. The underlying index consists of stocks that have historically exhibited relatively low volatility, a unique methodology that makes USMV potentially useful in a number of different ways. This fund can be used as an alternative to broad-based domestic equity funds, though the shallow nature of the underlying portfolio may be a concern. Perhaps a better use would be as a way to dial down the overall risk of an equity portfolio, essentially allowing investors to scale back their downside loss potential while still maintaining some up side.
VV|15|This ETF tracks the MSCI US Prime Market 750 Index, a benchmark tracking some of the largest and most profitable companies in the United States. As a result, investors should think of this as a play on mega and large cap stocks in the American market. These securities are usually known as ‘Blue Chips’ and are some of the most famous and profitable companies in the country, including well known names such as ExxonMobil, Apple, IBM, and GE. The fund is probably one of the safest in the equity world as the companies on this list are very unlikely to go under unless there is an apocalyptic event in the economy. However, these securities are unlikely to grow very much either as they are already pretty large and have probably seen their quickest growing days in years past, but most do pay out solid dividends which should help to ease the pain of this realization. Overall, VV is a quality choice for investors seeking broad mega and large cap exposure and it is more diversified than most, containing just over 750 securities in total. As a result, this fund could serve as a building block for many portfolios making it an excellent choice for many buy and holders, especially for those looking to keep costs at a minimum.
VBR|15|VBR seeks to replicate a benchmark which offers exposure small cap firms that exhibit value characteristics in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on value securities, has certain biases in its portfolio holdings and may not offer as much of a cross section as funds such as IWM. However, VBR does a solid job of dividing up assets as the fund holds close to 1,000 securities in total and doesn’t give any one security more than 0.5% of the total assets. Thanks to this extreme diversification and VBR’s ultra cheap price— the lowest in the category— the fund could make for a quality addition to portfolios of investors who are looking for small cap exposure but are seeking lower risk assets in the space.
MBB|15|This ETF provides exposure to the mortgage backed security slice of the bond market, a corner of the finance world that has seen its share of troubles over the past few years. While MBS funds were at the heart of the subprime crisis, this product invests in liquid, stable bonds that are unlikely to default, pay out solid rates of interest, and provide valuable diversification benefits to a portfolio. Due to these benefits, most investors should consider adding some MBS holdings to their portfolio, albeit in a very small amount. MBB represents an excellent choice for investors looking to do just that as the fund is by far the most popular in the Category as well as the most liquid. In terms of diversification, the fund does a pretty solid job as it holds over 150 securities and its top ten holdings make up less than 15% of the total fund. Thanks to this, any further shocks to the housing market are unlikely to grossly impact this fund making MBB a solid choice for buy and holders and traders alike.
VT|15|This ETF is one of the broadest equity products on the market, offering exposure to global equity markets, including the U.S., ex-U.S. developed markets, and emerging economies. As such, VT can potentially be a one stop shop for equity exposure to those building a long-term portfolio, though the balance between the three asset classes mentioned above may require some fine tuning based on return objectives and risk tolerances. It should also be noted that VT is dominated by large cap stocks, and maintains minimal exposure to small cap companies; as such, those building a long-term portfolio may wish to seek out complementary holdings for rounding out exposure. With thousands of individual securities in dozens of different countries, VT scores well in terms of diversification; no one stock accounts for a meaningful portion of the total portfolio, and the fund is balanced from both a regional and sector perspective. Like most Vanguard ETFs, VT compares favorably from a cost perspective, and the option to trade commission free in Vanguard accounts further increases the appeal to cost conscious investors. While this fund was designed for buy-and-holders, it has the potential to be used as a shorter-term “risk on” vehicle for establishing broad-based, global equity exposure. Other ETF options for similar exposure include ACWI, while investors seeking ex-U.S. exposure may prefer ACWX or VEU.
IGSB|15|PendingDownload the FactSet Analyst Insight Reporthere.
QUAL|15|The iShares Edge MSCI U.S.A. Quality Factor ETF (QUAL) tracks an index that selects large- and mid-cap U.S. stocks based on quality factors like stable earnings growth and low debt-to-equity. QUAL is priced competitively with other single-factor funds that invest in U.S. equities. The fund owns more than 100 securities. As with many single-factor funds, QUAL isn’t diversified enough stand alone as a core U.S. equity holding. It is more likely to be useful to investors who want to overlay a quality tilt on top of a core allocation to U.S. markets.
MUB|15|This fund tracks an index of municipal bonds, a slice of the bond market that is highly coveted due to its tax features. These bonds are generally free from federal taxes and in some cases, state and local income taxes as well making these funds crucial components of portfolios for those in high tax brackets. Muni bonds are used by local entities to pay for a variety of services or to make improvements to infrastructure paying for everything from new sewer systems to school renovations and bridge construction as such, they are relatively low risk instruments. MUB is by far the most popular fund in the national munis Category and for good reason; the fund holds over 1,200 individual securities and allocates just 5.5% to its top ten holdings ensuring high levels of diversification. Due to this MUB is a solid choice for any investor looking to gain broad exposure to the muni bond sector across a variety of states and projects around the nation.
ESGU|15|PendingDownload the FactSet Analyst Insight Reporthere.
IVE|15|This ETF is linked to the S&P 500/Citigroup Value Index, which offers exposure to large-cap companies that exhibit value characteristics within the U.S. equity market. Investors with a longer-term horizon should consider the importance of large cap value stocks and the benefits they can add to any well-balanced portfolio including dividends and rock solid stability. Companies within this segment are often considered some of the safest firms in the world and tend to be in more stable industries as well, potentially skewing some portfolios that are heavy in value securities. IVE is linked to an index consisting of roughly 340 holdings and exposure is tilted most heavily towards financials, energy, and industrials. Thanks to this fund’s solid level of diversification and cheap price, investors could definitely make IVE a significant portion of their portfolios.
SCHB|15|SCHB is Charles Schwab’s entry into the all cap equity ETF space, and offers investors a way to access more than 1,500 companies across various sectors and sizes. As such, this fund has the potential to be utilized as core holding of a long-term, buy-and-hold portfolio or as a means of establishing quick exposure to risky securities as part of a shorter-term strategy. For investors with a long-term focus, SCHB is appealing in terms of balance of holdings and minimal fees. Concentration in any one name is minimal, and every sector of the U.S. economy is represented. From an expense perspective, SCHB is one of the cheapest options out there, and the option to trade this fund commission free in Schwab accounts further enhances the value proposition for cost-conscious investors. For investors seeking broad-based, low-cost exposure to U.S. equities, SCHB is one of the best ETF options out there (VTI is another good option).
MDY|15|This ETF is one of several ETFs available that offers exposure to mid cap U.S. stocks, an asset class that can make up a significant portion of long-term, buy-and-hold portfolios. As such, this ETF may be more appealing to those in the portfolio construction process as opposed to short term traders. MDY offers exposure to a balanced portfolio of stocks, including close to 400 individual names and spreading exposure relatively evenly. The expense ratio is competitive with the other options out there and the level of liquidity is unmatched in the space. In addition to cap-weighted choices such as this fund and IJH, there is the alpha-seeking FNX, ultra-cheap FMU, and equal-weighted EWRM.
ARKK|15|The ARK Innovation ETF (ARKK) is the flagship actively-managed fund from the team at ARK Invest. The advisory firm, led by Catherine Wood, has an impressive track record doing what most stock pickers fail to do: beating the market.
VGK|15|This ETF offers broad based exposure to the developed economies of Europe, spreading holdings across more than a dozen markets. As such, this ETF can be an efficient tool for investors looking to tilt exposure towards this region of the world. Those seeking broader exposure to ex-U.S. developed markets may prefer a fund such as VEA, which includes Pacific economies as well. For those seeking exposure to developed European economies, VGK is perhaps the best ETF option available. This ETF offers exposure that is balanced across countries, sectors, and individual holdings; with nearly 500 component securities, concentration to any one name is minimal. Moreover, the expense ratio is among the lowest in the ETFdb Category, making VGK one of the most cost efficient ways to access developed Europe’s equity markets.
XLY|15|The ETF offers exposure to the consumer discretionary sector, making it an appealing option for investors looking to implement a sector rotation strategy or tilt exposure towards corners of the U.S. market that may perform well during a recovery. XLY offers impressive liquidity, cost efficiency, and depth of exposure, making it one of the best ETF options for playing the consumer discretionary sector.
DGRO|15|PendingDownload the FactSet Analyst Insight Reporthere.
SCHP|15|This ETF offers broad-based exposure to TIPS, bonds issued by the U.S. government featuring principal that adjusts based on certain measures of inflation. As such, SCHP may have appeal as a minor allocation in a long-term portfolio, with increased weighting given if investors are particularly concerned about inflationary pressures. SCHP is one of several broad TIPS ETFs; TIP, and TIPZ will offer up very similar exposure. However, its superior expense ratio should more than compensate investors for this making SCHP a decent choice for any investors seeking exposure to this corner of the bond market. While TIPS have become popular as a means of protecting against inflation, it is noted that there are potential limitations to this asset class in accomplishing this objective as well. Short-term TIPS ETFs such as STIP or STPZ may be forth a closer look, as well as more creative alternatives such as CPI or other ‘alternative’ ETFs.
PFF|15|This ETF offers investors exposure to preferred stock, an interesting segment of the capital markets that most investors do not have a lot of exposure to. Preferred stock holders have a ‘preferred’ position on assets compared to other common shareholders should there be a liquidity event in the company. However, these shareholders generally do not have voting rights in exchange for this premium position. Preferred stock also generally pay out solid dividend yields but then also do not participate as much in equity appreciation as their common share counterparts. Due to this preferred stock could be appropriate for those seeking to boost yields in a portfolio or for those looking for less risky forms of equity exposure that are relatively absent from broad portfolios of stocks. PFF is reasonably diversified by both sector and in terms of total number of holdings; the fund has just under 250 securities and is heavily weighted towards the financial industry although other sectors do comprise nearly 20% of the fund as well. As a result, this fund should be considered part of the financial holding of a portfolio and only used in small amounts to boost yields. If used properly, PFF could be a powerful tool for investors, just be careful and make sure to not overinvest in the sector.
SHY|15|This popular ETF offers exposure to the short end of the maturity curve, focusing on securities with less than three years to maturity. SHY is light on both interest rate risk and credit risk, and as such will generally deliver a relatively low expected return. SHY can be a great safe haven to park assets in volatile markets, but won’t deliver much in the way of current yield.
HYG|15|This product is designed to replicate a benchmark which provides a broad representation of the U.S. dollar-denominated high yield liquid corporate bond market. The high yield bond space has been cracked wide open by ETFs, as these products have offered numerous ways for investors to take advantage of this space. High yields can be a great addition to a yield-starved portfolio, as they can offer yields into the double digits for those willing to take on the risks that come along with it. The high returns come from riskier bond choices who have to pay out higher ratios to compensate investors for high risks. this means that the holdings of these ETFs will have higher chances of defaults, and could potentially leave investors out to dry. But for those who have done their homework on the holdings of a particular “junk” bond fund have the ability to generate strong returns from these powerful products. HYG keeps most of its assets inside of the U.S., though it does offer a slice of international exposure as well. The ETF is dominated by corporate bonds, the majority of which have investment grades between B and BB. This product will make a great income addition to any investor who is fully aware of the risks a high yield bond product carries.
SDY|15|This ETF is linked to the S&P High Yield Dividend Aristocrats Index, which offers exposure to dividend paying large-cap companies that exhibit value characteristics within the U.S. equity market. Investors with a longer-term horizon should consider the importance of large cap value stocks and the benefits they can add to any well-balanced portfolio including dividends and rock solid stability. Companies within this segment are often considered some of the safest firms in the world and tend to be in more stable industries as well, potentially skewing some portfolios that are heavy in value securities. SDY is linked to an index consisting of roughly 60 holdings and exposure is tilted most heavily towards consumer, utilities, and industrials. Securities are chosen for inclusion in the fund based on their current yield; only the highest yielding companies are chosen and these firms must have increased dividends every year for at least 25 consecutive years. Thanks to this focus, SDY only invests in companies that are most likely to continue to pay out dividends in the future making it a solid pick for dividend focused investors even if the diversification is a little lacking.
EMB|15|This ETF offers exposure to debt of emerging markets issuers that is denominated in U.S. dollars, delivering exposure to an asset class that can enhance current returns and deliver geographic diversification without bringing exchange rate fluctuations into the equation. For investors seeking to diversify exposure to the U.S. dollar, funds like ELD or EMLC might make more sense. But for those seeking exposure to emerging market debt denominated in the greenback, EMB offers a low cost option that is well diversified and extremely liquid.
DVY|15|This ETF is one of several options available to investors looking to focus equity exposure on dividend-paying stocks; the underlying index screens the equity universe by factors such as dividend per share growth rate, dividend payout percentage rate, and dividend yield. Given this focus, DVY may be useful as a core component within a long-term portfolio, though investors should note that there will likely be a material bias towards value stocks and certain sectors of the U.S. economy such as utilities. DVY can also be effective as a tactical tool, shifting holdings towards companies that will often exhibit lower volatility in certain environments. The underlying portfolio is somewhat shallow with only about 100 stocks, but well balanced across those names that do make up the related benchmark. DVY is relatively efficient from a cost perspective, with an expense ratio comparable to funds offering similar exposure. FVD, VYM, and SDY are just a few of the many ETFs focused on large cap dividend paying companies; investors seeking exposure to this corner of the U.S. equity market have plenty of ETF options to choose from.
JPST|15|The JPMorgan Ultra-Short Income ETF (JPST) had one of the most successful fund launches in the industry, and has been a big hit for JP Morgan’s asset management business. The actively-managed fund capitalizes on JPMorgan’s reputation for cash management, and does it at a low cost. The fund invests in short-term investment-grade debt, and may be suitable for investors looking for a relatively safe way to eke out a little more yield than they can get from brokerage sweep accounts, money market funds or long-term Treasuries.
XLI|15|This SPDR is one of several ETFs available to investors seeking exposure to the U.S. industrials sector, offering a way to access a corner of the U.S. economy that includes transportation firms, providers of commercial and professional services, and manufacturers of capital goods. Given the sector-specific focus, XLI likely doesn’t deserve a core allocation, but may be useful as a means of implementing a tactical tilt towards the industrials sector or as part of a sector rotation strategy. The primary appeal of XLI lies in the impressive liquidity; used widely as a trading vehicle by active investors, XLI will generally feature very narrow bid-ask spreads. The depth of the XLI portfolio, however, leaves something to be desired. This ETF has far fewer holdings than options such as VIS, FIL, and IYJ, and also maintains a big weighting in GE. Those seeking to steer clear of concentrations in single stocks may prefer the equal-weighted RGI, while those seeking exposure to ex-U.S. industrials may find IPN to be a useful tool. XLI is great for investors seeking a quick entry into the industrials sector, but those seeking exposure over the long term may want to find a more balanced option.
VXF|15|This ETF is one of several ETFs available that offers exposure to mid cap U.S. stocks, an asset class that can make up a significant portion of long-term, buy-and-hold portfolios. As such, this ETF may be more appealing to those in the portfolio construction process as opposed to short term traders. While most funds in this Category focus exclusively on mid caps, this fund also includes small caps as well making it an interesting choice for investors seeking exposure to both market cap levels in a single ticker. VXF offers exposure to a balanced portfolio of stocks, including more than 1,000 individual securities and spreading exposure relatively evenly suggesting that fund is extremely diversified. The expense ratio is among the cheapest in the category making it an excellent choice for those looking to keep costs to an absolute minimum.  For those seeking other options in the space that provide exposure only to mid caps, MDY and IJH could make for good choices as well as the ultra-cheap FMM, and equal-weighted EWRM. However, for those seeking both mid and small caps in a single product, VXF is tough to beat.
VTIP|15|The Vanguard Short-Term Inflation Protected Securities ETF tracks an index of inflation-protected securities backed by the U.S. government. The fund invests in debt with a remaining maturity of less than five years. The mix of short- and medium-term duration also gives the fund some protection against rising interest rates, which tend to put a larger dent in the value of longer-dated Treasuries. The tradeoff is that shorter-dated Treasuries provide lower returns. VTIP may be a good choice for investors who want the safety of U.S.-backed government debt, but are also worried that a sudden surge in inflation — and the likelihood of a resulting interest rate hike — will drag down the value of longer-dated Treasuries. The fund has substantial assets and daily liquidity, and at the low price investors expect from Vanguard.
TQQQ|15|This ETF offers 3x daily long leverage to the NASDAQ-100 Index, making it a powerful tool for investors with a bullish short-term outlook for nonfinancial equities. Investors should note that TQQQ’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. TQQQ can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
SCHA|15|SCHA seeks to replicate a benchmark which offers exposure to small cap firms in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on both value and growth securities, could provide more of a diversified play than products that just focus on ‘growth’ or ‘value’ securities within this segment. Thanks to this broad focus, SCHA has a large number of securities— close to1,750 in total— and does a phenomenal job of dividing up assets among the components as no one company makes up more than 30 basis points of total assets. Thanks to this high level of diversification and SCHA’s ultra low expense ratio, the fund could make for a quality addition to portfolios of investors who are looking for small cap exposure and do not have a preference in terms of value or growth equities.
ACWI|15|This ETF offers exposure to thousands of countries across dozens of different developed and emerging economies, giving it appeal to investors looking to simplify the portfolio construction process and minimize rebalancing needs. Be aware that the allocation of exposure across countries, regions, and development levels may not correspond to economic reality, so some investors may want to use other products to fine tune exposure or simply put the pieces of the puzzle together independently. ACWI offers cheap, balanced exposure to the global economy, though investors may wish to take a closer look at the composition of this ETF and make adjustments to exposure.
SCHG|15|This ETF is linked to the Dow Jones U.S. Large-Cap Growth Total Stock Market Index, which offers exposure to large-cap companies within the growth sector of the U.S. equity market. Investors with a longer-term horizon ought to consider the importance of growth stocks and the diversification benefits they can add to any well-balanced portfolio. Companies within the growth segment offer tremendous profit potential since they are still in the early stages of their life cycle, which in turn also raises the risk level associated with this asset class. Growth stocks may also appeal to those seeking capital appreciation versus dividend income, as these companies re-invest earnings. SCHG is linked to an index consisting of roughly 500 holdings and exposure is tilted most heavily towards technology,  while industrials, health care, energy, and consumer goods receive equal weightings. Viable alternatives with comparable holdings include ELG and JKE, while MGK is the only option with a comparably low expense fee.
VBK|15|VBK seeks to replicate a benchmark which offers exposure small cap firms that exhibit growth characteristics in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on growth securities, has certain biases in its portfolio holdings and may not offer as much of a cross section as funds such as IWM and be more volatile as well. However, VBK does an excellent job of dividing up assets as the fund holds close to 1,000 securities in total and doesn’t give any one security more than 0.6% of the total assets. Thanks to this high level of diversification and VBK’s ultra-low expense ratio, the fund could make for a superb addition to portfolios of investors who are looking for small caps but are seeking a higher risk/reward profile in the space. However, it should be noted that there are several other products in the category, namely IWO, PWT, and SLYG, that offer slightly more diversification although at higher prices, potentially making them better choices for certain long-term investors.
MTUM|15|The iShares Edge MSCI USA Momentum Factor ETF (MTUM) tracks an index of large-cap U.S. stocks with that exhibit positive price momentum. The index is diversified across sectors on a market cap-weighted basis, and individual securities within each sector are weighted to ensure diversification. The fund owns more than 100 securities. As with many single-factor funds, MTUM may not be diversified enough stand alone as a core U.S. equity holding. It is more likely to be useful to investors who want to overlay a momentum tilt on top of a core allocation to U.S. markets.
IWP|15|This ETF offers exposure to mid cap stocks that exhibit growth characteristics, making IWP a potentially useful tool for investors looking to fine tune their domestic equity exposure or implement a tilt towards a specific investment style. Investors constructing a long-term portfolio would be better off with a fund such as MDY or IJH that includes greater depth of holdings and a mix of various styles. Growth strategies often come with biases towards specific sectors, and may outperform more broadly-based indexes in certain economic environments. It should be noted that there is often considerable overlap between IWP and its value counterpart IWS, the result of a methodology that uses a generous definition of growth stocks. Rydex offers a pure style alternative, RFG, that is slightly more expensive but will offer a considerably more targeted focus on growth equities. Those seeking to make a meaningful tilt in their portfolio would be better served by using that fund. It should also be noted that IJK and IVOG seek to replicate the same index at comparable expense ratios. VOT is slightly cheaper, and may be available commission free in certain accounts, while IWP will generally feature narrow spreads. IWP is a fine ETF, but there are a number of alternatives out there that offer more compelling methodologies, lower fees, or potentially better execution.
VHT|15|This ETF is one of many offering exposure to U.S. health care stocks, a corner of the domestic economy that has historically exhibited relatively low volatility. As a sector-specific ETF, VHT probably isn’t all that useful in a long-term, buy-and-hold portfolio; most of the underlying companies will be included in broader U.S. equity products. This fund will be more attractive to those looking to put a tactical tilt towards health care stocks in place or as a tool in a sector rotation strategy. One noteworthy element of this ETF is the depth of holdings; with hundreds of individual stocks, VHT casts a considerably wider net than other health care ETFs such as XLV. But this fund is still somewhat concentrated; a small handful of stocks account for a significant portion of the total portfolio, while many of the smaller names have very minor weightings. VHT is also appealing from an expense perspective; the ER is one of the lowest in the ETFdb Category, and commission free trading in Vanguard accounts may further increase the appeal to cost conscious investors. Other options include XLV (for those seeking instant liquidity) and RYH, an equal-weighted fund that may be attractive for those looking to steer clear of market capitalization weighting methodologies.
VLUE|15|PendingDownload the FactSet Analyst Insight Reporthere.
IWN|15|IWN seeks to replicate a benchmark which offers exposure small cap firms that exhibit value characteristics in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on value securities, has certain biases in its portfolio holdings and may not offer as much of a cross section as funds such as IWM. However, IJS does an impressive job of dividing up assets as the fund holds close to 1,300 securities in total and doesn’t give any one security more than 0.6% of the total assets. Thanks to this extreme level of diversification and IWN’s reasonable expense ratio, the fund could make for a quality addition to portfolios of investors who are looking for small cap exposure but are seeking lower risk assets in the space. However, it should be noted that there are several other products in the space, namely VBR, VIOV, and VTWV, that offer similar diversification at a cheaper price, potentially making them better choices for long-term investors.
IUSB|15|PendingDownload the FactSet Analyst Insight Reporthere.
EFV|15|This ETF offers style-specific exposure to developed economies outside of North America, making EFV a potentially useful tool for investors looking to maintain a value stock bias in their long-term portfolio or to put a tactical tilt on international equity exposure. By focusing on stocks that generally exhibit lower pricing multiples and higher dividend yields, EFV offers targeted exposure to an asset sub-class that may perform well relative to the broader universe in certain environments. EFV is broad-based in nature, including hundreds of individual stocks across a number of different regions and more than a dozen countries. It should be noted, however, that there is some significant overlap between this fund and its value counterpart, EFG; these ETFs are based on indexes that use broad value and growth criteria, and as such the risk/return profile may be slightly different than expected. Alternatives to EFV may include dividend-weighted ETFs such as DTH and DWM; while not explicitly value funds, the weighting methodology will generally skew exposure towards value companies. Those seeking to cast a wider net in this international equity space may prefer EFA, or better yet the low-cost VEA.
GOVT|15|This ETF provides broad-based exposure to U.S. Treasuries with a number of different maturities. GOVT separates itself from popular funds like AGG by focusing exclusively on Treasuries, unlike the latter ETF which also includes a mixture of agency and corporate bonds as well. GOVT should not be considered as a core holding however, since Treasuries often make up a significant chunk of broad-based fixed income products such as AGG and BND. This ETF holds a basket of debt securities with a remaining maturity of one or more years; as such, investors who are wary of interest rate risk may wish to tilt exposure towards the short end of the maturity curve with a product like SHY. On the other hand, a product like TLT will be more appropriate for investors who are looking to target long-term Treasuries.
VOE|15|This ETF offers exposure to mid cap stocks that exhibit value characteristics, making VOE a potentially useful tool for investors looking to fine tune their domestic equity exposure or implement a tilt towards a specific investment style. Investors constructing a long-term portfolio would be better off with a fund such as MDY or IJH that includes greater depth of holdings and a mix of various styles. Value strategies often come with biases towards specific sectors, and may outperform more broadly-based indexes in certain economic environments such as recessions. It should be noted that there is often considerable overlap between this fund and its growth counterpart, the result of a methodology that uses a generous definition of value stocks. Rydex offers a pure style alternative, RFV, that is slightly more expensive but will offer a considerably more targeted focus on value equities. Those seeking to make a meaningful tilt in their portfolio would be better served by using that fund. It should also be noted that IWS and JKI seek to replicate similar indexes at comparable expense ratios. VOE is a fine ETF, but there are a number of alternatives out there that offer more compelling methodologies, or potentially better execution.
SCZ|15|This ETF offers exposure to an asset class that should be in every portfolio, but is often overlooked by investors. Most international ETFs are dominated by mega cap stocks, a bias that can tilt exposure towards energy and financials and result in a weak correlation to domestic consumption patterns in the target market. Small cap equities may be a better “pure play” on the economies where shares are traded, and as such funds like SCZ can be nice complements to products. This ETF is competitive from a cost perspective, and the depth of holdings assures balanced exposure to a number of ex-U.S. developed economies. SCZ is a nice complement to EAFE ETFs such as EFA, and should be used to achieve more complete international equity exposure.
XLC|15|State Street’s Communication Services Select Sector SPDR Fund (XLC) is one of the newest additions to State Street’s popular legacy lineup of sector ETFs.
VMBS|15|This ETF provides exposure to the mortgage backed security slice of the bond market, a corner of the finance world that has seen its share of troubles over the past few years. While MBS funds were at the heart of the subprime crisis, this product invests in liquid, stable bonds that are unlikely to default, pay out solid rates of interest, and provide valuable diversification benefits to a portfolio. Due to these benefits, most investors should consider adding some MBS holdings to their portfolio, albeit in a very small amount. Although VMBS is the cheapest of the three, it also is the least popular and as such may not be appropriate for traders who are seeking tight bid ask spreads and high levels of liquidity. However, the fund does offer significant benefits in terms of total diversification as it holds well over 300 securities in total, by far the most in the Category. Thanks to this impressive diversification as well as the fund’s rock bottom expense ratio, long-term investors should consider buying this fund if they are looking for higher levels of exposure to the MBS market.
TLT|15|This ETF is one of the most popular options for investors seeking to establish exposure to long-dated Treasuries, an asset class that is light on credit risk but may offer attractive yields thanks to an extended duration and therefore material interest rate risk. TLT might not be a core holding in a buy-and-hold portfolio, as long-term Treasuries are included in broader-based bond funds such as AGG and BND. But for those looking to extend the duration of their portfolio and potentially enhance the current return offered, this can be a useful product. TLT is efficient from a cost perspective, offers exposure to hundreds of individual securities, and delivers impressive liquidity to those looking to execute a trade quickly. Investors may also wish to consider similar products such VGLT and TLO; the yield and duration of these products may differ slightly, making one potentially more appealing depending on exact investment objectives.
IWS|15|This ETF offers exposure to mid cap stocks that exhibit value characteristics, making IWS a potentially useful tool for investors looking to fine tune their domestic equity exposure or implement a tilt towards a specific investment style. Investors constructing a long-term portfolio would be better off with a fund such as MDY or IJH that includes greater depth of holdings and a mix of various styles. Value strategies often come with biases towards specific sectors, and may outperform more broadly-based indexes in certain economic environments such as recessions. It should be noted that there is often considerable overlap between this fund and its growth counterpart, the result of a methodology that uses a generous definition of value stocks. Rydex offers a pure style alternative, RFV, that is slightly more expensive but will offer a considerably more targeted focus on value equities. Those seeking to make a meaningful tilt in their portfolio would be better served by using that fund. It should also be noted that JKI and MDYV seek to replicate similar indexes at comparable expense ratios. IWS is a fine ETF, but there are a number of alternatives out there that offer more compelling methodologies, or potentially better execution.
BIV|15|This ETF offers exposure to investment grade U.S. debt with maturities between five and ten years, putting it in between short-term funds such as BSV and longer-dated products such as BLV. BIV’s holdings include Treasuries, corporate debt, and agency securities, avoiding high risk junk bonds or floating rate debt. BIV may be a useful tool for fine tuning the effective duration of a fixed income portfolio, though investors seeking broad-based investment grade debt exposure may wish to utilize a fund such as AGG or BND to accomplish that objective. It should be noted that the cash flow profile exhibited by BIV is different than what investors would experience by purchasing individual bonds; the effective duration of this ETF will remain steady across time, and there will be no maturity event that includes a return of principal. BIV gets high marks for its cost efficiency (including a low expense ratio and commission free trading in Vanguard accounts) and impressive depth of exposure made possible in part by Vanguard’s unique patent and fund structure. Uses of this ETF are somewhat limited, but for those seeking exposure to this specific corner of the bond market, BIV is an effective, efficient tool.
DFAC|15|PendingDownload the FactSet Analyst Insight Reporthere.
IEF|15|This ETF offers exposure to Treasurys with seven to ten years to maturity, exposing investors to moderate levels of interest risk but delivering higher income than short-term products such as SHY or even IEI. IEF can be a nice tool for fine tuning fixed income exposure, especially for those looking for greater holdings in the middle part of the curve.
MINT|15|This popular active ETF offers exposure to the ultrashort end of the maturity curve, focusing on corporate debt that matures within one year. MINT is extremely light on both interest rate risk and credit risk, and as such will generally deliver a very low expected return. MINT can be a great safe haven to park assets in volatile markets, and could outperform others in the category, but it has by far the highest expense ratio of the money market funds.
VTEB|15|PendingDownload the FactSet Analyst Insight Reporthere.
SPYG|15|This ETF is linked to the S&P 500 Growth Index, which offers exposure to large-cap companies within the growth sector of the U.S. equity market. Investors with a longer-term horizon ought to consider the importance of growth stocks and the diversification benefits they can add to any well-balanced portfolio. Companies within the growth segment offer tremendous profit potential since they are still in the early stages of their life cycle, which in turn also raises the risk level associated with this asset class. Growth stocks may also appeal to those seeking capital appreciation versus dividend income, as these companies re-invest earnings. SPYG is linked to an index consisting of just over 300 holdings and exposure is tilted most heavily towards technology, while industrials, health care, and consumer goods receive equal weightings. Viable alternatives with comparable holdings include VOOG and RPG.
GSLC|15|The Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) is Goldman’s contribution to the crowded universe of large-cap equity ETFs. GSLC tracks a proprietary index that takes a multi-factor approach, looking for stocks that exhibit good value, strong momentum, high quality, and low volatility.
GDX|15|This ETF offers investors exposure to some of the largest gold mining companies in the world, thereby delivering what can be thought of as “indirect” exposure to gold prices. Because the profitability of gold miners depends on the prevailing market price for the goods that they sell, these stocks will generally exhibit a strong correlations to movements in spot gold prices. When gold prices go up, gold miners make more money (and vice versa). It should be noted, however, that this relationship is not perfect; in certain environments, gold miner stocks and physical gold prices can move in opposite directions, and correlation between the two can be less than perfect.
SHV|15|This popular ETF offers exposure to the ultrashort end of the maturity curve, focusing on U.S. Treasury securities that have between one and twelve months until maturity. SHV is extremely light on both interest rate risk and credit risk, and as such will generally deliver a very low expected return. SHV can be a great safe haven to park assets in volatile markets, but won’t deliver much in the way of current yield.
VGSH|15|This ETF offers exposure to short term government bonds, focusing on Treasury bonds that mature in one to three years. As such, interest rate exposure for this product will be towards the low end, giving VGSH safe haven appeal as an asset that avoids both credit risk and interest rate risk. VGIT offers exposure to mid-dated Treasuries while VGLT is an option for those looking to focus on the long end of the maturity curve and enhance returns. VGSH probably doesn’t have much appeal as a core holding, since the overlap with broad-based funds such as BND will be significant. But this ETF can be a useful tool for tilting exposure towards Treasury bonds with a bias towards the shorter end of the maturity spectrum, decreasing the effective duration of a portfolio and minimizing overall volatility. Like most Vanguard ETFs, VGSH is among the cheapest options available; commission free trading in Vanguard accounts may increase the cost appeal to those keeping an eye on fees. Other options offering similar exposure include SHY and TUZ; the effective durations and yields on these products may vary slightly.
SPYV|15|This ETF is linked to the S&P 500 Value Index, which offers exposure to large-cap companies that exhibit value characteristics within the U.S. equity market. Investors with a longer-term horizon should consider the importance of large cap value stocks and the benefits they can add to any well-balanced portfolio including dividends and rock solid stability. Companies within this segment are often considered some of the safest firms in the world and tend to be in more stable industries as well, potentially skewing some portfolios that are heavy in value securities. SPYV is linked to an index consisting of roughly 340 holdings and exposure is tilted most heavily towards financials, energy, and industrials. Thanks to this fund’s solid level of diversification and cheap price, investors could definitely make SPYV a significant portion of their portfolios.
SLV|15|This ETF uses a physically-backed methodology, an idea that was popularized by ETFs, due to investors growing tired of the complexities of futures contracts and the dangers that are associated with them. By using this physically-backed strategy, this fund is able to eliminate the issues of contango and backwardation, as well as give investors a more realistic pricing of the metal it holds. Silver, along with other precious metals, is most often used as an inflationary hedge, or to protect against volatile equities. This fund doesn’t work very well in the long term buy and hold scenario, but may be a good option for investor seeking to find a safe haven during times of market uncertainty. When it comes to physically-backed silver, SIVR and SLV are nearly identical, though SLV does charge a slightly higher expense ratio.
BIL|15|This popular ETF offers exposure to the ultrashort end of the maturity curve, focusing on zero coupon U.S. T-Bills with less than three months until maturity. BIL is extremely light on both interest rate risk and credit risk, and as such will generally deliver a very low expected return. BIL can be a great safe haven to park assets in volatile markets, but won’t deliver much in the way of current yield.
EWJ|15|This ETF offers exposure to large cap Japanese stocks, making EWJ an opportunity to bet on one of the largest economies in the world that has been stuck in a low growth environment for several decades. EWJ is by far the most popular ETF option for exposure to Japanese stocks, and is by far the oldest focusing on this market. EWJ is very well diversified for an international equity ETF, holding hundreds of individual stocks and generally avoiding significant concentrations in any big names. Exposure is balanced from a sector perspective as well; besides a decent allocation to industrials— close to one-quarter of the total— the portfolio is spread relatively evenly across the Japanese economy. It should be noted that EWJ consists primarily of large and mega cap stocks; investors who would prefer to round out exposure through small caps or prefer small caps as a means of establishing international equity exposure have multiple options (SCJ, JSC, and DFJ) available to them. EWJ is a nice option for Japanese equity exposure; thin spreads, low costs, and balanced exposure make for a quality ETF.
SPLG|15|The SPDR Portfolio S&P 500 ETF (SPLG) offers exposure to the S&P 500 Index, one of the world’s best-known and most widely followed stock benchmarks. The S&P 500 Index includes many large and well known U.S. firms, often called ‘Blue Chips’, including Johnson & Johnson, Apple, Microsoft, Amazon and Visa. Investors should think of this as a play on mega and large cap stocks in the American market. These companies are sizable core holdings of any portfolio, and SPLG’s ultra-low management fee makes it an appealing choice for the category.
MGK|15|This ETF is linked to the MSCI US Large Cap Growth Index, which offers exposure to large-cap companies within the growth sector of the domestic equity market. Investors with a longer-term horizon ought to consider the importance of growth stocks and the diversification benefits they can add to any well-balanced portfolio. Companies within the growth segment offer tremendous profit potential since they are still in the early stages of their life cycle, which in turn also raises the risk level associated with this asset class. Growth stocks may also appeal to those seeking capital appreciation versus dividend income, as these companies re-invest earnings. MGK is linked to an index consisting of just under 200 holdings and exposure is tilted most heavily towards technology, while health care, industrials, and consumer goods receive equal weightings. Viable alternatives with similar holdings include IWF and JKE, while SCHG is the only option with a comparably low expense fee.
IUSG|15|PendingDownload the FactSet Analyst Insight Reporthere.
EFG|15|This ETF offers style-specific exposure to developed economies outside of North America, making EFG a potentially useful tool for investors looking to maintain a growth stock bias in their long-term portfolio or to put a tactical tilt on international equity exposure. By focusing on stocks that generally exhibit higher pricing multiples, lower dividend yields, and greater future growth potential, EFG offers targeted exposure to an asset sub-class that may perform well in certain environments. EFG is broad-based in nature, including hundreds of individual stocks across a number of different regions and more than a dozen countries. It should be noted, however, that there is some significant overlap between this fund and its value counterpart, EFV; these ETFs are based on indexes that use broad value and growth criteria, and as such the risk/return profile may be slightly different than expected. There are few alternatives for EAFE growth exposure, though those seeking to cast a wider net in this international equity space may prefer EFA, or better yet the low-cost VEA.
FVD|15|This unique ETF gives investors an opportunity to access stocks of dividend paying companies, an asset class that may have appeal to long-term investors looking to maximize current returns from the equity portion of their portfolios or to those with more of a short-term focus looking to capitalize on bargain prices among value stocks. FVD relies on rankings assigned by Value Line, a research company that analyzes stocks using a proprietary methodology. As such, FVD is one of the ETFs that blurs the lines between active and passive management, seeking to replicate an index that employs quant-based analysis to determine its holdings. FVD gives investors balanced exposure to dividend-paying stocks, spreading exposure across a variety of sectors and market capitalizations and avoiding any significant concentrations in individual securities. The relatively narrow focus of this fund may limit its usefulness to investors seeking broad exposure, though FVD can be useful for those looking to focus on dividends and who believe the underlying Value Line methodology is sound. A potential drawback of this ETF is fees; FVD is considerably more expensive than most dividend ETFs, such as VTV.
IWV|15|This ETF is a one-stop shop for exposure to U.S. equity markets, allowing investors to access thousands of securities across multiple sectors and of varying sizes through a single ticker. As such, this fund may have appeal as a portfolio “building block” that delivers access to one of the core asset classes: U.S. equities. Though IWV may be ideal for investors seeking simplicity in their portfolios, be aware of the heavy tilt towards mega cap and large cap stocks; those seeking more balanced representation of mid cap and small cap stocks may be better off building U.S. equity exposure piecemeal, allowing for fine tuning of the exposure offered to each segment of the domestic market. Another potential drawback of IWV is the expense ratio; while this fund is cheaper than the majority of products in the ETP lineup, it is considerably more expensive than multiple funds offering generally similar exposure, such as SCHB and VTI.
XLU|15|This Sector SPDR is one of the most popular options for investors looking to gain exposure to the U.S. utilities sector, a corner of the domestic stock market known for relatively low volatility and relatively high distribution yields. A fund like XLU might be useful for establishing low risk equity exposure or for enhancing the current returns generated by the equity side of a portfolio. Like most sector-specific ETFs, XLU is probably most appealing to those implementing a sector rotation strategy or looking to establish a tactical tilt towards this low beta sector of the U.S. market. Those building a long-term buy-and-hold portfolio will likely achieve utilities exposure through broad-based equity funds (though the allocation to this sector can be relatively small). Investors should be wary of unintentional over-concentrations, since many dividend ETFs and low-volatility funds have a significant slice of their assets invested in utility stocks.
SPDW|15|The SPDR Portfolio Developed World ex-US ETF (SPDW) offers broad exposure to developed market stocks outside the U.S., and does it for an extremely competitive price. The fund owns thousands of securities, making it a well-diversified option for long-term investors building a balanced portfolio. Like all of State Street’s SPDR Portfolio ETFs, SPDW’s management fee was set low enough to compete with ultra-low-cost rivals like the iShares Core MSCI EAFE ETF (IEFA), the Vanguard FTSE Developed Markets ETF (VEA), and Charles Schwab’s International Equity ETF (SCHF). Investors should note that SPDW (like VEA and SCHF) includes stocks in South Korea and Canada, whereas IEFA follows an MSCI index that excludes Canada and lumps South Korea in with emerging markets. Unsuspecting investors who mix and match funds from different firms may find themselves either unintentionally overweight Canada and South Korea or missing out on those countries entirely.
VOT|15|This ETF offers exposure to mid cap stocks that exhibit growth characteristics, making VOT a potentially useful tool for investors looking to fine tune their domestic equity exposure or implement a tilt towards a specific investment style. Investors constructing a long-term portfolio would be better off with a fund such as MDY or IJH that includes greater depth of holdings and a mix of various styles. Growth strategies often come with biases towards specific sectors, and may outperform more broadly-based indexes in certain economic environments. It should be noted that there is often considerable overlap between VOT and its value counterpart VOE, the result of a methodology that uses a generous definition of growth stocks. Rydex offers a pure style alternative, RFG, that is slightly more expensive but will offer a considerably more targeted focus on growth equities. Those seeking to make a meaningful tilt in their portfolio would be better served by using that fund. It should also be noted that IJK and IVOG seek to replicate similar indexes at comparable expense ratios. IVOG is slightly more expensive but may be available commission free in certain accounts, while IJK will generally feature more narrow spreads. VOT is a fine ETF, but there are a number of alternatives out there that offer more compelling methodologies, or potentially better execution.
IWO|15|IWO seeks to replicate a benchmark which offers exposure small cap firms that exhibit growth characteristics in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on growth securities, has certain biases in its portfolio holdings and may not offer as much of a cross section as funds such as IWM and be more volatile as well. With that being said, IWO does an impressive job of dividing up assets as the fund holds close to 1,260 securities in total and doesn’t give any one security more than 0.8% of the total assets. Thanks to this high level of diversification and IWO’s low expense ratio, the fund could make for a quality addition to portfolios of investors who are looking for small caps but are seeking a higher risk/reward profile in the space. However, it should be noted that there are several other products in the space, namely IJT, SLYG, and VBK, that offer similar diversification at a cheaper price, potentially making them better choices for long-term investors.
VFH|15|The Vanguard Financial ETF (VFH) delivers targeted exposure to the U.S. financial sector, making it one option for investors seeking to tilt their portfolios towards U.S. banks. As a sector-specific ETF, VFH is most appropriate for those looking to implement a tactical tilt or carry out a sector rotation strategy, and probably has little use for those building a long-term buy-and-hold portfolio. This fund is heavily skewed towards large caps, but does include some mid- and small-cap exposure. As of June 2020, VFH has more than 400 stocks in its portfolio, giving it broader exposure than the ultra-popular Financial Select Sector SPDR Fund (XLF). For investors looking to dig deep with their exposure to financial stocks, VFH is a good option. The ETF is among the cheapest in the category.
IGIB|15|The iShares Intermediate-Term Corporate Bond ETF (IGIB) offers exposure to investment grade corporate bonds that fall in the middle of the maturity spectrum, thereby delivering a moderate amount of both interest-rate and credit risk. IGIB might be useful for investors looking to enhance fixed income returns but hesitant to take on longer duration, a measure of bonds’ price sensitivity to interest rate changes. Typically bond prices fall when rates rise. IGIB, like all of iShares Core series, is priced competitively with ultra-low-cost rivals like the SPDR Portfolio Intermediate Term Corporate Bond ETF (SPIB) or the Vanguard Intermediate-Term Corporate Bond ETF (VCIT), though IGIB is significantly behind VCIT in assets.
XLP|15|The ETF offers exposure to the consumer staples sector, making it an appealing option for investors looking to implement a sector rotation strategy or tilt exposure towards corners of the U.S. market that may perform well during a downturn. XLP offers impressive liquidity, cost efficiency, and depth of exposure, making it one of the best ETF options for playing the consumer staples sector.
IUSV|15|PendingDownload the FactSet Analyst Insight Reporthere.
FDN|15|This ETF offers exposure to companies that derive at least half of their sales from the Internet, a unique group of stocks that features a heavy tilt towards tech companies with a sprinkling of consumer firms as well. While the idea of exposure to web-based businesses may be appealing, it’s important to note that the underlying holdings consist of companies engaged in a wide variety of businesses, and as such are impacted by entirely unique factors. Unlike many ETFs that focus on a specific sector, FDN isn’t necessarily backed by a cohesive investment thesis; besides a general dependence on the Internet, the underlying components have little in common. As such, it’s unclear exactly how FDN could fit into a portfolio, though it likely has little use for those interested in constructing a long-term portfolio. FDN is reasonably well balanced across about 40 names, though there is a general tilt towards large caps and a few well known tech giants account for a significant portion of holdings. Overall, FDN may be useful for a select few investors with a very specific view of the tech sector or a desire for fine tuned equity exposure, but most will find little use in this fund. Broad-based tech ETFs such as XLK may will be more useful for general tactical overlays, including more component stocks at a much lower fee.
IEI|15|This ETF offers exposure to Treasurys with three to seven years to maturity, providing relatively little interest rate risk but delivering higher returns than short-term products such as SHY. IEI can be a nice tool for fine tuning fixed income exposure, and is rather efficient from a cost perspective.
SCHM|15|This ETF is one of several ETFs available that offers exposure to mid cap U.S. stocks, an asset class that can make up a significant portion of long-term, buy-and-hold portfolios. As such, this ETF may be more appealing to those in the portfolio construction process as opposed to short term traders. SCHM offers exposure to a balanced portfolio of stocks, including close to 500 individual names and spreading exposure relatively evenly. The expense ratio is by far the best in the space although the liquidity level is just so-so suggesting that bid ask spreads may be higher than in other products. In addition to the more popular cap-weighted choices such as MDY and IJH, there is the alpha-seeking FNX, and equal-weighted EWRM.
IBB|15|This ETF offers exposure to the biotech sub-sector of the health care industry, serving up access to a group of stocks that can thrive on technological breakthroughs and increased investment in medical processes. IBB is primarily focused on U.S. stocks, though a smattering of international firms adds some degree of international diversification. This biotech ETF casts a considerably wider net that the other ETF options for exposure to the space, investing in more than 100 stocks. That feature can be particularly important in the biotech space, where company-specific developments can send a single stock soaring. IBB is somewhat top-heavy, but generally spreads exposure across large caps, mid caps, and small cap stocks. PBE and FBT are other ETF options for biotech exposure; those considering this sector should take a close look at depth of exposure and weighing methodology, as these factors can have a major impact on the risk and return profiles achieved. The expense differentials are also worth noting; IBB is the most attractive in this respect.
SCHV|15|This ETF is linked to the Dow Jones U.S. Large-Cap Value Total Stock Market Index, which offers exposure to large-cap companies that exhibit value characteristics within the U.S. equity market. Investors with a longer-term horizon should consider the importance of large cap value stocks and the benefits they can add to any well-balanced portfolio including dividends and rock solid stability. Companies within this segment are often considered some of the safest firms in the world and tend to be in more stable industries as well, potentially skewing some portfolios that are heavy in value securities. SCHV is linked to an index consisting of roughly 300 holdings and exposure is tilted most heavily towards financials, energy, and consumer staples. Although the fund isn’t as diversified as some in the category, its rock bottom expense ratio makes it an intriguing choice for buy and holders especially if they have a Charles Schwab account and can trade this product for free.
VSS|15|This ETF offers exposure to small caps listed outside of the U.S., an asset class that should be a core component of any long-term portfolio but that is often overlooked by investors. Most broad ex-U.S. ETFs focus primarily on large cap stocks, and feature portfolios that maintain minimal allocations to small or mid cap stocks. Because large cap stocks are often multi-national firms that generate their revenue globally (including the U.S.), they won’t always be great pure plays on the local economy. VSS offers exposure to smaller companies, an asset class that can round out exposure and serve as a nice complement to funds like VEU or ACWX. This fund splits exposure between developed and emerging economies, though advanced markets receive the bulk of the allocation (those looking to beef up small cap emerging markets exposure may like EWX). VSS, like most Vanguard products, is extremely efficient from a cost perspective, and is available commission free in Vanguard accounts.
SCHE|15|This ETF offers broad-based emerging markets exposure, and as such may be a core holding in many long-term portfolios. SCHE is generally similar to popular EM ETFs such as VWO and EEM, including hundreds of individual securities across more than a dozen different economies. Like most EM ETFs, SCHE has a heavy tilt towards the energy and financial sectors, and is dominated by large cap stocks. There are a few noteworthy items about SCHE for those seeking emerging markets exposure. Relative to VWO and EEM, this ETF makes considerably smaller allocations to quasi-developed countries such as Taiwan and South Korea—potentially making it more appealing to those seeking BRIC-heavy EM exposure. Like all Schwab ETFs, this fund may be eligible for commission-free trading in Schwab accounts, further reducing the overall cost and certainly appealing to those with a more active approach to asset allocation and portfolio management. Finally, SCHE offers a very competitive expense ratio (though slightly higher than VWO).
IJS|15|IJS seeks to replicate a benchmark which offers exposure small cap firms that exhibit value characteristics in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on value securities, has certain biases in its portfolio holdings and may not offer as much of a cross section as funds such as IWM. However, IJS does a solid job of dividing up assets as the fund holds close to 440 securities in total and doesn’t give any one security more than 1.0% of the total assets. Thanks to this high level of diversification and IJS’s reasonable expense ratio, the fund could make for a quality addition to portfolios of investors who are looking for small cap exposure but are seeking lower risk assets in the space. However, it should be noted that there are several other products in the space, namely VBR, VIOV, and VTWV, that offer more diversification at a cheaper price, potentially making them better choices for long-term investors.
BBJP|15|The JPMorgan BetaBuilders Japan ETF (BBJP) tracks a diversified index of large and mid-size Japanese companies at an excellent price. JPMorgan priced its BetaBuilders ETF lineup to compete with other low-cost providers of core portfolio building blocks. BBJP’s management fee is well below average for the category, and considerably lower than the iShares MSCI Japan ETF (EWJ), long the dominant fund in the space. BBJP has amassed significant assets since its 2018 debut and provides good daily liquidity. It offers broadly similar exposure to EWJ, and its lower cost makes BBJP a worthy alternative.
IJJ|15|This ETF offers exposure to mid cap stocks that exhibit value characteristics, making IJJ a potentially useful tool for investors looking to fine tune their domestic equity exposure or implement a tilt towards a specific investment style. Investors constructing a long-term portfolio would be better off with a fund such as MDY or IJH that includes greater depth of holdings and a mix of various styles. Value strategies often come with biases towards specific sectors, and may outperform more broadly-based indexes in certain economic environments such as recessions. It should be noted that there is often considerable overlap between the value and the growth variations of these funds since many providers have generous definitions that tend to put some securities in both categories. Rydex offers a pure style alternative, RFV, that is slightly more expensive but will offer a considerably more targeted focus on value equities. Those seeking to make a meaningful tilt in their portfolio would be better served by using that fund. It should also be noted that JKI and IVOV seek to replicate similar indexes at comparable expense ratios. IVOV is slightly  cheaper and may be available commission free in certain accounts, while JKI will generally feature more narrow spreads. IJJ is a fine ETF, but there are a number of alternatives out there that offer more compelling methodologies, or potentially better execution.
SCHZ|15|This ETF offers exposure to a broad-based bond index designed to measure the performance of the U.S. investment grade debt market. SCHZ’s portfolio includes Treasuries, mortgage-backed securities, corporate debt, and securities issued by agencies of the U.S. government. As such, SCHZ makes sense as a core holding in a long-term, buy-and-hold portfolio; this ETF offers exposure to thousands of fixed income securities, and can be a core component that delivers stable current return to investors. It should be noted, however, that SCHZ doesn’t cover all corners of the U.S. debt market; segments that are excluded from this ETF include junk bonds and floating rate debt. Moreover, SCHZ doesn’t include any international debt; investors looking to extend their bond portfolio beyond the U.S. might want to consider products in the International Government Bond or Emerging Market Bonds ETFdb Categories. SCHZ is a good start to a well-rounded fixed income portfolio, but some complementary positions are necessary for investors interested in achieving truly global exposure.
NOBL|15|The ProShares S&P500 Dividend Aristocrats ETF (NOBL) is one of many funds trying to deliver exposure to large-cap U.S. stocks that pay out the best dividends. NOBL tracks an index that selects S&P 500 stocks that have increased their dividend for at least 25 consecutive years. NOBL equal weights its holdings, and doesn’t allow any one sector to be more than 30% of the index. The methodology does a good job of keeping NOBL diversified across most segments of the economy. NOBL is a little expensive for what it offers and there are cheaper competitors, but investors who believe in its strategy likely won’t mind paying a little more in fees. NOBL is part of a series of ProShares ETF that look for consistent dividend growth stocks across global stock markets.
SCHO|15|This ETF offers exposure to the short end of the maturity curve, focusing on securities with one to three years to maturity. SCHO is light on both interest rate risk and credit risk, and as such will generally deliver a relatively low expected return. SCHO can be a great safe haven to park assets in volatile markets, especially for those with Charles Schwab accounts that can trade the security for free.
KWEB|15|KraneShares CSI China Internet ETF (KWEB) is the only ETF on the market that offers pureplay exposure to Chinese software and information technology stocks that are China’s answer to U.S. firms like Amazon and Facebook.
IYW|15|This ETF offers low cost exposure to the U.S. tech sector, making it one of many options available to investors seeking to access an industry that is capable of remarkable rallies and steep declines over short periods of time. Given the sector-specific focus, IYW is probably too granular for those building a long-term, buy-and-hold portfolio, but can be useful for investors putting on a tactical tilt or looking to beef up tech sector exposure. IYW’s primary appeal is its decent scope in holdings— the fund has more than 150 securities in total— and the fund’s liquid nature’ it trades roughly 200,000 shares a day and has more than $1.5 billion in assets. However, it should be noted that typical tech giants such as Apple, IBM, and Microsoft dominate the top of the list of holdings and may already be found in large quantities in other parts of an investor’s portfolio.  VGT and XLK offer generally similar exposure, while the equal-weighted RYT gives investors an option that will be more balanced in nature and avoid concentrations in a small handful of tech giants.
BBEU|15|The JPMorgan BetaBuilders Europe ETF (BBEU) tracks an index of hundreds of European stocks. The index is designed to cover the top 85% of the float-adjusted market capitalization of European equity markets, so it misses many of the small cap Japanese companies captured by rival funds like the Vanguard FTSE Europe ETF (VGK), SPDR Portfolio Europe ETF (SPEU), and iShares Core MSCI Europe ETF (IEUR). JPMorgan priced its BetaBuilders ETF lineup to compete with other low-cost providers of core portfolio building blocks. BBEU offers diversified exposure to European equities at a reasonable price, though investors looking for small cap exposure might prefer the competition.
VGIT|15|This ETF offers exposure to intermediate term government bonds, focusing on Treasuries that mature in three to ten years. As such, interest rate exposure for this product will be moderate; VGLT offers exposure to longer-dated Treasuries while VGSH is an option for those looking to focus on the short end of the maturity curve. VGIT probably doesn’t have much appeal as a core holding, since the overlap with broad-based funds such as BND will be significant. But this ETF can be a useful tool for tilting exposure towards Treasuries without a bias towards either end of the maturity spectrum. Like most Vanguard ETFs, VGIT is among the cheapest options available; commission free trading in Vanguard accounts may increase the cost appeal to those keeping an eye on fees. Other options offering similar exposure include IEI, FIVZ, SCHR, and ITE; the effective durations and yields on these products may vary slightly.
JNK|15|JNK offers exposure to the “junk” bond space by investing in a index which holds middle rated bonds with at least one year to maturity, and have $600 million or more in outstanding face value.  The high yield bond space has been cracked wide open by ETFs, as these products have offered numerous ways for investors to take advantage of this space. High yields can be a great addition to a yield-starved portfolio, as they can offer yields into the double digits for those willing to take on the risks that come along with it. The high returns come from riskier bond choices who have to pay out higher ratios to compensate investors for high risks. this means that the holdings of these ETFs will have higher chances of defaults, and could potentially leave investors out to dry. But for those who have done their homework on the holdings of a particular “junk” bond fund have the ability to generate strong returns from these powerful products. This corporate-bond dominated fund dedicates most of its assets to U.S. debts, though it does offer a significant exposure to foreign corporate notes. JNK will make for a strong investment for those who believe that the corporate bond holdings will make good on their debts, and provide the attractive yields that these products are known for.
IHI|15|This ETF focuses in on an interesting and often forgotten segment of the health care industry, the medical device makers. Companies in this segment tend to have more stable revenue streams, less issues with patent pipelines, and are often much smaller than their counterparts in big pharma. As a result of their size, many of the companies in IHI are found in very small quantities in large diversified health care ETFs such as XLV making IHI an interesting play to ‘complete’ exposure to the industry. However, while the industry may not have the same patent issues as pharma or the volatility of the biotech industry, it does have incredibly high levels of competition. This is because any commodity type products are easy to replicate while any patented products are often not crucial to a hospital and instead just make life a lot easier or more efficient for medical personnel, making these goods more ‘luxury’ in nature. Overall, IHI offers a nice mix of exposure in the industry and could be an excellent choice for investors who already are heavy in holdings to the pharma or broad health care industry but are still looking to round out overall exposure.
FTCS|15|PendingDownload the FactSet Analyst Insight Reporthere.
OEF|15|This ETF tracks the 100 securities in the S&P 100 Index, a benchmark of some of America’s largest companies. As a result, investors should think of this as a concentrated play on mega cap stocks in the American market. These securities are usually known as ‘Blue Chips’ and are some of the most famous and profitable companies in the country, including well known names such as ExxonMobil, Apple, IBM, and GE. The fund is probably one of the safest in the equity world as the companies on this list are very unlikely to go under unless there is an apocalyptic event in the economy. However, these securities are unlikely to grow very much either as they are already pretty large and have probably seen their quickest growing days in years past, but most do pay out solid dividends which should help to ease the pain of this realization. Overall, OEF is a decent choice for investors seeking broad mega cap exposure but most would probably be better served by investing in a broader fund that is a little more diversified, although OEF is better than most in the mega cap space.
IJK|15|This ETF offers exposure to mid cap stocks that exhibit growth characteristics, making IJK a potentially useful tool for investors looking to fine tune their domestic equity exposure or implement a tilt towards a specific investment style. Investors constructing a long-term portfolio would be better off with a fund such as MDY or IJH that includes greater depth of holdings and a mix of various styles. Growth strategies often come with biases towards specific sectors, and may outperform more broadly-based indexes in certain economic environments. It should be noted that there is often considerable overlap between IJK and its value counterpart IJJ, which is the result of a methodology that uses a generous definition of growth stocks. Rydex offers s pure style alternative, RFG, that is slightly more expensive but will offer a considerably more targeted focus on growth equities. Those seeking to make a meaningful tilt in their portfolio would be better served by using that fund.
EFAV|15|This ETF offers exposure to developed markets outside of North America, an asset class that is often a core holding in many long-term, buy-and-hold portfolios. As the name suggests, EFAV focuses on stocks that have historically exhibited relatively low volatility, making this tool potentially useful as a way of scaling back overall risk within a portfolio. This ETF essentially focuses on a subset of the stocks included in products such as EFA and VEAn which are linked to a more broad-based EAFE index.
USHY|15|PendingDownload the FactSet Analyst Insight Reporthere.
FNDX|15|PendingDownload the FactSet Analyst Insight Reporthere.
SPSB|15|The SPDR Portfolio Short Term Corporate Bond ETF (SPSB) tracks an index that offers exposure to investment-grade corporate bonds with a remaining maturity ranging from one to three years. The index includes U.S.-dollar denominated, fixed-rate debt. Some structured notes, floating-rate securities, and private placements are excluded. By investing in shorter-term securities, SPSB reduces interest-rate risk. SPSB might be useful for investors looking to enhance fixed income returns without taking on longer duration, a measure of bond price sensitivity to interest rate changes. Typically bond prices fall when rates rise. Like most SPDR “Portfolio” ETFs, SPSB is priced competitively with ultra-low-cost rivals like the Vanguard Short-Term Corporate Bond ETF (VCSH) and the iShares Short-Term Corporate Bond ETF (IGSB).
EZU|15|This ETF offers exposure to the equity markets of the EMU member countries: meaning only those who have adopted the Euro. This bloc of nations represents some of the strong economies east of the Atlantic, such as Germany, France, and Italy. This ETF offers exposure to some of Europe’s largest companies as well, including the French energy firm Total SA, and the German conglomerate Siemens AG. From a sector standpoint, this fund does a good job of spreading its assets across the board, leaving investors with a healthy diversity when adding this fund to their portfolio. When it comes to countries, however, EZU does carry a bias towards France, Germany, and Spain, who account for the majority of the fund’s asset allocation. This ETF may represent a strong play for investors who are looking to gain exposure to the euro through a equity structure, or for those who simply believe in these powerhouse economies.
SPLV|15|This ETF tracks an index consisting of some of America’s largest companies. As a result, investors should think of this as a play on mega and large cap stocks in the American market. These securities are usually known as ‘Blue Chips’ and are some of the most famous and profitable companies in the country, including well known names such as ExxonMobil, Apple, IBM, and GE. The fund is probably one of the safest in the equity world as the companies on this list are very unlikely to go under unless there is an apocalyptic event in the economy. However, these securities are unlikely to grow very much either as they are already pretty large and have probably seen their quickest growing days in years past, but most do pay out solid dividends which should help to ease the pain of this realization.  Thanks to this, the fund could be a better choice for those looking for more stability in their portfolio without such big daily moves. Additionally, it should be noted that this fund will likely outperform in a bear market and underperform broad markets in a bull market, making it a way to bet on the economic growth prospects of the country as well. However, the fund does charge a rather high expense ratio so it may not be appropriate for buy and holders, but the cost is far less than other volatility focused funds such as LVOL. For investors seeking lower volatility securities believing the economy to be poised for a bear market, this product could be a quality choice.
SRLN|15|PendingDownload the FactSet Analyst Insight Reporthere.
FPE|15|PendingDownload the FactSet Analyst Insight Reporthere.
SOXX|15|SOXX tracks a popular benchmark of companies that produce semiconductors, a crucial part of modern computing. Semiconductor chips act as the brains to numerous devices that we rely on today, including smartphones, calculators, computers, and much more. As technology continues to improve and expand, these chips will invariably be in demand to help power new devices. The fund focuses on U.S. stocks, but it also puts one-quarter of its assets in international firms, giving it relatively balanced exposure from a geographic perspective. Investors should note that this fund dedicates the majority of its assets to medium and large cap funds, meaning that it will be more volatile than a traditional large cap fund, but it also presents strong growth opportunities for those who believe in the semiconductor segment of our nation. Considering the focus of the fund, a decent level of diversification is present in this product as it holds close to 125 securities in total. Nevertheless, some of the fund’s top names do account for a significant portion of the holdings and many of the top names are likely to be found in other products as well suggesting that this is probably inappropriate for those seeking to build a long-term buy and hold portfolio.
XLB|15|This ETF is one of several funds offering exposure to the U.S. materials sector, a corner of the market that may be appealing for investors looking to gain indirect exposure to commodity prices through the stocks of companies engaged in the extraction or production of natural resources. Because the materials sector often accounts for a small portion of broad-based benchmarks, XLB may be a useful tool for long-term investors looking for more balanced exposure to the U.S. equity market. It can also be handy for those looking to implement a shorter-term tilt towards the materials sector. Like most Sector SPDRs, XLB’s appeal lies in its cost efficiency and liquidity; it is among the cheapest funds in the Materials ETFdb Category, and has a higher average daily volume than any comparable fund. XLB is, however, somewhat concentrated; it has far fewer holdings than funds such as VAW, and allocations to the biggest components are significant. The equal-weighted RTM may have some appeal to those seeking more balanced representation of the materials sector, while IRV could be appealing as an international option.
VONG|15|This ETF is linked to the Russell 1000 Growth Index, which offers exposure to large-cap companies within the growth sector of the U.S. equity market. Investors with a longer-term horizon ought to consider the importance of growth stocks and the diversification benefits they can add to any well-balanced portfolio. Companies within the growth segment offer tremendous profit potential since they are still in the early stages of their life cycle, which in turn also raises the risk level associated with this asset class. Growth stocks may also appeal to those seeking capital appreciation versus dividend income, as companies re-invest earnings. VONG is linked to an index consisting of just over 600 holdings and exposure is tilted most heavily towards technology, while industrials, energy, and consumer goods receive equal weightings. Viable alternatives with comparable holdings include IWF and SCHG.
PGX|15|This ETF offers investors exposure to preferred stock, an interesting segment of the capital markets that most investors do not have a lot of exposure to. Preferred stock holders have a ‘preferred’ position on assets compared to other common shareholders should there be a liquidity event in the company. However, these shareholders generally do not have voting rights in exchange for this premium position. Preferred stock also generally pay out solid dividend yields but then also do not participate as much in equity appreciation as their common share counterparts. Due to this preferred stock could be appropriate for those seeking to boost yields in a portfolio or for those looking for less risky forms of equity exposure that are relatively absent from broad portfolios of stocks. PGX is a little short in terms of diversification as the fund holds just under 80 securities in total and the vast majority of them are in the financial industry. As a result, this fund should be considered part of the financial holding of a portfolio and only used in small amounts to boost yields. If used properly, PGX could be a powerful tool for investors, just be careful and make sure to not overinvest in the sector.
HDV|15|This ETF from iShares tracks the Morningstar Dividend Yield Focus Index, which gives investors exposure to dividend paying large-cap companies that exhibit value characteristics within the U.S. equity market. Investors with a longer-term horizon should consider the importance of large cap value stocks and the benefits they can add to any well-balanced portfolio including dividends and rock solid stability. Companies within this segment are often considered some of the safest firms in the world and tend to be in more stable industries as well, potentially skewing some portfolios that are heavy in value securities. HDV is linked to an index consisting of roughly 75 holdings and exposure is tilted most heavily towards health care and consumer firms. Securities are chosen for inclusion in the fund if they have provided relatively high yields on a consistent basis. While this makes sure that only the highest paying companies are included, it does drastically cut down on the number of eligible securities and makes concentration a very real issue. As a result, investors need to make sure that they are non doubling down on equities in this fund elsewhere in their portfolio as some very large blue chips dominate this product’s top holdings.
IYR|15|This ETF offers exposure to the real estate industry within the U.S. equity market , an asset class that has been recently overlooked by many investors following the unprecedented housing crisis. IYR follows the Dow Jones U.S. Real Estate Index, which has fewer than 100 holdings diversified primarily across large and mid-cap size companies. Real estate has historically been embraced because of its ability to deliver excess returns during bull markets and low correlation with traditional stock and bond investments. REITs might appeal to investors seeking current income, as these trusts must distribute at least 90% of their income to investors, and offer an efficient way for investors to gain indirect exposure to real estate prices (as opposed to direct exposure gained through ownership of a residential property). VNQ is a cheaper alternative with similar exposure, while FRL boasts the lowest expense fee in this category.
CWB|15|This unique ETF is the only product on the market that offers investors diversified exposure to a relatively obscure sector of the market; convertible bonds. These securities allow investors to ‘convert’ their bond notes for equity in the underlying company, potentially allowing investors to benefit from broad increases in stock prices. Additionally, it should be noted that since these notes have the option to convert to equity, they generally pay out smaller yields then their unconvertible brethren. With that being said, the fund still pays out a decent yield comparable to most bonds of similar maturity levels and the long time horizon on many of the instruments should allow the underlying stocks plenty of time to reach their full potential. CWB certainly isn’t for everyone but for investors looking to diversify their bond holdings while at the same time leaving them open to at least some level of equity appreciation, this fund could be a solid choice.
ARKG|15|The ARK Genomic Revolution ETF (ARKG) is an actively-managed fund from the team at ARK Invest that tries to pick the companies best positioned to profit from advancements in energy, automation, manufacturing, materials and transportation.
STIP|15|This ETF offers exposure to short-dated TIPS, a segment of the U.S. Treasury market that may have appeal to investors looking to protect against inflation. While most investors are familiar with the nuances of TIPS, the ramifications of the shorter duration should be understood before establishing a position. While a shorter time to maturity means lower yields, it also means that investors face less in terms of interest rate risk, making these funds excellent choices for those seeking extremely safe assets. Because inflationary environment are often accompanied by rate hikes, the effectiveness of this tool may be limited in certain situations. There are a number of more broad-based ETF options for exposure to TIPS, including TIP, TIPZ, and SCHP. Moreover, ETFs focusing on the medium or long end of the duration curve may have additional benefits; these include LTPZ and IPE.
FNDF|15|PendingDownload the FactSet Analyst Insight Reporthere.
ESGD|15|PendingDownload the FactSet Analyst Insight Reporthere.
ESGE|15|PendingDownload the FactSet Analyst Insight Reporthere.
MOAT|15|This ETF tracks an index of companies that have ‘wide moats’ or sustainable competitive advantages that are very difficult for competitors to breach. These firms could make for great long term investments as they generally rely on either brand name power, have high switching costs, or use the ‘network effect’ to prevent new entrants. Not surprisingly, the fund has a heavy focus on giant and large cap firms, in other words, those that have exploited their advantages to the utmost. Investors should note that WMW offers virtually identical exposure and features no tracking error since it’s an ETN; however, WMW is more expensive than MOAT and also exposes investors to the credit risk of the issuing institution.
VOOG|15|This ETF is linked to the S&P 500 Growth Index, which offers exposure to large-cap companies within the growth sector of the U.S. equity market. Investors with a longer-term horizon ought to consider the importance of growth stocks and the diversification benefits they can add to any well-balanced portfolio. Companies within the growth segment offer tremendous profit potential since they are still in the early stages of their life cycle, which in turn also raises the risk level associated with this asset class. Growth stocks may also appeal to those seeking capital appreciation versus dividend income, as these companies re-invest earnings. VOOG is linked to an index consisting of just over 300 holdings and exposure is tilted most heavily towards technology, while industrials, health care, and consumer goods receive equal weightings. Viable alternatives with comparable holdings include SPYG and RPG.
EWT|15|This ETF offers exposure to Taiwanese equities, and is the most liquid and most popular option for achieving exposure to the quasi-developed economy of Taiwan. As such, this ETF can be used in a number of different ways within a portfolio; EWT can be used as a short-term trading vehicle for betting on strong performance in Taiwan’s equity markets, or as a smaller complementary allocation in a long-term portfolio. Some investors, however, may prefer to achieve Taiwan exposure through more broad-based emerging markets ETFs such as EEM and VWO.
FLOT|15|This ETF offers exposure to floating rate debt, an asset class that may be appealing to investors looking to minimize interest rate risk (perhaps related to concerns about rising rates). Most bond ETFs offer exposure to securities that pay a fixed coupon over the life of the note, and as such are impacted when interest rates rise or fall. FLOT invests in debt with coupon payments calculated in reference to a benchmark rate, such as LIBOR. As such, the payments made by the underlying securities will fluctuate along with prevailing market interest rates. That results in an extremely low effective duration, and almost no interest rate risk. The diminished risk of course translates into a lower expected yields as well; FLOT will generally offer less in the way of return potential than other ETFs in the Corporate Bonds ETFdb Category that invest in fixed rate debt.
VCR|15|The Vanguard Consumer Discretionary ETF (VCR) offers targeted exposure to the U.S. consumer discretionary sector, including stocks like apparel retailers, hotel operators, cruise line companies, auto makers, and more. Consumer discretionary ETFs can be a useful tool for investors implementing a sector rotation strategy or seeking to tilt their portfolio. VCR may appeal to some buy-and-hold investors during times of economic strength since the discretionary sector typically does well when consumers have a little extra money to spend. VCR is competitively priced against rivals like the Consumer Discretionary Select Sector SPDR (XLY) and the iShares U.S. Consumer Services ETF (IYC). As of June 2020, VCR owns more than 200 stocks, making it a more diversified option than XLY, long the dominant fund in the space. Short-term traders may still prefer the size and liquidity of XLY.
PDBC|15|The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC), as the name implies, offers exposure to commodity futures without the tax hassle of a K-1, which some investors avoid. The fund is actively-managed, and tries to avoid “negative roll yield,” a well-known problem of passive commodity funds that can substantially erode returns over time. There are several similar strategies on the market, including some that charge a lower fee, but PDBC has by far the most assets and trading volume.
BKLN|15|BKLN delves into the high yield bond space by investing in leveraged loans to offer juicy yields to those willing to forgo the risks and invest in this product.  The high yield bond space has been cracked wide open by ETFs, as these products have offered numerous ways for investors to take advantage of this space. High yields can be a great addition to a yield-starved portfolio, as they can offer yields into the double digits for those willing to take on the risks that come along with it. The high returns come from riskier bond choices who have to pay out higher ratios to compensate investors for high risks. this means that the holdings of these ETFs will have higher chances of defaults, and could potentially leave investors out to dry. But for those who have done their homework on the holdings of a particular “junk” bond fund have the ability to generate strong returns from these powerful products. BKLN invests entirely in U.S. leveraged loans, giving investors a pure play on the domestic economy that other “junk” bond products do not offer. This product will make a strong addition to investors who understand the risks and want a diversified exposure to the high yielding space as it exists in the US.
SKYY|15|SKYY is the first ETF to offer exposure to the cloud computing industry, a narrow segment of the technology sector that involves a fast-growing application. SKYY is one of the most targeted sector funds on the market, making it a tool for fine tuning portfolio exposure. This ETF can be useful for making short-term tactical plays, but could also have appeal as a minor complementary holding in a longer-term buy-and-hold portfolio. Some investors might consider a small position in SKYY as a means of adding opportunity for alpha to a portfolio that otherwise consists of broad based “plain vanilla” funds.
HYLB|15|The Xtrackers USD High Yield Corporate Bond ETF (HYLB) offers broad exposure to “junk” bonds — debt issued by borrowers with a higher risk of default. For taking on the added risk, investors are rewarded with higher yields than those offered on ultra-safe U.S. Treasuries or investment-grade debt issued by the most creditworthy companies. ETFs offer quite a few high-yield options, including active management, so-called “smart” indexing, and even an ETF that screens junk debt based on environmental, social and government criteria.
VONV|15|This ETF is linked to the Russell 1000 Value Index, which offers exposure to large-cap companies that exhibit value characteristics within the U.S. equity market. Investors with a longer-term horizon should consider the importance of large cap value growth stocks and the benefits they can add to any well-balanced portfolio including dividends and rock solid stability. Companies within this segment are often considered some of the safest companies in the world and tend to be in more stable industries as well, potentially skewing some portfolios that are heavy in value securities. VONV is linked to an index consisting of roughly 650 holdings and exposure is tilted most heavily towards financials, energy, and health care. Thanks to this fund’s solid level of diversification and cheap price, investors could definitely make VONV a significant portion of their portfolio.
LMBS|15|PendingDownload the FactSet Analyst Insight Reporthere.
XBI|15|XBI is one of a handful of biotech ETFs available, offering exposure to a corner of the market that can perform well during periods of consolidation and is capable of big jumps in the event of major drug approvals. XBI focuses on a narrow sector of the health care sector, and as such is probably too precise for most investors seeking to construct a long-term portfolio. However, this ETF can be useful for those seeking to fine tune exposure or for those bullish on the sector over the long run. XBI focuses exclusively on American stocks, and primarily consists of mid cap and small cap securities. XBI’s portfolio is somewhat limited, though the equal-weighted methodology of the underlying index ensures that assets are balanced across all components. That feature can be particularly important in the biotech space, where specific companies are capable of turning in big gains over short periods of time. PBE and IBB are other ETF options for biotech exposure; those considering this sector should take a close look at depth of exposure and weighing methodology, as these factors can have a major impact on the risk and return profiles achieved.
VTWO|15|VTWO seeks to replicate a benchmark which offers exposure to small cap firms in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on both value and growth securities, could provide more of a diversified play than products that just focus on ‘growth’ or ‘value’ securities within this segment. Thanks to this broad focus, VTWO has an extremely large number of securities— close to 2,000 in total— and does a great job of dividing up assets among the components as no one company makes up more than 40 basis points of total assets. Thanks to this high level of diversification and VTWO’s low expense ratio, the fund could make for a quality addition to portfolios of investors who are looking for small cap exposure and do not have a preference in terms of value or growth equities.
USIG|15|PendingDownload the FactSet Analyst Insight Reporthere.
DGRW|15|PendingDownload the FactSet Analyst Insight Reporthere.
SCHH|15|This ETF offers exposure to the real estate industry within the U.S. equity market. SCHH follows the Dow Jones U.S. Select REIT Index, tracking the performance of an asset class that has been recently overlooked by many investors following the unprecedented housing crisis. Real estate has historically been embraced because of its ability to deliver excess returns during bull markets and low correlation with traditional stock and bond investments. REITs might appeal to investors seeking current income, as these trusts must distribute at least 90% of their income to investors, and offer an efficient way for investors to gain indirect exposure to real estate prices (as opposed to direct exposure gained through ownership of a residential property). IYR is the most liquid alternative available, but it comes with a steeper price tag, while FRL is the only option with a cheaper expense fee.
MCHI|15|This ETF offers exposure to the Chinese equity market, making it one of many options for investors looking to gain access to one of the world’s largest and most important economies. As such, this fund can be a useful tool for investors looking to overweight China in a long-term portfolio or as a means of implementing a shorter-term tactical tilt towards the BRIC member. Competition among China ETFs is intense, with a number of different offerings. Though MCHI is not nearly as popular as FXI, it offers much more diversified exposure to the Chinese market by holding significantly more individual stocks—making it potentially more attractive to those with a long time horizon. It’s important to note that MCHI, like many China ETFs, has a big allocation to financials and consists almost entirely of large cap stocks; those looking to establish a position in smaller Chinese firms may prefer HAO or ECNS. This ETF is a fine option, but there are a number of other solid choices in the China Equities ETFdb Category; investors in the market for China exposure should consider balance of exposure across sectors and market capitalizations, as well as expenses. GXC is another China ETF that might be worth a closer look.
FTEC|15|The Fidelity MSCI Information Technology ETF is one of the cheaper broad-based tech ETFs on the market but it hasn’t enjoyed the same popularity as pricier rivals offered by State Street and Vanguard.
RDVY|15|PendingDownload the FactSet Analyst Insight Reporthere.
IDEV|15|PendingDownload the FactSet Analyst Insight Reporthere.
SPAB|15|PendingDownload the FactSet Analyst Insight Reporthere.
DFAT|15|PendingDownload the FactSet Analyst Insight Reporthere.
ICLN|15|This fund offers a way to invest in the global clean energy index, including both domestic and international stocks in its portfolio. Given the narrow focus, ICLN likely doesn’t deserve a huge weighting in a long-term portfolio, but can be useful as a satellite holding to cover a corner of the market that is often overlooked by broad-based funds. For investors who maintain a long-term bullish outlook on the alternative energy space, this fund can be a nice way to achieve broad-based exposure; ICLN includes companies engaged in various sub-sectors, such as wind power, solar power, and other renewable sources. Those seeking more targeted exposure within the clean energy space have multiple options available for betting on solar power (such as TAN or KWT), nuclear power (URA or NLR), or wind power (FAN or PWND). The portfolio maintained by ICLN is somewhat limited; it has only a few dozen holdings, and some of the components account for big chunks of assets. But that is to be expected given the asset class represented; the number of public alternative energy companies is somewhat limited. Other options providing similar exposure include PBW, PBD, and GEX; a comparison of the expenses, allocation to emerging markets, depth of holdings, and breakdown by sub-sector will help to determine which fund is right for their objectives and risk tolerance.
INDA|15|This ETF offers exposure to Indian equity markets, making INDA one of many ETF choices for investors looking to access an emerging market that maintains both tremendous growth potential and considerable volatility. Considerable India exposure is a part of many broad-based emerging markets ETFs, but those looking to overweight this economy may find INDA to be a useful tool. Like many international ETFs, INDA leaves a bit to be desired in terms of diversification; with just about 70 components in total and a heavy allocation to the ten holdings, the underlying portfolio is somewhat concentrated. Investors should note that the fund is dominated by large cap companies; pairing this fund with a small cap ETF such as SCIF or SCIN may result in more complete exposure to India’s equity markets. For those seeking comparable large cap products with a more established track record, there are some other options available, including earnings-weighted EPI and cap-weighted INP. It’s worth nothing that INDA boasts the cheapest expense ratio among India ETFs, making this an appealing option for cost conscious, buy-and-hold investors.
IGV|15|This ETF seeks to replicate a benchmark that is comprised of various software companies. IGV, an iShares product, invests in only U.S. companies, so this may not be the right fund for those who wish to gain exposure on a global scale. At first glance, investors may assume that the ETF would invest in mega cap software firms, when in actuality, the fund invests primarily in medium cap companies, giving investors access to a fair amount of lesser-known, potentially high growth firms. With that being said, a number of large well-known firms dominate the top of this index as high weightings are given to Oracle, Microsoft, and Adobe. As a result, investors should take a closer look at their overall portfolio to make sure that they aren’t doubling down on this sector by investing in this fund as many of the top holdings will already be in large cap equity products as well. Many investors may be better off by looking at a more diversified tech ETF that offers exposure to multiple sectors instead of the software industry which is facing headwinds thanks to cloud computing and rampant piracy.
SUB|15|This fund tracks an index of municipal bonds, a slice of the bond market that is highly coveted due to its tax features. These bonds are generally free from federal taxes and in some cases, state and local income taxes as well making these funds crucial components of portfolios for those in high tax brackets. Muni bonds are used by local entities to pay for a variety of services or to make improvements to infrastructure paying for everything from new sewer systems to school renovations and bridge construction as such, they are relatively low risk instruments. This is especially true in the case of SUB since the fund only targets short term munis which have less default risk then their longer-dated counterparts. As a result SUB is a solid choice for investors seeking broad exposure to the muni market but with lower levels of risk. The fund still has very good levels of diversification— holding over 500 securities— but a relatively high expense ratio making the fund a choice for those who are willing to sacrifice a few basis points in fees for one of the most diversified portfolios in the Category. However, investors should be aware that these shorter term instruments are likely to pay out a lower rate of interest than some of the longer-term bonds that are out there, potentially limiting current income.
ISTB|15|PendingDownload the FactSet Analyst Insight Reporthere.
SMH|15|SMH tracks the overall performance of the 25 largest, U.S. listed companies that produce semiconductors, a crucial component of modern computing. Semiconductor chips act as the brains to numerous devices that we rely on today, including smartphones, calculators, computers, and much more. As technology continues to improve and expand, these chips will invariably be in demand to help power new devices. The fund focuses on U.S. stocks entirely, offering investors concentrated exposure to America’s semiconductor industry. Investors should note that this fund is equally split between giant, large, and mid cap size companies, offering a well-balanced risk/return profile. Given its shallow portfolio, SMH is inherently top-heavy; the top ten holdings account for over two-thirds of total assets. Overall, this ETF is fairly priced and it may hold appeal as a long-term, core holding for buy-and-hold investors looking to tilt exposure towards this corner of the technology sector.
GUNR|15|This ETF is one of the more unique products in the Commodity Producers Equities ETFdb Category; GUNR focuses on the “upstream” portion of the natural resources supply chain, maintaining meaningful exposure to the water and timber industries along with positions in companies engaged in energy production, metals extraction, and agriculture. While this focus of GUNR might seem unique, this product consists of many well known stocks that are also found in other commodity-related products. GUNR is tilted heavily towards mega cap stocks, including Big Oil and major mining furms. Products such as GUNR may have appeal as ways to establish “indirect” exposure to commodity prices. Because the profitability of the component stocks tends to move in unison with spot prices of the underlying resources, this fund should perform well when natural resource prices are on the rise.
BBCA|15|The JPMorgan BetaBuilders Canada ETF (BBCA) offers targeted exposure to the Canadian equity market, at a reasonable price. Why Canada? Some popular developed markets funds exclude Canada and investors might use country-specific funds like BBCA to fill that gap. JPMorgan priced its BetaBuilders ETF lineup to compete with other low-cost providers of core portfolio building blocks. As of June 2020, BBCA charged a significantly lower management fee than its rival iShares MSCI Canada ETF (EWC) and had also surpassed the older fund in assets. A cheaper option is the Franklin FTSE Canada ETF (FLCA), but FLCA has struggled to gain assets, making BBCA the better bet when it comes to liquidity.
IJT|15|IJT seeks to replicate a benchmark which offers exposure small cap firms that exhibit growth characteristics in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on growth securities, has certain biases in its portfolio holdings and may not offer as much of a cross section as funds such as IWM and be more volatile as well. However, IJT does a solid job of dividing up assets as the fund holds close to 360 securities in total and doesn’t give any one security more than 1.8% of the total assets. Thanks to this high level of diversification and IJT’s low expense ratio, the fund could make for a quality addition to portfolios of investors who are looking for small caps but are seeking a higher risk/reward profile in the space. However, it should be noted that there are several other products in the space, namely IWO, SLYG, and VBK, that offer more diversification at a cheaper price, potentially making them better choices for long-term investors.
IXN|15|This ETF offers exposure to the global tech sector, making it one of many options available to investors seeking to access an industry that is capable of remarkable rallies and steep declines over short periods of time. Given the sector-specific focus, IXN is probably too granular for those building a long-term, buy-and-hold portfolio, but can be useful for investors putting on a tactical tilt or looking to beef up tech sector exposure. IXN’s offers reasonable levels of liquidity at an average expense ratio, there are certainly cheaper options out there— such as FTQ— but they do not offer a global focus either. IPK offers generally similar exposure, while the equal-weighted RYT gives investors an option that will be more balanced in nature and avoid concentrations in a small handful of tech giants.
VDE|15|This ETF offers broad-based exposure to the U.S. energy industry, making it a potentially useful tool for those looking to fine tune the domestic equity portion of their portfolio or perhaps pair against another sector/region in a long/short trade. VDE is one of the most competitive energy ETFs available from a cost perspective, in a similar class as XLE and FEG on the expenses front. VDE distinguishes itself from XLE in terms of exposure depth, including roughly four times the number of individual stocks. Like most energy ETFs, concentration is a big issue in VDE; a few stocks account for big chunks of the total portfolio, and large caps dominate the underlying basket. The equal-weighted RYE is one interesting alternative, as is the alpha-seeking FXN.
BLV|15|This popular ETF offers exposure to the long end of the maturity curve, with exposure to all types of bonds that have maturities greater than 10 years. BLV is heavy on both interest rate risk and credit risk, and as such will generally deliver a relatively high expected return. BLV can be a quality pick for investors seeking a one stop shop for longer term bond exposure that likely has a greater yield than a comparable pure T-Bill fund.
DFUS|15|PendingDownload the FactSet Analyst Insight Reporthere.
SPEM|15|The SPDR Portfolio Emerging Markets ETF (SPEM) offers broad exposure to emerging markets, and does it for an extremely competitive price. The fund owns more than a thousand securities, making it a well-diversified option for long-term investors building a balanced portfolio. Like all of State Street’s SPDR Portfolio ETFs, SPEM’s management fee was set low enough to compete with ultra-low-cost rivals like the iShares Core MSCI Emerging Markets ETF (IEMG), the Charles Schwab Emerging Markets Equity ETF (SCHE), and the Vanguard FTSE Emerging Markets ETF (VWO).
SPIB|15|PendingDownload the FactSet Analyst Insight Reporthere.
VDC|15|This ETF offers targeted exposure to the U.S. consumer staples sector, making it too targeted for investors looking to simply buy and hold but a potentially useful tool for those implementing a sector rotation strategy or seeking to tilt their portfolio towards low beta holdings. Vanguard ETFs are generally among the most cost efficient choices in any category, but that isn’t necessarily the case here; both FCD and XLP are slightly cheaper in terms of expense ratio. There are, however, no consumer staples ETFs that can match the depth of holdings delivered by VDC; the unique Vanguard structure allows this fund to hold more than 100 individual stocks and avoid excessive concentration in a small handful of mega cap stocks. There are a number of potential alternatives to VDC besides those ETFs mentioned above; the equal-weighted RHS is one option, while the alpha-seeking FXG and PSL could be interesting options as well.
AMLP|15|AMLP seeks to replicate a benchmark that offers exposure to MLPs that each earn at least 50% of EBITDA from assets that are not directly exposed to changes in commodity prices. MLPs have attracted significant interest for two primary reasons: (1) required quarterly distributions provide a steady stream of current income, and (2) because they are partnerships, MLPs avoid corporate income taxes at both the federal and state level; the tax liability is passed through to the individual partners. By generating at least 90% of income from natural resource-based activities such as transportation and storage, an entity can qualify as an MLP and not be taxed as a corporation. So the IRS treats shareholders of an MLP as partners, making the MLP itself a pass-through entity. That means that taxes are avoided at the corporate level, and investors avoid the double taxation of income. AMLP holds all of its assets in domestic equities, offering a pure play on the U.S. MLP sector. Investors looking for steady and strong yields should give this particular product a closer look.
ICSH|15|PendingDownload the FactSet Analyst Insight Reporthere.
SPTM|15|The SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) tracks the S&P Composite 1500 Index, which offers broad exposure to the U.S. equity market. SPTM invests in more than a thousand different companies across all sectors and sizes, making SPTM an appealing option for investors looking to simplify their portfolios and minimize rebalancing obligations. SPTM can easily serve as the core holding of a long-term portfolio. As with all of State Street’s SPDR “Portfolio” lineup, SPTM competes on price with ultra-low-cost funds like the Vanguard Total Stock Market ETF (VTI), the Schwab U.S. Broad Market ETF (SCHB) and the iShares Core S&P Total U.S. Stock Market ETF (ITOT). All four funds charge the same barely-there management fee. The funds have broadly similar allocations when it comes to sector and market-cap, though investors should note that SPTM leans more heavily on large-cap stocks than the other three. Those seeking more exposure to smaller U.S. companies may want to use SPTM alongside small-cap funds. SPTM is also a relative latecomer to the low-cost market and lags its main rivals in assets, but still offers plenty of liquidity.
EWY|15|This ETF offers exposure to South Korea, a dynamic economy that often receives a meaningful allocation in most long-term portfolios. EWY is the most liquid and most popular option for achieving exposure to the economy of South Korea, though there are other ETF options as well. Given this targeted focus, EWY is most appropriate for investors looking to fine tune international equity exposure or make a tactical and short term tilt towards this market. This ETF may also be useful as a small allocation within a longer-term portfolio among investors who believe South Korea maintains a bright long-term economic outlook. Some investors may prefer to achieve their South Korea exposure through more broad-based funds within the Global Equities ETFdb Category or Asia Pacific Equities ETFdb Category.
QLD|15|This ETF offers 2x daily long leverage to the NASDAQ-100 Index, making it a powerful tool for investors with a bullish short-term outlook for technology equities. Investors should note that QLD’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. QLD can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
KRE|15|This ETF gives investors a way to play regional banks, a sub-sector of the financial sector that offers a unique risk/return profile relative to traditional financial exposure. Whereas financial funds such as XLF are dominated by large cap companies, KRE maintains significant exposure to small and mid cap banking stocks, many of which are not impacted by the factors that drive performance of big Wall Street banks. KRE, like many State Street ETFs, is linked to an equal weighted index. That results in a balanced portfolio that avoids big concentrations in a handful of stocks—a potential drawback found in the other two regional banks ETFs (RKH, IAT). KRE doesn’t cast quite as wide a net as IAT—the SPDR has fewer holdings—but the weighting methodology delivers a better balance among all holdings and results in a significant weighting to small cap stocks. In addition to these allocation advantages, KRE is cheaper in terms of bottom line expense ratio. IAT and RKH are also options for similar exposure, but we like KRE as the preferred means of gaining regional bank exposure through the ETF wrapper.
ESGV|15|The Vanguard ESG U.S. Stock ETF tracks an index of U.S. stocks that are screened based on environmental, social, and governance (ESG) criteria. ESG funds are an increasingly popular segment of the ETF marketplace, offering values-driven investors a diverse portfolio of U.S. stocks without compromising their conscience. Vanguard’s is one of dozens, if not hundreds, of similar funds that have debuted in recent years. ESGV invests in hundreds of U.S. companies, including small-, medium-, and large-cap equities, but eschews the so-called sin stocks such as adult entertainment, alcohol, tobacco, and gambling. ESGV also excludes weapons makers, fossil fuel companies, and nuclear power. Not surprisingly, the elimination of fossil fuels giants means ESGV has a bit more of a tilt toward tech stocks than an S&P 500 fund, and has less of its portfolio in energy stocks. For investors looking to align their portfolio with their values, ESGV is a good low-cost option for U.S. equity exposure, though rivals also offer competitively priced options.
PRF|15|This ETF offers exposure to the largest U.S. Equities with a twist, as the fund is linked to a RAFI-weighted index. This alternative weighting methodology is based on four fundamental measures of firm size: book value, cash flow, sales and dividends. The 1000 equities with the highest fundamental strength are weighted by their fundamental scores. While this ETF has considerable overlap with more popular funds such as VTV or IWD, there are some key distinctions that shape a very unique risk/return profile. Since PRF is linked to a RAFI-weighted index, this ETF breaks the link between stock price and security allocation and may have appeal as an alternative to market capitalization weighting systems that have numerous potential drawbacks. PRF features the same biases that are common in many broad-based equity ETFs, including big weightings to financials and industrials/energy. An alternative is VONV, which has a much cheaper expense fee and offers comparable exposure (focused on Value companies) in terms of holdings.
VPL|15|This ETF is a low cost option for accessing advanced Asia Pacific economies. VPL consists almost entirely of developed market exposure, with Japan accounting for most of the portfolio and Australia also making up a significant chunk. Given this profile, VPL can potentially be used in a number of different ways; this ETF is certainly useful as a short term trading vehicle for those seeking exposure to advanced Asian economies, and can potentially be used as a core holding in a longer-term portfolio as well. It should be noted, however, that VPL won’t give investors exposure to emerging Asian economies (some of the other options in the Asia Pacific Equities ETFdb Category will include both developed and emerging markets).
ARKW|15|The ARK Next Generation Internet ETF (ARKW) is an actively-managed fund from the team at ARK Invest. The advisory firm, led by Catherine Wood, has an impressive track record doing what most stock pickers fail to do: beating the market.
SHYG|15|PendingDownload the FactSet Analyst Insight Reporthere.
AAXJ|15|This ETF offers a way to invest in several promising Asian economies while sidestepping exposure to Japan, a market many see as trapped in a multi-decade stretch of low growth. AAXJ is somewhat unique in that it includes significant exposure to countries across all development levels, from emerging China to quasi-developed South Korea and Taiwan to developed Hong Kong and Singapore. As such, this ETF could be useful for investors building an Asia-centric portfolio, and has the potential to be appealing as a means of implementing a short-term play or as establishing a longer-term tilt towards a region that might be expected to outperform global equity markets.
VCLT|15|VCLT offers exposure to investment grade corporate bonds that fall towards the long end of the maturity spectrum, thereby delivering a moderate amount of credit risk and ample interest rate risk. Like most Vanguard ETFs, VCLT is among the most cost-efficient in its ETFdb Category. VCLT might be useful for investors looking to enhance fixed income returns and willing to extend the duration of their portfolio to do so.
FXI|15|FXI is the most popular ETF option for achieving exposure to the Chinese equity market, and offers unparalleled liquidity. There are, however, some drawbacks to FXI: the portfolio consists of just a handful of large cap stocks and maintains heavy biases towards certain industries (financials and energy, while going light on tech and consumer stocks). For short term traders who value liquidity, FXI is a great option. But for those seeking China exposure over the long run, there are better ETF options available.
IEUR|15|The iShares Core MSCI Europe ETF (IEUR) tracks an index of large-, mid-, and small-cap European stocks for an extremely competitive price. The fund owns nearly a thousand securities, making it a well-diversified option for long-term investors building a balanced portfolio. Its portfolio is dominated by the United Kingdom, France, Switzerland, and Germany. Like all iShares Core ETFs, the management fee is competitive with ultra-low-cost rivals like the the SPDR Portfolio Europe ETF (SPEU) and the Vanguard FTSE Europe ETF (VGK), as well as newer low-cost entrants like the JPMorgan BetaBuilders Europe ETF (BBEU).
FIXD|15|PendingDownload the FactSet Analyst Insight Reporthere.
VIS|15|This ETF is one of several options offering exposure to the U.S. industrials sector, offering a way to access a corner of the U.S. economy that includes transportation firms, providers of commercial and professional services, and manufacturers of capital goods. Given the sector-specific focus, VIS likely doesn’t deserve a core allocation, but may be useful as a means of implementing a tactical tilt towards the industrials sector or as part of a sector rotation strategy. Like many Vanguard ETFs, VIS is attractive in the expense department; in addition to one of the lowest expense ratios in the category, this ETF may be available for commission-free trading in Vanguard accounts. The depth of VIS portfolio is also attractive, though this fund, like many other industrials ETFs, has a big concentration in GE stock. Those seeking to avoid this concentration may want to consider the equal-weighted RGI; those seeking exposure to ex-U.S. industrials may find IPN to be a useful tool.
CIBR|15|The First Trust NASDAQ CEA Cybersecurity ETF (CIBR) tracks an index of companies engaged in the cybersecurity segment of the tech and industrial sectors. To make the cut, a company must be classified as a cybersecurity company by the Consumer Technology Association and have a minimum market cap of $250 million. Te ensure liquidity in the underlying stocks, which is a concern for ETFs that invest in small-cap names, companies must have a minimum free-float of 20%. The index then weights stocks based on their underlying liquidity, and imposes caps on how large any one security can become.  The portfolio includes familiar names like Cisco Systems, Akamai and NortonLifeLock.
ACWV|15|This ETF offers exposure to global equity markets, including both developed and emerging economies. Given this broad focus, ACWV could be an appealing tool within a long-term, buy-and-hold portfolio, or could be used as more of a tactical instrument. The unique attribute of ACWV is the focus on low volatility stocks; this methodology should generally result in a portfolio with limited downside potential compared to the broad markets, while still allowing investors to maintain equity market exposure.
ANGL|15|This ETF offers exposure to high yield or junk bonds, a corner of the domestic fixed income market that has appeal to risk tolerant investors interested in boosting the current returns derived from their bond portfolios. As such, ANGL can have appeal both to investors building a long-term portfolio or to those looking to make a tactical allocation to this corner of the market. Because junk bonds are generally excluded from broad-based fixed income ETFs such as AGG or BND, this product can be a tool for rounding out the fixed income side of a portfolio.
FNDE|15|PendingDownload the FactSet Analyst Insight Reporthere.
LIT|15|This ETF offers exposure to companies engaged in various aspects of the lithium industry, thereby giving exposure to a commodity for which many expect the market to surge in coming years. Lithium is used in a number of “next generation” technologies, positioning prices and demand to increase through technological improvements. LIT will often trade as a leveraged play on the underlying natural resource, making it a volatile but potentially powerful tool for betting on the lithium market.
VNQI|15|This ETF offers exposure to global real estate markets, excluding American securities in favor of assets in developed countries in either Europe, or the Asia Pacific region. The fund also provides some level of exposure to Canadian securities, helping to round out holdings across the globe. As such, VNQI has the potential to deliver broad-based access to an asset class that can deliver attractive current returns and significant appreciation for long term capital appreciation (along with meaningful volatility and risk). VNQI has a pretty solid level of diversification with close to 425 holdings spread across a variety of countries. VNQI may be appropriate for investors looking to compliment their American real estate holdings with similar exposure abroad but it is unlikely to function as a one stop shop for some due to its exclusion of American assets. Nevertheless, thanks to its broad exposure and its extremely cheap expense ratio, VNQI could make for a solid choice for a number of investors who are in it for the long term.
SPYD|15|State Streets SPDR Portfolio S&P 500 High Dividend ETF tracks an index that tries to pick the top 80 dividend-yielding companies in the S&P 500. The yield is determined by dividing the dividend by the company’s share price, and the holdings are equally weighted. SPYD does a good job of diversifying its portfolio across most segments of the economy, and its top holdings aren’t so large that they present a significant concentration risk. There are several dividend ETFs on the market that focus on large-cap U.S. stocks, but SPYD is part of State Street’s low-cost core funds, and is among the cheapest dividend funds available. SPYD is a good choice for investors who want dividend-paying stocks at an ultra-low price.
SHM|15|This fund tracks an index of municipal bonds, a slice of the bond market that is highly coveted due to its tax features. These bonds are generally free from federal taxes and in some cases, state and local income taxes as well making these funds crucial components of portfolios for those in high tax brackets. Muni bonds are used by local entities to pay for a variety of services or to make improvements to infrastructure paying for everything from new sewer systems to school renovations and bridge construction as such, they are relatively low risk instruments. This is especially true in the case of SHM since the fund only targets short term munis which have less default risk then their longer-dated counterparts. As a result SHM is a solid choice for investors seeking broad exposure to the muni market but with lower levels of risk. The fund still has solid levels of diversification— holding over 330 securities— and a cheap expense ratio, making it a decent building block of portfolios. However, investors should be aware that these shorter term instruments are likely to pay out a lower rate of interest than some of the longer-term bonds that are out there, potentially limiting current income.
VPU|15|This Vanguard ETF offers exposure to the domestic utilities sector, a corner of the U.S. market that has historically exhibited low volatility and often features an attractive distribution yield. As a sector-specific ETF, VPU is probably more appealing to investors looking to establish a shorter-term tactical tilt or make a sector rotation play than it is to those building a long-term, buy-and-hold portfolio (though utilities generally receive a relatively small weight in broad-based equity ETFs, meaning that a complementary holding could result in more balanced sector weightings).
EWZ|15|EWZ offers exposure to Brazilian equities, holding the largest and most liquid companies that are domiciled in the South American nation. For investors seeking investment in the nation, EWZ is one of many options and offers the broadest exposure to the country’s large cap segment. EWZ is a decent option for investors who want to load up on Brazil but there are many other options out there which could accomplish portfolio goals as well.
QYLD|15|The Global X NASDAQ 100 Covered Call ETF (QYLD) follows a “covered call” strategy in which the ETF buys the stocks in the Nasdaq 100 index, then sells corresponding call options to generate a little extra income for investors.
SPMD|15|The SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) track the S&P 400 MidCap Index, which offers broad exposure to mid-sized U.S. companies. SPMD is one of several that offer exposure to an asset class that can make up a significant portion of long-term, buy-and-hold portfolios. This ETF may be more appealing to those in the portfolio construction business as opposed to short-term traders. SPMD offers exposure to a balanced portfolio of about 400 individual stocks. As with all of State Street’s SPDR “Portfolio” lineup, SPMD competes — and even beats  — the management fee of ultra-low-cost rivals like Vanguard Mid-Cap ETF (VO), Schwab U.S. Mid-Cap ETF (SCHM) and iShares Core S&P Mid-Cap ETF (IJH). All four funds offer broadly similar allocation to sectors and company size. SPMD is a relative latecomer and lags these three rivals in assets but still offers good liquidity.
FNDA|15|PendingDownload the FactSet Analyst Insight Reporthere.
NEAR|15|PendingDownload the FactSet Analyst Insight Reporthere.
GDXJ|15|This ETF gives investors an opportunity to achieve exposure to gold without holding the physical metal or encountering the nuances of a futures-based strategy. For investors looking to bet on increased demand for one of the world’s most famous metals, GDXJ is a nice option. GDXJ often trades as a leveraged play on the underlying natural resources, meaning that this fund can experience significant volatility but can be a powerful tool for profiting from a surge in commodity prices.
SJNK|15|This ETF offers targeted exposure to a corner of the bond market that features a significant amount of credit risk but very little interest rate risk. As such, SJNK might not be all that useful in a long-term portfolio but can be used as a tactical tool to fine tune fixed income exposure quite nicely. This ETF becomes particularly useful for investors looking to enhance current returns but concerned about the impact of rising interest rates on bond valuations. The focus on lower quality bonds delivers a significant amount of credit risk (and, therefore, the associated returns) while the focus on the short end of the maturity spectrum limits the sensitivity to changes in interest rates.
VOX|15|This ETF offers low cost, broad-based exposure to the telecom industry, making in an option for investors looking to overweight a corner of the U.S. market that can often deliver attractive dividend yields. There are, however, some potential drawbacks: a handful of mega cap companies account for a huge portion of total assets, diminishing some of the diversification benefits that may be more apparent in a fund like XTL. VOX can be a handy tool for investors implementing a sector rotation strategy or establish a value tilt, but be aware of the huge concentration in a small handful of stocks.
PAVE|15|PendingDownload the FactSet Analyst Insight Reporthere.
MGV|15|This ETF is linked to the MSCI US Large Cap Value Index, which offers exposure to mega-cap companies that exhibit value characteristics within the U.S. equity market. Investors with a longer-term horizon should consider the importance of large cap value stocks and the benefits they can add to any well-balanced portfolio including dividends and rock solid stability. Companies within this segment are often considered some of the safest firms in the world and tend to be in more stable industries as well, potentially skewing some portfolios that are heavy in value securities. MGV is linked to an index consisting of roughly 150 holdings and exposure is tilted most heavily towards financials, energy, and health care. Thanks to this fund’s reasonable level of diversification and cheap price, investors could definitely make MGV a significant portion of their portfolios. However, there are many other options out there that provide more diversification across the large cap value sector although few are cheaper than MGV.
SSO|15|This ETF offers 2x daily long leverage to the S&P 500 Index, making it a powerful tool for investors with a bullish short-term outlook for large cap equities. Investors should note that SSO’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. SSO can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
ACWX|15|This ETF offers exposure to global equity markets outside of the U.S., including stocks listed in more than a dozen emerging and developed markets. As such, ACWX can be useful as a core component of long-term portfolios, though those seeking to fine-tune the balance between developed and emerging markets may wish to utilize more targeted options (ACWX is tilted heavily towards developed markets). This fund could also be useful in a long/short trade for investors seeking to capture return differentials between U.S. markets and international stocks. The balance of exposure offered by this ETF is impressive; nearly 1,000 securities are spread across different countries and sectors, giving this fund a minimal amount of concentration risk. The expense ratio is also impressive, making this ETF appealing to cost-conscious investors. Other alternatives offering similar exposure include Vanguard’s VEU (which is even cheaper and offers considerably more depth of exposure). VSS could potentially be a nice complement, adding small cap exposure to the large cap-heavy ACWX.
ONEQ|15|This Fidelity ETF offers exposure to the broad-based NASDAQ Composite Index, and includes more than 2,000 individual holdings. ONEQ is tilted heavily towards U.S. equities, but also includes some international exposure. It should be noted that the sector allocation is skewed heavily towards technology, and as such might not make sense as the exclusive source of U.S. equity exposure; broad-based funds that spread exposure across all sectors such as VTI or SCHB may be more useful for those seeking balanced exposure to the U.S. economy through a single ticker. ONEQ is cost efficient and the depth of exposure is impressive, but investors should note the heavy tech sector bias; ONEQ may be a nice complementary holding or a way to overweight technology in a portfolio.
XOP|15|This ETF offers exposure to the exploration and production sub-sector of the domestic energy market, making it a potentially useful tool for those looking to target stocks of companies responsible for discovering and accessing new deposits of oil and gas. XOP is likely too targeted for those with a long-term focus, but can be useful as a tactical overlay or as part of a sector rotation strategy. XOP is unique in that it seeks to replicate an equal-weighted benchmark. As such, the exposure offered by this fund is considerably more balanced than IEO, which includes many of the same stocks but assigns weighting based on market capitalization. It often costs more to pursue an equal-weighted strategy, but that isn’t the case here; XOP is also very appealing from a cost perspective, making it the most attractive option for those seeking to bet on this corner of the U.S. energy market.
XLRE|15|PendingDownload the FactSet Analyst Insight Reporthere.
FTSM|15|PendingDownload the FactSet Analyst Insight Reporthere.
IDV|15|This ETF is one of the many options for investors seeking to access stocks of developed markets outside of the U.S., an asset class that is a major component of almost any balanced portfolio and that can be quite useful for implementing tactical tilts. IDV offers exposure that is generally similar to funds like EFA and VEA, but with a few meaningful nuances. The most significant is the focus on dividend paying companies, a technique that shifts exposure towards value companies in certain sectors, and that may have obvious appeal for investors looking to enhance current returns or to fine tune risk exposure. It should also be noted that IDV includes some exposure to Canada, a market not included in EAFE funds and therefore overlooked completely by many long-term “balanced” portfolios. There are a number of alternatives to IDV beyond the plain vanilla, market cap-weighted funds mentioned above; WisdomTree offers DTH and DWM, both of which also focus on dividend paying stocks in a similar region.
SPSM|15|The SPDR Portfolio S&P 600 Small Cap ETF (SPSM) tracks an index of small cap U.S. stocks. The investment thesis behind a small cap investment is the growth factor that comes along with these securities. While mega-cap firms have already hit their peak, smaller companies may be the next juggernaut. The downside to small-cap investing is additional risk. Changes in regulation, credit availability, or product viability could send share prices plummeting. While some exposure to these small companies is healthy for a portfolio, the allocation should be kept relatively low since this market segment experiences extreme volatility. Investors in total-market ETFs already have some allocation to small-caps and should make sure that they’re not unintentionally overweighting a risky space. Conversely, investors with strong convictions about small-caps might want to augment a total market fund with SPSM to boost their exposure. Like all of State Streets’s SPDR Portfolio lineup, SPSM is priced to match or beat rivals like the iShares Core S&P Small Cap ETF (IJR). SPSM has changed its underlying index a couple of times in recent years, but as of January 2020 it tracks the same S&P SmallCap 600 index as IJR and at a lower fee, making it an appealing option for longer-term investors who are looking for growth and aware of the risks that come with small-cap stocks. SPSM still lags IJR in assets though and some short-term traders might prefer IJR’s size and liquidity.
IWY|15|This ETF is linked to the Russell Top 200 Growth Index, which offers exposure to large-cap companies within the growth sector of the U.S. equity market. Investors with a longer-term horizon ought to consider the importance of growth stocks and the diversification benefits they can add to any well-balanced portfolio. Companies within the growth segment offer tremendous profit potential since they are still in the early stages of their life cycle, which in turn also raises the risk level associated with this asset class. Growth stocks may also appeal to those seeking capital appreciation versus dividend income, as these companies re-invest earnings. IWY is linked to an index consisting of roughly 130 holdings and exposure is tilted most heavily towards technology, while industrials, energy, and consumer goods receive equal weightings. Viable alternatives with comparable holdings include SPYG and RPG, while SCHG is the cheapest option.
SOXL|15|This ETF offers 3x daily long leverage to the PHLX Semiconductor Index, making it a powerful tool for investors with a bullish short-term outlook for semiconductor equities. Investors should note that SOXL’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. SOXL can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
MGC|15|This ETF tracks the MSCI US Large Cap 300 Index, a benchmark consisting of some of America’s largest companies. As a result, investors should think of this as a concentrated play on mega cap stocks in the American market. These securities are usually known as ‘Blue Chips’ and are some of the most famous and profitable companies in the country, including well known names such as ExxonMobil, Apple, IBM, and GE. The fund is probably one of the safest in the equity world as the companies on this list are very unlikely to go under unless there is an apocalyptic event in the economy. However, these securities are unlikely to grow very much either as they are already pretty large and have probably seen their quickest growing days in years past, but most do pay out solid dividends which should help to ease the pain of this realization. Overall, MGC is a quality choice for investors seeking broad mega cap exposure but most would probably be better served by investing in a broader fund that is a little more diversified, although MGC is better than most in the mega cap space. Furthermore, Vanguard usually does a great job of keeping costs down so if you are dead set on mega caps this fund remains a quality choice.
XSOE|15|PendingDownload the FactSet Analyst Insight Reporthere.
JEPI|15|The JPMorgan Equity Premium Income ETF (JEPI) is an actively managed fund that generates income by selling options on U.S. large cap stocks. The fund invests in S&P 500 stocks that exhibit low-volatility and value characteristics, and sells options on those stocks to generate additional income. JEPI was launched in May 2020 so there is limited performance data available. The written call options should provide the fund with additional income but may mean that JEPI will miss out on the full gains from increases in the underlying portfolio. Ultimately any actively managed fund is a bet on the manager’s ability to outperform the market. JEPI offers a hedge-fund like strategy in an ETF wrapper, and investors and advisers should consider whether JEPI is suitable for their objectives. It is quite reasonably priced for what it offers.
BOND|15|This ETF offers a way for investors to access one of the most successful bond fund managers of all time, as BOND (formerly known as TRXT) is essentially an exchange-traded version of PIMCO’s Total Return mutual fund. Benchmarked against the Barclays Capital U.S. Aggregate Index, BOND will generally contain a broad-based basket of investment grade U.S. debt securities. As such, BOND will likely have appeal as a core holding in many long-term, buy-and-hold portfolios. There are several ETFs that seek to passively replicate the index against which BOND is benchmarked; funds such as BND, AGG, LAG, and SCHZ might be more appealing options for those who believe that active managers are not able to consistently generate alpha over the long term. It should be noted that BOND charges about 45 basis points more in annual fees than the cheapest of those ETFs, meaning that the PIMCO fund must beat its benchmark by close to 55 basis points annually to justify the higher fees.
DFAS|15|PendingDownload the FactSet Analyst Insight Reporthere.
GLDM|15|PendingDownload the FactSet Analyst Insight Reporthere.
SPTL|15|The SPDR Portfolio Long Term Treasury ETF (SPTL) tracks an index that offers exposure to U.S. Treasuries with a remaining maturity of 10 years or more. SPTL delivers minimal credit risk, but a significant amount of interest-rate risk. SPTL might be useful for investors who crave safety and are willing to take on longer duration, a measure of bond price sensitivity to interest rate changes. Typically bond prices fall when rates rise.
EWC|15|EWC offers exposure to Canadian stocks with a heavy focus on mega cap firms. Canadian equities are often overlooked by popular developed market funds so many of the securities in this fund may receive minimal allocations in some portfolios. Due to this, EWC has appeal as a compliment to EFA funds or those who are bullish on the overall Canadian economy.
BBAX|15|The JPMorgan BetaBuilders Developed Asia ex-Japan ETF (BBAX) tracks and index of large- and mid-cap stocks in developed markets in Asia, excluding Japan. Many Asia-Pacific equity funds make a large allocation to Japan. While Japan is one of the world’s largest economies, it has also had extended periods of low growth rates and rising debt burdens. Some investors would rather avoid this potential drag on their portfolio. JPMorgan priced its BetaBuilders ETF lineup to compete with other low-cost providers of core portfolio building blocks. As of June 2020, BBAX was priced significantly lower than its rival iShares MSCI Pacific ex-Japan ETF (EPP).
DBEF|15|This ETF offers exposure to developed equity markets outside of the U.S., making DBEF one of many products offering exposure to an asset class that is often a core component of long-term, buy-and-hold portfolios. This fund is unique from other EAFE ETFs such as EFA and VEA because it hedges out the currency exposure that an investment in international equities entails. In addition to establishing a long position in international stocks, investors using most EAFE ETFs are also going long the currencies of the underlying stocks (including the euro, yen, Aussie dollar, and pound sterling) and short the U.S. dollar. DBEF uses short term forward contracts to neutralize the impact of exchange rate fluctuations, essentially isolating the performance of the developed market stocks as the driver of returns. While this difference may seem minor, the impact of currency movements on equities can be significant sources of return—both positive and negative—to U.S. based investors. Though DBEF’s portfolio is nearly identical to those of VEA and EFA, the risk/return profiles of these products can vary significantly.
SPMB|15|PendingDownload the FactSet Analyst Insight Reporthere.
VIGI|15|The Vanguard International Dividend Appreciation ETF tracks an index of non-U.S. stocks that have a track record of raising dividends. VIGI focuses on high-quality companies in developed and emerging markets, with a focus on stocks that have demonstrated sustainable dividend growth. VIGI is the international complement to Vanguard’s enormously popular VIG, which follows a similar dividend strategy but invests in U.S. equities. As investors expect from Vanguard, VIGI offers exposure to dividend-paying companies outside the U.S. at a reasonable price compared with rivals.
SUSL|15|PendingDownload the FactSet Analyst Insight Reporthere.
SLYV|15|SLYV seeks to replicate a benchmark which offers exposure small cap firms that exhibit value characteristics in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on value securities, has certain biases in its portfolio holdings and may not offer as much of a cross section as funds such as IWM. However, SLYV does a solid job of dividing up assets as the fund holds more than 430 securities in total and doesn’t give any one security more than 1.0% of the total assets. Thanks to this extreme diversification and SLYV’s cheap price, the fund could make for a quality addition to portfolios of investors who are looking for small cap exposure but are seeking lower risk assets in the space.
XT|15|PendingDownload the FactSet Analyst Insight Reporthere.
FAS|15|This ETF offers 3x daily long leverage to the Russell 1000 Financial Services Index, making it a powerful tool for investors with a bullish short-term outlook for the broad financial market. Investors should note that FAS’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. FAS can be a powerful tool for sophisticated investors who are bullish on the financial industry, but should be avoided by those with a low risk tolerance.
SUSA|15|PendingDownload the FactSet Analyst Insight Reporthere.
IQLT|15|PendingDownload the FactSet Analyst Insight Reporthere.
TFI|15|This fund tracks an index of municipal bonds, a slice of the bond market that is highly coveted due to its tax features. These bonds are generally free from federal taxes and in some cases, state and local income taxes as well making these funds crucial components of portfolios for those in high tax brackets. Muni bonds are used by local entities to pay for a variety of services or to make improvements to infrastructure paying for everything from new sewer systems to school renovations and bridge construction as such, they are relatively low risk instruments. TFI is a solid choice in this Category as the fund holds close to 300 securities in total and allocates under 15% of its total assets to its top ten holdings ensuring relatively high levels of diversification. While the fund may not be as diversified as MUB, it is a cheaper alternative making it a solid choice for those looking to keep costs down and are willing to sacrifice a little in the way of diversification and liquidity.
USSG|15|The MSCI USA ESG Leaders Equity ETF (USSG) tracks an MSCI index of U.S. stocks, selecting those securities that score the highest relative to their peers on environmental, social and governance factors (ESG). USSG includes companies that score in the top 50% of scores in each sector — and so will own about half as many companies as the parent index — then weights those stocks to keep the sector allocation in line with the parent index. The fund excludes companies involved in alcohol, tobacco, gambling, controversial and conventional weapons, nuclear power, and civilian firearms. USSG’s management fee is cheaper than rival iShares ESG MSCI USA ETF (ESGU). The iShares fund has significantly more assets, but both funds have drawn a sizable investor following and offer good daily liquidity.
SCHR|15|This ETF offers exposure to Treasurys with three to ten years to maturity, providing moderate interest rate risk but delivering higher returns than short-term products such as SHY. SCHR can be a nice tool for fine tuning fixed income exposure, and is rather efficient from a cost perspective, especially if you have a Charles Schwab account.
IAGG|15|PendingDownload the FactSet Analyst Insight Reporthere.
SCHC|15|This ETF offers exposure to an asset class that should be in every portfolio, but is often overlooked by investors. Most international ETFs are dominated by mega cap stocks, a bias that can tilt exposure towards energy and financials and result in a weak correlation to domestic consumption patterns in the target market. Small cap equities may be a better “pure play” on the economies where shares are traded, and as such funds like SCHC can be nice complements to other EFA products. This ETF is competitive from a cost perspective, and the depth of holdings assures balanced exposure to a number of ex-U.S. developed economies. SCHC is a nice complement to EAFE ETFs such as EFA, and should be used to achieve more complete international equity exposure.
IGM|15|This ETF offers low cost exposure to the U.S. tech sector, making it one of many options available to investors seeking to access an industry that is capable of remarkable rallies and steep declines over short periods of time. Given the sector-specific focus, IGM is probably too granular for those building a long-term, buy-and-hold portfolio, but can be useful for investors putting on a tactical tilt or looking to beef up tech sector exposure. IGM’s primary appeal is its wide scope in holdings, the fund has more than 250 securities in total and does a decent job of spreading assets around among these companies. However, it should be noted that typical tech giants such as Apple, IBM, and Microsoft dominate the top of the list of holdings and may already be found in large quantities in other parts of an investor’s portfolio.  VGT and XLK offer generally similar exposure, while the equal-weighted RYT gives investors an option that will be more balanced in nature and avoid concentrations in a small handful of tech giants.
QTEC|15|This ETF offers exposure to the U.S. tech sector, making it one of many options available to investors seeking to access an industry that is capable of remarkable rallies and steep declines over short periods of time. Given the sector-specific focus, QTEC is probably too granular for those building a long-term, buy-and-hold portfolio, but can be useful for investors putting on a tactical tilt or looking to beef up tech sector exposure. However, its narrow focus and relatively high expense ratio means that it should be avoided by most investors. QTEC holds just 40 securities in total and while it does a decent job of dividing up assets among these firms— the top ten make up just one-fourth of total assets— this amount of securities is too small to offer real diversification in the tech sector. Furthermore, with an expense ratio of 60 basis points, the product is about 12 basis points more expensive than others in the category which offer more diversification such as IXN or IYW. For these reasons, investors should avoid QTEC at all costs; its gimmicky structure of holdings only Nasdaq-100 companies that are in the tech sector is rather arbitrary and will not help investors accomplish any objectives effectively.
EEMV|15|This ETF offers exposure to stocks of emerging markets, giving investors a way to access equities in many of the world’s fastest-growing economies. EEMV is unique from many other products in the Emerging Markets Equities ETFdb Category because the underlying index is targeted in nature, consisting of only stocks that have historically exhibited low volatility relative to the broad market. That means that EEMV should be expected to maintain smaller potential for downside losses, while still allowing investors to maintain exposure to emerging markets.
VAW|15|This ETF is one of several funds offering exposure to the U.S. materials sector, a corner of the market that may be appealing for investors looking to gain indirect exposure to commodity prices through the stocks of companies engaged in the extraction or production of natural resources. Because the materials sector often accounts for a small portion of broad-based benchmarks, VAW may be a useful tool for long-term investors looking for more balanced exposure to the U.S. equity market. It can also be handy for those looking to implement a shorter-term tilt towards the materials sector. The most appealing attributes of VAW are the depth of holdings (more than 125 individual stocks) and low fees, though there are some big allocations in a few of the larger names and XLB and FBM are both cheaper from an expense ratio perspective. This ETF is also available for commission free trading in Vanguard accounts, potentially increasing the appeal to cost-conscious investors. Those seeking more balanced materials exposure may prefer RTM, while those looking to avoid U.S. stocks completely have IRV as an option.
DSI|15|This ETF offers exposure to an index consisting of companies that exhibit positive environmental, social, and governance characteristics, while seeking to maintain a risk/return profile that is generally similar to a more general benchmark of U.S. equities. KLD’s holdings are generally large cap U.S. companies with which many investors are familiar, as the fund consists primarily of mega cap and large cap stocks. KLD can be used as a substitute to other large cap funds such as SPY, potentially appealing to investors who wish to avoid companies with questionable morals. There is also an investment case to be made for using an ESG screening methodology, as companies that avoid lawsuits and other penalties and establish strong reputations among consumers should perform well over the long run. KLD is well balanced from a sector perspective, and does a nice job spreading around exposure to individual stocks. The biggest potential drawback is the expense ratio; investors can expect to pay a bit more for the peace of mind (or the pursuit of alpha through a focus on ESG metrics).
BBIN|15|The JPMorgan BetaBuilders International Equity ETF (BBIN) tracks an index of large and mid-cap developed-market stocks outside the U.S., and does so at an extremely attractive price. The fund owns more than a thousand securities, making it a well-diversified option for long-term investors building a balanced portfolio. Like all of JPMorgan’s “BetaBuilders” ETFs, BBIN’s management fee was set low enough to compete with ultra low-cost rivals like the iShares Core MSCI EAFE ETF (IEFA), the SPDR Portfolio Developed World ex-US ETF (SPDW), the Vanguard FTSE Developed Markets ETF (VEA), and Charles Schwab’s International Equity ETF (SCHF). BBIN debuted in December 2019 and, as of June 2020, still lags its rivals in assets and daily liquidity.
IVOL|15|PendingDownload the FactSet Analyst Insight Reporthere.
KBWB|15|This ETF offers exposure to banks, delivering targeted exposure to a unique corner of the U.S. financials sector. Given the narrow focus of KBWB, this fund might be most useful for investors looking to implement a shorter term tactical tilt towards this corner of the market, though it can certainly also be used as a complimentary holding in many long-term portfolios as well. KBWB’s underlying portfolio is unique from the most popular ETFs in the Financials Equities ETFdb Category; this ETF is comprised of common stocks of national money centers, leading regional banks, and thrifts. Moreover, it should be noted that while bellwether companies make an appearance, there are a fair amount of small cap, regional-based firms that have significant representation. Small banks often maintain risk/return profiles that differ considerably from their large cap peers; though impacted by some of the same factors, smaller banks generally depend more heavily on traditional banking functions to drive profits. KBWB’s portfolio is somewhat shallow, consisting of about 25 individual holdings. Investors should note that over one third of the fund’s total assets are dedicated to the top five holdings, potentially increasing the company-specific risk associated with this product; something that should certainly be considered prior to investment. Alternative ETPs covering the same corner of the market include KBE, which is linked to a different benchmark with a considerably different set of top holdings.
IOO|15|This ETF offers exposure to the global equity market through the stocks of 100 of the largest companies in the world. But IOO is not truly global in nature; exposure is limited to developed markets, including the U.S., Japan, and Europe. As such, IOO can be a potentially useful tool for investors seeking one stop exposure to the developed global economy, including U.S. stocks and developed markets outside North America. Those considering this fund should take a close look at the exposure breakdown; many of the holdings are U.S. companies, and close to half the total portfolio is American companies. It should also be noted that IOO is almost exclusively large cap stocks; allocations to smaller firms is minimal in this fund. This fund is relatively balanced from a sector perspective, giving investors a sampling of every corner of the developed market economy. IOO is a fine ETF at an appealing price point, but there are alternatives that offer considerably greater depth of holdings, such as ACWI and VT.
KBE|15|This ETF offers exposure to U.S. banking institutions, delivering access to a narrow slice of the financial sector that has historically exhibited significant volatility but is capable of turning in big performances over a short period of time. Since KBE focuses on a narrow sub-sector of the financial space, it probably doesn’t have much appeal for investors interested in building a long-term, buy-and-hold portfolio. But this fund can be useful for establishing a tactical tilt towards financial stocks, and may be an efficient way to go “bargain hunting” after big sell-offs in financial stocks. It’s worth noting that KBE is a concentrated ETF; it holds only about 25 individual stocks, and makes some hefty allocations to the bigger names in the portfolio. That isn’t necessarily a dealbreaker, but is worth considering when analyzing the options for targeted financial exposure. PJB offers similar exposure (with a higher price) while a slew of ETFs offer a way to play smaller regional and community banks (including KRE, QABA, and IAT).
JETS|15|The U.S. Global Jets ETF (JETS) tracks an index of companies involved in the air travel industry, including airline operators, manufacturers, airports and terminal services. Top holdings include airlines like American, Southwest, United and Delta. The bulk of its holdings are in North American securities, with smaller allocations to companies in Europe, Asia and Latin America. JETS is the only real pure-play air travel ETF on the market, though there are competitors in the broader travel and transportation space, such as the SPDR S&P Transportation ETF (XTN), the iShares Transportation Average ETF (IYT), the ETFMG Travel Tech ETF (AWAY), which launched in early 2020, and the triple-leveraged Direxion Daily Transportation Bull 3X Shares (TPOR). JETS management fee is a bit high for indexed equity ETFs, but comparable to other niche products.
HYD|15|This fund tracks an index of municipal bonds, a slice of the bond market that is highly coveted due to its tax features. These bonds are generally free from federal taxes and in some cases, state and local income taxes as well making these funds crucial components of portfolios for those in high tax brackets. Muni bonds are used by local entities to pay for a variety of services or to make improvements to infrastructure paying for everything from new sewer systems to school renovations and bridge construction as such, they are relatively low risk instruments. With that being said, HYD targets bonds that are rated below investment grade and thus contains issues that have a much higher chance of default. Due to this, HYD pays out a yield that is far superior to any other funds in the category including MLN which targets long-dated issues. The fund also offers solid levels of diversification although not as much as other products in the segment; it holds about 100 securities in total with just 21% of assets going to the top ten holdings. Due to its reasonable level of diversification and its ultra high yield, HYD could be a decent choice for investors seeking additional current income and are willing to add more risk to their portfolios. Just make sure to use HYD sparingly and do not allocate all of your muni bond holdings to this somewhat risky fund.
SPTS|15|The SPDR Portfolio Short Term Treasury ETF (SPTS) tracks an index of short-term U.S. Treasuries. The ETF invests in Treasuries with a remaining maturity of one to three years. The ETF provides minimal credit risk and low interest-rate risk. By investing in shorter-term securities, SPTS reduces duration, a measure of bond price sensitivity to interest rate changes. Typically bond prices fall when rates rise. Like most SPDR “Portfolio” ETFs, SPTS is priced competitively with ultra-low-cost rivals like the Vanguard Short-Term Treasury ETF (VGSH) and the Schwab Short-Term U.S. Treasury ETF (SCHO).
EMLC|15|This ETF offers exposure to debt of emerging markets issuers that is denominated in local currencies, making it a potentially attractive option for investors interested in diversifying fixed income exposure beyond U.S. borders. This asset class can be valuable both as a hedge against the U.S. dollar and as a means for enhancing current returns in low interest rate environments. Unlike EMB and PCY, this ETF focuses on debt denominated in the currency of the issuers. EMLC is one of several nice options available for emerging markets bond exposure, and this ETF is among the most efficient from a cost perspective.
TAN|15|The cleverly-named TAN delivers targeted exposure to the solar power energy, making it potentially useful for both betting on long-term adoption of this energy source or capitalizing on perceived short-term mispricings. Like many granular ETFs focusing on specific sub-sectors, TAN doesn’t offer tremendous diversification; there are only about 35 individual components—including both U.S. and international stocks—with three or four names accounting for a third of assets. Investors seeking broad-based exposure to clean energy may want to take a look at ICLN or GEX, while KWT offers another option for targeted solar power exposure. TAN’s hyper-targeted focus makes it appropriate only for a select few, but for those seeing to overweight the solar power space this ETF can be a nice option.
FALN|15|PendingDownload the FactSet Analyst Insight Reporthere.
ARKF|15|The ARK Fintech Innovation ETF (ARKF) is an actively-managed fund from the team at ARK Invest that tries to pick the companies best positioned to profit from advancements in energy, automation, manufacturing, materials and transportation. The advisory firm, led by Catherine Wood, has an impressive track record doing what most stock pickers fail to do: beating the market. This fund aims to pick the winners in financial technology such as blockchain, transaction innovation, and customer platforms. The fund owns about 40 stocks. Its top holding is mobile payment company Square Inc., real estate listings giant Zillow, and MercadoLibre, an online trading site for Latin American markets. ARKF also owns sizable slugs of tech and social media giants like Apple and Pinterest.
IXJ|15|This ETF offers exposure to the global health care sector, a corner of the world economy that can exhibit low volatility and bring some degree of stability to a portfolio. The underlying portfolio is spread across U.S. stocks and ex-U.S. developed markets; emerging economies are nowhere to be found in this fund. It should be noted that IXJ has a heavy tilt towards domestic securities; those seeking a bigger allocation to international companies may prefer IRY. Given the sector-specific nature of this fund, IXJ probably shouldn’t be included in a long-term, buy-and-hold portfolio; it is more useful for those looking to implement a tactical tilt towards health care or to pursue a sector rotation strategy. Though IXJ includes more than a dozen individual economies and close to 100 individual stocks, a relatively small handful account for a relatively large portion of the total portfolio—leaving something to be desired in terms of diversification.
RPG|15|This ETF is linked to the S&P 500 Pure Growth Index, which offers exposure to large-cap companies within the growth sector of the U.S. equity market. Investors with a longer-term horizon ought to consider the importance of growth stocks and the diversification benefits they can add to any well-balanced portfolio. Companies within the growth segment offer tremendous profit potential since they are still in the early stages of their life cycle, which in turn also raises the risk level associated with this asset class. Growth stocks may also appeal to those seeking capital appreciation versus dividend income, as these companies re-invest earnings. RPG is linked to an index consisting of roughly 130 holdings and exposure is tilted most heavily towards consumer cyclical and technology. Viable alternatives with comparable holdings include IVW and SPYG, while VOOG is the cheapest option.
REET|15|PendingDownload the FactSet Analyst Insight Reporthere.
IXG|15|This ETF is a global play on the financial sector, including U.S. companies, developed market stocks, and banks of emerging economies. This ETF has a heavy tilt towards large cap stocks—a common bias in the financial sector—though it does include some exposure to smaller companies. Given its sector-specific focus, this fund probably doesn’t have much appeal to those constructing a long-term portfolio. But IXG can be a useful tool for establishing a tilt towards the global financial sector, or potentially as part of a global sector rotation strategy. Though the U.S. accounts for a significant chunk, IXG includes a number of different countries and hundreds of individual securities.
EWU|15|EWU offers investors exposure to the European market of the United Kingdom by investing in securities that trade on the national stock exchange of the nation. Since many of the large caps in this fund are likely to be found in other EFA holdings, the fund is not appropriate for investors seeking broad diversification across Europe. For investors looking for high levels of exposure to the British market in particular, EWU is probably the best ‘pure play’ option available.
SPXL|15|This ETF offers 3x daily long leverage to the broad-based S&P 500 Index, making it a powerful tool for investors with a bullish short-term outlook for U.S. large cap stocks. Investors should note that leverage on SPXL resets on a daily basis, which results in compounding of returns when held for multiple periods. BGU can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
SPHQ|15|This ETF represents an alternative to popular funds tracking the S&P 500 Index, a broad-based measure of large cap U.S. equity performance. PIV consists of S&P 500 components that are deemed to reflect long-term growth and stability of earnings and dividends, perhaps making the fund more appealing for investors seeking lower volatility and hesitant to simply embrace cap-weighted indexing strategies. The downside to PIV is the expenses; at 0.50%, management fees are considerably higher than other options out there (VOO, which seeks to replicate the S&P 500, comes in at just six basis points, and SPY charges just 0.09%). PIV might be appealing to investors who believe that the methodology employed by the underlying index is capable of consistently generating excess returns, but the “alpha hurdle” calculated as the expense differential may scare away those looking to simply own the market and minimize fees. PIV has historically been a reliable way to destroy value, as the performance since inception has been less than inspiring.
UPRO|15|This ETF offers 3x daily long leverage to the S&P 500 Index, making it a powerful tool for investors with a bullish short-term outlook for large cap equities. Investors should note that UPRO’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. UPRO can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
IGF|15|This product dedicates its assets to an index which tracks the performance of the global infrastructure sector. Infrastructure makes for a unique but often risky investment, as any kind of economic downturn will see new project put on halt until the economy begins to prosper. With roads, bridges, and other transportation means constantly need updating or built, an investment in infrastructure essentially means the investor is making a play on a particular government’s willingness to spend on infrastructure updates and developments. In particular, IGF gives investors a global exposure to infrastructure companies all across the world. Investors should note that this fund offers little emerging market exposure, meaning that it will be more stable, but may off less growth opportunity than a fund that allocates more of its funds to emerging market securities.
DLN|15|This ETF is one of many options available to investors seeking exposure to large cap U.S. equities, an asset class that is a core component of most long-term portfolios. DLN is unique thanks to the methodology employed by the underlying index, a fundamentally-weighted benchmark that uses cash dividends to determine components and individual security allocations. As such, DLN may be appealing to those looking to maximize current returns from the equity portion of their portfolios, or simply to those looking to avoid the potential pitfalls of market capitalization weighting. The underlying portfolio is balanced across hundreds of large cap stocks, with the dividend-related methodology resulting in a bias towards certain sectors that have historically made significant distributions (though DLN does a nice job of including all corners of the U.S. economy). On an individual security level, a few stocks make up meaningful chunks of the portfolio, though concentrate is not too extreme. DLN is more expensive than some of the cheapest large cap equity ETFs, though still very efficient from a cost perspective. Those who believe the dividend-weighted methodology is a preferred means of establishing and maintaining stock exposure likely won’t hesitate to pay a few extra basis points in fees.
SPIP|15|The SPDR Portfolio TIPS ETF (SPIP) tracks an index of treasury inflation-protected securities, or TIPS: bonds that feature a principal that adjusts based on certain measures of inflation. SPIP can be useful as a tool for investors who are particularly concerned about inflationary pressures. It is important to note that TIPS are not perfect hedges against inflation; there are some potential drawbacks to using products such as SPIP to hedge against a climb in CPI. But for those looking to use inflation-protected bonds in that capacity, SPIP offers broad TIPS exposure at a reasonable price. Like most SPDR “Portfolio” ETFs, SPIP is priced competitively, somewhere between ultra-low-cost rivals like the Schwab U.S. TIPS ETF (SCHP) — the cheapest as of June 2020 — and higher-priced funds like the iShares TIPS Bond ETF (TIP) or the PIMCO Broad U.S. TIPS Index ETF (TIPZ).
HEFA|15|PendingDownload the FactSet Analyst Insight Reporthere.
GSIE|15|The Goldman Sachs ActiveBeta International Equity ETF (GSIE) offers broad exposure to developed market stocks outside the U.S. with Goldman’s multi-factor twist. GSIE tracks a proprietary index that takes a multi-factor approach, looking for stocks that exhibit good value, strong momentum, high quality, and low volatility. Top holdings include Nestle, Roche and Novartis.
COMT|15|PendingDownload the FactSet Analyst Insight Reporthere.
DON|15|This ETF offers exposure to mid cap stocks that pay dividends on a regular basis, making DON a potentially useful tool for investors looking to fine tune their domestic equity exposure or implement a tilt towards a specific investment style. Investors constructing a long-term portfolio would be better off with a fund such as MDY or IJH that includes greater depth of holdings and a mix of various styles. Dividend-focused strategies often come with biases towards specific sectors such as real estate and away from technology, and may outperform more broadly-based indexes in certain economic environments such as recessions. Nevertheless, DON has a wide diversity of holdings, containing more than 340 securities in total. Furthermore, the fund does a great job of spreading out assets among the holdings; the top ten make up just 10.5% of the fund’s total assets and no one firm makes up more than 1.5% of assets. However, the fund does charge a little more than most in the category, suggesting that cost conscious investors may be better served by a product such as VOT which charges roughly half of the expenses as this WisdomTree fund. DON is a fine ETF, but there are a number of alternatives out there that offer more compelling methodologies, or potentially better execution at a cheaper price. However, if investors are dead set on looking at dividend paying equities in this space, this is a quality fund that will likely satisfy the dual objectives of yield and capital appreciation.
OIH|15|This ETF is designed to track the largest 25 U.S.-listed oil service companies. As such, investors should not expect a deep portfolio, but it is important to note that the fund heavily favors its top ten holdings. It is also important to mention that about one quarter of the fund is invested in foreign equities, as several firms on the list are cross listed on foreign exchanges, or hold their headquarters beyond our borders.
TOTL|15|The SPDR DoubleLine Total Return Tactical ETF (TOTL) is an actively managed bond fund managed by veteran bond investor Jeffrey Gundlach’s of DoubleLine Group. TOTL seeks to outperform the Bloomberg Barclays US Aggregate Bond Index by investing in different kinds of debt from developed and emerging markets around the world. As of June 2020, the fund owned mortgage-backed securities, Treasury bonds, emerging market debt, bank loans, asset-backed securities, and investment-grade and high-yield corporate debt. There are some constraints: the fund will not invest more than 25% of its assets in junk-rated corporate debt and aims to keep all other sub-investment-grade debt to less than 40% of the portfolio. Bonds have been one of the bright spots for active managers, and many bond ETFs manage to outperform their benchmarks — something stock pickers often fail to achieve. An investment in TOTL is ultimately a bet on the manager’s ability to outperform the market. TOTL is priced competitively with rivals like the JPMorgan Global Bond Opportunities ETF (JPGB) and the PIMCO Active Bond ETF (BOND).
SPTI|15|The SPDR Portfolio Intermediate Term Treasury ETF (SPTI) tracks an index that gives investors access to intermediate-term ultra-safe U.S. Treasuries maturing in three to 10 years. By positioning itself in the middle of the Treasury curve, SPTI delivers a moderate amount of interest-rate risk. SPTI might be useful for investors who are hesitant to take on longer duration, a measure of bond price sensitivity to interest rate changes. Typically bond prices fall when rates rise. Like all of State Street’s SPDR “Portfolio” funds, SPTI is priced to compete with ultra-low-cost rivals like the Schwab Intermediate-Term U.S. Treasury ETF (SCHR) and the Vanguard Intermediate-Term Treasury Index ETF (VGIT).
VYMI|15|The Vanguard International High Dividend Yield ETF tracks an index of non-U.S. companies that have a high dividend yield, meaning the dividend payout relative to their stock price. The underlying index focuses on developed- and emerging-market equities that are forecasted to have above-average dividend yields. Rather than investing in the entire index, VYMI uses sampling to piece together a portfolio that represents, in the aggregate, comparable characteristics to the full index, such as industry weighting, price to earnings, and company size. The portfolio includes hundreds of companies, and the bulk of the assets are in large cap firms. Vanguard’s fees are competitive for the category. As with any fund in this category, investors should note that dividend yield fluctuates with stock price. And while a high dividend yield may indicate a company is undervalued, it may also indicate that the company is struggling and the dividend may be in jeopardy.
SPHD|15|As the name implies, the Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) tracks an index that tries to pick those S&P 500 stocks that deliver the highest dividends with the least turbulence.
VWOB|15|The Vanguard Emerging Markets Government Bond ETF (VWOB) tracks an index of U.S.-dollar denominated debt issued by emerging market governments. This ETF delivers exposure to an asset class that can enhance current returns and deliver geographic diversification, without subjecting investors to currency fluctuations. VWOB is one of the least expensive options available in the category and has significant assets and daily liquidity. Investors can compare VWOB to the iShares JPMorgan USD Emerging Markets Bond ETF (EMB), the JPMorgan USD Emerging Markets Sovereign Bond ETF (JPMB), or the Invesco Emerging Markets Sovereign Debt ETF (PCY).
TECL|15|This ETF offers 3x daily long leverage to the Technology Select Sector Index, making it a powerful tool for investors with a bullish short-term outlook for technology equities. Investors should note that TECL’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. TECL can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
GSY|15|This active ETF looks to achieve maximum current income while preserving capital and maintaining daily liquidity. As a result, the fund should be considered an ultra-safe place to park assets in times of great turmoil. Just don’t expect the fund to pay out a very high yield as the product only seeks to beat the 1-3 month Treasury Bill Index and maintains securities that have a duration of less than one year. The fund invests in both U.S. treasuries, corporate debt and even up to ten percent in high yield bonds. This added bond holding could help the fund boost yield and since it is such short term the product could see very little in terms of defaults. GSY is a quality product for parking cash but probably shouldn’t make up very high portions of a portfolio.
IYH|15|This ETF is one of several funds that offers exposure to the U.S. health care sector, a corner of the domestic stock market that has historically exhibited relatively low volatility and can occasionally offer attractive dividend yields. As a sector-specific fund, IYH probably doesn’t have much use for those constructing a long-term, buy-and-hold portfolio; this ETF is a more useful tool for those looking to establish a tactical tilt towards health care or for use in a sector rotation strategy. Beware the significant concentration in this fund; though IYH has more than 100 stocks in the underlying portfolio, a relatively small handful account for a big portion of total assets. Another potential drawback of IYH is the fees; both XLV and FHC offer generally similar exposure with considerably lower expense ratios. For a similar price, the equal-weighted RYH offers a way to steer clear of the significant concentration. There are better ETF options out there for health care exposure; it’s probably best to choose one of the other funds mentioned above.
DBC|15|This ETF is one of the largest and most popular options for investors looking to achieve broad-based commodity exposure. DBC has the potential to add valuable return enhancement and diversification benefits to traditional stock-and-bond portfolios, but investors should be aware that this ETF invests in futures contracts. That exposes DBC to the nuances of contango, and may complicate the tax picture somewhat. DBC is a fine option for broad commodity exposure, but investors might also want to take a look at “later generation” products such as USCI.
FHLC|15|The Fidelity MSCI Health Care Index ETF (FHLC) tracks an index of U.S. companies involved in the healthcare market. FHLC owns close to 400 stocks, including small cap companies, which makes it broadly similar to the Vanguard Healthcare ETF (VHT). Both offer a more diversified portfolio than rivals like the Health Care Select Sector SPDR ETF (XLV) and the iShares U.S. Healthcare ETF (IYH), which lean more heavily on large cap stocks. FHLC is competitively priced, though short-term tactical traders will likely prefer the size and liquidity of XLV.
USO|15|This fund offers exposure to one of the the world’s most important commodities, oil, and potentially has appeal as an inflation hedge. While oil may be appealing, USO often suffers from severe contango making the product more appropriate for short-term traders.
FV|15|PendingDownload the FactSet Analyst Insight Reporthere.
RYT|15|This ETF offers exposure to equities included in the S&P 500 Information Technology Index, which covers the following industries: internet equipment, computers and peripherals, electronic equipment, office electronics and instruments, semiconductor equipment and products, diversified telecommunication services, and wireless telecommunication services. RYT is different from other ETF tracking the same index because it employs a unique equal-weighted strategy, meaning that component companies receive approximately equal allocations. That results in exposure that is considerably more balanced than other alternatives such as XLK, and a methodology that some investors believe will add value over the long haul. In return for this unique exposure you can expect higher fees; this ETF is considerably more expensive than both XLK and IYW, though it is still extremely cost efficient compared to most mutual funds.
FXL|15|This ETF offers exposure to the U.S. tech sector, making it one of many options available to investors seeking to access an industry that is capable of remarkable rallies and steep declines over short periods of time. Given the sector-specific focus, FXL is probably too granular for those building a long-term, buy-and-hold portfolio, but can be useful for investors putting on a tactical tilt or looking to beef up tech sector exposure. FXL’s primary appeal is the use of the ‘AlphaDex’ methodology which seeks to select the best tech companies from the Russell 1000 Index universe. This is done by ranking the firms on a variety of growth and value factors including momentum, ROE, and CF/P just to name a few. Thanks to this method, the fund casts a much smaller net than others in the sector, holdings  just 85 securities compared to several hundred for many of the other products in the Category. For those looking for a more qualitative approach to the tech sector FXL could make for a solid choice although VGT and XLK offer generally similar exposure, while the equal-weighted RYT gives investors an option that will be more balanced in nature and avoid concentrations in a small handful of tech giants.
VSGX|15|PendingDownload the FactSet Analyst Insight Reporthere.
EWG|15|EWG offers investors exposure to the European market of Germany by investing in securities that trade on the national stock exchange of the nation. Since many of the large caps in this fund are likely to be found in other EFA holdings, the fund is not appropriate for investors seeking broad diversification across Europe. For investors looking for high levels of exposure to the German market in particular, EWG is probably the best ‘pure play’ option available.
FTSL|15|PendingDownload the FactSet Analyst Insight Reporthere.
RPV|15|This ETF offers a way for investors to access large cap U.S. equities that are classified as value stocks, generally maintaining low pricing multiples and higher dividend yields. RPV may seem similar to the more popular and liquid S&P 500 Value Index Fund (IVE), but the methodologies used are actually quite different. RPV maintains a “pure value” focus, holding a relatively small number of firms that demonstrate the most significant value characteristics, while IVE uses a more liberal definition of value stocks and includes several securities that are also found in the growth counterpart. RPV is slightly more expensive, but is a more targeted choice for those investors who are seeking to focus explicitly on value companies. Not surprisingly, RPV exhibits a bias towards certain sector of the U.S. economy, generally tilting exposure towards financial companies and energy firms.
VNLA|15|PendingDownload the FactSet Analyst Insight Reporthere.
FNDC|15|PendingDownload the FactSet Analyst Insight Reporthere.
BOTZ|15|The Global X Robotics & Artificial Intelligence ETF invests in an index of companies that stand to benefit from the increased adoption of automation, robotics and artificial intelligence.
VONE|15|This ETF tracks the Russell 1000 Index, a benchmark consisting of some of America’s largest companies. As a result, investors should think of this as a play on mega and large cap stocks in the American market. These securities are usually known as ‘Blue Chips’ and are some of the most famous and profitable companies in the country, including well known names such as ExxonMobil, Apple, IBM, and GE. The fund is probably one of the safest in the equity world as the companies on this list are very unlikely to go under unless there is an apocalyptic event in the economy. However, these securities are unlikely to grow very much either as they are already pretty large and have probably seen their quickest growing days in years past, but most do pay out solid dividends which should help to ease the pain of this realization. Overall, VONE is a quality choice for investors seeking broad mega and large cap exposure and it is more diversified than most, containing just under 1,000 securities in total. As a result, this fund could serve as a building block for many portfolios making it an excellent choice for many buy and holders, especially for those seeking to keep costs to an absolute minimum.
QCLN|15|QCLN is a unique member of the Alternative Energy Category, as this ETF invests in companies that are engaged in a variety of different activities related to several green energy sub-sectors. By including companies focused on biofuels, solar energy, and advanced batteries (among others), QCLN casts a wide net of exposure. That, along with a relatively deep basket of individual companies, may make it appealing for those seeking broad-based exposure to alternative energy sources. There are cheaper options for exposure to alternative energy, but few that offer the depth and breadth of holdings QCLN can boast.
IYG|15|This fund offers exposure to the U.S. financial services industry, a sub-sector of the general financial sector that includes many of the country’s largest banks, as well as real estate and general finance firms. Given this narrow focus, IYG likely doesn’t have much appeal to those building a long-term portfolio; it is more appropriate for those looking to tilt exposure towards the financial sector or even pull off a short-term trade designed to capitalize on short-term mispricings. IYG is dominated by large caps, and subject to significant concentration issues. Though there are well more than 100 individual components, a small handful of banks account for the bulk of the underlying portfolio. Those seeking to fine tune exposure may have use for IYG, but most will prefer broader financial ETFs such as XLF or FFL, both of which are considerably cheaper than this fund.
ITA|15|This fund provides exposure to an interesting segment of the industrials industry, the aerospace and defense sector. Companies in this sector tend to be rather large, slow growing, but remarkably stable due to the widespread use of long-term government contracts for most of their services. However, this focus on the government could also present a downside especially if defense spending declines sharply in the years ahead or if budget concerns force drastic cuts to more ‘discretionary’ defense programs. For those willing to take the risks of the industry, ITA remains a viable choice as it is significantly less expensive than its counterpart, PPA. However, the fund is less liquid and more heavily concentrated in top names, suggesting that those seeking broad exposure might be better served with PPA. Yet on the other hand, for investors seeking exposure to just the top names in the industry and those that are most impacted by the trends of the sector, ITA is a solid choice despite its relatively undiversified portfolio.
ITB|15|This ETF offers exposure to the U.S. homebuilding industry, and as such offers exposure to a corner of the domestic economy that tends to be cyclical in nature. In addition to pure play homebuilders, this fund includes companies related generally to the homebuilding industry, such as Home Depot. For homebuilder exposure, ITB is competitive in terms of expense ratio, but may be significantly more concentrated than other options such as PKB or XHB.
NFRA|15|The FlexShares STOXX Global Broad Infrastructure Index Fund (NFRA) is one of a handful of ETFs on the market that target a loosely-defined infrastructure segment. The idea is that infrastructure investments can hedge inflation while boosting returns and income. NFRA follows a market-cap-weighted index that invests in companies that derive at least 50% of their revenue from segments including energy, communications, utilities, transportation and — an unusual twist — government outsourcing, like hospitals, prisons and postal services. To maintain diversification, the index imposes certain constraints, such as limits on the overall weighting of each segment. The portfolio is dominated by North American equities, followed by Japan, Australia and the U.K. Top holdings include Canadian National Railway, Verizon, and the pipeline company Enbridge.
ICF|15|This ETF offers exposure to the REITs sector of the U.S. equity market, an asset class that has been recently overlooked by many investors following the unprecedented housing crisis. ICF follows the Cohen & Steers Realty Majors Index, which has just over 30 holdings diversified primarily across mid and large-cap equities. Real estate has historically been embraced because of its ability to deliver excess returns during bull markets and low correlation with traditional stock and bond investments. REITs might appeal to investors seeking current income, as these trusts must distribute at least 90% of their income to investors, and offer an efficient way for investors to gain indirect exposure to real estate prices (as opposed to direct exposure gained through ownership of a residential property). IYR is a viable alternative with more broad-based exposure that comes at a steeper price, while FRL boasts the lowest expense fee in this category.
PCY|15|This ETF offers exposure to debt of emerging markets issuers that is denominated in U.S. dollars, delivering exposure to an asset class that can enhance current returns and deliver geographic diversification without bringing exchange rate fluctuations into the equation. For investors seeking to diversify exposure to the U.S. dollar, funds like ELD or EMLC might make more sense. But for those seeking exposure to emerging market debt denominated in the greenback, PCY offers a low cost option that is well diversified and extremely liquid.
FEZ|15|This ETF is one option available for investors seeking to establish exposure to the economies of the euro zone, a sub-set of general European equity exposure. As such, FEZ is more than likely too targeted for long-term portfolios; broad EAFE funds such as VEA or even all-inclusive European ETFs such as VGK are probably better building blocks for buy-and-holders. But this fund can potentially be useful for implementing short-term tactical tilts, and has the potential to be a component of long/short trades as well. FEZ maintains a few biases; it is almost exclusively comprised of large cap stocks, and financials receive a hefty allocation. This product is also not the greatest in terms of diversification; with just 50 holdings, FEZ includes only a small fraction of Euro zone stocks. EZU offers similar Euro zone exposure with greater depth, as that fund holds more than 200 individual names and exhibits a more balanced sector and market cap breakdown.
ARKQ|15|The ARK Autonomous Technology & Robotics ETF (ARKQ) is an actively-managed fund from the team at ARK Invest that tries to pick the companies best positioned to profit from advancements in energy, automation, manufacturing, materials and transportation.
IGLB|15|PendingDownload the FactSet Analyst Insight Reporthere.
IYE|15|This ETF offers exposure to the domestic energy market, including many of the Big Oil companies that are responsible for significant portions of global energy supply. IYE is likely too targeted for those with a long time horizon, but this fund can potentially be useful for those implementing a sector rotation strategy or looking to overweight this corner of the market. Like many domestic energy ETFs, IYE has significant concentration in a small handful of names that account for big chunks of the overall portfolio; the equal-weighted RYE may be an appealing option for those looking to avoid this issue (same goes for the alpha-seeking FXN). Another drawback of IYE is the cost; the expense ratio is considerably higher than both XLE and FEG, limiting the usefulness of this fund. Cost conscious investors have better choices available, as do those concerned about excessive concentration.
SLQD|15|PendingDownload the FactSet Analyst Insight Reporthere.
AIA|15|This fund offers broad exposure to the ‘Asian Tiger’ countries of Hong Kong, South Korea, Singapore, and Taiwan investing in large caps in these four nations. For investors seeking to load up on exposure to these four nations AIA could be an interesting pick but most investors would be better served with a broad Asia fund such as EPP or AAXJ.
USRT|15|PendingDownload the FactSet Analyst Insight Reporthere.
JHMM|15|PendingDownload the FactSet Analyst Insight Reporthere.
PZA|15|This fund tracks an index of municipal bonds, a slice of the bond market that is highly coveted due to its tax features. These bonds are generally free from federal taxes and in some cases, state and local income taxes as well making these funds crucial components of portfolios for those in high tax brackets. Muni bonds are used by local entities to pay for a variety of services or to make improvements to infrastructure paying for everything from new sewer systems to school renovations and bridge construction as such, they are relatively low risk instruments. This is especially true in the case of PZA since the fund only targets munis that are insured or in other words, have bought insurance from a private company that will pay out if the underlying bond defaults. As a result PZA is a solid choice for investors seeking broad exposure to the muni market but with much lower levels of risk; allowing investors the safety of an insured product but with the tax advantages of the muni sector. However, the fund does have a much lower rate of interest than others in the category and its level of diversification is a little lacking compared to other muni funds; the product holds just under 160 securities in total but puts close to 30% in the fund’s top ten holdings. Still, for risk adverse investors in high tax brackets this could make for a solid fund, however, other investors should probably look to other corners of the muni market in order to capture higher levels of current income.
HACK|15|The ETFMG Prime Cyber Security ETF was the first ETF to focus on the cyber security industry. It tracks an index of companies involved in hardware, software and services, classifying the underlying stocks as either infrastructure or service providers. Top holdings include Cisco Systems, Akamai and Qualys,
EPP|15|This ETF offers a way to tap into the Asia Pacific region while avoiding potential return drag Japan. This strategy might have appeal to investors concerned that the Japanese economy will continue to struggle thanks to intensifying competition from emerging markets and staggering public debt burdens. Investors looking to fine tune their international equity exposure may find EPP to be a useful tool in building a long-term portfolio, though those looking to cast a wider net and include all major Asian economies might want to consider VPL instead. This ETF can also have appeal over a much shorter-time horizon; EPP can be a useful tactical tool that gives investors a way to bet on short-term strength from Asian economies.
GVI|15|This ETF offers broad-based exposure to investment grade U.S. bonds, making GVI a building block for any investor constructing a balanced long-term portfolio as well as a potentially attractive safe haven for investors pulling money out of equity markets. While GVI can potentially be a one stop shop for fixed income exposure, a close look at the composition of this fund is advised. Many may find the significant allocations to MBS and Treasuries somewhat insufficient for their return objectives; increased corporate bond exposure through LQD may result in a better balance and more attractive return. Furthermore, the fund only has securities that are maturing in less than ten years, foregoing the rest of the spectrum. While this will help to decrease credit risk and interest rate risk, the overall yield will suffer as well. While GVI includes hundreds of individual securities, this ETF actually only holds a fraction of the bonds that make up the underlying benchmark; the sampling strategy employed avoids illiquid issues, but may lead to tracking error. GVI has reasonable levels of liquidity— there are more liquid options out there— but the expense ratio for this fund is pretty low and is among the lowest in the Category. However, for investors looking to avoid compounding costs and tracking error, the broad-based BND may be a better option for U.S. fixed income exposure, although GVI is certainly a viable option for those seeking short-dated securities in their portfolio.
PFFD|15|PendingDownload the FactSet Analyst Insight Reporthere.
FLRN|15|This ETF offers cheap, liquid exposure to high quality floating rate bonds, an asset class that can be useful for capturing a bit of return in certain environments. Floating rate debt has very low sensitivity to interest rates, since the payouts to investors adjust with movements in a reference benchmark rate. So for those concerned about increases in interest rates, FLRN can be a useful tool for minimizing interest rate risk while still deriving some yield.
IYF|15|The iShares U.S. Financials ETF (IYF) delivers targeted exposure to the U.S. financial sector, making it one option for investors seeking to tilt their portfolios towards U.S. banks. As a sector-specific ETF, IYF is most appropriate for those looking to implement a tactical tilt or carry out a sector rotation strategy and probably has little use for those building a long-term buy-and-hold portfolio. This fund is heavily skewed towards large caps, but does include some mid- and small-cap exposure. As of June 2020, IYF has more than 200 stocks in its portfolio, giving it broader exposure than the ultra-popular Financial Select Sector SPDR Fund (XLF). For investors looking to dig deep into financial stocks, another good option is the Vanguard Financials ETF (VFH). As of June 2020, VFH was significantly cheaper than IYF, which has one of the higher management fees in the segment. (We wouldn’t be surprised if iShares cuts its sector ETF fees in the future to better compete with rivals, so cost-conscious investors would do well to comparison shop.) Short-term traders will likely prefer the size and liquidity of XLF.
ASHR|15|The Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) was the first U.S.-listed ETF to offer direct exposure stocks listed in mainland Chinese markets in Shenzhen and Shanghai.
GNR|15|This ETF gives investors broad-based exposure to commodities through a global portfolio of large-cap companies that meet certain investibility requirements. Sector exposure includes livestock, precious metals; grains, energy, industrial metals, timber; water, and coal. GNR is appealing since it gives investors commodity exposure and serves as an inflation-hedge, while also providing terrific diversification benefits at an attractively low expense ratio.
VOOV|15|This ETF is linked to the S&P 500/Citigroup Value Index, which offers exposure to large-cap companies that exhibit value characteristics within the U.S. equity market. Investors with a longer-term horizon should consider the importance of large cap value stocks and the benefits they can add to any well-balanced portfolio including dividends and rock solid stability. Companies within this segment are often considered some of the safest firms in the world and tend to be in more stable industries as well, potentially skewing some portfolios that are heavy in value securities. VOOV is linked to an index consisting of roughly 340 holdings and exposure is tilted most heavily towards financials, energy, and industrials. Thanks to this fund’s solid level of diversification and cheap price, investors could definitely make VOOV a significant portion of their portfolios.
AMJ|15|This ETF will invest its assets in a market-cap weighted, float-adjusted index created to provide a comprehensive benchmark for investors to track the performance of the energy MLP sector. MLPs have attracted significant interest for two primary reasons: (1) required quarterly distributions provide a steady stream of current income, and (2) because they are partnerships, MLPs avoid corporate income taxes at both the federal and state level; the tax liability is passed through to the individual partners. By generating at least 90% of income from natural resource-based activities such as transportation and storage, an entity can qualify as an MLP and not be taxed as a corporation. So the IRS treats shareholders of an MLP as partners, making the MLP itself a pass-through entity. That means that taxes are avoided at the corporate level, and investors avoid the double taxation of income. AMJ will be a great addition to a yield-starved portfolio seeking the steady income offered by these robust products.
BSCM|15|The Invesco BulletShares 2022 Corporate Bond ETF invests an index of U.S. investment-grade corporate bonds that mature in the indicated year. BulletShares are different than traditional bond ETFs because, once the scheduled maturity date is reached, the funds distribute the principal back to investors. Traditional bond ETFs continuously buy and sell their underlying bonds to maintain their target maturity. For this reason, BulletShares behave more like a traditional bond than like a bond fund. This appeals to investors who want to lock in a fixed coupon while still gaining the diversification that an ETF portfolio provides. As the maturity date nears, BulletShares ETFs roll the proceeds of their maturing bonds into shorter-term corporate debt or Treasurys. Once the target date is reached, the fund distributes the capital back to investors and shuts down. Investors can, at any time, sell their BulletShares ETF on the stock market and reinvest elsewhere, including rolling over into another BulletShares ETF. Investors and advisers can “ladder” their BulletShares holdings across a range of maturity dates, which locks in fixed coupon payments and plans ahead for cash distributions at maturity. This makes them especially appealing for those who want the guaranteed income, combined with the ease and diversification benefits an ETF can provide. For most investors, it’s far easier and cheaper to buy a BulletShares ETF than it is for them to source one or two underlying bonds. BulletShares ETFs debuted in 2010 under the Claymore brand and eventually moved to Invesco when the company acquired Guggenheim’s ETF business in 2018. BulletShares provide income, diversification and liquidity, and all for an extremely competitive fee.
FMB|15|PendingDownload the FactSet Analyst Insight Reporthere.
SLYG|15|SLYG seeks to replicate a benchmark which offers exposure small cap firms that exhibit growth characteristics in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on growth securities, has certain biases in its portfolio holdings and may not offer as much of a cross section as funds such as IWM and be more volatile as well. However, SLYG does a solid job of dividing up assets as the fund holds close to 360 securities in total and doesn’t give any one security more than 1.8% of the total assets. Thanks to this high level of diversification and SLYG’s low expense ratio, the fund could make for a quality addition to portfolios of investors who are looking for small caps but are seeking a higher risk/reward profile in the space. However, it should be noted that there are several other products in the category, namely IWO, PWT, and VBK, that offer slightly more diversification at a similar price point, potentially making them better choices for long-term investors.
VGLT|15|This ETF offers exposure to long term government bonds, focusing on Treasuries that mature in ten years or more. As such, interest rate exposure for this product will be towards the high end, potentially creating an attractive yield profile; VGIT offers exposure to mid-dated Treasuries while VGSH is an option for those looking to focus on the short end of the maturity curve. VGLT probably doesn’t have much appeal as a core holding, since the overlap with broad-based funds such as BND will be significant. But this ETF can be a useful tool for tilting exposure towards Treasuries with a bias towards the longer end of the maturity spectrum, lengthening the effective duration of a portfolio and potentially boosting the yield without taking on much in the way of credit risk. Like most Vanguard ETFs, VGLT is among the cheapest options available; commission free trading in Vanguard accounts may increase the cost appeal to those keeping an eye on fees. Other options offering similar exposure include TLT and TLO; the effective durations and yields on these products may vary slightly.
QQQM|15|The Invesco NASDAQ 100 ETF (QQQM) tracks the top 100 largest non-financial companies listed on the Nasdaq. If that sounds familiar, it should: QQQM is virtually identical to Invesco’s QQQ Trust (QQQ), one of the oldest, largest and most-tradedETFs on the market. So why would Invesco launch a twibling? The short answer: Invesco designed the new QQQM to appeal to buy-and-hold investors, while traders and institutional buyers may prefer to stick with the original QQQ. Let’s explain. For starters, the new fund is cheaper. QQQM (affectionately known as the Q mini) has a lower management fee. Shares of the Q mini are also a fraction of the value of QQQ, putting the mini within reach of small savers who might balk at QQQ’s price tag. So why didn’t Invesco just cut the price of QQQ? There are several reasons. Many older funds like QQQ, which launched in 1999, were structured as trusts. Trusts, unlike many other equity ETFs, can’t lend out the stocks in their portfolio, and use the revenue to help offset fees. They also can’t reinvest dividends, which many buy-and-hold savers prefer. The Q mini can do both. Invesco is not the only ETF firm to introduce newbie versions of older, pricier funds. State Street did the same thing with SPLG, a buy-and-hold version of SPY, the oldest and largest ETF in the world. And BlackRock’s iShares successfully pioneered the concept with its Core series, which offered cheaper versions of legacy iShares ETFs. This way, ETF issuers can appeal to all comers — better to cannibalize your own funds with in-house rivals than watch a competitor eat your market share. Does that mean QQQM is meant to replace QQQ? That depends on the investor. For the buy-and-hold saver, the mini-Q is likely the more appealing option: lower fees, smaller share price, reinvested dividends. But big institutional investors and high-speedfirms will likely stick with QQQ, at least for now; the larger size makes QQQ cheaper to trade, and the QQQ has a sizable lead when it comes to liquidity.
SGOL|15|This fund offers exposure to one of the world’s most famous metals, gold. SGOL is designed to track the spot price of gold bullion by holding gold bars in a secure vault in Switzerland that is audited twice a year. The company also posts the serial numbers of the bars, giving investors further security over the status of their investment. While SGOL isn’t the most liquid way to gain exposure to gold, it could be a solid choice for investors seeking greater peace of mind regarding their precious metals investment.
HYLS|15|PendingDownload the FactSet Analyst Insight Reporthere.
BAB|15|BAB will offer exposure to an index which is designed to track the performance of U.S. dollar-denominated Build America Bonds publicly issued by U.S. states and territories, and their political subdivisions, in the U.S. market. Unlike most municipal bonds, Build America Bonds are taxable securities, eliminating one of the advantages that has traditionally allowed municipalities to issue debt at lower rates than otherwise comparable corporate debt. Here’s the unique element of Build America Bonds: the U.S. Treasury makes a payment to the issuers of direct-payment Build America Bonds equal to 35% of the total interest payable to investors. So if a municipality issues a $100 million Build America Bond with a taxable coupon of 10%, the issuer would make an annual interest payment to investors of $10 million and would receive a $3.5 million payment from the Treasury, resulting in an effective interest rate of 6.5%. BAB invests primarily in investment grade debts, giving investors safety during unstable markets, and with an average coupon rate above 5%, the ETF will also offer and attractive yield.
DGS|15|This ETF offers an opportunity to access small cap emerging markets equities, making it a nice complement to funds such as EEM or VWO that are heavy on large cap stocks. Because mega caps are often multi-national companies that generate revenues in multiple regions, small caps can be better “pure plays” on the local economy and may be more reflective of domestic consumption patterns. DGS is a nice option for small cap emerging market exposure, an asset class that is often overlooked but that can be a valuable addition to most portfolios.
JMST|15|PendingDownload the FactSet Analyst Insight Reporthere.
XLG|15|This ETF tracks the 50 largest securities, by market capitalization, in the Russell 3000 universe of U.S.-based equities. As a result, investors should think of this as a concentrated play on mega cap stocks in the American market. These securities are usually known as ‘Blue Chips’ and are some of the most famous and profitable companies in the country, including well known names such as ExxonMobil, Apple, IBM, and GE. The fund is probably one of the safest in the equity world as the companies on this list are very unlikely to go under unless there is an apocalyptic event in the economy. However, these securities are unlikely to grow very much either as they are already pretty large and have probably seen their quickest growing days in years past, but most do pay out solid dividends which should help to ease the pain of this realization. Overall, XLG is a decent choice for investors seeking broad mega cap exposure but most investors would probably be better served by investing in a broader fund that is a little more diversified.
PBUS|15|The Invesco PureBeta MSCI USA ETF tracks an index of large- and mid-cap companies in the U.S. By excluding small-caps, the fund looks more like an S&P 500 ETF than a total U.S. market fund, and could be suitable for investors who prefer to manage their small-cap holdings separately. The fund is part of Invesco’s low-cost PureBeta ETF roster, which is designed to compete with ultra-low cost rivals like Vanguard, iShares Core and State Street’s Portfolio lineups. Fund fees are competitive. PBUS has attracted significant assets, but lacks the daily trading liquidity of some of the giants in the large-cap U.S. equity landscape, including behemoths like the SPDR S&P 500 ETF Trust and the iShares Core S&P 500 ETF.
ILCG|15|PendingDownload the FactSet Analyst Insight Reporthere.
SCHK|15|PendingDownload the FactSet Analyst Insight Reporthere.
BSCN|15|The Invesco BulletShares 2023 Corporate Bond ETF tracks an index of U.S. investment-grade corporate bonds that mature in the indicated year. BulletShares are different than traditional bond ETFs because, once the scheduled maturity date is reached, the funds distribute the principal back to investors. Traditional bond ETFs continuously buy and sell their underlying bonds to maintain their target maturity. For this reason, BulletShares behave more like a traditional bond than like a bond fund. This appeals to investors who want to lock in a fixed coupon while still gaining the diversification that an ETF portfolio provides. As the maturity date nears, BulletShares ETFs roll the proceeds of their maturing bonds into shorter-term corporate debt or Treasurys. Once the target date is reached, the fund distributes the capital back to investors and shuts down. Investors can, at any time, sell their BulletShares ETF on the stock market and reinvest elsewhere, including rolling over into another BulletShares ETF. Investors and advisers can “ladder” their BulletShares holdings across a range of maturity dates, which locks in fixed coupon payments and plans ahead for cash distributions at maturity. This makes them especially appealing for those who want the guaranteed income, combined with the ease and diversification benefits an ETF can provide. For most investors, it’s far easier and cheaper to buy a BulletShares ETF than it is for them to source one or two underlying bonds. BulletShares ETFs debuted in 2010 under the Claymore brand and eventually moved to Invesco when the company acquired Guggenheim’s ETF business in 2018. BulletShares provide income, diversification and liquidity, and all for an extremely competitive fee.
FNGU|15|The MicroSectors FANG+ Index 3X Leveraged exchange-traded note aims to triple the daily return of an index of so-called FANG stocks, meaning Facebook, Amazon, Apple, Netflix, and Google-parent Alphabet Inc. The fund offers highly concentrated exposure those five “core” companies, plus another five technology growth stocks, including Alibaba, Baidu, NVIDIA, Tesla and Twitter.
EMLP|15|EMLP is an actively-managed ETF which invest in MLPs, Canadian income trusts, pipeline companies, and utilities that generate at least half of their revenues from the operation of energy infrastructure assets including pipelines, storage tanks, and power transmission. MLPs have attracted significant interest for two primary reasons: (1) required quarterly distributions provide a steady stream of current income, and (2) because they are partnerships, MLPs avoid corporate income taxes at both the federal and state level; the tax liability is passed through to the individual partners. By generating at least 90% of income from natural resource-based activities such as transportation and storage, an entity can qualify as an MLP and not be taxed as a corporation. So the IRS treats shareholders of an MLP as partners, making the MLP itself a pass-through entity. That means that taxes are avoided at the corporate level, and investors avoid the double taxation of income. Investors who prefer the ETN structure as the preferred means of tapping into this asset class should consider AMJ or MLPI. Those looking to minimize expenses should take a closer look at MLPA, as this offering has by far the cheapest price tag in the MLP space.
IEV|15|This ETF offers investors a way to access the economies of developed Europe, including 350 stocks in more than a dozen different economies. For investors who favor a region by region approach to international equities, IEV can be a building block in a long-term buy-and-hold portfolio (though some may prefer broader EAFE funds such as VEA). This iShares fund offers impressive liquidity and solid diversification, as no one name accounts for a significant portion of assets and the portfolio is spread across numerous markets and sectors. The biggest concern with IEV is the expenses; this ETF is considerably more expensive than options such as VGK; that fund includes more holdings at only a fraction of the cost. IEV is an efficient way of establishing a Europe bias, but the fees are too high to be justified, especially considering the cost structure of the closest competition.
USMC|15|The Principal U.S. Mega-Cap ETF (USMC) tracks an index of the largest U.S. companies. The index first divides the biggest 10% of companies by market value from the bottom 90%. The top tier is weighted by market value while the bottom 90% are equal-weighted, with a tilt based on volatility. The result is a concentrated portfolio of about 40 securities. The biggest holdings are familiar names like Microsoft, Amazon,  and Johnson & Johnson, with the lower tier including stocks like Home Depot and Chevron. USMC charges a reasonable management fee for the category.
KOMP|15|PendingDownload the FactSet Analyst Insight Reporthere.
FBND|15|The Fidelity Total Bond ETF (FBND) is an actively managed bond fund that can invest in a wide range of U.S.-dollar denominated debt securities, using the Bloomberg Barclays U.S. Universal Bond Index as a guide in allocating assets. The fund’s managers may invest up to 20% of assets in junk-rated corporate debt. Bonds have been one of the bright spots for active managers, and many bond ETFs manage to outperform their benchmarks — something stock pickers often fail to achieve. An investment in FBND is ultimately a bet on the manager’s ability to outperform the market. FBND is priced competitively with rivals like the JPMorgan Global Bond Opportunities ETF (JPGB), SPDR DoubleLine Total Return Tactical ETF (TOTL), and the PIMCO Active Bond ETF (BOND).
FTGC|15|PendingDownload the FactSet Analyst Insight Reporthere.
HEDJ|15|PendingDownload the FactSet Analyst Insight Reporthere.
FPX|15|This ETF focuses in on companies that have recently undergone an Initial Public Offering (IPO) and are now available to the general public for investment. These companies, which are less than 1,000 days old on the market, may not have been properly valued at the time of launch thus making them possible candidates for outperforming their more established brethren. While not appropriate for all investors, FPX could be a decent satellite holding for those who believe that companies that recently had an IPO could be poised for outperformance in the short term.
FREL|15|The Fidelity MSCI Real Estate Index ETF (FREL) offers broad exposure to U.S. equity REITs, alongside a small allocation to specialized REITs and real estate firms. Real estate has historically been embraced because of its ability to deliver excess returns during bull markets and low correlation with traditional stock and bond investments. REITs might appeal to investors seeking current income, as these trusts must distribute at least 90% of their income to investors and offer an efficient way for investors to gain indirect exposure to real estate prices (as opposed to direct exposure gained through ownership of a residential property).
PRFZ|15|This ETF offers exposure to small and mid-cap equities in the U.S. market, thereby delivering a way to access an asset class that is often overlooked by many investors. PRFZ is linked to a RAFI-weighted index which selects holdings based on the following four fundamental measures of size: book value, cash flow, sales and dividends. Mid and small caps can offer a unique risk/return profile, delivering increased sensitivity to local consumption and exposure that some consider to be more reflective of the local economy. As such PRFZ can be appealing to those looking to construct a long-term portfolio with well-rounded exposure, by serving as a great complement to more popular large-cap heavy ETFs. Other alternatives within this category include the equal-weighted EWRS or the more liquid IWM. PRFZ is also considerably more expensive than VTWO, but for investors who believe in the merits of the RAFI methodology it may be a better way to achieve emerging markets exposure.
AOR|15|This ETF offers one stop exposure for investors seeking to implement a growth strategy, investing in a number of other ETFs to effectively function as an entire portfolio within one ticker. Given its growth focus, AOR is tilted towards equities, making it potentially appropriate for those with a higher risk tolerance and longer time horizon. While this ETF offers an extremely simplified option for building a portfolio, there are potential drawbacks as well. Because each investor’s risk tolerance and objectives will differ, it’s unlikely the profile maintained by AOR is exactly appropriate for many investors—some fine-tuning may be required. Moreover, layered fees can increase costs; constructing a similar portfolio on your own would save you money over the long run.
HYS|15|This ETF is one of several products that offers exposure to junk bonds, an asset class that has historically exhibited equity like returns with relatively low volatility. Because most broad-based bond ETFs focus only on the investment grade side of the market, funds such as HYS can be useful for rounding out the fixed income side of a long-term portfolio. This ETF could also be appealing to those looking to establish a shorter-term tactical tilt towards high yield debt.
PHO|15|This ETF offers exposure to a group of companies operating generally in the water industry, including both water utilities and infrastructure companies and water equipment and materials companies. As such, this ETF likely doesn’t belong in a long-term buy-and-hold portfolio due to the targeted nature of exposure, but may be appealing to those who believe that scarcity issues will prompt increased demand for water treatment companies. While this investment thesis may seem compelling, it is not clear how strong the link between water usage/scarcity trends and performance will be going forward. Given the complexity of the issues, as well as the various other business operations of component companies, we’re skeptical of the ability of this ETF to accomplish the objective investors may be expecting of it. Moreover, PHO faces some concentration issues, as a few individual stocks receive huge allocations, and is on the pricey side, however, this fund is the cheapest in the category. From the universe of water ETFs—which includes FIW, PIO, and CGW, this fund may be a good choice. But don’t expect too much from the fund over the long term..
PTLC|15|PendingDownload the FactSet Analyst Insight Reporthere.
DEM|15|This ETF offers exposure to some of the highest dividend yielding stocks in the emerging market world with a fundamental weighting system. For investors looking for a value tilt or those looking for higher levels of current income, DEM could be an intriguing pick.
RODM|15|PendingDownload the FactSet Analyst Insight Reporthere.
VRP|15|The Invesco Variable Rate Preferred ETF follows a market-cap weighted index of floating- and variable-rate preferred stock as well as hybrid securities that are “functionally equivalent” to preferred stock. Preferred stock has features of both stocks and bonds. Companies must generally pay distributions to preferred stockholders before paying dividends to investors holding common stock. Preferred stockholders are generally ahead of common stockholders in liquidation proceedings, but still behind creditors. Preferred stock is appealing to investors looking for more income than they’d get from dividends or bonds. Fund fees are reasonable fro active management although there are cheaper preferred stock ETFs on the market. VRP tracked a different index of variable rate preferred securities through June 30, 2021.
FNCL|15|The Fidelity MSCI Financials Index ETF (FNCL) is one of several options for investors looking to gain access the U.S. financial sector, a corner of the domestic equity market that generally exhibits significant volatility. As a sector-specific ETF, FNCL is most appropriate for those looking to implement a tactical tilt or carry out a sector rotation strategy, and probably has little use for those building a long-term, buy-and-hold portfolio. This fund is heavily skewed towards large caps but does also include some mid- and small-cap exposure. With more than 300 holdings, FNCL offers considerably deeper exposure than the ultra-popular Financial Select Sector SPDR Fund (XLF). As of June 2020, FNCL is competitively priced against rivals including XLF, the Vanguard Financials ETF (VFH), and the iShares U.S. Financials ETF (IYF), which as of June 2020 was one of the more expensive options in the category. Short-term traders will likely prefer the size and liquidity of XLF.
FXD|15|This ETF offers exposure to the U.S. consumer discretionary sector, seeking to replicate an index that employs a unique strategy designed to generate excess returns relative to traditional cap-weighted benchmarks. The underlying AlphaDEX Index employs a quant-based screening methodology designed to identify stocks poised for outperformance relative to a broader universe. In return for exposure to this strategy, which has historically delivered impressive returns, investors can expect to pay a bit more; FXD’s expense ratio is about 50 basis points higher than low cost options for consumer exposure such as XLY and FCL. The unique index construction methodology has some other potential advantages; FXD maintains much lower concentration of top holdings than do cap-weighted funds such as XLY. As such, performance isn’t as dependent on a handful of large cap stocks, potentially giving a better way to access financials. For those who believe in the merits of the AlphaDEX methodology and willing to pay a little extra for a shot at alpha, FXD can be an excellent way to gain exposure to the consumer discretionary sector.
XME|15|This ETF offers a way to access U.S. companies engaged in the extraction of metals and other natural resources. As such, XME can be useful as a tool for tilting portfolio exposure towards the mining sector or betting on a short term surge from mining stocks. Because the underlying companies tend to become more profitable when natural resource prices climb, XME may have appeal as a hedge in inflationary environments as well. There are several noteworthy items regarding XME’s composition. First, the focus solely on U.S. stocks excludes many of the world’s largest commodity producers. Second, the equal-weighted methodology of the underlying index ensures balanced exposure to the mining sector, as no single name accounts for a significant portion of total assets. That can be appealing for investors seeking broad-based representations. Investors seeking more general exposure to commodity producers may take a look at HAP or CRBQ, while EMT can be used to gain exposure to the emerging market segment of this sector.
RWR|15|This ETF offers exposure to the real estate industry within the U.S. equity market. RWR follows the Dow Jones U.S. Select REIT Index, tracking the performance of an asset class that has been recently overlooked by many investors following the unprecedented housing crisis. Real estate has historically been embraced because of its ability to deliver excess returns during bull markets and low correlation with traditional stock and bond investments. REITs might appeal to investors seeking current income, as these trusts must distribute at least 90% of their income to investors, and offer an efficient way for investors to gain indirect exposure to real estate prices (as opposed to direct exposure gained through ownership of a residential property). IYR is the most liquid alternative available, but it comes with a steeper price tag, while SCHH tracks the same index at around half the cost.
PULS|15|PendingDownload the FactSet Analyst Insight Reporthere.
ITM|15|This fund tracks an index of municipal bonds, a slice of the bond market that is highly coveted due to its tax features. These bonds are generally free from federal taxes and in some cases, state and local income taxes as well making these funds crucial components of portfolios for those in high tax brackets. Muni bonds are used by local entities to pay for a variety of services or to make improvements to infrastructure paying for everything from new sewer systems to school renovations and bridge construction as such, they are relatively low risk instruments. This particular fund targets munis that mostly mature between six and 17 years from now, giving the fund both a moderate risk and current income profile. As a result ITM is a solid choice for investors seeking broad exposure to the muni market but with moderate levels of risk. The fund still has impressive levels of diversification— holding over 375 securities— and a below average expense ratio, making it a quality choice for a building block of portfolios, especially for those seeking to keep costs down but are unwilling to look at total market funds or those that target the short or long end of the curve.
CMF|15|This fund is the most popular option for achieving exposure to municipal bonds from California issuers, a corner of the domestic bond market that has been in focus in recent years due to the state’s budget issues. CMF offers the greatest depth of holdings among all California muni bond ETFs, making it a preferred choice for accessing this asset class.
ICVT|15|PendingDownload the FactSet Analyst Insight Reporthere.
DXJ|15|This ETF offers investors broad based exposure to the Japanese equity market with a twist; it hedges out the currency fluctuations. As a result, the fund is a ‘pure play’ on the performance of Japanese stocks, stripping out the impact of the yen and its changes in value. Thanks to this methodology, DXJ could be a great choice for investors who believe that the yen will weaken against the dollar but are still looking to scoop up Japanese equities. However, it would make for a poor choice if you think that the yen will strengthen as it will not partake in the currency appreciation and will probably underpeform other broad based Japan ETFs such as EWJ in this time frame. It should also be noted that the fund costs significantly more than comparable Japanese ETF products so it might not make the best pick for cost-conscious investors. With that being said, DXJ implements this strategy much cheaper than investors would likely be able to do on their own making it a quality pick for investors wary of currency changes but bullish on Japanese stocks.
VIOO|15|VIOO seeks to replicate a benchmark which offers exposure to small cap firms in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on both value and growth securities, could provide more of a diversified play than products that just focus on ‘growth’ or ‘value’ securities within this segment. Thanks to this broad focus, VIOO has a large number of securities— close to 600 in total— and does a great job of dividing up assets among the components as no one company makes up more than 80 basis points of total assets. Thanks to this high level of diversification and VIOO’s low expense ratio, the fund could make for a quality addition to portfolios of investors who are looking for small cap exposure and do not have a preference in terms of value or growth equities.
ROBO|15|PendingDownload the FactSet Analyst Insight Reporthere.
DES|15|This ETF offers exposure to small cap U.S. stocks, an asset class that is included in most long-term portfolios and can be useful for tactical traders looking to implement a tilt towards riskier securities. DES is one of dozens of options for small cap exposure through ETFs, and is unique because of the weighting methodology employed. The related benchmark is dividend-weighted, determining components companies and individual allocations based on cash dividends paid. That methodology has the effect of enhancing current returns from the equity side of a portfolio, and may also be appealing for those looking to utilize alternatives to market cap-weighting (which has a tendency to overweight overvalued stocks, and underweight undervalued companies). DES is slightly more expensive than some of the cap-weighted alternatives, but investors who believe the dividend-weighting approach has the potential to add value over the long run will find the expense differentials to be minimal. This fund may be worth considering as an alternative to products such as IWM and IJR.
AVUV|15|PendingDownload the FactSet Analyst Insight Reporthere.
PBW|15|This ETF offers a unique way to play clean energy, focusing on companies that focus on greener and generally renewable sources of energy and technologies that facilitate cleaner energy. So the sector exposure profile of PBW may differ from funds such as ICLN; PBW is heavy in tech companies, spreading the rest of the exposure across industrials, materials, consumer companies, utilities, and even health care firms. With this ETF in particular, it is important to take a close look at the underlying holdings and not make assumptions about the factors that will impact the risk/return profile. PBW is a very specialized product that may appeal to a very narrow investment thesis. The price tag for PBW is a bit hefty, but there are no real alternatives to the exposure this fund delivers.
XHB|15|This ETF is focused on the U.S. homebuilding industry, and as such offers exposure to a corner of the domestic economy that tends to be cyclical in nature. In addition to pure play homebuilders, this fund includes companies related generally to the homebuilding industry, such as Pier One. For investors seeking exposure to the homebuilding industry—or the closest thing to it available in an ETF wrapper—we think XHB is the best option out there. This fund is more cost efficient than other options such as PKB or ITB, and the equal weighting methodology ensures exposure is spread evenly across component companies.
AOM|15|This ETF is a one stop shop for investors seeking a moderate strategy that falls between its aggressive (AOA) and conservative (AOK) counterparts. It should be noted, however, that risk tolerance concepts and objectives vary from investor to investor, so using a “one size fits all” approach might not be advisable. AOM maximizes simplicity, but many investors will want to use other products to fine tune the risk/return portfolio this fund offers.
CWI|15|This ETF offers exposure to developed and emerging markets outside of the U.S., making CWI one option for investors seeking a cornerstone of broad-based international equity exposure. It should be noted that this ETF is tilted towards developed markets, and investors seeking to fine tune the balance between the two may wish to achieve the exposure offered by this fund through multiple ETFs. CWI offers exposure that is well balanced across countries, sectors, and individual securities, as concentration is not an issue with this fund. Investors may want to take a look at ACWI, which offers exposure to the exact same index, and investigate any differences in the manner in which holdings are constructed. CWI may utilize sampling strategies, resulting in more substantial tracking error.
FXR|15|This ETF offers exposure to the U.S. industrials sector, a corner of the domestic market that includes transportation firms, providers of commercial and professional services, and manufacturers of capital goods. Given the sector-specific focus, FXR likely doesn’t deserve a core allocation, but may be useful as a means of implementing a tactical tilt towards the industrials sector. FXR seeks to replicate an index that employs a unique strategy designed to generate excess returns relative to traditional cap-weighted benchmarks. The underlying AlphaDEX Index employs a quant-based screening methodology designed to identify stocks poised for outperformance. In return for exposure to this strategy, which has historically delivered impressive returns, investors can expect to pay a bit more; FXR’s expense ratio is about 50 basis points higher than low cost options for industrials exposure such as FIL and XLI. The unique index construction methodology has some other potential advantages; FXR maintains much lower concentration of top holdings than do cap-weighted funds such as XLI. That means that performance isn’t as dependent on a handful of large cap stocks, potentially giving a better way to access industrials. For those who believe in the merits of the AlphaDEX methodology and willing to pay a little extra for a shot at alpha, FXR might be worth a closer look. Those looking to keep a cap on expenses and simply own the broader market have cheaper options available to them.
OMFL|15|The Invesco Russell 1000 Dynamic Multifactor ETF applies a proprietary index strategy to investing in large-cap U.S. companies. Invesco starts with the Russell 1000 index of the largest U.S. companies, then assesses the prevailing economic environment and market conditions. Companies are scored based on the factors that are most relevant given the overall outlook. Invesco looks at economic and market barometers such as consumer sentiment, construction activity, manufacturing gauges and labor market conditions to determine whether the economy is expanding, slowing, contracting or recovering, and then scores stocks accordingly. During recovery or expansion, the fund targets company size and value, while during a slowdown or contraction the fund focuses on stocks with healthier balance sheets and reduced susceptibility to market swings. In both expanding or contracting conditions, the fund also targets momentum stocks. The methodology excludes stocks whose multi-factor score falls below certain relative thresholds. The remaining stocks are weighted based on both the multi-factor score and the company’s weight in the baseline index. Money managers have long recognized that certain factors, when deployed during certain market conditions, consistently reward investors. Factor ETFs have proliferated in recent years and there are many active and passive ETF options that target different factors. Some funds combine factors while others target a single factor. The result of OMFL’s methodology is a portfolio that can diverge significantly from a plain-vanilla Russell 1000 ETF. The industry and sector mix may look different, and OMFL tends to have a larger allocation to mid-cap stocks than some traditional large-cap index funds. OMFL may not own the full roster of companies in the Russell 1000 but the fund still owns a diversified mix of hundreds of U.S. equities. For believers in Invesco’s multi-factor approach, the fund could be a good complement to a core portfolio allocation, and may even replace a traditional large-cap holding like an S&P 500 fund. However, investors should note that the fund fees, while reasonable for a factor strategy, are higher than ultra-low cost options from rival firms. Despite the higher fees, OMFL has had significant periods of outperformance compared with funds pegged to the S&P 500 and Russell 1000 indices. OMFL has also beat some of its factor competitors in the space. Though past performance is no guarantee of future results, that makes the fund a compelling choice, especially for factor adherents. Investors should compare price, performance and portfolio against other large-cap U.S. equity ETFs, both plain-vanilla and factor strategies.
GBIL|15|The Goldman Sachs Treasury Access 0-1 Year ETF (GBIL) tracks an index of U.S. Treasury securities maturing within the next 12 months, with a focus on the most liquid securities. GBIL’s management fee is reasonable though a bit higher than some competitors, including the Invesco Treasury Collateral ETF (CLTL) and the iShares Short Treasury Bond ETF (SHV). Short-term Treasury securities have less interest-rate risk than longer-dated debt, but they also offer a paltry yield. For investors looking for a bit more of a return — albeit at a bit more risk — there are cash-management alternatives like the Goldman Sachs Access Ultra Short Bond ETF (GSST) or the JPMorgan Ultra-Short Income ETF (JPST). Both are actively-managed funds that invests in short-term investment-grade debt, and may be suitable for investors looking for a relatively safe way to eke out a little more yield than they can get from brokerage sweep accounts and Treasuries.
PDP|15|This ETF tracks the Dorsey Wright Technical Leaders Index, which  includes approximately 100 U.S.-listed companies that demonstrate powerful relative strength characteristics. The index uses a proprietary methodology which takes into account numerous factors of individual securities, including the performance of each company compared to its index, and the relative performance of the industry sectors and sub-sectors. Investors should note that this ETF offers a bias towards companies of medium market capitalization. This means that the fund may be slightly more volatile than the average “blue-chip” product, but it will also offer greater growth potential as some of these companies may have yet to hit their peak. PDP holds most of its assets within the U.S., though it does allocate meager portions to Canada and the UK. For investors who believe that technicals are the best way to pick a stock, PDP will be an intriguing opportunity.
HYMB|15|This fund tracks an index of municipal bonds, a slice of the bond market that is highly coveted due to its tax features. These bonds are generally free from federal taxes and in some cases, state and local income taxes as well making these funds crucial components of portfolios for those in high tax brackets. Muni bonds are used by local entities to pay for a variety of services or to make improvements to infrastructure paying for everything from new sewer systems to school renovations and bridge construction as such, they are relatively low risk instruments. With that being said, HYMB targets bonds that are rated below investment grade and thus contains issues that have a much higher chance of default. Due to this, HYMB pays out a yield that is far superior to any other funds in the category including MLN which targets long-dated issues. The fund also offers reasonable levels of diversification although not as much as other products in the segment; it holds about 55 securities in total with just 21% of assets going to the top ten holdings. Due to its reasonable level of diversification and its ultra high yield, HYMB could be a decent choice for investors seeking additional current income and are willing to add more risk to their portfolios. Just make sure to use HYMB sparingly and do not allocate all of your muni bond holdings to this somewhat risky fund.
PGF|15|This ETF offers investors exposure to preferred stock, an interesting segment of the capital markets that most investors do not have a lot of exposure to. Preferred stock holders have a ‘preferred’ position on assets compared to other common shareholders should there be a liquidity event in the company. However, these shareholders generally do not have voting rights in exchange for this premium position. Preferred stock also generally pay out solid dividend yields but then also do not participate as much in equity appreciation as their common share counterparts. Due to this preferred stock could be appropriate for those seeking to boost yields in a portfolio or for those looking for less risky forms of equity exposure that are relatively absent from broad portfolios of stocks. PGF isn’t very diversified even by the lower standards of this Category. The fund holds just 30 securities in total and all of them are in the financial sector suggesting this is a concentrated bet on the banking industry. As a result, investors should consider this holding a part of the financials allocation of a portfolio and only used in small amounts to boost yields. If used properly, PGF could be a powerful tool for investors, just be careful and make sure to not overinvest in the sector.
GXC|15|This ETF presents an interesting option for gaining exposure to Chinese equities, and may be one of the better choices for accessing the one of the world’s most important economies. Like many international equity ETFs, GXC is dominated by holding in large cap stocks, potentially diminishing the connection to the local Chinese economy. But relative to the most popular China ETF, FXI, this fund has a number of advantages. GXC holds more than five times as many holdings, delivering greater diversification from an individual security perspective. And while the sector allocation is skewed towards banks and oil companies—a common bias in emerging markets—the profile is more desirable than FXI. Finally, this SPDR is considerably cheaper. For those seeking exposure to large cap Chinese stocks, GXC is one of the best options out there—certainly a better play than FXI. Pairing this exposure with small cap stocks through HAO or ECNS can deliver well balanced China exposure.
PKW|15|This ETF focuses in on companies that have bought back large numbers of shares in the past year. In order to be included, a company must have repurchased at least 5% of its outstanding shares in the past twelve months. PowerShares believes that this system could lead to outperformance as a lower number of shares outstanding will increase the EPS. While not appropriate for all investors, PKW could be a decent satellite holding for those who believe in the power of share buybacks and their impact on EPS and stock price.
FBT|15|FBT is one of a handful of biotech ETFs available, offering exposure to a corner of the market that can perform well during periods of consolidation and is capable of big jumps in the event of major drug approvals. FBT focuses on a narrow sector of the health care market segment, and as such is probably too precise for most investors seeking to construct a long-term portfolio. But this ETF can be useful for those seeking to fine tune exposure or for those bullish on the sector over the long run. FBT focuses primarily on U.S. stocks, and consists primarily of mid cap and small cap securities. FBT’s portfolio is somewhat limited, though the equal-weighted methodology of the underlying index ensures that assets are balanced across all components. That feature can be particularly important in the biotech space, where specific companies are capable of turning in big gains over short periods of time. PBE and IBB are other ETF options for biotech exposure; those considering this sector should take a close look at depth of exposure and weighing methodology, as these factors can have a major impact on the risk and return profiles achieved.
SLY|15|SLY seeks to replicate a benchmark which offers exposure to small cap firms in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on both value and growth securities, could provide more of a diversified play than products that just focus on ‘growth’ or ‘value’ securities within this segment. Thanks to this broad focus, SLY has a large number of securities— close to 600 in total— and does a great job of dividing up assets among the components as no one company makes up more than 90 basis points of total assets. Thanks to this high level of diversification and SLY’s low expense ratio, the fund could make for a quality addition to portfolios of investors who are looking for small cap exposure and do not have a preference in terms of value or growth equities.
VUSB|15|The Vanguard Ultra-Short Bond ETF is an actively managed fund that aims to bolster income while minimizing volatility. The fund invests in short-term fixed income securities with maturities of up to two years, and is designed for those with an investment time horizon of six to 18 months. The portfolio includes asset-backed debt, government issued bonds, and investment-grade corporates. While VUSB skews toward securities issued by high-quality borrowers, the fund also invests in some riskier medium-quality fixed income assets. Under normal market conditions, the fund aims to invest at least 80% of its portfolio in fixed income securities. Ultra-short-term debt ETFs have have become a popular way to boost income as a prolonged era of near-zero interest rates drags down yields on savings vehicles like money market funds and CDs. Ultra-short debt ETFs like VUSB can help investors squeeze a little more income out of their portfolios without overloading on risk. VUSB, which debuted in April 2021, is a relatively late entrant into the ultra-short debt category, but it is managed by the same portfolio team as Vanguard’s comparable mutual fund, which has been around since 2015. As one would expect from Vanguard, VUSB is competitively priced compared with rival ETFs.
IYY|15|This ETF offers broad-based, low cost exposure to U.S. stocks, maintaining more than 1,300 individual holdings across all sectors of the U.S. economy and including companies of all different sizes. As such, IYY may be a useful tools for those building a long-term portfolio and looking to simplify the process; this fund can offer exposure to a core asset class in a single ticker, delivering broad-based U.S. equity exposure to investors. Of course, there are a number of other options available in the All Cap Equities ETFdb Category, and many of these competing funds offer generally similar exposure. This fund maintains fewer holdings than ETFs linked to the Russell 3000 Index, meaning that the exposure offered may be more heavily tilted towards large cap equities. For investors seeking more significant inclusion of small cap and mid cap stocks, it may make sense to use multiple funds to establish U.S. equity exposure, or to achieve complementary exposure through small and mid cap ETFs. IYY is one option for simple, one stop exposure to U.S. equity markets, but investors should note that other products, such as SCHB and FMU, offer similar exposure at a cheaper price. Also, options like VTI or IWV cast a wider net, including significantly more holdings and therefore offering potentially superior balance of exposure.
IXC|15|This ETF offers exposure to the global energy industry, splitting exposure between U.S. and domestic stocks. While IXC may be too granular for those with a long-term buy-and-hold strategy, it can be a useful tool for tilting overall exposure towards this sector or perhaps for use in a long/short pairs trade as well. Not surprisingly, IXC has a heavy tilt towards mega cap stocks, as this ETF includes a number of the world’s biggest oil companies (IOIL offers complementary exposure to small caps). IXC gives significant exposure to the U.S.; those seeking to steer away from domestic oil stocks may prefer ex-U.S. energy ETFs such as AXEN. Like many large cap energy funds, IXC features a fair amount of concentration; a few stocks make up big chunks of the total portfolio, potentially diminishing the balance of exposure offered. This ETF may be useful for some, but because it is somewhere in between broad-based and finely-tuned, it’s likely that there may be a more appropriate option out there in the Energy Equities ETFdb Category.
USFR|15|PendingDownload the FactSet Analyst Insight Reporthere.
EUFN|15|This ETF offers exposure to the financial sector of Western Europe, a corner of the developed world that can exhibit significant volatility and has demonstrated big fluctuations in recent years. As such, EUFN is way too targeted for any investors building a long-term portfolio, but can be a potentially useful tool for those looking to apply a tactical tilt or capitalize on perceived short-term mispricings. EUFN can also be useful as part of a long/short pairs trade, such as long XLF / short EUFN. This ETF is, not surprisingly, tilted towards large cap stocks. And while the portfolio includes more than 100 individual securities, a few of the bigger companies make up significant portions of total assets. EUFN is a valuable tool for investors with a very specific objective, but is probably too precise for most.
RWO|15|This ETF offers exposure to global real estate markets, splitting assets pretty evenly between U.S. REITs and companies domiciled in developed markets. As such, RWO has the potential to deliver broad-based access to an asset class that can deliver attractive current returns and significant appreciation for long term capital appreciation (along with meaningful volatility and risk). RWO is pretty diverse in its individual holdings— the fund has over 200 securities in total— but its scope of countries is somewhat limited as the U.S. makes up 50% while the Asia Pacific region accounts for another 20%. RWO may be appropriate for investors looking for a specific split between U.S. and international real estate exposure, while those looking for a more precise bifurcation may wish to use multiple funds to accomplish the objective of this ETF (options like IFAS and IFEU may allow more granularity in the international real estate segment). RWO is pretty cheap from an expense perspective, and significant spreads are unlikely thanks to the fund’s robust AUM making it a quality choice for traders and long term investors alike.
TILT|15|This ETF is one of several options available for investors seeking broad-based exposure to the U.S. equity market, but is unique in a few ways from the other funds in the All Cap Equities ETFdb Category. Instead of simply weighting by market capitalization (or some fundamental metric), TILT tilts exposure towards the small cap and value segments of the U.S. market by giving these companies slightly higher weightings than they would in a simple cap-weighted methodology. The results is a portfolio that has significant overlap with products linked to popular indexes such as the Russell 3000, but with a unique makeup. For investors who believe that small cap and value companies maintain greater long-term potential, this ETF can be a unique way to achieve instant, cheap exposure to a strategy that might otherwise be difficult and expensive to maintain.
IYT|15|This fund, issued by iShares, provides exposure to a benchmark that represents the transportation industry of the US. An investment on the transportation industry could reach into multiple tiers of the economy, as consumer goods as well as raw materials are always in need of being ferried from one location to another. Energy, though behind the scenes, has a major impact on the transportation industry, as rising gas prices or new alternative solutions can have a huge impact on the performance of these individual companies, their bottom lines, as well as the mode of transportation that is in most demand. IYT is heavily exposed to two corners of the transportation market with railroads and trucking making up the two biggest sections by far. For investors looking at transportation from a business perspective this fund represents a solid choice but for those looking to tap into consumer transportation XTN could be the way to go. Either way, the fund is likely to granular for most investors and it should be used as more of a tactical tilt than a core holding by most investors.
MDYG|15|This ETF offers exposure to mid cap stocks that exhibit growth characteristics, making MDYG a potentially useful tool for investors looking to fine tune their domestic equity exposure or implement a tilt towards a specific investment style. Investors constructing a long-term portfolio would be better off with a fund such as MDY or IJH that includes greater depth of holdings and a mix of various styles. Growth strategies often come with biases towards specific sectors, and may outperform more broadly-based indexes in certain economic environments. It should be noted that there is often considerable overlap between MDYG and its value counterpart MDYV, the result of a methodology that uses a generous definition of growth stocks. Rydex offers s pure style alternative, RFG, that is slightly more expensive but will offer a considerably more targeted focus on growth equities. Those seeking to make a meaningful tilt in their portfolio would be better served by using that fund. It should also be noted that IJK and IVOG seek to replicate the same index at comparable expense ratios. IVOG is slightly cheaper, and may be available commission free in certain accounts, while IJK will generally feature more narrow spreads. MDYG is a fine ETF, but there are a number of alternatives out there that offer more compelling methodologies, lower fees, or potentially better execution.
BBMC|15|The JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC) owns about 500 securities, making it a well-diversified option for long-term investors building a balanced portfolio. BBMC is one of several that offer exposure to an asset class that can make up a significant portion of long-term, buy-and-hold portfolios. This ETF may be more appealing to those in the portfolio construction business as opposed to short-term traders.
FDL|15|This ETF is linked to the Morningstar Dividend Leaders Index, which offers exposure to large and mega cap firms that have shown dividend consistency and dividend sustainability in years past. Investors with a longer-term horizon should consider the importance of mega and cap value stocks and the benefits they can add to any well-balanced portfolio including dividends and rock solid stability. Companies within this segment are often considered some of the safest firms in the world and tend to be in more stable industries as well, potentially skewing some portfolios that are heavy in value securities. FDL is linked to an index consisting of roughly 100 holdings and exposure is tilted most heavily towards utilities, telecoms and energy. However, the fund is highly concentrated in its top holdings; the top ten make up more than three-fifths of the total assets of the fund. Nevertheless, thanks to this fund’s focus on dividends and cheap price, FDL could definitely make up a solid portion of a portfolio especially for those looking for more large cap dividend exposure exposure.
TDIV|15|PendingDownload the FactSet Analyst Insight Reporthere.
IYJ|15|This ETF is one of several options offering exposure to the U.S. industrials sector, offering a way to access a corner of the U.S. economy that includes transportation firms, providers of commercial and professional services, and manufacturers of capital goods. Given the sector-specific focus, IYJ likely doesn’t deserve a core allocation, but may be useful as a means of implementing a tactical tilt towards the industrials sector or as part of a sector rotation strategy. Perhaps the biggest drawback of IYJ relates to fees; the expense ratio of this fund is considerably higher than those of XLI, VIS, and FIL, some of which are available for commission-free trading as well. As far as the underlying portfolio goes, IYJ offers an impressive depth of holdings with hundreds of individual stocks. With the exception of GE, which accounts for a big chunk of assets, the exposure offered is generally well balanced; those seeking to avoid this concentration may prefer the equal-weighted RGI. IYJ is a fine fund, but there are cheaper and more balanced options available out there; investors seeking industrials exposure can likely do better.
IBDO|15|PendingDownload the FactSet Analyst Insight Reporthere.
EMXC|15|PendingDownload the FactSet Analyst Insight Reporthere.
FLCB|15|The Franklin Liberty U.S. Core Bond ETF (FLCB) is an actively managed fund that offers broad exposure to U.S. investment-grade bonds, a staple of most buy-and-hold portfolios. FLCB owns U.S. Treasuries, mortgage-backed debt, and corporate bonds. The fund seeks to track the Bloomberg Barclays U.S. Aggregate Bond Index. The fund is reasonably priced for an active fund. Bonds have been one of the bright spots for active managers, and many bond ETFs manage to outperform their benchmarks — something stock pickers often fail to achieve. An investment in FLCB is ultimately a bet on the manager’s ability to beat the market. Investors can compare performance with the iShares Core U.S. Aggregate Bond ETF (AGG), a passive fund that hews to the same index.
BSCO|15|The Invesco BulletShares 2024 Corporate Bond ETF tracks an index of U.S. investment-grade corporate bonds that mature in the indicated year. BulletShares are different than traditional bond ETFs because, once the scheduled maturity date is reached, the funds distribute the principal back to investors. Traditional bond ETFs continuously buy and sell their underlying bonds to maintain their target maturity. For this reason, BulletShares behave more like a traditional bond than like a bond fund. This appeals to investors who want to lock in a fixed coupon while still gaining the diversification that an ETF portfolio provides. As the maturity date nears, BulletShares ETFs roll the proceeds of their maturing bonds into shorter-term corporate debt or Treasurys. Once the target date is reached, the fund distributes the capital back to investors and shuts down. Investors can, at any time, sell their BulletShares ETF on the stock market and reinvest elsewhere, including rolling over into another BulletShares ETF. Investors and advisers can “ladder” their BulletShares holdings across a range of maturity dates, which locks in fixed coupon payments and plans ahead for cash distributions at maturity. This makes them especially appealing for those who want the guaranteed income, combined with the ease and diversification benefits an ETF can provide. For most investors, it’s far easier and cheaper to buy a BulletShares ETF than it is for them to source one or two underlying bonds. BulletShares ETFs debuted in 2010 under the Claymore brand and eventually moved to Invesco when the company acquired Guggenheim’s ETF business in 2018. BulletShares provide income, diversification and liquidity, and all for an extremely competitive fee.
RSX|15|This ETF offers exposure to Russian equities, making it one of many options available for accessing a component of the BRIC bloc that holds tremendous potential but also significant risks. Russia’s economy remains largely dependent on the energy sector, and as such ETFs such as RSX can exhibit significant volatility. RXS is probably too granular for long-term buy-and-holders, but can be useful for investors looking to implement a country rotation strategy or to tilt exposure towards this emerging market. RSX is, perhaps not surprisingly, tilted heavily towards the energy sector, and has significant concentrations in a few individual companies. This Russia ETF is, however, more balanced from both a sector perspective and an individual holding perspective than other options such as ERUS or RBL. For those seeking balanced exposure to the Russian economy, Van Eck also offers RSXJ, a small cap Russia ETF that may be better able to provide pure play exposure to the local Russian economy (and without the heavy energy tilt).
FDIS|15|The Fidelity MSCI Consumer Discretionary Index ETF (FDIS) offers targeted exposure to the U.S. consumer discretionary sector, including stocks like apparel retailers, hotel operators, cruise line companies, auto makers, and more. Consumer discretionary ETFs can be a useful tool for investors implementing a sector rotation strategy or seeking to tilt their portfolio. FDIS may appeal to some buy-and-hold investors during times of economic strength since the discretionary sector generally typically does well when consumers have a little extra money to spend. FDIS is competitively priced against rivals like the Consumer Discretionary Select Sector SPDR (XLY), the Vanguard Consumer Discretionary ETF (VCR), and the iShares U.S. Consumer Services ETF (IYC). As of June 2020, FDIS owns more than 200 stocks, including small caps, making it a more diversified option than XLY, long the dominant fund in the space. Short-term traders may prefer the size and liquidity of XLY.
QDF|15|The FlexShares Quality Dividend Index Fund (QDF) is part of Northern Trust’s stable of proprietary twists on factor investing. The fund follows a Northern Trust index that selects dividend-paying large-cap U.S. equities. Simple enough, but then the index weights the portfolio toward companies that earned the highest “dividend quality” scores. To prevent unintentional concentrations, the methodology caps the weighting of individual securities, industry groups, sectors and styles. Lastly, the fund tries to deliver “market-like beta” — jargon used to describe how volatile the performance is relative to the market. It’s another way of saying QDF tries to match market volatility.
TBT|15|This ETF offers 2x short leveraged exposure to the broad-based Barclays Capital U.S. 20+ Year Treasury Index, making it a powerful tool for investors with a bearish short-term outlook for U.S. long-term treasuries. An investment in leveraged debt can be a very risky one, as there are numerous factors that can converge to drastically change the returns of these products. Investing in leveraged bond ETFs requires a careful understand of the specific economy, in this case the US, and what kind of policies and regulations are currently in place and are set to be enforced in the future. TBT can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy. For those who feel educated enough on the specific economy and its inner workings, this ETF can be a great addition to an investment portfolio.
PSC|15|The Principal U.S. Small Cap Multi-Factor ETF (PSC) takes a multi-factor approach to investing in small companies. PSC tracks an index of U.S. firms that exhibit value, quality, and momentum characteristics. The index methodology eliminates the least liquid stocks, then scores companies based on quality growth, shareholder yield and price momentum. The portfolio is tilted toward the highest-scoring companies that are the most liquid and least volatile.
EWL|15|EWL offers investors exposure to the European market of Switzerland by investing in securities that trade on the national stock exchange of the nation. Since many of the large caps in this fund are likely to be found in other EFA holdings, the fund is not appropriate for investors seeking broad diversification across Europe. For investors looking for high levels of exposure to the Swiss market in particular, EWL is probably the best ‘pure play’ option available.
URTH|15|The iShares MSCI World ETF (URTH) tracks a market cap-weighted index of large- and mid-cap developed market stocks worldwide. URTH, unlike many developed markets ETFs, includes North America. URTH invests in about 1,200 securities, with more than 60% of its portfolio in U.S. securities as of June 2020. Total-market funds can be an appealing option for investors looking to simplify their portfolios and minimize rebalancing obligations, but they also tend to own a relatively narrow universe of stocks, which may be why the category has been slow to gain traction with investors. URTH is priced competitively to rivals like the JPMorgan Diversified Return Global Equity ETF (JPGE) and the SPDR MSCI World StrategicFactors ETF (QWLD).
AVUS|15|PendingDownload the FactSet Analyst Insight Reporthere.
EAGG|15|PendingDownload the FactSet Analyst Insight Reporthere.
TNA|15|This ETF offers 3x daily long leverage to the Russell 2000 Index, making it a powerful tool for investors with a bullish short-term outlook for small cap equities. Investors should note that TNA’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. TNA can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
CQQQ|15|This ETF offers targeted exposure to the Chinese economy, giving investors looking to fine-tune their portfolio a powerful tool. For long-term plays, more broad-based funds might be the better option. CQQQ can be used as part of a long/short play or as a complement to other ETFs, as the technology sector is often under-represented in China funds.
IBDN|15|PendingDownload the FactSet Analyst Insight Reporthere.
JPHY|15|The JPMorgan High Yield Research Enhanced ETF (JPHY) is an actively-managed fund for investors looking to access to U.S.-dollar denominated ‘junk’ bonds — debt issued by borrowers with a higher risk of default. For taking on the added risk, investors are rewarded with higher yields than those offered on ultra-safe U.S. Treasuries or investment-grade debt issued by the most creditworthy companies. JPHY may invest assets in high-yield corporate debt, convertible securities, REITs, fixed- and floating-rate instruments, and pay-in-kind instruments. Bonds have been one of the bright spots for active managers, and many bond ETFs manage to outperform their benchmarks — something stock pickers often fail to achieve. An investment in JPHY is ultimately a bet on the manager’s ability to beat the market. JPHY’s management fee is extremely competitive, especially when compared with passive rivals like the SPDR Bloomberg Barclays High-Yield Bond ETF (JNK) and the iShares iBoxx USD High Yield Corporate Bond ETF (HYG). The ETF marketplace offers offer quite a few high-yield variations, including active management, so-called ‘smart’ indexing, and even an ETF that screens junk debt based on environmental, social, and government criteria.
MDYV|15|This ETF offers exposure to mid cap stocks that exhibit value characteristics, making MDYV a potentially useful tool for investors looking to fine tune their domestic equity exposure or implement a tilt towards a specific investment style. Investors constructing a long-term portfolio would be better off with a fund such as MDY or IJH that includes greater depth of holdings and a mix of various styles. Value strategies often come with biases towards specific sectors, and may outperform more broadly-based indexes in certain economic environments such as recessions. It should be noted that there is often considerable overlap between this fund and its growth counterpart, the result of a methodology that uses a generous definition of value stocks. Rydex offers a pure style alternative, RFV, that is slightly more expensive but will offer a considerably more targeted focus on value equities. Those seeking to make a meaningful tilt in their portfolio would be better served by using that fund. It should also be noted that IWS and JKI seek to replicate similar indexes at comparable expense ratios. MDYV is a fine ETF, but there are a number of alternatives out there that offer more compelling methodologies, or potentially better execution.
SRVR|15|PendingDownload the FactSet Analyst Insight Reporthere.
FXH|15|This ETF offers exposure to the U.S. health care sector, making it one of many options for accessing a corner of the market that is generally stable and can offer attractive dividends. Given the sector-specific focus, FXH likely doesn’t deserve a core allocation, but may be useful as a means of implementing a tactical tilt towards the health care sector. FXH seeks to replicate an index that employs a unique strategy designed to generate excess returns relative to traditional cap-weighted benchmarks. The underlying AlphaDEX Index employs a quant-based screening methodology designed to identify stocks poised for outperformance. In return for exposure to this strategy, which has historically delivered impressive returns, investors can expect to pay a bit more; FXH’s expense ratio is about 50 basis points higher than low cost options for health care exposure such as FHC and XLV. The unique index construction methodology has some other potential advantages; FXH maintains a much lower concentration of top holdings than do cap-weighted funds such as XLF. That means that performance isn’t as dependent on a handful of large cap stocks, potentially giving a better way to access health care stocks. For those who believe in the merits of the AlphaDEX methodology and are willing to pay a little extra for a shot at alpha, FXH might be worth a closer look. Those looking to keep a cap on expenses and simply own the broader market have cheaper options available to them.
IVOO|15|This ETF is one of several ETFs available that offers exposure to mid cap U.S. stocks, an asset class that can make up a significant portion of long-term, buy-and-hold portfolios. As such, this ETF may be more appealing to those in the portfolio construction process as opposed to short term traders. Mid cap stocks are appealing to many because they still have significant growth potential but they are less risky than their small and micro cap brethren. IVOO offers exposure to a balanced portfolio of stocks, including close to 400 individual names and spreading exposure relatively evenly. The expense ratio is among the cheapest in the category making it an excellent choice for those looking to keep costs to an absolute minimum.  For those seeking other options in the space similar choices can be found in the MDY and IJH funds, the ultra-cheap FMM, and equal-weighted EWRM.
SQQQ|15|This ETF offers 3x daily short leverage to the NASDAQ-100 Index, making it a powerful tool for investors with a bearish short-term outlook for nonfinancial equities. Investors should note that SQQQ’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. SQQQ can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
AOA|15|This ETF is a one stop shop for investors seeking an aggressive strategy that tilts towards equities and away from fixed income. It should be noted, however, that risk tolerance concepts and objectives vary from investor to investor, so using a “one size fits all” approach might not be advisable. AOA maximizes simplicity, but many investors will want to use other products to fine tune the risk/return portfolio this fund offers.
REM|15|This ETF offers exposure to the residential and commercial real estate, mortgage finance, and savings associations sectors of the U.S. equity market.  REM follows the FTSE NAREIT All Mortgage Capped Index, which has 50 holdings diversified evenly across small, mid, and large-cap equities, also allocating a little less than half of its assets to the financial services sector. Real estate has historically been embraced because of its ability to deliver excess returns during bull markets and low correlation with traditional stock and bond investments. REITs might appeal to investors seeking current income, as these trusts must distribute at least 90% of their income to investors, and offer an efficient way for investors to gain indirect exposure to real estate prices (as opposed to direct exposure gained through ownership of a residential property). VNQ is a cheaper and more liquid alternative available, while FRL boasts the lowest expense fee in this category.
SPHB|15|This ETF tracks a benchmark consisting of some of America’s largest companies. As a result, investors should think of this as a play on mega and large cap stocks in the American market. These securities are usually known as ‘Blue Chips’ and are some of the most famous and profitable companies in the country, including well known names such as ExxonMobil, Apple, IBM, and GE. The fund is probably one of the safest in the equity world as the companies on this list are very unlikely to go under unless there is an apocalyptic event in the economy. However, these securities are unlikely to grow very much either as they are already pretty large and have probably seen their quickest growing days in years past, but most do pay out solid dividends which should help to ease the pain of this realization. This particular ETF focuses on stocks that have a high beta, which could potentially increase the volatility of this product when compared to more broad based funds such as SPY. However, this higher volatility could lead to greater gains when markets are trending upwards but it could also lead to bigger losses when markets experience broad sell-offs as well. While this strategy may sound appealing to many investors, the fund still has very low levels of volume and charges a high expense ratio of 29 basis points, much higher than others in the space but far lower than the other beta focused funds. Thanks to this, cost conscious investors would probably be better off in funds that have tighter bid/ask spreads or those that have a lower expenses, unless they are really sold on the idea of searching for securities in the space based on their level of beta, if so, this fund is a solid choice.
FXO|15|This ETF offers exposure to the U.S. financial sector, seeking to replicate an index that employs a unique strategy designed to generate excess returns relative to traditional cap-weighted benchmarks. The underlying AlphaDEX Index employs a quant-based screening methodology designed to identify stocks poised for outperformance. In return for exposure to this strategy, which has historically delivered impressive returns, investors can expect to pay a bit more; FXO’s expense ratio is about 50 basis points higher than low cost options for financial exposure such as FFL and XLF. The unique index construction methodology has some other potential advantages; FXO maintains much lower concentration of top holdings than do cap-weighted funds such as XLF. That means that performance isn’t as dependent on a handful of large cap stocks, potentially giving a better way to access financials. For those who believe in the merits of the AlphaDEX methodology and willing to pay a little extra for a shot at alpha, FXO might be worth a closer look.
PSK|15|This ETF offers investors exposure to preferred stock, an interesting segment of the capital markets that most investors do not have a lot of exposure to. Preferred stock holders have a ‘preferred’ position on assets compared to other common shareholders should there be a liquidity event in the company. However, these shareholders generally do not have voting rights in exchange for this premium position. Preferred stock also generally pay out solid dividend yields but then also do not participate as much in equity appreciation as their common share counterparts. Due to this preferred stock could be appropriate for those seeking to boost yields in a portfolio or for those looking for less risky forms of equity exposure that are relatively absent from broad portfolios of stocks. PSK is reasonably diversified by both sector and in terms of total number of holdings; the fund has just over 160 securities and is heavily weighted towards the financial industry although other sectors do comprise nearly 20% of the fund as well. As a result, this fund should be considered part of the financial holding of a portfolio and only used in small amounts to boost yields. If used properly, PSK could be a powerful tool for investors, just be careful and make sure to not overinvest in the sector.
RPAR|15|PendingDownload the FactSet Analyst Insight Reporthere.
SH|15|This ETF offers inverse exposure to an index comprised of large cap U.S. equities, making it a potentially attractive option for investors looking to bet against this sector of the U.S. economy. It’s important to note that SH is designed to deliver inverse results over a single trading session, with exposure resetting on a monthly basis. Investors considering this ETF should understand how that nuance impacts the risk/return profile, and realize the potential for “return erosion” in volatile markets. SH should definitely not be found in a long-term, buy-and-hold portfolio, but may be a useful tool for more active investors looking to either hedge existing exposure or bet on a decline in large cap U.S. securities. Investors also have the option of simply selling short a traditional large cap fund, though that strategy will generally involve greater potential losses than utilizing an inverse ETF.
DLS|15|This ETF offers a way to access a corner of international equity markets that many portfolios are missing. Most international ETFs are dominated by mega cap stocks, a bias that can tilt exposure towards energy and financials and result in a weak correlation to domestic consumption patterns in the target market. This ETF offers impressive depth of exposure, and avoids concentration in a handful of securities—another potential pitfall of large cap products. DLS is a nice tool for complementing positions in large cap funds, though it’s worth noting a significant concentration in Japan.
BSCL|15|The Analyst Report for BSCL is not available.
TLH|15|This ETF offers exposure to Treasuries towards the longer end of the maturity spectrum, 10-20 years, presenting another tool to investors looking to fine tune their fixed income exposure. TLH probably doesn’t belong as a core holding in a long-term portfolio, as most of the underlying securities are already included in broad-based funds such as AGG or BND. But for investors looking to lengthen the effective duration of a short-heavy fixed income section of a portfolio, TLH can be a very useful tool to enhance current returns by the addition of additional interest rate risk. TLH is efficient from a cost perspective, and offers sufficient liquidity as well. There are few funds offering identical exposure, though those seeking general access to long-term Treasuries can choose from a number of different ETFs, including VGLT and TLO.
IBDP|15|PendingDownload the FactSet Analyst Insight Reporthere.
CLOU|15|The Global X Cloud Computing ETF invests in an index of companies that stand to benefit from the increased adoption of cloud-based computing, including firms that provide cloud-based software, platforms and infrastructure.
PEJ|15|This ETF offers exposure to U.S. media companies, making it an option for gaining targeted exposure to a specific sub-sector of the consumer discretionary industry. As such, this fund probably won’t have much appeal to long-term buy-and-holders, but can be useful for overweighting exposure to consumer discretionaries or potentially implementing a long/short trade. Like many fine tuned ETFs, PEJ is somewhat concentrated; the portfolio consists of only about 30 individual stocks, though assets are spread relatively evenly. PEJ is part of the suite of Intellidex products, meaning that the underlying index is designed to select components expected to perform well relative to a broader universe. There aren’t many other options for pure play media exposure, through those seeking broad-based exposure to consumer discretionaries have a number of choices, including XLY or RCD.
EWA|15|This ETF offers exposure to Australian equities, and is the most liquid and most popular option for achieving exposure to the Australian economy. As such, EWA can be potentially useful as a tool for fine tuning the international equity section of a long-term portfolio. It can also be a useful fund for making a short-term bet on Australia, a resource rich economy that might have tremendous appeal in certain environments. Investors building a long-term portfolio may find more broad-based EAFE ETFs such as EFA or VEA to be more efficient from a cost perspective.
LCTU|15|PendingDownload the FactSet Analyst Insight Reporthere.
BBRE|15|The JPMorgan BetaBuilders MSCI US REIT ETF (BBRE) offers MSCI US REIT Index exposure, which has just over 100 holdings diversified primarily across mid- and large-cap equities, while exposure to small caps is also abundant. Real estate has historically been embraced because of its ability to deliver excess returns during bull markets and low correlation with traditional stock and bond investments. REITs might appeal to investors seeking current income, as these trusts must distribute at least 90% of their income to investors. They offer an efficient way for investors to gain indirect exposure to real estate prices (as opposed to direct exposure gained through ownership of a residential property).
GSG|15|This ETF technically offers broad commodity exposure, but the underlying index is tilted heavily towards energy resources. Crude oil, natural gas, and other energy commodities make up close to 70% of the exposure, meaning that metals and livestock are under-represented in this products. GSG is essentially a cross between a pure energy ETF such as DBE and a more broad-based commodity fund such as DBC or USCI. We don’t see GSG as a tremendously useful product; those seeking energy exposure would be better off in an oil ETF, while those seeking balanced commodity exposure should gravitate towards DBS or USCI.
FINX|15|PendingDownload the FactSet Analyst Insight Reporthere.
PXH|15|This ETF offers exposure to emerging markets, making it a potential cornerstone of any long-term portfolio and a useful tool for implementing shorter-term tactical overlays as well. While this ETF has considerable overlap with more popular EM ETFs such as VWO or EEM, there are some key distinctions that shape a very unique risk/return profile. PXH is linked to a RAFI-weighted index that determines components and individual security weightings based on fundamental measures such as book value and cash flow. As such, PXH breaks the link between stock price and security allocation and may have appeal as an alternative to market capitalization weighting systems that have numerous potential drawbacks. PXH features the same biases that are common in many EM ETFs, including big weightings to energy and financials. This fund does offer nicely balanced exposure, with about 300 components (though a few account for a big portion of assets). Other alternatives to cap-weighted ETFs include the equal-weighted EWEM or the dividend-weighted DEM, both of which have potential advantages and drawbacks. PXH is considerably more expensive than VWO, but for investors who believe in the merits of the RAFI methodology it may be a better way to achieve emerging markets exposure.
TDTT|15|The FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) offers exposure to short-term TIPS, bonds issued by the U.S. government that feature a principal that adjusts based on certain measures of inflation. TDTT can be useful as a tool for protecting portfolios against anticipated upticks in inflationary pressures. TDTT could be used, in moderate amounts, by buy-and-hold investors, or as a tactical play for those looking to shift into low-risk assets that may hold up well in inflationary environments.
BLOK|15|The Amplify Transformational Data Sharing ETF is one of a handful of funds that invests in businesses involved in blockchain, the technology behind cryptocurrencies like Bitcoin.
URA|15|This ETF gives investors an opportunity to achieve exposure to uranium, an important mineral that currently is inaccessible via futures. For investors looking to bet on increased demand for a raw material used widely in power production, URA is a nice option. URA often trades as a leveraged play on the underlying natural resources, meaning that this fund can experience significant volatility but can be a powerful tool for profiting from a surge in commodity prices.
XMLV|15|The Invesco S&P MidCap Low Volatility ETF tracks an index of the 80 least volatile stocks culled from the S&P 400 Index. The fund is the mid-cap variation of the popular Invesco S&P 500 Low Volatility ETF. Like its sister fund, XMLV is likely to have a widely different sector composition compared with a plain-vanilla mid-cap ETF. It is also more expensive. The higher fees and narrower portfolio are probably not what buy-and-hold investors are looking for, but XMLV could be a good option for tactics investors who want to tilt their mid-cap portfolio toward less volatile stocks.
GEM|15|The Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) offers broad exposure to emerging market stocks with Goldman’s multi-factor twist. GEM tracks a proprietary index that takes a multi-factor approach, looking for stocks that exhibit good value, strong momentum, high quality, and low volatility.
IAT|15|This ETF gives investors a way to play regional banks, a sub-sector of the financial sector that offers a unique risk/return profile relative to traditional financial exposure. Whereas financial funds such as XLF are dominated by large cap companies, IAT maintains significant exposure to small and mid cap banking stocks, many of which are not impacted by the factors that drive performance of big Wall Street banks. While IAT casts a reasonably wide net—it includes more than 60 individual holdings—exposure is concentrated in a handful of companies. The top two holdings account for close to a third of assets, meaning that a couple of stocks will have a major impact on total fund returns. Other regional bank ETFs include KRE and RKH, which is not technically an ETF and may present significant concentration issues. IAT is a decent option for regional bank exposure, but we like KRE much better; the equal-weighting strategy of that fund delivers more balanced exposure, while the lower expense ratio delivers better cost efficiency.
FIW|15|This product offers exposure to an index which selects companies who generate the majority of their revenues from the potable and wastewater industry. While water may seem like a strange investment at first glance, a closer look gives this product a lot of value. As the world’s population continues to expand, clean and safe drinking water will be one of the top priorities in order to promote and protect human life. These companies will have their hands in making this a possibility for nations all around the world. FIW keeps the majority of its assets in companies based in the US, the majority of which are medium or small capitalization funds. This fund will be a strong addition for investors who feel that the population growth will lead to a surge in activity and revenues for the firms that are included in this underlying index.
WCLD|15|PendingDownload the FactSet Analyst Insight Reporthere.
QQEW|15|This ETF offers exposure to one of the world’s most widely-followed equity benchmarks, but with a twist; weighting each of the component securities equally.  While QQQ is well known among investors, this ETF has some appeal to those constructing a long-term, balanced portfolio as its equal-weighting methodology mitigates some of the impact from the heavy tech weighting. However, the sheer number of tech companies in the Nasdaq ensures that even with this equal-weighting, the fund is heavily dependent on technology names. QQEW should be used by more long-term investors while traders should seek out the more liquid QQQ instead. QQQ has penny-wide spreads and can be a nice tool for those looking to quickly establish a position in U.S. equity markets. But investors building a retirement portfolio or maintaining a longer-term objective would be better served by looking at this often forgotten fund from First Trust instead if they are dead-set on obtaining broad exposure to the Nasdaq-100.
IYC|15|This ETF offers exposure to the U.S. consumer sector, and as such includes exposure to both consumer cyclical and consumer staples companies (with a few other sectors thrown in as well). Given the variety of component companies included in IYC, pinpointing the price drivers of this ETF can be tricky. Since it isn’t a pure sector ETF, IYC might not go nicely with any specific investment thesis. Investors looking for consumer staples would be better off with a more targeted option such as XLP, while those with a desire for exposure to more cyclical firms could select XLY or a similar fund. IYC offers a nice balance of holdings and only moderate concentration, but the connection between the index and a reasonable investment thesis seems to be missing. There are better, more granular ways to play the consumer sector among the other ETF offerings.
EMQQ|15|PendingDownload the FactSet Analyst Insight Reporthere.
IMCG|15|PendingDownload the FactSet Analyst Insight Reporthere.
VIOV|15|VIOV seeks to replicate a benchmark which offers exposure small cap firms that exhibit value characteristics in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on value securities, has certain biases in its portfolio holdings and may not offer as much of a cross section as funds such as IWM. However, VIOV does a solid job of dividing up assets as the fund holds more than 400 securities in total and doesn’t give any one security more than 1.0% of the total assets. Thanks to this extreme diversification and VIOV’s ultra cheap price, the fund could make for a quality addition to portfolios of investors who are looking for small cap exposure but are seeking lower risk assets in the space.
PTBD|15|PendingDownload the FactSet Analyst Insight Reporthere.
DFAU|15|PendingDownload the FactSet Analyst Insight Reporthere.
FIVG|15|The Defiance Next Gen Connectivity ETF (FIVG) invests in companies involved in research, development and commercialization of new infrastructure that supports connective technology.
HYEM|15|This ETF offers access to junk bonds from emerging markets issuers, an asset class that is generally excluded from long-term portfolios, but that has the potential to deliver impressive risk-adjusted returns. Most bond portfolios are dominated by holding in high quality debt of U.S. issuers. As such, HYEM offers unique exposure in two regards; it focuses on junk bonds of companies headquartered in emerging markets. As such, this ETF has the potential to bring geographic and currency diversification to a fixed income portfolio while also delivering returns materially higher than those on investment grade debt. HYEM focuses on U.S. dollar-denominated debt, which removes the foreign exchange rate risk from the equation. There are a number of other emerging markets bond ETFs that include currency exposure (such as ELD), though they generally include exposure to corporate as well as sovereign debt. HYEM offers similar exposure as EMHY for a fraction of the cost, increasing its appeal among cost-conscious investors.
FTC|15|This ETF offers exposure to the large cap growth sector of the U.S. equity market, making it one of many options for accessing an asset class that is often at the core of balanced portfolios. As such, FTC will appeal primarily to investors constructing exposure for the long term, and won’t be of much use to short-term focused traders. This ETF is one of the AlphaDEX products from First Trust, linked to an index that utilizes rules-based quantitative screens to identify companies that are poised to outperform broad-based cap-weighted benchmarks. The AlphaDEX products have an impressive track record compared to funds such as IWF, though the historical period is somewhat limited. Investors convinced by the stellar performance and underlying methodology may prefer FTC as a tool for tilting large cap exposure towards growth stocks, while those who believe in perfectly efficient markets and focus on minimizing fees will want to look elsewhere. This fund’s expense ratio is considerably higher than other options such as IWF or IVW.
EBND|15|This ETF offers exposure to debt of emerging markets issuers that is denominated in local currencies, making it a potentially attractive option for investors interested in diversifying fixed income exposure beyond U.S. borders. This asset class can be valuable both as a hedge against the U.S. dollar and as a means for enhancing current returns in low interest rate environments. Unlike EMB and PCY, this ETF focuses on debt denominated in the currency of the issuers, EBND is slightly cheaper than the actively-managed ELD, and offers impressive depth of holdings as well.
IWC|15|IWC seeks to replicate a benchmark which offers exposure to the micro cap sector of the U.S. equity market. The investment thesis behind micro caps is a very similar, but more aggressive approach than small caps. The companies held in this ETF will be very small and volatile firms that have a huge potential for both explosive growth and utter failure. At one point in time every company was a micro cap, and this ETF will give investors exposure to the ones that work their way into the upper echelon of the U.S. equities market. While some exposure to these small companies is healthy for a portfolio, the allocation should be kept low as this ETF will likely exhibit a high amount of volatility as well as being incredibly risky. IWC spreads its assets relatively evenly across numerous market sectors with a slight bias toward technology. This fund will be a good addition for investor looking for growth, but do not mind a bit of risk in their portfolio.
PPLT|15|This fund offers exposure to one of the world’s most expensive metals, platinum. PPLT is designed to track the spot price of platinum bullion by holding bars of the metal in a secure vault, allowing investors to free themselves from finding a place to store the commodity. PPLT is one of the only ways that investors can obtain exposure to the metal beyond buying shares of the few platinum miners, purchasing individual coins, or holding a futures contract on platinum. However, futures contracts encounter roll yield issues and are inherently more expensive and risky than just holding the physical metal. Due to this, PPLT is an excellent choice for investors looking to load up on the precious metal, just don’t let it be the only commodity that you hold as platinum is often highly correlated to the car industry and can be very cyclical.
ILF|15|This ETF offers broad exposure to the emerging Latin American region with the heaviest holdings going to the nations of Brazil, Mexico, and Chile.  Thanks to this focus on rapidly emerging nations which are sometimes forgotten by other emerging market ETFs, ILF could have some appeal to long-term investors with a buy-and-hold philosophy, but it is more likely to appeal to those looking to implement a tactical shift or capitalize on perceived mispricings over a relatively short time horizon. The main downside to this product is that although it is a ‘broad’ LM fund, it really only offers material holdings to four countries; the three aforementioned ones as well as a sub five percent holding in Peru. This suggests that the fund is really more of a concentrated bet than most might believe suggesting that investors need to be careful to make sure they are not doubling down on some of the largest components in the fund such as PetroBras, Vale, or Wal-Mart De Mexico. This is especially a problem in ILF as the fund only holds 35 securities in total and has close to two-thirds of its assets in its top ten holdings. So for investors looking for broad LM exposure that do not have any in their current portfolio, ILF could make for a solid choice but GML offers a slightly better investment profile making it the better pick in our opinion.
IBDM|15|The Analyst Report for IBDM is not available.
IBDQ|15|PendingDownload the FactSet Analyst Insight Reporthere.
HNDL|15|PendingDownload the FactSet Analyst Insight Reporthere.
PXF|15|This ETF offers exposure to large-cap equities in developed markets excluding the U.S., making it a potential cornerstone of any long-term portfolio and a useful tool for implementing shorter-term tactical overlays as well. While this ETF has considerable overlap with more popular funds such as VEU or GWL, there are some key distinctions that shape a very unique risk/return profile. PXF is linked to a RAFI-weighted index that determines components and individual security weightings based on fundamental measures such as book value and cash flow. As such, PXF breaks the link between stock price and security allocation and may have appeal as an alternative to market capitalization weighting systems that have numerous potential drawbacks. PXF features the same biases that are common in many developed-market ETFs, including big weightings to financials and energy. This fund does offer nicely balanced exposure and it’s holdings include just over 1000 components. Other alternatives to cap-weighted ETFs include the equal-weighted EWAC or the dividend-weighted LVL, both of which have potential advantages and drawbacks. PXF is considerably more expensive than VEU, but for investors who believe in the merits of the RAFI methodology it may be a better way to achieve international exposure.
SPYX|15|PendingDownload the FactSet Analyst Insight Reporthere.
XAR|15|This ETF offers targeted exposure to the aerospace & defense sector, a corner of the domestic economy that is capable of generating significant returns but that may also be subject to political risk in certain environments. Given the narrow focus of XAR—as well as the fact that the fund focuses primarily on large cap stocks—there might be little use for this fund in long-term, buy-and-hold portfolios (since most of the stocks held in XAR are already included in broad-based equity funds). This ETF can, however, be a useful tool for tactical traders looking to overweight this corner of the market.
UCO|15|This ETF offers 2x daily leverage to an index that consists of crude oil futures contracts, making UCO a powerful tool for expressing a bullish outlook on energy prices. It should be noted that the daily reset feature combined with the explicit leverage in this ETF make UCO inappropriate for investors without the ability or willingness to monitor this position on a regular (daily) basis. Moreover, investors should note that the underlying index consists of oil futures contracts, and as such, this fund won’t always move in unison with spot oil prices. For sophisticated investors with a fair amount of tolerance for risk and volatility, this ETF can be a very powerful tool. But UCO shouldn’t ever be found in a long-term, buy-and-hold portfolio; it’s simply too risky, and the nuances of this fund make it likely to lose money over the long run regardless of changes in spot oil prices, thanks to the damaging impact of contango.
IPAY|15|The ETFMG Prime Mobile Payments ETF invests in companies that stand to benefit from the transition away from cash and credit cards to digital payment technology.
LRGF|15|PendingDownload the FactSet Analyst Insight Reporthere.
QQQJ|15|The Invesco NASDAQ Next Gen 100 ETF (QQQJ) tracks an index of the largest non-financial stocks listed on Nasdaq that aren’t included in the Nasdaq-100 index.
EDV|15|This ETF offers exposure to long-dated Treasuries, an asset class that is generally safe in terms of credit risk but that can offer attractive return potential by exposing investors to interest rate risk. The index underlying this fund consists of Treasury STRIPS with maturities ranging from 20 to 30 years, a unique approach to accessing long-dated government debt. EDV will exhibit a high level of sensitivity to interest rate changes, surging when rates climb but plummeting on speculation that the Fed will push rates higher. For investors who believe that rates will hold steady or decline, EDV can be an attractive source of return, as the yields delivered are significantly higher than short-term Treasuries. Like most Vanguard ETFs, EDV is appealing to investors keeping a close eye on fees; the expense ration is among the lowest in the Government Bonds ETFdb Category, and commission free trading in Vanguard accounts may further increase the appeal to cost conscious investors. TLT offers generally exposure, though the underlying index doesn’t consist of STRIPS. For investors looking to bet against long-term Treasuries, TBT and TBF may be interesting options.
IHF|15|This ETF offers exposure to health care providers, a narrow sub-sector of the health care industry that may be subject to unique regulatory risks. Given the extremely narrow focus of this fund, IHF probably doesn’t belong in a long-term portfolio in any major amount, though this fund can be useful for those investors looking to implement a tactical tilt towards health care providers or perhaps as part of a long/short pairs trade. Not surprisingly, IHF is somewhat limited in terms of individual security diversification; the underlying portfolio is not extremely deep, and a few of the bigger names in the basket receive significant allocations in this fund. IHF is probably to granular for the vast majority of investors out there, but for those with a very specific objective it can be a useful tool for fine tuning portfolio exposure. Those looking for broader health care representation will prefer funds such as VHT or XLV; the equal-weighted RYH is also an interesting option. There are a number of other hyper-targeted options available under the health care umbrella, including medical devices (IHI), pharmaceuticals (IHE), and health care equipment (XHE).
DIAL|15|PendingDownload the FactSet Analyst Insight Reporthere.
IWX|15|This ETF is linked to the Russell Top 200 Value Index, which offers exposure to large and mega-cap companies that exhibit value characteristics within the U.S. equity market. Investors with a longer-term horizon should consider the importance of mega cap value stocks and the benefits they can add to any well-balanced portfolio including dividends and rock solid stability. Companies within this segment are often considered some of the safest firms in the world and tend to be in more stable industries as well, potentially skewing some portfolios that are heavy in value securities. IWX is linked to an index consisting of roughly 130 holdings and exposure is tilted most heavily towards financials, energy, and health care. Thanks to this fund’s reasonable level of diversification and cheap price, IWX could definitely make up a solid portion of a portfolio especially for those looking for more mega cap exposure.
LDUR|15|PendingDownload the FactSet Analyst Insight Reporthere.
SDOG|15|This ETF offers exposure to a strategy that is largely similar to the popular “Dogs of the Dow” approach that involves a portfolio consisting of the ten components of the Dow Jones Industrial Average with the highest dividend yields. SDOG, however, casts a much wider net by drawing from the S&P 500 as its universe of potential stocks. The fund is also unique in that it maintains equal allocations to each of ten sectors; that makes it very different from many dividend-focused products, which tend to have biases towards utilities and financials. The portfolio also consists of equal weighting to each individual component stocks, which might be appealing to those who favor equal weight strategies.
FEX|15|This ETF offers exposure to the large cap sector of the U.S. equity market, making it one of many options for accessing an asset class that receives significant allocations in many portfolios. As such, FEX will appeal primarily to investors constructing exposure for the long term, and won’t be of much use to short-term focused traders. This ETF is one of the AlphaDEX products from First Trust, linked to an index that utilizes rules-based quantitative screens to identify companies that are poised to outperform broad-based cap-weighted benchmarks. The AlphaDEX products have an impressive track record compared to funds such as SPY, though the historical period is somewhat limited. Investors convinced by the stellar performance and underlying methodology may prefer FEX as a tool for accessing large cap U.S. stocks, while those who believe in perfectly efficient markets and focus on minimizing fees will want to look elsewhere. This fund’s expense ratio is considerably higher than other options such as SPY or VOO.
XSLV|15|The Invesco S&P SmallCap Low Volatility ETF is a small-cap variation of the popular Invesco S&P 500 Low Volatility ETF, which invests in large-cap U.S. stocks that exhibit lower market turbulence. XSLV starts with the S&P SmallCap 600 index, and selects the 120 stocks with the lowest realized volatility in the previous year. Like its sister fund, XSLV is likely to have a widely different sector composition compared with a plain-vanilla small-cap ETF. Fees are reasonable for a factor fund, although there are cheaper small-cap options from plain-vanilla rivals. The higher fees and targeted portfolio are probably not what buy-and-hold investors are looking for, but XSLV could be a good option for tactics investors who want to tilt their small-cap portfolio toward less volatile stocks.
ESML|15|PendingDownload the FactSet Analyst Insight Reporthere.
IGOV|15|This ETF offers exposure to bonds issued by governments outside the U.S., offering an efficient way to access an asset class that is overlooked within the portfolios of many U.S.-based investors. Most fixed income portfolios are comprised almost entirely of securities from U.S. issuers, but the addition of international debt has the potential to enhance returns and add diversification benefits as well. As such, IGOV may be an appealing option for those looking to construct a balanced fixed income portfolio or have tactical appeal to those with a less-than-bullish outlook on U.S. debt markets. IGOV is one of several options available offering exposure to this asset class, joining BWX, BWZ, and ISHG. When evaluating these ETF options, factors to consider include the breakdown by country, effective duration, and attractiveness of the current yield.
FPXI|15|PendingDownload the FactSet Analyst Insight Reporthere.
STPZ|15|This ETF offers exposure to short-dated TIPS, a segment of the U.S. Treasury market that may have appeal to investors looking to protect against inflation. While most investors are familiar with the nuances of TIPS, the ramifications of the shorter duration should be understood before establishing a position. While a shorter time to maturity means lower yields, it also means that investors face less in terms of interest rate risk, making these funds excellent choices for those seeking extremely safe assets. Because inflationary environment are often accompanied by rate hikes, the effectiveness of this tool may be limited in certain situations. There are a number of more broad-based ETF options for exposure to TIPS, including TIP, TIPZ, and SCHP. Moreover, ETFs focusing on the medium or long end of the duration curve may have additional benefits; these include LTPZ and IPE.
NULV|15|PendingDownload the FactSet Analyst Insight Reporthere.
CGW|15|This ETF offers exposure to a group of companies operating generally in the water industry, including both water utilities, infrastructure companies, and water equipment and materials companies. As such, this ETF likely doesn’t belong in a long-term buy-and-hold portfolio due to the targeted nature of exposure, but may be appealing to those who believe that scarcity issues will prompt increased demand for water treatment companies. While this investment thesis may seem compelling, it is not clear how strong the link between water usage/scarcity trends and performance will be going forward. Given the complexity of the issues, as well as the various other business operations of component companies, we’re skeptical of the ability of this ETF to accomplish the objective investors may be expecting of it. Moreover, CGW faces some concentration issues, as a few individual stocks receive huge allocations, and it is on the pricey side. From the universe of water ETFs—which includes FIW, PIO, and PHO, this fund may be a good choice. But don’t expect too much from CGW.
CRBN|15|PendingDownload the FactSet Analyst Insight Reporthere.
VTHR|15|This ETF seeks to replicate the Russell 3000 Index, and as such includes exposure to companies of all different sizes and classified in all sectors of the U.S. economy. With nearly 3,000 individual holdings, few ETFs offer exposure to more individual securities. VTHR, like many All Cap Equities ETFs, is an appealing option for investors looking to capture low cost, broad exposure to equity markets and maintain a simplified portfolio; those seeking to fine tune sector or size exposure may want to consider more targeted funds. This fund can be useful both as a core component of a long term portfolio or as a means of establishing quick exposure to risky assets as part of a shorter-term strategy. Those using VTHR as part of a long term strategy should note that while companies of all sizes are included, there is a heavy tilt towards large cap stocks; those seeking balanced exposure to small and mid caps may need to use additional funds. VTHR is a blunt asset allocation tool, offering an impressive degree of diversification and an extremely cost efficient fee structure. The option to trade commission free in Vanguard accounts may further increase the appeal to cost conscious investors, and the unique attributes of Vanguard products may make this ETF a better choice than IWV.
MOO|15|This ETF gives investors worldwide exposure to a basket of equities that are involved in the agriculture business. MOO’s holdings are primarily in developed regions, although the fund still has emerging market exposure in Brazil, Singapore, and Malaysia. The fund’s holdings are poised to benefit from the ongoing increase in food demand from developed and emerging markets alike, and furthermore it doubles as a hedge since agricultural commodities are often among the first to rise in inflationary environments.
REZ|15|This ETF offers exposure to the residential real estate, healthcare, and self-storage sectors of the U.S. equity market.  REZ follows the FTSE NAREIT All Residential Capped Index, which has fewer than 40 holdings diversified primarily across mid-cap equities, while exposure to large and small-cap companies is also included. Real estate has historically been embraced because of its ability to deliver excess returns during bull markets and low correlation with traditional stock and bond investments. REITs might appeal to investors seeking current income, as these trusts must distribute at least 90% of their income to investors, and offer an efficient way for investors to gain indirect exposure to real estate prices (as opposed to direct exposure gained through ownership of a residential property). VNQ is a cheaper and more liquid, but broad-based alternative, while FRL boasts the lowest expense fee in this category.
FTXR|15|PendingDownload the FactSet Analyst Insight Reporthere.
AVDV|15|PendingDownload the FactSet Analyst Insight Reporthere.
IVLU|15|PendingDownload the FactSet Analyst Insight Reporthere.
FUTY|15|The Fidelity MSCI Utilities Index ETF (FUTY) tracks an index of U.S. utility stocks, a sector known for relatively low volatility and relatively high distribution yields. A fund like FUTY can be useful for establishing exposure to a low-risk segment that can enhance current returns. Like most sector ETFs, FUTY is most appealing to portfolio managers implementing a sector rotation strategy. Most long-term, buy-and hold investors will likely achieve utilities exposure through broad-based equity funds (though the allocation to this sector can be relatively small). Still, investors should be wary of unintentional over-concentration, since some dividend funds and low-volatility ETFs have a significant slice of their assets invested in utilities. FUTY owns more than 60 companies, including small caps, making it similar to the Vanguard Utilities ETF (VPU). Both FUTY and VPU offer a more diversified portfolio than the Utilities Select Sector SPDR Fund (XLU), which has long been the giant in the space. FUTY is competitively priced against rivals, though short-term tactical traders may prefer the size and liquidity of XLU.
QLTA|15|This ETF is the first product of its kind in the Corporate Bonds ETFdb Category to focus exclusively on debt securities with a specific credit rating. The underlying portfolio is well-balanced; less than a quarter of total assets are allocated to the top ten holdings alone. QLTA’s holdings consist of the highest rated investment grade bonds; all of underlying debt securities are rated Aaa-A based on the median rating assigned by the three primary rating agencies, including Moody’s, Fitch, and Standard & Poor’s. LQD is by far the biggest and most popular ETF in the corporate bonds space, however, this product is less-than-ideal for investors looking to focus on the high-quality segment of the corporate debt market. From a credit rating perspective, roughly more than half of LQD’s holdings would not meet the standards for inclusion in QLTA. As such, QLTA is a viable instrument with a fairly cheap expense ratio that can help investors round out their fixed income component by adding a tilt towards higher-quality debt.
XSD|15|XSD tracks a popular benchmark of companies that produce semiconductors, a crucial part of modern computing. Semiconductor chips act as the brains to numerous devices that we rely on today, including smartphones, calculators, computers, and much more. As technology continues to improve and expand, these chips will invariably be in demand to help power new devices. The fund focuses on U.S. stocks entirely, offering investors concentrated exposure to America’s semiconductor industry. Investors should note that this fund dedicates the majority of its assets to medium and small cap funds, meaning that it will be more volatile than a traditional large cap fund, but it also presents strong growth opportunities for those who believe in the semiconductor segment of our nation. Considering the focus of the fund, a decent level of diversification is present in this product as it holds close to 50 securities in total and has less than one-quarter of total assets in the top ten holdings. Furthermore, many of the top holdings are unlikely to be found in other products as well suggesting that this is probably a solid fund for those looking to tilt exposure to the semiconductor industry without doubling down on a host of other products that are also in the tech sector.
SIL|15|This ETF gives investors an opportunity to achieve exposure to silver without holding the physical metal or encountering the nuances of a futures-based strategy. For investors looking to bet on increased demand for a raw material used widely in various applications, SIL is a nice option. SIL often trades as a leveraged play on the underlying natural resources, meaning that this fund can experience significant volatility but can be a powerful tool for profiting from a surge in commodity prices.
MLPA|15|MLPA seeks to replicate a benchmark that offers exposure the overall performance of the United States master limited partnerships (MLP) asset class. MLPs have become very popular in recent years for primarily two reasons: (1) required quarterly distributions provide a steady stream of current income, and (2) because they are partnerships, MLPs avoid corporate income taxes at both the federal and state level as the the tax liability is passed through to the individual partners. By generating at least 90% of income from natural resource-based activities such as transportation and storage, an entity can qualify as an MLP and not be taxed as a corporation. So the IRS treats shareholders of an MLP as partners, making the MLP itself a pass-through entity. That means that taxes are avoided at the corporate level, and investors avoid the double taxation of income. MLPA  is by far the cheapest MLP product on the market, offering cost-conscious investors an appealing way to beef up their portfolio’s current income.
PICK|15|This ETF offers a way to access the global mining industry through an international basket of companies engaged in the extraction and production of metals, including aluminum, steel, and precious metals. As such, PICK can be useful as a tool for tilting portfolio exposure towards the mining sector or betting on a short term surge from mining stocks. PICK features by far the most diverse portfolio of holdings among broad-based mining ETFs, making this an appealing option for those interested in establishing well-rounded exposure to the mining sector over the long-haul. However, short-term traders who value liquidity above all else will likely opt for the more popular XME instead. Furthermore, this ETF is heavily tilted towards companies from  developed nations; investors looking to tap into more lucrative opportunities overseas should consider EMT, which offers exposure to mining companies in emerging markets.
IPAC|15|PendingDownload the FactSet Analyst Insight Reporthere.
FTA|15|This ETF offers exposure to large cap U.S. equities that are classified as value companies, making FTA a potentially useful tool for those looking to tap into this segment of the domestic stock market or shift exposure towards companies with lower pricing multiples and higher dividend yields. There are a number of ETF options offering exposure to this asset class; FTA is unique because of the methodology it uses to determine holdings. Instead of offering exposure to all large cap value stocks, FTA utilizes a quant-based screening methodology to identify companies deemed to have the greatest potential for capital appreciation. For investors who believe the AlphaDEX methodology is sound and has the ability to generate alpha consistently, FTA may be a very appealing option for accessing large cap value stocks. For those who believe that markets are completely efficient, there are several cheaper options out there, including IWD and VTV. FTA’s exposure is somewhat unique compared to more broad-based value ETFs; this fund offers more balanced exposure that breaks the link between market capitalization and index allocation. That feature may be appealing for certain investors, especially those looking for alternatives to cap-weighting.
VXX|15|This ETF offers investors a way to access equity market volatility, an asset class that may have appeal thanks primarily to its negative correlation to U.S. and international stocks. The VIX index tends to spike when anxiety increases, and as such often moves in the opposite direction of stocks. However, it’s important to note that VXX does not represent a spot investment in the VIX, but rather is linked to an index comprised of VIX futures. As such, the performance of this product will often vary significantly from a hypothetical investment in the VIX (which isn’t possible to establish). The focus on short-dated futures increases the correlation to the VIX, but also increases the potential for the adverse impacts of contango. Longer-dated options such as VIIZ, VIXM, or VXZ may be appropriate for longer holding periods. This ETP should never be held over the long term in a buy-and-hold portfolio; it is designed as a trading instrument that appeals to those looking to place a short term bet against the market or use as a hedging tool. One structural note: as an ETN, VXX avoids tracking error but may expose investors to credit risk, as well as unique tax treatments. VIXY offers similar exposure in an ETF wrapper, while VIIX is a near-identical ETN alternative.
NUSC|15|PendingDownload the FactSet Analyst Insight Reporthere.
MJ|15|The ETFMG Alternative Harvest ETF was the first pure-play cannabis ETF listed in the U.S. The ETF tracks an index of companies involved in the legal business of growing, marketing and selling cannabis products for medical and recreational use.
BSCP|15|The Invesco BulletShares 2025 Corporate Bond ETF tracks an index of U.S. investment-grade corporate bonds that mature in the indicated year. BulletShares are different than traditional bond ETFs because, once the scheduled maturity date is reached, the funds distribute the principal back to investors. Traditional bond ETFs continuously buy and sell their underlying bonds to maintain their target maturity. For this reason, BulletShares behave more like a traditional bond than like a bond fund. This appeals to investors who want to lock in a fixed coupon while still gaining the diversification that an ETF portfolio provides. As the maturity date nears, BulletShares ETFs roll the proceeds of their maturing bonds into shorter-term corporate debt or Treasurys. Once the target date is reached, the fund distributes the capital back to investors and shuts down. Investors can, at any time, sell their BulletShares ETF on the stock market and reinvest elsewhere, including rolling over into another BulletShares ETF. Investors and advisers can “ladder” their BulletShares holdings across a range of maturity dates, which locks in fixed coupon payments and plans ahead for cash distributions at maturity. This makes them especially appealing for those who want the guaranteed income, combined with the ease and diversification benefits an ETF can provide. For most investors, it’s far easier and cheaper to buy a BulletShares ETF than it is for them to source one or two underlying bonds. BulletShares ETFs debuted in 2010 under the Claymore brand and eventually moved to Invesco when the company acquired Guggenheim’s ETF business in 2018. BulletShares provide income, diversification and liquidity, and all for an extremely competitive fee.
AGGY|15|PendingDownload the FactSet Analyst Insight Reporthere.
DRIV|15|PendingDownload the FactSet Analyst Insight Reporthere.
PNQI|15|This ETF dedicates its assets to the largest and most liquid companies that are engaged in internet-related businesses. While the ETF invests in only U.S.-listed securities, a fair amount of these companies are still domiciled overseas, meaning that this fund will give investors exposure to this sector on a global scale. From a sector standpoint, PNQI dedicates the majority of its assets to technology, and to the lesser-known consumer cyclical sector. The consumer cyclical sector is more or less composed of consumer discretionary firms, which tend to do better than average during strong times, and vice versa during slumps. This ETP gives investors exposure to firms of all different market cap sizes, giving solid base with potential for growth available. Investors should note that the holdings of this ETF are somewhat bizarre, as all of the companies do business over the internet, but do not necessarily have anything in common outside of that factor.
SMLF|15|PendingDownload the FactSet Analyst Insight Reporthere.
RWL|15|This ETF tracks the RevenueShares Large Cap Index, a benchmark consisting of some of America’s largest companies. As a result, investors should think of this as a play on mega and large cap stocks in the American market. These securities are usually known as ‘Blue Chips’ and are some of the most famous and profitable companies in the country, including well known names such as ExxonMobil, Apple, IBM, and GE. The fund is probably one of the safest in the equity world as the companies on this list are very unlikely to go under unless there is an apocalyptic event in the economy. However, the fund employs a different weighting methodology than the cap weighted funds in the index, potentially giving it a different risk/return profile. The fund tracks all the same stocks in the S&P 500 but instead of weighting on market cap uses top line revenues to determine the allocations. Thanks to this, the fund could outperform or possibly underperform funds such as SPY or VOO that track the exact same index. Overall, RWL is a quality choice for investors seeking broad mega and large cap exposure as it contains just over 500 securities in total. However, the fees are marginally higher than other funds that employ a cap weighted methodology suggesting that those who need to keep costs to an absolute minimum would be better served elsewhere. If, however, investors believe in the promise of the revenue weighting system, RWL is a fine pick that will offer well rounded exposure.
IHDG|15|PendingDownload the FactSet Analyst Insight Reporthere.
AVDE|15|PendingDownload the FactSet Analyst Insight Reporthere.
JAGG|15|The JPMorgan U.S. Aggregate Bond ETF (JAGG) is an actively managed fund that offers broad exposure to the U.S. investment grade debt market at an extremely competitive price. JAGG offers JPMorgan’s bond-trading expertise at a management fee competitive to that of low-cost plain vanilla index funds like the Schwab U.S. Aggregate Bond ETF (SCHZ) and iShares Core U.S. Aggregate Bond ETF (AGG). JAGG aims for a portfolio that’s broadly similar to the leading investment-grade U.S. bond benchmark, but uses value, quality, and momentum to select bonds with each sector. JAGG debuted in December 2018, and in the one year through mid-June 2020, had slightly outperformed AGG.
FENY|15|The Fidelity MSCI Energy Index ETF (FENY) tracks an index of U.S. energy stocks, including many of the world’s largest oil producers. While FENY probably doesn’t make sense for those constructing a long-term buy-and-hold portfolio, it can be useful as a tactical overlay for those looking to shift exposure towards a sector that thrives when oil prices show strength. As of June 2020, FENY owns about 80 stocks, including small caps, making it a better-diversified option than the Energy Select Sector SPDR Fund (XLE). It is competitively priced compared with rivals like XLE and the Vanguard Energy ETF (VDE), which is nearly identical, though short-term traders may prefer the size and liquidity of XLE.
PFXF|15|PendingDownload the FactSet Analyst Insight Reporthere.
FNX|15|This ETF is one of several ETFs available that offers exposure to mid cap U.S. stocks, an asset class that can make up a significant portion of long-term, buy-and-hold portfolios. As such, this ETF may be more appealing to those in the portfolio construction process as opposed to short term traders. Mid cap stocks are appealing to many because they still have significant growth potential but they are less risky than their small and micro cap brethren. FNX offers exposure to a balanced portfolio of stocks, including close to 300 individual names and spreading exposure relatively evenly. The expense ratio is much higher than many of the other products in the category but that is thanks to the fund’s methodology which attempts to screen out some of the worst companies in the index, potentially adding to the overall return. For those seeking other, cheaper choices, there are cap-weighted choices such as MDY and IJH, the ultra-cheap FMU, and equal-weighted EWRM.
COPX|15|This ETF gives investors an opportunity to achieve exposure to copper without encountering the nuances of a futures-based strategy. For investors looking to bet on increased demand for a raw material used widely in various applications, COPX is a nice option. COPX often trades as a leveraged play on the underlying natural resources, meaning that this fund can experience significant volatility but be a powerful tool for profiting from a surge in commodity prices.
UVXY|15|This ETF offers leveraged exposure to an index comprised of short-term VIX futures contracts, making it a very powerful tool for those looking to implement sophisticated strategies requiring exposure to the VIX. The VIX, also known as the “fear index,” is a widely followed indicator of equity market volatility. Because the VIX tends to spike when stock markets struggle, this asset class has become appealing to investors looking for negative correlations to stocks.
SUSB|15|PendingDownload the FactSet Analyst Insight Reporthere.
UITB|15|PendingDownload the FactSet Analyst Insight Reporthere.
REMX|15|This ETF gives investors unique exposure to rare earth/strategic metals through a basket of securities involved in the mining, refining, and manufacturing process. Based on the funds top holdings, exposure is tilted towards producers of titanium and molybdenum, while producers of cerium, manganese, and tungsten are also covered. REMX is a nice option for investors betting on increased demand for specialized metals, which are further expected to rise in price given their scare supply.
ROM|15|This ETF offers 2x daily long leverage to the Dow Jones U.S. Technology Index, making it a powerful tool for investors with a bullish short-term outlook for technology equities. Investors should note that ROM’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. ROM can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
CXSE|15|PendingDownload the FactSet Analyst Insight Reporthere.
REGL|15|PendingDownload the FactSet Analyst Insight Reporthere.
IGHG|15|PendingDownload the FactSet Analyst Insight Reporthere.
NXTG|15|PendingDownload the FactSet Analyst Insight Reporthere.
HTRB|15|PendingDownload the FactSet Analyst Insight Reporthere.
EWW|15|EWW offers exposure to Mexican equities, by holding companies that are domiciled in the Latin American nation. For investors seeking investment in the nation, EWW is one of the only choices available as most ETFs do not offer any allocations to the emerging nation except for broad Latin America funds. EWW is a nice option for investors who want to load up on Mexico but be aware the fund could experience high levels of volatility.
CFO|15|PendingDownload the FactSet Analyst Insight Reporthere.
FLCO|15|The Franklin Liberty Investment Grade Corporate ETF (FLCO) is an actively managed fund that invests in U.S.-dollar denominated investment-grade corporate bonds. The fund caps overseas exposure at 40% of assets and may invest up to 15% of the portfolio in non-U.S. dollar denominated securities. FLCO is reasonably priced for an active ETF, though there are less expensive options out there. Bonds have been one of the bright spots for active managers, and many bond ETFs manage to outperform their benchmarks — something stock pickers often fail to achieve. An investment in FLCO is ultimately a bet on the manager’s ability to beat the market. Investors can compare FLCO to the iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD), a giant in the indexed bond space.
QUS|15|PendingDownload the FactSet Analyst Insight Reporthere.
KRBN|15|PendingDownload the FactSet Analyst Insight Reporthere.
SIVR|15|This ETF uses a physically-backed methodology, an idea that was popularized by ETFs, due to investors growing tired of the complexities of futures contracts and the dangers that are associated with them. By using this physically-backed strategy, this fund is able to eliminate the issues of contango and backwardation, as well as give investors a more realistic pricing of the metal it holds. Silver, along with other precious metals, is most often used as an inflationary hedge, or to protect against volatile equities. This fund doesn’t work very well in the long term buy and hold scenario, but may be a good option for investor seeking to find a safe haven during times of market uncertainty. When it comes to physically-backed silver, SIVR and SLV are nearly identical, though SIVR does charge a slightly lower expense ratio.
XMMO|15|The Invesco S&P MidCap Momentum ETF tracks an index of U.S. mid-cap stocks that exhibit strong price momentum. The methodology begins with the S&P MidCap 400 Index and assesses the percentage change in the stock price in the past 12 months, excluding the most recent month, and then adjusts for volatility. Approximately 80 of the top scoring stocks are included in the index. The portfolio is weighed based on a combination of companies’ market capitalization and momentum scores. The fund fees are reasonable for a mid-cap factor strategy, though there are cheaper ultra-low-cost options in the mid-cap market. The strategy is too targeted for most buy-and-hold investors, but may suit a tactical investor who wants to apply a momentum overlay to their mid-cap exposure. Prior to June 21, 2019, the fund tracked an index of mid-cap growth stocks.
IAI|15|IAI offers targeted exposure to a sub-sector of the U.S. financial sector, focusing on companies that include securities brokers and dealers, online brokers, and securities or commodities exchanges. As is often the case with niche funds offering such targeted exposure, IAI is relatively concentrated with fewer than 30 individual holdings. That level of concentration is often required to deliver such fine tuned exposure, but may result in a few big names driving total returns. This ETF does a nice job spreading exposure across the components. Investors seeking broader exposure to the U.S. financial sector may prefer a fund such as XLF or RYF that include a more diverse lineup of component companies. IAI offers exposure to a very specific type of financial firms, though it is noted that many components are involved in a wide variety of financial activities, and as such may not serve efficiently as pure plays on the investment thesis behind this fund. For example, Goldman Sachs and Morgan Stanley, two of the largest components, generate substantial revenues from other financial activities. IAI isn’t the only ETF available for investors seeking targeted broker-dealer exposure— there is KCE as well— but investors should be aware of the potential limitations to this fund.
CDC|15|PendingDownload the FactSet Analyst Insight Reporthere.
GLTR|15|GLTR takes a unique approach to commodity investing. While many funds have adopted physical backings for more stable investments, this product has taken it a step further and invested in four separate precious metals: gold, silver, palladium, and platinum. Commodity exposure in a portfolio used to be a binary choice, either one invested in them, or they did not. Now, commodities have been proven as powerful inflation hedging tools with the power to generate powerful returns for an individual portfolio. This fund is based on futures-contracts to makes it subject to the risks of contango, backwardation, and other problems that are associated with futures-backed products. Despite setbacks, this product can be a powerful tool if the investor fully understand the complexities of the ETF and how to trade it. Investors should take note that while this fund offers exposure to four separate metals, gold and silver account for over 85% of this basket fund. GLTR will be a good addition for investors looking for precious metal exposure that expands beyond just one of these elusive commodities.
RYH|15|This ETF offers exposure to the domestic health care industry and it uses an alternative strategy to access this lucrative asset class. The fund follows the S&P 500 Health Care Index, however each sub-industry component is given an equal weight. A strategy like this might appeal to investors looking to avoid traditional indexing methodology which typically distributes holdings based on market-cap. RYH is designed to offer more balanced exposure for the long-term investor since it has the added benefit of avoiding the potentially adverse impact of rallies or crashes in a specific sub-industry within health care. RYH is an alternative to XLV, however it has a higher price-tag as the expense ratio is higher and liquidity is lower.
SECT|15|PendingDownload the FactSet Analyst Insight Reporthere.
ACES|15|PendingDownload the FactSet Analyst Insight Reporthere.
VTWV|15|VTWV seeks to replicate a benchmark which offers exposure small cap firms that exhibit value characteristics in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on value securities, has certain biases in its portfolio holdings and may not offer as much of a cross section as funds such as IWM. However, VTWV does a great job of dividing up assets as the fund holds more than 1,200 securities in total and doesn’t give any one security more than 50 basis points of the total assets. Thanks to this extreme diversification and VTWV’s ultra cheap price, the fund could make for a quality addition to portfolios of investors who are looking for small cap exposure but are seeking lower risk assets in the space.
EPI|15|EPI offers exposure to Indian equities, weighting individual holdings by earnings instead of market capitalization. For investors who want to overweight Indian equities in their portfolios, this ETF is one of the many options for accessing the economy. EPI is a nice option for investors who want to load up on India but believe cap weighted methodologies are less than ideal.
EWH|15|This ETF offers targeted exposure to equities domiciled in Hong Kong. The fund focuses in on large caps with a heavy focus on financial companies. For investors bullish on Hong Kong and looking for more exposure to the area, EWH is your best bet
PEY|15|This ETF offers a way to access stocks of U.S. companies that have increased dividends consistently over time, focusing in on a select group of companies that have a solid track record as a source of consistent dividends and may offer attractive current yields relative to the broader market. Stocks are selected based on dividend yield and consistent dividend growth, resulting in a portfolio that should exhibit a beta less than 1.0 and offer a much higher distribution yield than broad-based market ETFs such as SPY or IWV. As such PEY may be an attractive option for investors looking to scale back risk while still maintaining exposure to equities, and it may also be effective for investors seeking to enhance current returns from the equity portion of a portfolio in low interest rate environments. There are dozens of ETFs that offer exposure to dividend-paying companies, including products linked to dividend-weighted indexes and benchmarks that employ a wide variety of screens to ensure that component companies offer attractive dividend yields. A comparison of the relevant yield metrics, expenses, and balance of exposure is worthwhile for any investors seeking to implement a dividend-intensive strategy through ETFs. In return for the enhanced current returns and specialized exposure, investors can expect to pay a bit more; PEY is more expensive than cap-weighted ETFs by a material margin.
GTO|15|The Invesco Total Return Bond ETF is an actively-managed fund that invests in debt securities, including corporate debt, asset-backed loans, mortgage-backed securities, bank loans, municipal bonds and sovereign debt. The fund may invest up to a third of its portfolio in debt issued by junk-rated borrowers, and it may own distressed securities. The fund fees are competitive with other actively-managed debt ETFs, but still higher than index ETFs offering broad fixed income exposure. Investors should note that active fixed income money managers have a far better track record beating the market than their stock-picking peers. Investors should compare fees, liquidity and returns against ETFs pegged to broad fixed income indices, such as the iShares Core U.S. Aggregate Bond ETF (AGG) or the Vanguard Total Bond Market ETF (BND).
TIPX|15|PendingDownload the FactSet Analyst Insight Reporthere.
DTD|15|This ETF is linked to the WisdomTree Dividend Index, which offers exposure to dividend paying large-cap companies that exhibit value characteristics within the U.S. equity market. Investors with a longer-term horizon should consider the importance of large cap value stocks and the benefits they can add to any well-balanced portfolio including dividends and rock solid stability. Companies within this segment are often considered some of the safest firms in the world and tend to be in more stable industries as well, potentially skewing some portfolios that are heavy in value securities. DTD is linked to an index consisting of roughly 830 holdings and although the fund holds an impressive number of securities exposure is surprisingly heavy in the top ten holdings; more than one-quarter of the assets goes to the top ten. DTD offers investors broad exposure to dividend paying companies, giving investors a much wider net than the other dividend focused firms in the space. As a result, DTD could be a better pick for long-term buy and hold investors than some of the other products, plus it has a much lower expense ratio to boot.
KSA|15|PendingDownload the FactSet Analyst Insight Reporthere.
BUG|15|PendingDownload the FactSet Analyst Insight Reporthere.
SDIV|15|This ETF is one of several products designed to offer exposure to a basket of dividend-paying equities, but one of few that combines this objective with a global scope. SDIV can be used in a variety of different ways within a portfolio; it may have appeal as a core holding as part of a long-term, buy-and-hold strategy that emphasizes current return, and could also be useful for establishing a shorter-term tactical tilt towards a group of equities that offer attractive distributions and a unique risk/return profile.
AOK|15|This ETF is a one stop shop for investors seeking a conservative strategy that tilts towards fixed income and away from equities. It should be noted, however, that risk tolerance concepts and objectives vary from investor to investor, so using a “one size fits all” approach might not be advisable. AOK maximizes simplicity, but many investors will want to use other products to fine tune the risk/return portfolio this fund offers.
FLQL|15|The Franklin LibertyQ U.S. Equity ETF (FLQL) tracks a proprietary index of U.S. large cap stocks. The methodology aims to mitigate the risk of loss in a downturn while still capturing gains. The index tilts toward quality and value, with smaller allocations to momentum and low-volatility. FLQL is reasonably priced for the category, though there are cheaper options out there. Investors might compare it to other value and quality funds, as well as multi-factor ETFs such as the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC), the Invesco S&P 500 High Dividend Low Volatility ETF (SPHD), the Schwab U.S. Large-Cap Value ETF (SCHV), and the Vanguard Value ETF (VTV).
PCEF|15|This ETF is one of the more unique offerings within the ETP lineup, offering exposure to a basket of closed-end funds that invest in various types of fixed income securities. Unlike ETFs, closed-end funds often trade at a premium or discount to their NAV, introducing both another risk factor and an opportunity to enhance current returns. By focusing on CEFs trading at a big discount to NAV, PCEF is able to sport an impressive distribution yield that may make this fund an intriguing option for those looking to beef up current returns. The juicy yields offered by this fund might make PCEF an appealing option to include within a long-term portfolio as a source of additional yield; this ETF may also be attractive for those looking to establish a shorter-term tactical tilt towards high yielding securities. One potential drawback is the relatively high expense ratio charged, and the layered exposure strategy results in multiple layers of fees on this product. Still, the yield offered by PCEF will be hard to find anywhere else.
UYG|15|This ETF offers 2x daily long leverage to the Dow Jones U.S. Financials Index, making it a powerful tool for investors with a bullish short-term outlook for financial equities. Investors should note that UYG’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. UYG can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
FDVV|15|The Fidelity High Dividend ETF (FDVV) tracks an index of large- and mid-cap developed market stocks that pay high dividends, making it an appealing choice for investors looking for steady income from their equity holdings. As of June 2020, FDVV owns about 100 securities, so it doesn’t provide broad, diversified exposure across developed markets. Long-term investors would likely use FDVV to eke a little extra income out of their portfolio. FDVV’s exposure leans heavily on North American equities. Investors looking for more diversified regional exposure might consider the Global X SuperDividend ETF (SDIV).
UDOW|15|This ETF offers 3x daily long leverage to the Dow Jones Industrial Average, making it a powerful tool for investors with a bullish short-term outlook for blue chip equities. Investors should note that UDOW’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. UDOW can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
FYX|15|FYX seeks to replicate a benchmark which offers exposure to small cap firms in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on both value and growth securities, could provide more of a diversified play than products that just focus on ‘growth’ or ‘value’ securities within this segment. Thanks to this broad focus, FYX has a large number of securities— close to 450 in total— and does a phenomenal job of dividing up assets among the components as no one company makes up more than 60 basis points of total assets. Thanks to this high level of diversification and FYX’s ‘alpha’ methodology, the fund could make for a quality addition to portfolios of investors who are looking for small cap exposure and do not have a preference in terms of value or growth equities.
IWL|15|This ETF tracks the Russell Top 200 Index, a benchmark consisting of some of America’s largest companies. As a result, investors should think of this as a concentrated play on mega cap stocks in the American market. These securities are usually known as ‘Blue Chips’ and are some of the most famous and profitable companies in the country, including well known names such as ExxonMobil, Apple, IBM, and GE. The fund is probably one of the safest in the equity world as the companies on this list are very unlikely to go under unless there is an apocalyptic event in the economy. However, these securities are unlikely to grow very much either as they are already pretty large and have probably seen their quickest growing days in years past, but most do pay out solid dividends which should help to ease the pain of this realization. Overall, IWL is a quality choice for investors seeking broad mega cap exposure but most would probably be better served by investing in a broader fund that is a little more diversified, although IWL is better than most in the mega cap space.
FCOM|15|The Fidelity MSCI Communication Services Index ETF (FCOM) tracks an index of well-known stocks like Facebook, Twitter, Netflix, and Google-parent Alphabet Inc. As of June 2020, FCOM owned about 100 stocks, including small caps, making it a better-diversified option than the Communications Services Select Sector SPDR (XLC). FCOM may appeal to investors looking to tilt their portfolio toward volatile companies once lumped in with technology firms. In 2018, several well-known tech stocks were reclassified as communications services as part of a massive overhaul of the Global Industry Classification Standard, or GICS. The resulting changes implemented by index providers like MSCI and S&P had a ripple effect throughout ETFs. Technology ETFs sold off well-known companies like Facebook, which were picked up by ‘communications services’ funds, which now look nothing like the old telecommunications funds that were dominated by stocks like AT&T and Verizon. FCOM is competitively priced when compared with the Vanguard Communication Services ETF (VOX), which is nearly identical, though traders might prefer the size and liquidity of XLC.
BWX|15|This ETF offers exposure to bonds issued by governments outside the U.S., offering an efficient way to access an asset class that is overlooked within the portfolios of many U.S.-based investors. Most fixed income portfolios are comprised almost entirely of securities from U.S. issuers, but the addition of international debt has the potential to enhance returns and add diversification benefits as well. As such, BWX may be an appealing option for those looking to construct a balanced fixed income portfolio or have tactical appeal to those with a less-than-bullish outlook on U.S. debt markets. BWX is one of several options available offering exposure to this asset class, joining IGOV, BWZ, and ISHG. When evaluating these ETF options, factors to consider include the breakdown by country, effective duration, and attractiveness of the current yield.
IBUY|15|PendingDownload the FactSet Analyst Insight Reporthere.
XRT|15|This ETF offers exposure to the U.S. retail industry, a targeted sub-sector of the consumer discretionary space that may have appeal for investors looking to bet on increased consumer consumption in the domestic market. XRT is probably too targeted for any investor with a long-term buy-and-hold strategy, but may have appeal for those looking to implement a sector rotation strategy or overweight high beta corners of the U.S. market. For those seeking exposure to retail, there are a number of options, including PMR and RTH. XRT is an attractive option because of the balanced nature of the exposure offered; this SPDR holds more individual holdings than either PMR or RTH, and employs an equal-weighted methodology that avoids concentration in a few big names (an issue that plagues RTH). Moreover, XRT is the most efficient from a cost perspective, besting PMR by a wide margin. If you’re seeking exposure to the retail market, XRT is likely the best choice out there.
ILCB|15|PendingDownload the FactSet Analyst Insight Reporthere.
IVOG|15|This ETF offers exposure to mid cap stocks that exhibit growth characteristics, making IVOG a potentially useful tool for investors looking to fine tune their domestic equity exposure or implement a tilt towards a specific investment style. Investors constructing a long-term portfolio would be better off with a fund such as MDY or IJH that includes greater depth of holdings and a mix of various styles. Growth strategies often come with biases towards specific sectors, and may outperform more broadly-based indexes in certain economic environments. It should be noted that there is often considerable overlap between IVOG and its value counterpart IVOV, the result of a methodology that uses a generous definition of growth stocks. Rydex offers s pure style alternative, RFG, that is slightly more expensive but will offer a considerably more targeted focus on growth equities. Those seeking to make a meaningful tilt in their portfolio would be better served by using that fund. It should also be noted that IJK seeks to replicate the same index, though it is slightly more expensive than this fund. IVOG may have further appeal to those able to trade this ETF commission free (it’s eligible for commission-free trading in Vanguard accounts).
DJP|15|DJP is a popular option for investors looking to achieve broad-based exposure to commodities, including energy resources, precious metals, and agriculture. The construction of the underlying portfolio ensures that energy commodities are not overweighted, a nice feature to have in a commodity ETN. But there are some drawbacks to DJP as well, including potentially the ETN structure that exposes investors to credit risk. Costs are also an issue; investors in this ETN are essentially throwing their money away, as DJCI offers exposure to the exact same index at a far cheaper cost.
DBA|15|This ETF is one of the most popular options for achieving exposure to agricultural commodities; DBA invests in a diversified basket of various agricultural natural resources, and as such can be a useful diversifying agent or inflation hedge. The targeted focus of this fund makes it often more appropriate for investors looking to implement a shorter term tactical tilt, though DBA may also be useful as a component of a long-term, buy-and-hold portfolio. Those seeking more broadly-based commodities exposure may prefer funds such as DBC or DJP. Investors considering agriculture exposure should take note of the frequency with which the underlying holdings are rolled and the mix of exposure across various contracts. The tax consequences should also be noted; as an ETF, DBA will feature slightly different tax treatments than ETNs such as AGF (it also won’t expose investors to the credit risk of the issuing institution).
COWZ|15|PendingDownload the FactSet Analyst Insight Reporthere.
INTF|15|PendingDownload the FactSet Analyst Insight Reporthere.
IMCB|15|PendingDownload the FactSet Analyst Insight Reporthere.
URNM|15|PendingDownload the FactSet Analyst Insight Reporthere.
SPLB|15|The SPDR Portfolio Long Term Corporate Bond ETF (SPLB) tracks an index that offers exposure to investment-grade corporate bonds with a maturity greater than or equal to 10 years. The index includes U.S.-dollar denominated, fixed-rate debt. Some structured notes, floating-rate securities, and private placements are excluded. SPLB delivers a moderate amount of credit risk, but by investing in longer-term securities, a significant amount of interest-rate risk. SPLB might be useful for investors looking to enhance fixed income returns and willing to take on longer duration, a measure of bond price sensitivity to interest rate changes. Typically bond prices fall when rates rise.
AVEM|15|PendingDownload the FactSet Analyst Insight Reporthere.
GUSH|15|PendingDownload the FactSet Analyst Insight Reporthere.
BSJM|15|The Invesco BulletShares 2022 High Yield Corporate Bond ETF tracks an index of junk-rated U.S. corporate bonds that mature in the indicated year. BulletShares are different than traditional bond ETFs because once the scheduled maturity date is reached, the funds distribute the principal back to investors. Traditional bond ETFs continuously buy and sell their underlying bonds to maintain their target maturity. For this reason, BulletShares behave more like a traditional bond than like a bond fund. This appeals to investors who want to lock in a fixed coupon while still gaining the diversification that an ETF portfolio provides. As the maturity date nears, BulletShares high-yield ETFs roll the proceeds of their maturing bonds into cash, cash equivalents, Treasurys or investment-grade corporate paper. This acts as an automatic risk-off tool; in the final year of the fund’s life, the portfolio will steadily tilt more and more heavily toward ultra-safe Treasurys. This is appealing for investors looking for a guaranteed cash distribution at maturity, and are willing to accept steadily lower yields in the final year. Once the target date is reached, the fund distributes the capital back to investors and shuts down. Of course, the appeal of junk debt is the increased yields over Treasurys or investment-grade corporates. Investors who want to maintain the income from high-yield exposure can sell their maturing BulletShares ETF on the stock market and reinvest in a comparable BulletShares with a later maturity. One popular strategy is “laddering” BulletShares across a range of maturity dates, which locks in fixed coupon payments and plans ahead for cash distributions at maturity. This makes them especially appealing for those who want the guaranteed income combined with the ease and diversification benefits an ETF can provide. For most investors, it’s far easier and cheaper to buy a BulletShares ETF than it is for them to source one or two underlying bonds. BulletShares ETFs debuted in 2010 under the Claymore brand and eventually moved to Invesco when the company acquired Guggenheim’s ETF business in 2018. BulletShares provide income and diversification for a competitive fee, though large investors may want to be conscious that the liquidity constraints of the underlying market may lead to wider spreads. Investors should also compare performance and liquidity against some of the popular active and passive junk-debt ETFs on the market.
NULG|15|PendingDownload the FactSet Analyst Insight Reporthere.
ONLN|15|PendingDownload the FactSet Analyst Insight Reporthere.
HYDW|15|The Xtrackers Low Beta High Yield Bond ETF (HYDW) tracks an index of “junk” bonds — debt issued by borrowers with a higher risk of default — that exhibit lower market beta — jargon used to describe how volatile performance is relative to the market. It’s another way of saying HYDW tries to be less risky than the overall high-yield debt market. Investors should expect less of a bumpy ride than the Xtrackers USD High Yield Corporate Bond ETF (HYLB), which offers broad exposure to the high-yield debt category.
GSEW|15|The Goldman Sachs Equal Weight U.S. Large Cap Equity ETF (GSEW) is Goldman’s contribution to the lineup of funds that equal-weight stocks as opposed to investing in proportion with company size. The idea behind equal weighting is that it forces the fund to sell winners and buy losers when it rebalances each month.
IMTM|15|PendingDownload the FactSet Analyst Insight Reporthere.
LDEM|15|PendingDownload the FactSet Analyst Insight Reporthere.
RWX|15|This ETF offers exposure to global real estate markets, excluding American securities in favor of assets in developed countries in either Europe, or the Asia Pacific region. The fund also provides some level of exposure to Canadian securities as well, helping to round out holdings across the globe. As such, RWX has the potential to deliver broad-based access to an asset class that can deliver attractive current returns and significant appreciation for long term capital appreciation (along with meaningful volatility and risk). RWX has a reasonable level of diversification with more than 130 holdings spread across a variety of countries. RWX may be appropriate for investors looking to compliment their American real estate holdings with similar exposure abroad but it is unlikely to function as a one stop shop for some due to its exclusion of American assets. Nevertheless, thanks to its broad exposure and its high level of liquidity, RWX could make for a solid choice for a number of investors who are in it for the long term and short term alike. .
EEMA|15|PendingDownload the FactSet Analyst Insight Reporthere.
SWAN|15|PendingDownload the FactSet Analyst Insight Reporthere.
BAR|15|PendingDownload the FactSet Analyst Insight Reporthere.
LTPZ|15|This ETF offers exposure to long-dated TIPS, a segment of the U.S. Treasury market that may have appeal to investors looking to protect against inflation. While most investors are familiar with the nuances of TIPS, the ramifications of the longer duration should be understood before establishing a position. While a longer time to maturity means higher yields, it also introduces additional interest rate risk. Because inflationary environments are often accompanied by rate hikes, the effectiveness of this tool may be limited in certain situations. There are a number of more broad-based ETF options for exposure to TIPS, including TIP, TIPZ, and SCHP. Moreover, ETFs focusing on the short end of the duration curve may have additional benefits; these include STIP and STPZ.
SMMV|15|PendingDownload the FactSet Analyst Insight Reporthere.
IBDR|15|PendingDownload the FactSet Analyst Insight Reporthere.
FIDU|15|The Fidelity MSCI Industrials Index ETF (FIDU) tracks an index of U.S. industrial stocks, including transportation firms, providers of commercial and professional services, and manufacturers of capital goods. Given the sector-specific focus, FIDU likely doesn’t merit a core allocation spot, but may be useful as a means of implementing a tactical tilt towards the industrials sector or as part of a sector rotation strategy. As of June 2020, XLI owned more than 300 stocks, including small caps, making it a better-diversified option than the Industrial Select Sector SPDR Fund (XLI). FIDU is competitively priced when compared with rivals like XLI and the Vanguard Industrials ETF (VIS), but short-term traders will likely prefer the size and liquidity of XLI.
BCI|15|The Aberdeen Standard Bloomberg All Commodity Strategy K-1 Free ETF (BCI) as the name implies, offers exposure to commodity futures without the tax hassle of a K-1, which some investors avoid. The fund is actively-managed, and tries to avoid “negative roll yield,” a well-known problem of passive commodity funds that can substantially erode returns over time. There are several similar strategies on the market, and BCI is among the least expensive. But BCI hasn’t attracted the same assets and trading volume as its larger competitor, the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC).
JPIN|15|The JPMorgan Diversified Return International Equity ETF (JPIN) tracks an index of large cap companies in developed markets outside the U.S. The methodology combined risk-weighted portfolio construction with multi-factor security selection based on value, momentum, and quality. The ETF marketplace has seen an explosion in recent years in “factor” funds covering every asset class. Investors can compare it to the Goldman Sachs ActiveBeta International Equity ETF (GSIE) or the iShares Edge MSCI Multi-factor International ETF (INTF). JPIN is not unreasonably priced for a multi-factor international fund, though cheaper options are available.
JMBS|15|PendingDownload the FactSet Analyst Insight Reporthere.
INFL|15|PendingDownload the FactSet Analyst Insight Reporthere.
GWX|15|This ETF offers a way to access a corner of international equity markets that many portfolios are missing. Most international ETFs are dominated by mega cap stocks, a bias that can tilt exposure towards energy and financials and result in a weak correlation to domestic consumption patterns in the target market. Most investors won’t recognize the names of the companies that make up the GWX portfolio, but the exposure offered by this ETF can go a long way towards establishing more balanced equity exposure. GWX can be used either as a complement to EAFE funds such as EFA or perhaps even as an alternative that offers a better “pure play” on developed markets outside of the U.S.
MLPX|15|PendingDownload the FactSet Analyst Insight Reporthere.
IYM|15|This ETF offers exposure to the U.S. materials sector, a corner of the domestic economy that includes companies engaged in the extraction and production of various natural resources (and therefore potentially useful as a means of establishing “indirect” commodity exposure through commodity-intensive companies). Given the targeted nature of the underlying benchmark, IYM probably isn’t very useful for those building a long-term portfolio; it will be more useful as a means of establishing a tactical tilt towards the materials sector or as part of a sector rotation strategy. Investors seeking more targeted exposure to companies engaged in the production of a certain type of raw material likely have a more granular ETF available to them; the Commodity Producers Equities ETFdb Category includes dozens of resource-specific funds, ranging from agribusiness to gold to timber. With regards to the underlying portfolio, it should be noted that while IYM includes about 70 individual stocks, a small handful account for a significant chunk of assets—a characteristic common among ETFs focused on this sector. Investors looking for better balance among materials stocks may prefer the equal-weighted RTM. The biggest drawback of IYM is the hefty price tag; investors can achieve generally similar exposure through FBM or XLB, both of which are considerably cheaper (and FBM may be eligible for commission-free trading in Scottrade accounts).
SUSC|15|PendingDownload the FactSet Analyst Insight Reporthere.
IDU|15|This ETF allocates its assets to a benchmark that measures the performance of the utilities sector of the U.S. equity market.  An investment in the utilities sector offers several advantages to the average investor. Firstly, many utilities are a necessity in today’s world, and as our population continues to grow in the future, the demand for these companies will only increase in theory. Second, utility companies are known for their high dividend yields, giving investors a steady stream of income despite what market conditions may be like. Finally, these companies may prove to be somewhat recession proof; no matter what the economic conditions are, people still need to use electricity and other utilities to go about their daily lives. IDU has a tilt towards large cap firms, giving this product nice stability for its investors. With a strong yield, this ETF may be a perfect fit for investors looking for stable utilities exposure inside U.S. borders.
DVYE|15|This ETF offers exposure to dividend paying stocks in emerging markets, making DVYE a tool for tine tuning exposure to an asset class that is at the core of many long-term portfolios. Given this objective, DVYE can be used in a number of different ways; it could certainly have appeal as part of a buy-and-hold strategy for those who believe that focus on dividend paying stocks leads to higher returns over the long run. DVYE can also be a way for scaling back risk exposure in emerging markets, since dividend paying stocks tend to feature lower volatility than broader markets. Finally, this ETF could potentially be used to complement other emerging markets positions, since DVYE generally focuses on sectors that may be underweighted by products such as EEM and VWO.
TDSC|15|PendingDownload the FactSet Analyst Insight Reporthere.
IVOV|15|This ETF offers exposure to mid cap stocks that exhibit value characteristics, making IVOV a potentially useful tool for investors looking to fine tune their domestic equity exposure or implement a tilt towards a specific investment style. Investors constructing a long-term portfolio would be better off with a fund such as MDY or IJH that includes greater depth of holdings and a mix of various styles. Value strategies often come with biases towards specific sectors, and may outperform more broadly-based indexes in certain economic environments such as recessions. It should be noted that there is often considerable overlap between the value and the growth variations of these funds since many providers have generous definitions that tend to put some securities in both categories. Rydex offers a pure style alternative, RFV, that is slightly more expensive but will offer a considerably more targeted focus on value equities. Those seeking to make a meaningful tilt in their portfolio would be better served by using that fund. It should also be noted that JKI and IJJ seek to replicate similar indexes at comparable expense ratios. However, IVOV is slightly  cheaper and may be available commission free in certain accounts, making it a solid choice of the three. IVOV is a fine ETF, but there are a number of alternatives out there that offer more compelling methodologies, or potentially better execution, just be aware of the differences before deciding between these similar ETFs.
SMDV|15|The ETF or ETN formerly traded under this ticker symbol is no longer active. To see funds that offer generally similar exposure and risk/return profiles, consider other options in the Mid Cap Value Equities ETFdb Category.
QEFA|15|PendingDownload the FactSet Analyst Insight Reporthere.
SILJ|15|PendingDownload the FactSet Analyst Insight Reporthere.
NUGT|15|This ETF offers 2x daily long leverage to the NYSE Arca Gold Miners Index, making it a powerful tool for investors with a bullish short-term outlook for gold mining equities. Investors should note that NUGT’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. NUGT can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
IGBH|15|PendingDownload the FactSet Analyst Insight Reporthere.
QAI|15|This hedge fund replication ETF seeks to deliver returns reflective of a variety of techniques that have historically been implemented by hedge funds and other sophisticated investors. QAI relies on a quant-based methodology to deliver absolute returns, and has the potential to exhibit low correlations to stock and bond ETFs. Investors should be aware, however, that QAI isn’t likely to deliver huge gains that some might expect of hedge funds; it is primarily designed to smooth overall portfolio volatility and function as a non-correlated asset. QAI might make sense in small doses within a stock-and-bond portfolio, and can be a powerful tool for accessing investment strategies that would otherwise be out of reach or prohibitively expensive.
DHS|15|This ETF is linked to the WisdomTree Equity Income Index, which offers exposure to dividend paying large-cap companies that exhibit value characteristics within the U.S. equity market. Investors with a longer-term horizon should consider the importance of large cap value stocks and the benefits they can add to any well-balanced portfolio including dividends and rock solid stability. Companies within this segment are often considered some of the safest firms in the world and tend to be in more stable industries as well, potentially skewing some portfolios that are heavy in value securities. DHS is linked to an index consisting of roughly 330 holdings and although the fund holds an impressive number of securities exposure is surprisingly heavy in the top ten holdings; close to 44% of the assets goes to the top ten firms. DHS offers investors broad exposure to dividend paying companies, giving investors a much wider net than many of the other dividend focused firms in the space. As a result, DHS could be a better pick for long-term buy and hold investors than some of the other products, plus it has a much lower expense ratio to boot. Additionally, it should be noted that this fund weights securities based on total dividends paid, potentially giving investors a different slice of exposure in the market, weighting more to the large firms that pay out sizable amounts.
PWB|15|This ETF is linked to the Dynamic Large Cap Growth Intellidex Index, which offers exposure to large-cap companies within the growth sector of the U.S. equity market. Investors with a longer-term horizon ought to consider the importance of growth stocks and the diversification benefits they can add to any well-balanced portfolio. Companies within the growth segment offer tremendous profit potential since they are still in the early stages of their life cycle, which in turn also raises the risk level associated with this asset class. PWB is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure. The Style Intellidexes apply a rigorous ten factor style isolation process to objectively segregate companies into their appropriate investment style and size universe. Viable alternatives with comparable holdings include VONG and IWY, while SCHG is the cheapest option.
FSTA|15|The Fidelity MSCI Consumer Staples Index ETF (FSTA) offers exposure to the consumer staples sector, making it an appealing option for investors looking to implement a sector rotation strategy or tilt exposure toward corners of the U.S. market that may perform well during a downturn. As of June 2020, FSTA owned about 90 stocks, including small caps, making it a better-diversified option than the Consumer Staples Select Sector SPDR (XLP), though traders may prefer the size and liquidity of XLP. FSTA is competitively priced compared with rivals like XLP and the Vanguard Consumer Staples ETF (VDC).
CMBS|15|This ETF offers targeted exposure to commercial mortgage-backed securities. CMBS separates itself from other offerings in the Mortgage Backed Securities ETFdb Category by focusing specifically on debt which is deemed to be “ERISA eligible”. This means that the underlying holdings must meet the minimum standards for pension plans established by the Employee Retirement Income Security Act of 1974 (ERISA). As such, CMBS focuses on types of bonds that are not necessarily included in broad-based bond funds such as AGG or BND, so this fund might not be all that useful for those building a long-term portfolio (since it is a bit targeted). Nonetheless, CMBS can certainly be very useful as a tactical tool for establishing exposure to this segment in the market for those who believe it offers superior risk adjusted returns or is poised for a period of strong performance. CMBS tends to be tilted towards the long end of the duration spectrum, so investors will be taking on a fair amount of interest rate risk along with some moderate credit risk with this investment. There are a handful of other ETFs in the Mortgage Backed Securities ETFdb Category; investors would be wise to compare the risk and return characteristics of these products before establishing a position.
DRSK|15|The Aptus Defined Risk ETF (DRSK) is an actively-managed fund that invests in a mix of stocks and bonds and employs an options strategy on U.S. stocks. DRSK’s management fee is reasonable for an active multi-asset fund. Investors could compare performance against competitors like the SPDR SSgA Global Allocation ETF (GAL) or the Principal Active Income ETF (YLD). Stock-pickers have consistently trailed index funds, especially in U.S. equities. Investors might want to compare DRSK to indexed asset-allocation strategies like the iShares (AOR).
MSOS|15|PendingDownload the FactSet Analyst Insight Reporthere.
HDEF|15|The Xtrackers MSCI EAFE High Dividend Yield Hedged Equity ETF (HDEF) offers broad exposure to developed markets outside of the U.S., but with a twist: it looks for stocks that pay high dividends compared to their price, and then hedges out the currency exposure that an investment in international equities brings. This delivers isolated exposure to the performance of the underlying equities in local prices. Currency fluctuations can be a significant driver of gains and losses, and some investors may prefer the potential diversification benefit of exposure to non-U.S. dollar investments.
PHB|15|This ETF is one of several that offers exposure to junk bonds, an asset class that may have appeal for investors looking to enhance current returns through the assumption of additional credit risk. Because junk bonds are excluded fron broad-based total bond market funds such as AGG or BND, this ETF may be a useful tool for those looking to construct a well-rounded fixed income portfolio for the long run; PHB can also be useful for those looking to beef up current yields from the bond portion of their holdings. PHB is unique from other more popular junk bond funds such as HYG or JNK due to the nature of the underlying index. Instead of giving the biggest weightings to the biggest debtors, the related benchmark analyzes fundamental factors to determine the allocations to each security. As a result, PHB will generally offer exposure to higher quality issuers, and as such may maintain a lower expected return than JNK or HYG. Think of this ETF as a step between LQD and JNK along the risk/return spectrum. Upon closer analysis, many investors will likely find that the methodology underlying this ETF is much more sound than the majority of bond ETFs, making PHB a potentially attractive option for high yielding fixed income exposure.
EZM|15|This ETF offers exposure to mid cap stocks that are generating positive earnings, filtering out companies that are losing money. This makes EZM a potentially useful tool for investors seeking exposure to mid caps while at the same time only holding the more stable companies in the segment. This can allow investors looking to fine tune their domestic equity exposure or implement a tilt towards a specific investment style. Investors constructing a long-term portfolio would be better off with a fund such as MDY or IJH that includes greater depth of holdings and a mix of various styles. Earnings-focused strategies often come with biases towards specific sectors such as industrials and consumer staples, and may outperform more broadly-based indexes in certain economic environments such as recessions. Nevertheless, EZM has a wide diversity of holdings, containing more than 620 securities in total. Furthermore, the fund does a great job of spreading out assets among the holdings; the top ten make up just 8.5% of the fund’s total assets and no one firm makes up more than 1.5% of assets. However, the fund does charge a little more than most in the category, suggesting that cost conscious investors may be better served by a product such as VOT which charges roughly half of the expenses as this WisdomTree fund. EZM is a fine ETF, but there are a number of alternatives out there that offer more compelling methodologies, or potentially better execution at a cheaper price. However, if investors are dead set on looking at only mid caps that have earnings in this space, this is a quality fund that will likely satisfy the dual objectives of safety and capital appreciation.
PTNQ|15|PendingDownload the FactSet Analyst Insight Reporthere.
TBF|15|This ETF offers inverse leveraged exposure to the broad-based Barclays Capital U.S. 20+ Year Treasury Index, making it a powerful tool for investors with a bearish short-term outlook for U.S. long-term treasuries. An investment in leveraged debt can be a very risky one, as there are numerous factors that can converge to drastically change the returns of these products. Investing in leveraged bond ETFs requires a careful understand of the specific economy, in this case the US, and what kind of policies and regulations are currently in place and are set to be enforced in the future. TBF can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy. For those who feel educated enough on the specific economy and its inner workings, this ETF can be a great addition to an investment portfolio.
IAUM|15|PendingDownload the FactSet Analyst Insight Reporthere.
QVML|15|PendingDownload the FactSet Analyst Insight Reporthere.
SGOV|15|PendingDownload the FactSet Analyst Insight Reporthere.
CORP|15|This ETF is designed to offer exposure to the investment grade corporate bond market across all maturities. As such, CORP can potentially be a nice complement to broad-based bond funds such as AGG or BND, which generally make significant allocations to Treasuries. Investors seeking more finely-tuned fixed income exposure have more options available that further target specific maturities, such as VCSH or VCLT. CORP can be an effective way to increase the current return to a fixed income portfolio, and can be a stop along the risk/return spectrum for those looking to pull out of equities but not willing to go all the way to low-risk Treasuries. Like most PIMCO ETFs, CORP is efficient from a cost perspective and very well managed. Other options offering similar exposure include LQD, which has considerably more assets and a higher average daily trading volume.
XHE|15|This ETF offers targeted exposure to the health care equipment space, a targeted sector of the health care industry that includes manufacturers of various equipment and supplies. Given this narrow focus, XHE likely isn’t appropriate for investors building a long-term, buy-and-hold portfolio; this ETF will appeal to those looking to implement a tactical tilt towards a very specific corner of the U.S. markets. The equal-weighted nature of the underlying index is appealing for the balance of holdings, as no one name accounts for a meaningful portion of total assets. Investors seeking more broad-based health care exposure may prefer XLV, while those looking to go international have options such as IRY available to them.
SNPE|15|The Xtrackers S&P 500 ESG ETF (SNPE) was the first to offer exposure to S&P 500 stocks screened for environmental, social and governance factors, known by the acronym ESG. SNPE excludes companies with disqualifying U.N. Global Compact scores, and those involved with tobacco or controversial weapons. The fund targets the 75% with the highest ESG scores. The portfolio holdings are market-cap weighted but adjusted to maintain broadly similar sector exposure to the parent index. SNPE is priced competitively.
ILCV|15|PendingDownload the FactSet Analyst Insight Reporthere.
PWV|15|This ETF is one of the many funds that offers targeted exposure to large cap U.S. stocks deemed to exhibit value characteristics, such as low pricing multiples and high dividend yields. This asset class could potentially be appealing to investors building a long-term portfolio, and may also have appeal as a means of implementing a shorter-term tactical tilt towards value stocks. PWV is unique in the methodology utilized to determine underlying holdings; instead of including all value stocks and focusing on the biggest names, PWV is linked to an “intelligent” index that uses quant-based screens to identify stocks deemed to have the most promising outlook. As such, PWV is one of the funds that blurs the lines between active and passive management; those who believe the underlying methodology is sound and capable of adding alpha over the long run may gravitate towards this stock as a choice for large cap exposure, while those who believe in efficient markets and minimizing costs may look towards ETFs with lower expense ratios (IWD and VTV are considerably cheaper than PWV).
NRGU|15|PendingDownload the FactSet Analyst Insight Reporthere.
JHML|15|PendingDownload the FactSet Analyst Insight Reporthere.
AGZ|15|This ETF tracks the Agency segment of the U.S. bond market, offering exposure to notes issued by organizations such as the FDIC, Fannie Mae, and Freddie Mac. These notes tend to be very short term in nature and the fund has an average weighted maturity of less than four years. The good thing about this product is that since agencies still operate in a grey area in terms of federal government gurantees, they often pay a higher interest rate than comparable government bonds. However, many of the agencies are pretty much unsustainable over the long haul and the federal government may at some point have to remove the guranatee and allow the agencies to float freely without government support. Due to this risk, I believe agencies aren’t really worth your time but for investors that aren’t concerned about this and are looking for a higher yield than Treasuries without the risks of corporates, AGZ makes for a cost efficient pick.
GIGB|15|The Goldman Sachs Access Investment Grade Corporate Bond ETF (GIGB) is Goldman’s offering for investors looking to access a corner of the bond market that should be a core component of any-long term, buy-and-hold portfolio. GIGB tracks the proprietary FTSE Goldman Sachs Investment Grade Corporate Bond Index. The index tries to eliminate issuers that exhibit deteriorating fundamentals, like worsening operating margins and leverage. The portfolio leans more heavily on cash and shorter-dated securities than the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), the giant in the space
BBUS|15|The JPMorgan BetaBuilders U.S. Equity ETF (BBUS) offers broad, diversified exposure to large- and mid-cap U.S. equities at an extremely competitive price. Launched in March 2019, BBUS was priced to compete with ultra-low-cost funds like the Vanguard Total Stock Market ETF (VTI), the Schwab U.S. Broad Market ETF (SCHB), and the iShares Core S&P Total U.S. Stock Market ETF (ITOT). Its barely-there fee and diversified portfolio make this a contender for core U.S. equity holdings, but investors should be aware that it largely ignores the small-cap segment picked up by total-market rivals.
INDY|15|This ETF offers investors a way to access the Indian equity market, a staple of any exposure to emerging markets. Indian stocks can exhibit significant volatility, and there are a number of risk factors that can derail these assets (including inflation). INDY tracks 50 of the largest companies in the nation so it looks to provide higher levels of liquidity than many of its other peers in the space. For investors worried about the ETN structure of INP and are looking for liquid Indian stocks, INDY could be the way to go for India exposure.
FLJP|15|The Franklin FTSE Japan ETF (FLJP) tracks an index of large- and mid-size Japanese equities, providing a way for investors to make a targeted bet on one of the largest economies in the world. Japan has undergone significant periods of economic stagnation, and some tactical investors prefer to manage their exposure to the country rather than outsourcing it to broad, developed-market indexes that include Japan. As of June 2020, FLJP’s management fee is well below average for the category, and considerably lower than the iShares MSCI Japan ETF (EWJ), long the dominant fund in the space. FLJP owns more securities than EWJ, but has more of its portfolio in mid cap stocks. Both funds have broadly similar sector allocations. Another low-cost alternative for investors looking for exposure to Japan is the JPMorgan BetaBuilders Japan ETF (BBJP).
KBA|15|PendingDownload the FactSet Analyst Insight Reporthere.
LABU|15|PendingDownload the FactSet Analyst Insight Reporthere.
EMGF|15|PendingDownload the FactSet Analyst Insight Reporthere.
FLTR|15|This ETF is among a small number of products that offers exposure to floating rate debt, giving it a risk/return profile that is somewhat unique. The securities held by FLTR generally won’t be included in the ETFs in the Total Bond Market ETFdb Category, making FLTR a potentially useful tool for those looking to round out a fixed income portfolio. This fund can also be useful for investors looking to fine tune fixed income exposure in certain environments. Whereas most bond ETFs invest exclusively in debt that pays a fixed coupon over the life of the note, this ETF holds debt that adjusts its coupon payment based on a reference rate. As a result, there is minimal interest rate risk associated with this fund, as the effective duration is close to zero. That makes FLTR appealing for investors who believe that interest rates are headed higher (rate hikes generally have an adverse impact on the price of fixed rate bonds). FLTR compensates investors for the credit risk taken on, but allows them to steer clear of any interest rate risk. Those looking for fixed rate investment grade corporate debt have a number of options in the Corporate Bonds ETFdb Category (LQD is perhaps the most popular choice) while those seeking higher yields from floating rate debt may prefer the Bank Loan Portfolio (BKLN) that focuses on floating rate securities from issuers with lower credit ratings.
LVHD|15|PendingDownload the FactSet Analyst Insight Reporthere.
NTSX|15|PendingDownload the FactSet Analyst Insight Reporthere.
XNTK|15|PendingDownload the FactSet Analyst Insight Reporthere.
DIVO|15|PendingDownload the FactSet Analyst Insight Reporthere.
DFAI|15|PendingDownload the FactSet Analyst Insight Reporthere.
EWD|15|EWD offers investors exposure to the European market of Sweden by investing in securities that trade on the national stock exchange of the nation. Since many of the large caps in this fund are likely to be found in other EFA holdings, the fund is not appropriate for investors seeking broad diversification across Europe. For investors looking for high levels of exposure to the Swedish market in particular, EWD is probably the best ‘pure play’ option available.
MNA|15|This ETF offers exposure to a merger arbitrage strategy that has been popular among hedge funds and other sophisticated investors for decades. By seeking to capture the gap between the ultimate transaction price and current price levels for takeover targets, MNA is capable of delivering relatively stable returns that should exhibit low correlations to asset classes such as stocks and bonds. As such, this fund may have appeal for investors looking to smooth the overall volatility of their portfolio. While MNA is unlikely to make up a significant chunk of any portfolio, it could be a useful tool for those constructing a long-term, low-maintenance portfolio. It should be noted that CSMA offers exposure to a similar strategy in an ETN wrapper; that structure may be capable of delivering tax advantages that can’t be captured through MNA.
JHEM|15|PendingDownload the FactSet Analyst Insight Reporthere.
OUSA|15|PendingDownload the FactSet Analyst Insight Reporthere.
NUSI|15|The Nationwide Risk-Managed Income ETF (NUSI) is an actively-managed fund that uses a rules-based options strategy to boost income from Nasdaq 100 stocks by hedging against market declines. Nor surprisingly, the protection comes at a price: NUSI’s management fee is three times that of the Invesco QQQ Trust (QQQ), a plain-vanilla index fund that tracks the tech-heavy Nasdaq 100 index.
VTWG|15|VTWG looks to track an index which offers exposure small cap firms that exhibit growth characteristics in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide quality growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on growth securities, has certain biases in its portfolio holdings and may not offer as much of a cross section as funds such as IWM and be more volatile as well. However, VTWG does an excellent job of dividing up assets as the fund holds close to 1,270 securities in total and doesn’t give any one company more than 0.8% of the total assets. Thanks to this high level of diversification and VTWG’s ultra-low expense ratio, the fund could make for a quality addition to portfolios of investors who are looking for small caps but are seeking a higher risk/reward profile. However, it should be noted that there are several other products in the space, namely IWO, SLYG, and VBK, that offer similar diversification at a similar price, potentially making them better choices for traders since they have tighter bid/ask spreads.
XTN|15|This ETF, issued by State Street, provides exposure to a benchmark that represents the transportation industry of the US. An investment on the transportation industry could reach into multiple tiers of the economy, as consumer goods as well as consumers themselves are in constant need of transportation from one place to another. Energy, though behind the scenes, has a major impact on the transportation industry, as rising gas prices or new alternative solutions can have a major impact on the performance of these individual companies. XTN has some bizarre holdings that may not offer the play on transportation equities that is right for everyone. Three of the top ten holdings feature rental car services in the US making this fund more of a play on the transportation of consumers rather than goods. Investors should note that this product offers significant small cap exposure, meaning that it will be slightly more volatile than a typical large cap product.
HEZU|15|PendingDownload the FactSet Analyst Insight Reporthere.
PSI|15|PSI tracks a benchmark that is designed to provide returns based on various investment criteria of semiconductor firms. Semiconductor chips act as the brains to numerous devices that we rely on today, including smartphones, calculators, computers, and much more. As technology continues to improve and expand, these chips will invariably be in demand to help power new devices. The fund focuses entirely on U.S. stocks, giving investors pure domestic exposure to numerous semiconductor producers. Investors should note that this fund dedicates the majority of its assets to medium and small cap funds, meaning that it will be more volatile than a traditional large cap fund, but it also presents strong growth opportunities for those who believe in the semiconductor segment of our nation.
CNYA|15|PendingDownload the FactSet Analyst Insight Reporthere.
UCON|15|PendingDownload the FactSet Analyst Insight Reporthere.
ONEY|15|PendingDownload the FactSet Analyst Insight Reporthere.
IFRA|15|PendingDownload the FactSet Analyst Insight Reporthere.
JPUS|15|The JPMorgan Diversified Return US Equity ETF (JPUS) tracks a broad index of large cap U.S. stocks. The methodology combines risk-weighted portfolio construction with multi-factor security selection based on value, momentum, and quality. The ETF marketplace has seen an explosion in recent years in “factor” funds covering every asset class. Investors can compare it to funds like the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) or the Invesco S&P 500 High Dividend Low Volatility ETF (SPHD). JPUS is not unreasonably priced for a multi-factor fund but there are cheaper index options out there. Investors can also check out plain-vanilla U.S. equity funds like the iShares S&P 500 ETF (IVV) or the Schwab U.S. Large-Cap ETF, which lack fancy factors but offer broad U.S. equity exposure at a fraction of the price.
RDIV|15|The Invesco S&P Ultra Dividend Revenue ETF tracks an index of U.S. mid- and large-cap stocks with the highest dividend yield. The methodology begins with the S&P 500 index of U.S. large-cap stocks plus the S&P MidCap 400 Index, excluding securities that don’t pay dividends as well as those that don’t have positive earnings. Of the remaining securities, then winnows down to 60 companies with some of the highest dividend yields. The portfolio is then weighted based on revenue rather than market size. The result is a portfolio that diverges widely from the broader market. The strategy is too targeted for most buy-and-hold investors, although it may appeal to those looking to squeeze a little more yield from their portfolios. The fund fees are reasonable for a specialized index strategy, though there are plenty of cheaper plain-vanilla ETFs offering exposure to the same markets.
CFA|15|PendingDownload the FactSet Analyst Insight Reporthere.
EWQ|15|EWQ offers investors exposure to the European market of France by investing in securities that trade on the national stock exchange of the nation. Since many of the large caps in this fund are likely to be found in other EFA holdings, the fund is not appropriate for investors seeking broad diversification across Europe. For investors looking for high levels of exposure to the French market in particular, EWQ is probably the best ‘pure play’ option available.
PPA|15|This fund provides exposure to an interesting segment of the industrials industry, the aerospace and defense sector. Companies in this sector tend to be rather large, slow growing, but remarkably stable due to the widespread use of long-term government contracts for most of their services. However, this focus on the government could also present a downside especially if defense spending declines sharply in the years ahead or if budget concerns force drastic cuts to more ‘discretionary’ defense programs. For those willing to take the risks of the industry, PPA remains a viable choice although it is significantly more expensive than its counterpart ITA. However, the fund is much more liquid and significantly less concentrated, suggesting that the fund may be a better choice for those seeking broad exposure to the industry.
TDTF|15|This ETF offers exposure to short-term TIPS, bonds issued by the U.S. government that feature a principal that adjusts based on certain measures of inflation. Given this investment objective, TDTF can be useful as a tool for protecting portfolios against anticipated upticks in inflationary pressures. As such, this ETF can potentially be used in a moderate amount in a buy-and-hold portfolio or as more of a tactical play for investors looking to shift their allocation towards low risk assets that may perform well in inflationary environments.
VTC|15|The Vanguard Total Corporate Bond ETF aims to track an index of investment-grade U.S. corporate bonds. VTC is unusual in that it’s an ETF that owns other ETFs. The portfolio consists of a mix of three other Vanguard bond ETFs that invest in short-, intermediate-, and long-term maturities. The upside of this is that VTC is able to offer the full spectrum of maturities under a single ticker — and all at an ultra-low price. As with many other Vanguard ETFs, VTC doesn’t precisely hew to the index, but uses a sampling methodology to produce a portfolio that’s comparable to the index. This can be an advantage when it comes to bond ETFs since bond indices can be tough, if not impossible, to follow exactly, which is one reason active managers often have an edge in fixed income. While Vanguard’s fees are hard to beat, there are plenty of inexpensive options in the U.S. corporate bond space. VTC is probably best-suited for a buy-and-hold investor looking for simplicity and low costs. For those who prefer to manage their own maturity exposure, or for traders looking for highly-liquid short-term trading vehicles, competing corporate bond ETFs might be a better fit.
IDLV|15|Launching in early 2012 this ETF seeks to provide exposure to a more stable basket of holdings that are domiciled in developed countries. To be included in the underlying index, each stock must have a market cap of at least $100 million and an annual dollar value traded of $50 million or more. From there, the fund takes those criteria and applies it to the 200 least volatile stocks around the world. Note that the fund contains no U.S. exposure as it is dedicated to developed countries outside of our own borders.
CLTL|15|The Invesco Treasury Collateral ETF tracks an index of U.S. Treasurys with a maximum remaining maturity of 12 months. The fund combines the safety of debt backed by the full faith and credit of the U.S. government with an ultra-short-term portfolio that guards against interest rate increases. Bond prices typically fall when rates rise because rising rates erode the purchasing power of a bond’s coupon payment. Long-term debt typically takes a larger hit than short-term debt. The fund’s fees are competitive with rival short-term Treasury ETFs. The ETF could be a good fit for invests and advisers looking for a short-term place to stash cash and manage liquidity. Investors looking to eke out higher returns could look to other ETFs. For those willing to take on more default risk, there are ultra-short-term debt ETFs that invest in corporate debt, while those willing to accept more rate risk could boost returns with funds that invest in debt with longer-dated maturities.
LQDH|15|PendingDownload the FactSet Analyst Insight Reporthere.
EWP|15|EWP offers investors exposure to the European market of Spain by investing in securities that trade on the national stock exchange of the nation. Since many of the large caps in this fund are likely to be found in other EFA holdings, the fund is not appropriate for investors seeking broad diversification across Europe. For investors looking for high levels of exposure to the Spanish market in particular, EWP is probably the best ‘pure play’ option available.
PFM|15|This ETF is one of the several options for investors seeking to focus on stocks of dividend-paying U.S. companies. PFM’s inclusion requirements are particularly tough; the underlying index consists of companies that have increased their annual dividend for ten or more consecutive fiscal years. As such, PFM may be a useful tool for investors looking to construct a long-term portfolio that maximizes the current return generated by the equity component, and may also be appealing to those looking to make a shorter-term tilt towards value stocks. It should be noted, however, that this fund doesn’t necessarily include the companies offering the highest dividends or dividend yields; its primary screen values consistency as opposed to recent or expected payments. Like many ETFs that focus on dividend-payers, PFM will generally maintain tilts towards certain sectors of the economy, and there is minimal allocation in this fund to mid cap and small cap stocks. But this ETF is relatively efficient from an expense perspective, and maintains an impressive depth of exposure.
IYK|15|This ETF offers unique exposure to a slice of the domestic consumer market, focusing on manufacturers of consumer goods while excluding consumer services. This methodology results in a blend of different sectors, including the heaviest weight to consumer staples (though discretionary firms are also found in IYK). As such, this ETF is probably too finely tuned for long-term investors, but can be a nice tool for those looking to implement a sector rotation strategy or tactical overlay. Like many consumer ETFs, IYK is somewhat lacking in terms of diversification. Though there are more than 100 individual holdings, a few big names (among them PG, KO, PM, and PEP) accounts for a big portion of holdings. Though there are a number of consumer staples ETFs, IYK is the only true consumer goods fund available.
RWJ|15|This ETF offers exposure to small cap U.S. stocks, an asset class that is included in most long-term portfolios and can be useful for tactical traders looking to implement a tilt towards riskier securities. RWJ is one of dozens of options for small cap exposure through ETFs, distinguishing itself from the alternatives though the unique weighting methodology employed. The related benchmark consists of all the stocks included in the S&P SmallCap 600, but determines the individual allocations based on top line revenue (as opposed to market capitalization). That methodology may be appealing for investors who see value in a strategy that shifts exposure towards companies with low price-to-sales multiples, and may also be appealing for those looking to utilize alternatives to market cap-weighting (which has a tendency to overweight overvalued stocks, and underweight undervalued companies). There are other ETFs out there for alternative weighting approaches within the small cap space; DES weights holdings based on cash dividends paid, while EES uses earnings to construct the underlying portfolio. RWJ is slightly more expensive than some of the cap-weighted alternatives, but investors who believe the revenue-weighting approach has the potential to add value over the long run will find the expense differentials to be minimal. This fund may be worth considering as an alternative to products such as IWM and IJR.
EQAL|15|The Invesco Russell 1000 Equal Weight ETF is a variation on Invesco’s popular equal-weight S&P 500 ETF, taking the 1000 largest U.S. stocks in the Russell index and assigning them equal weight in the portfolio. The result is a sector and size mix that diverges significantly from the traditional index fund. Adherents of equal weighting argue that it eliminates the market-cap bias built into traditional indexes, while critics say equal-weighting is just another way of tilting toward smaller companies in a portfolio. Does the strategy outperform? Sometimes, but not always. Investors should be aware that the unique exposure comes with higher fees than plain-vanilla index funds. EQAL may be a good complement to a core U.S. large-cap position, but its unlikely to replace a core position due to the higher fees and weighting methodology.
BSJN|15|The Invesco BulletShares 2023 High Yield Corporate Bond ETF tracks an index of junk-rated U.S. corporate bonds that mature in the indicated year. BulletShares are different than traditional bond ETFs because once the scheduled maturity date is reached, the funds distribute the principal back to investors. Traditional bond ETFs continuously buy and sell their underlying bonds to maintain their target maturity. For this reason, BulletShares behave more like a traditional bond than like a bond fund. This appeals to investors who want to lock in a fixed coupon while still gaining the diversification that an ETF portfolio provides. As the maturity date nears, BulletShares high-yield ETFs roll the proceeds of their maturing bonds into cash, cash equivalents, Treasurys or investment-grade corporate paper. This acts as an automatic risk-off tool; in the final year of the fund’s life, the portfolio will steadily tilt more and more heavily toward ultra-safe Treasurys. This is appealing for investors looking for a guaranteed cash distribution at maturity, and are willing to accept steadily lower yields in the final year. Once the target date is reached, the fund distributes the capital back to investors and shuts down. Of course, the appeal of junk debt is the increased yields over Treasurys or investment-grade corporates. Investors who want to maintain the income from high-yield exposure can sell their maturing BulletShares ETF on the stock market and reinvest in a comparable BulletShares with a later maturity. One popular strategy is “laddering” BulletShares across a range of maturity dates, which locks in fixed coupon payments and plans ahead for cash distributions at maturity. This makes them especially appealing for those who want the guaranteed income combined with the ease and diversification benefits an ETF can provide. For most investors, it’s far easier and cheaper to buy a BulletShares ETF than it is for them to source one or two underlying bonds. BulletShares ETFs debuted in 2010 under the Claymore brand and eventually moved to Invesco when the company acquired Guggenheim’s ETF business in 2018. BulletShares provide income and diversification for a competitive fee, though large investors may want to be conscious that the liquidity constraints of the underlying market may lead to wider spreads. Investors should also compare performance and liquidity against some of the popular active and passive junk-debt ETFs on the market.
IHAK|15|PendingDownload the FactSet Analyst Insight Reporthere.
CHIQ|15|This ETF offers targeted exposure to the Chinese economy, giving investors looking to fine-tune their portfolio a powerful tool. For long-term plays, more broad-based funds might be the better option. CHIQ can be used as part of a long/short play or as a complement to other ETFs, as the consumer sector is often under-represented in China funds.
MUNI|15|This fund tracks an index of municipal bonds, a slice of the bond market that is highly coveted due to its tax features. These bonds are generally free from federal taxes and in some cases, state and local income taxes as well making these funds crucial components of portfolios for those in high tax brackets. Muni bonds are used by local entities to pay for a variety of services or to make improvements to infrastructure paying for everything from new sewer systems to school renovations and bridge construction as such, they are relatively low risk instruments. This particular fund targets munis that mostly mature between five and ten years from now, giving the fund both a moderate risk and current income profile. As a result MUNI is a solid choice for investors seeking broad exposure to the muni market but with moderate levels of risk. The fund still has solid levels of diversification— holding over 120 securities— and an average expense ratio, making it a decent building block of portfolios. However, investors should be aware that this fund is active and as a result costs a little more than other products, holds fewer securities and could underperform a benchmark. However, the watchful eye of a professional could make this an outperforming fund and could potentially add alpha if the manager selects the right securities.
DIV|15|PendingDownload the FactSet Analyst Insight Reporthere.
ERUS|15|This ETF offers exposure to Russian equities, making it one of many options available for accessing a component of the BRIC bloc that holds tremendous potential but also significant risks. Russia’s economy remains largely dependent on the energy sector, and as such ETFs such as ERUS can exhibit significant volatility. ERUS is probably too granular for long-term buy-and-holders, but can be useful for investors looking to implement a country rotation strategy or to tilt exposure towards this emerging market. ERUS is, perhaps not surprisingly, tilted heavily towards the energy sector, and has huge concentrations in a few individual companies. For those seeking more balanced exposure, RSX may be a better choice; that Van Eck ETF boasts better depth and diversification, along with a comparable expense ratio. Van Eck also offers RSXJ, a small cap Russia ETF that may be better able to provide pure play exposure to the local Russian economy (without the heavy energy tilt).
RCD|15|This ETF offers exposure to the consumer discretionary sector of the domestic economy, making it one option available to investors implementing sector rotation strategies or looking to tilt exposure towards a high beta industry, perhaps in anticipation of a bull market. Like many Rydex products, RCD is linked to an equal-weighted index, meaning that component companies receive approximately equal allocations. That results in exposure that is considerably more balanced than other alternatives such as XLY, and a methodology that some investors believe will add value over the long haul. In return for this exposure you can expect higher fees; this ETF is considerably more expensive than both XLY and FCL, though it is still extremely cost efficient compared to most mutual funds.
MXI|15|This ETF offers exposure to the global materials sector, a corner of the world economy that includes companies engaged in the extraction and production of various natural resources (and therefore potentially useful as a means of establishing “indirect” commodity exposure through commodity-intensive companies). Given the targeted nature of the underlying benchmark, MXI probably isn’t very useful for those building a long-term portfolio; it will be more useful as a means of establishing a tactical tilt towards the materials sector or as part of a sector rotation strategy. Investors seeking more targeted exposure to companies engaged in the production of a certain type of raw material likely have a more granular ETF available to them; the Commodity Producers Equities ETFdb Category includes dozens of resource-specific funds, ranging from agribusiness to gold to timber. With regards to the underlying portfolio, MXI is spread across U.S. stocks and ex-U.S. economies, though there is a heavy tilt towards developed markets (EMT can be a useful tool for emerging markets materials exposure). With respect to the nature of the underlying portfolio, it should be noted that while MXI includes more than 100 individual stocks, a small handful account for a significant chunk of assets—a characteristic common among ETFs focused on this sector. Investors seeking U.S. materials exposure have a number of choices, including XLB and the equal-weighted RTM; those looking to steer clear of the U.S. may want to look at IRV. Overall, MXI can be a nice tool for broad-based materials exposure, useful for those looking to overweight this sector while maintaining a global representation.
EWX|15|This ETF offers exposure to small cap stocks in emerging markets, an asset class that is generally overlooked by most emerging markets funds. ETFs such as VWO and EEM are dominated by large cap stocks, which tend to be multi-national firms conducting business around the world. Small caps may be more representative of their local economy, and have historically exhibited a risk/return profile very different from their large cap counterparts. While EWX can potentially be a substitute for funds such as EEM and VWO, it is perhaps more appropriately seen as a complementary holdings to deliver well rounded emerging markets exposure. EWX is relatively efficient from a cost perspective, and extremely well balanced in terms of individual securities sectors, and countries (no one stock accounts for more than 1% of assets). The only potential drawback worth noting is the inclusion of “quasi-developed” markets, which make up a material portion of holdings. For those seeking exposure to small cap BRICs, it may make sense to use individual country ETFs (such as BRF, ECNS, RSXJ, and SCIN).
KOKU|15|The Xtrackers MSCI Kokusai Equity ETF (KOKU) tracks an index of large- and mid-cap stocks in developed markets outside of Japan. KOKU could be used as a core global equity holding for investors who believe Japanese equities will underperform. Many EAFE funds make sizable allocations to Japan. While Japan is one of the world’s largest economies, it has also had extended periods of low growth rates and rising debt burdens. Some investors would rather avoid this potential drag on their portfolio.
SCHJ|15|PendingDownload the FactSet Analyst Insight Reporthere.
EES|15|This fund offers exposure to small cap U.S. stocks, an asset class that needs to be a part of most long-term portfolios and can be useful for tactical traders looking to implement a tilt towards riskier securities. EES is one of dozens of options for small cap exposure through ETFs, and is unique because of the weighting methodology employed. The related benchmark is earnings-weighted and includes just the bottom 25% of the market capitalization of the WisdomTree Earnings Index. Thanks to this method, all of the unprofitable small caps and many of the riskiest securities are excluded from the product making this fund a potentially more stable choice in the small cap world. As a result, investors who are seeking more small cap holdings but are concerned about market volatility would be wise to take a closer look at this fund. This is of course assuming that investors can tolerate the higher fees that this product charges when compared to similar non-earnings focused products in the space.
TLTD|15|This ETF offers exposure to developed markets outside the U.S., an asset class that includes many of the largest economies in Europe and Asia. As such, developed ex-U.S. stocks are generally a core holding in long-term, buy-and-hold portfolios; TLTD is one of several ETFs that can be used to achieve exposure to this asset class.
EWS|15|This ETF offers exposure to Singaporean equities, and is the most liquid and most popular option for achieving exposure to the Singaporean economy. Singapore is one of the more unique economies in the world, and many investors may find the risk/return profile to be attractive. As such, EWS can be used in multiple ways by different investors. This ETF can certainly be an efficient means of establishing a short-term tactical tilt towards Singapore, as the impressive liquidity allows investors to establish or liquidate positions quickly. And EWS can also be appealing as a satellite holding within a more stable long-term portfolio; because Singapore receives little weighting within broad-based international or Asian ETFs, EWS can help to establish a more meaningful allocation to this country.
DWX|15|This ETF offers exposure to dividend-paying stocks in developed markets outside of the U.S. and Canada, making it a potential cornerstone of a balanced long-term portfolio that may have appeal to investors who value the approach offered by dividend-focused funds. DWX should be seen as a potential alternative to other foreign core holding funds such as EFA or VEA, although this fund has a much greater focus on mid cap securities than most in the Category.  DWX is more expensive than other developed market ETF options, but it is no where near the most expensive. In fact, DWX is comfortably below the Category average for expenses. As a result, DWX could make for a solid core holding for investors seeking greater foreign exposure with a focus on high dividend paying equities.
KRMA|15|PendingDownload the FactSet Analyst Insight Reporthere.
KXI|15|This ETF delivers exposure to the global consumer staples sector, including roughly even allocations to U.S. and international stocks. KXI is heavily tilted towards developed markets, with the biggest international weightings afforded to a handful of Western European economies. As such, this ETF may be appealing for investors looking to implement a sector rotation strategy on a more global level or for those looking to implement a tactical overlay that involves a sector-specific focus. KXI is efficient from a cost perspective, but leaves a bit to be desired in terms of diversification. Though holdings are spread across more than 100 different securities, the largest stocks of that group receive a hefty weighting in the portfolio. Investors looking for U.S. exposure to the consumer sectors sector will like XLP or RHS, while those looking to avoid the U.S. altogether may like AXSL or IPS.
XYLD|15|PendingDownload the FactSet Analyst Insight Reporthere.
SPGP|15|The  Invesco S&P 500 GARP ETF tracks an index that targets growth at a reasonable price. The index selects the 75 growth stocks within the S&P 500 that exhibit quality characteristics and have attractive valuations. Growth is measured as three year earnings per share, sales per share. Quality and value are assessed by looking at leverage, return on equity, and earnings to price. Investors should note that prior to September 21, 2019 the fund tracked an index of growth stocks. SPGP is too too targeted for many buy-and-hold investors, and there are cheaper and better diversified growth ETFs on the market. Still, SPGP could be appealing for investors looking for a way to target growth stocks without buying into overvalued companies. The fund is reasonably priced, though fees are significantly higher than other ultra-low-cost ETFs that invest in growth stocks. Investors should compare fees, liquidity, portfolio and performance to other growth stock ETFs.
ESPO|15|The VanEck Vectors Video Gaming and eSports ETF (ESPO) is part of VanEck’s suite of niche and thematic funds. ESPO
LGLV|15|PendingDownload the FactSet Analyst Insight Reporthere.
SIZE|15|PendingDownload the FactSet Analyst Insight Reporthere.
ERX|15|This ETF offers 2x daily long leverage to the Energy Select Sector Index, making it a powerful tool for investors with a bullish short-term outlook for the broad energy market. Investors should note that ERX’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. ERX can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
EWI|15|EWI offers investors exposure to the European market of Italy by investing in securities that trade on the national stock exchange of the nation. Since many of the large caps in this fund are likely to be found in other EFA holdings, the fund is not appropriate for investors seeking broad diversification across Europe. For investors looking for high levels of exposure to the Italian market in particular, EWI is probably the best ‘pure play’ option available.
OGIG|15|PendingDownload the FactSet Analyst Insight Reporthere.
SPGM|15|The SPDR Portfolio MSCI Global Stock Market ETF (SPGM) tracks an index that offers broad exposure to the global equity market. SPGM invests in more than a thousand different companies across all markets (excluding frontier markets), making SPGM an appealing option for investors looking to simplify their portfolios and minimize rebalancing obligations. SPGM can easily serve as the core holding of a long-term portfolio. As with all of State Street’s SPDR “Portfolio” lineup, SPGM competes on price with ultra-low-cost funds like the Vanguard Total World Stock ETF (VT), and it is significantly cheaper than the iShares MSCI ACWI ETF (ACWI). While SPGM has broadly similar exposure to VT, it lacks the Vanguard fund’s size and liquidity.
PID|15|This ETF seeks to replicate an index comprised of stocks that have increased their annual dividend for five consecutive years, an exclusive club that may have obvious appeal to investors looking to enhance current returns generated by the equity portion of their portfolios. PID can also be a useful tool for investors who believe dividend payers have become undervalued, or are poised to outperform their growth counterparts in the current environment. While PID maintains some emerging market exposure, it consists primarily of ex-U.S. developed market stocks, and as such has potential appeal as an alternative to funds like EFA or VEA in a buy-and-hold portfolio. The focus on dividend payers results in a tilt towards certain sector of the international economy, including telecom and energy companies, and it should be noted that the underlying portfolio is considerably smaller than broad-based equity ETFs. PID holds only a fraction the number of stocks that VEA or EFA contain, resulting in greater single security concentration. There is no shortage of alternatives for investors seeking exposure to international dividend payers; IDV, DTH, and DWM are a few intriguing options that may offer similar access with greater depth of holdings.
GMF|15|This ETF offers exposure to a host of emerging Asian economies, making GMF a potentially intriguing option for those investors looking to tilt exposure towards this corner of the market. China accounts for a big portion of this ETF, but a handful of other economies—including India, Malaysia, Thailand, and the Philippines—are represented as well. That gives a nice balance in terms of geographic exposure, and provides a way to access stocks that may thrive if Asia in general continues to see its economic importance increase. Unlike many country-specific or region-specific funds, GMF does a nice job of spreading exposure across individual securities; with weights given to more than 250 different stocks, this ETF earns high marks for diversification. Large and mega caps get heavy weights in this ETF, a common bias among international equity funds. GMF can be a nice tool to fine tune international exposure, as the impressive breadth of holdings give well-rounded exposure to emerging economies in Asia. Those seeking to access emerging market more generally (including South America and other regions) may find VWO or EWX to be better fits.
EPS|15|This ETF offers exposure to the large cap U.S. equity market, making it one of many options available for accessing an asset class that is a major component of many portfolios. EPS should be viewed as an alternative to funds like SPY and IVV, as this ETF offers exposure to a generally similar group of securities but features nuances that result in a unique risk/return profile. Most notable is the weighting methodology; the underlying index uses reported earnings to determine component companies and the weightings assigned to individual components. As such, EPS may feature a value tilt and biases towards/away from certain sector of the U.S. economy. This methodology may be appealing because it shifts exposure towards low P/E companies, and avoids the potential drawbacks of simple market cap weighting. EPS is slightly more expensive than some of the cap-weighted ETF options out there, but those who believe the unique methodology will consistently add alpha may be happy to pay a few extra basis points.
IQDF|15|The FlexShares International Quality Dividend Index Fund (IQDF) is part of Northern Trust’s stable of proprietary factor strategies. This one has an international flair. The fund follows a Northern Trust index that selects dividend-paying companies in developed and emerging markets outside the U.S. Simple enough, but then the index weights the portfolio toward companies that earned the highest “dividend quality” scores. To prevent unintentional concentrations, the methodology caps the weighting of individual securities, industry groups, sectors and regions. Lastly, the fund aims to match market beta — jargon used to describe how volatile performance is relative to the market. It’s another way of saying IQDF aims to be no more or less risky than the market.
SPXU|15|This ETF offers 3x daily short leverage to the S&P 500 Index, making it a powerful tool for investors with a bearish short-term outlook for large cap equities. Investors should note that SPXU’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. SPXU can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
DWM|15|This ETF offers investors an alternative means of accessing the developed markets outside of the U.S., as DWM may have appeal as a substitute to EAFE funds such as EFA or VEA. Unlike those cap-weighted products, DWM is linked to a dividend-weighted index that determines components and individual security allocations based on cash dividends paid. That methodology may be appealing to investors looking to maximize their current returns, but may also be attractive simply because it avoids the potential pitfalls of cap-weighting methodologies. DWM casts a wide net, spreading its portfolio across hundreds of individual securities in various countries and sectors of the economy. The potential drawback of DWM is the fees; it is considerably more expensive than VEA. Cost conscious investors will likely gravitate towards the Vanguard alternative, but those who find the dividend weighting methodology compelling may be happy to fork over a few extra basis points.
DBEU|15|While the Xtrackers MSCI Europe Hedged Equity Fund (DBEU) offers broad exposure to European stocks, its currency hedge makes it distinct among Europe-focused index. This fund delivers isolated exposure to the performance of the underlying equities in local prices. Currency fluctuations can be a significant driver of gains and losses, and some investors may prefer the potential diversification benefit of exposure to non-U.S. dollar investments.
GRID|15|This unique produce from First Trust targets companies engaged in the ‘smart grid’ movement which seeks to upgrade America’s electricity grid with 21st century technologies. This process looks to transform the electric system to one that is more efficient and all around ‘smarter’ than the current grid, potentially benefiting consumers and utilities alike. Companies in this fund include those that areengaged and involved in maintaining and operating the electric grid, electric meters and devices, networks, energy storage and management, and enabling software used by the smart grid infrastructure sector. Due to the often specialized nature of many of the companies in this field, most do not find their way into other, broad utility ETFs such as XLU or UTH making GRID an interesting pick for those looking to ‘complete’ their exposure to the utility sector. However, with budget crises around the country, the amount of money that can go to smart grid projects here in the U.S. may be limited so many should look for high levels of volatility in these products both due to their small cap nature as well as the political uncertainty surrounding the field.
PSQ|15|This ETF offers inverse exposure to an index comprised of the 100 largest nonfinancial securities on the NASDAQ, making it a potentially attractive option for investors looking to bet against this sector of the U.S. economy. It’s important to note that PSQ is designed to deliver inverse results over a single trading session, with exposure resetting on a monthly basis. Investors considering this ETF should understand how that nuance impacts the risk/return profile, and realize the potential for “return erosion” in volatile markets. PSQ should definitely not be found in a long-term, buy-and-hold portfolio, but may be a useful tool for more active investors looking to either hedge existing exposure or bet on a decline in the top nonfinancial NASDAQ securities. Investors also have the option of simply selling short a traditional NASDAQ fund, though that strategy will generally involve greater potential losses than utilizing an inverse ETF.
XSW|15|This ETF offers targeted exposure to U.S. companies operating in the software and services sector, delivering precise access to a relatively narrow corner of the technology industry. Within this sub-sector, holdings are actually somewhat balanced; XSW includes exposure to application software stocks, Internet software and services companies, data processing firms, systems software manufacturers, IT consulting companies, and makers of home entertainment software. Given this targeted focus, XSW probably has limited appeal to investors looking to build a long-term portfolio; this ETF is likely more useful for those looking to establish a tactical overweight position to this corner of the market.
VIOG|15|VIOG looks to match an index which offers exposure small cap firms that exhibit growth characteristics in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide quality growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on growth securities, has certain biases in its portfolio holdings and may not offer as much of a cross section as funds such as IWM and be more volatile as well. However, VIOG does a solid job of dividing up assets as the fund holds close to 360 securities in total and doesn’t give any one company more than 1.6% of the total assets. Thanks to this high level of diversification and VIOG’s ultra-low expense ratio, the fund could make for a quality addition to portfolios of investors who are looking for small caps but are seeking a higher risk/reward profile. However, it should be noted that there are several other products in the space, namely IWO, SLYG, and VBK, that offer more diversification at a similar price, potentially making them better choices for long-term investors.
LCTD|15|PendingDownload the FactSet Analyst Insight Reporthere.
BSCQ|15|The Invesco BulletShares 2026 Corporate Bond ETF tracks an index of U.S. investment-grade corporate bonds that mature in the indicated year. BulletShares are different than traditional bond ETFs because, once the scheduled maturity date is reached, the funds distribute the principal back to investors. Traditional bond ETFs continuously buy and sell their underlying bonds to maintain their target maturity. For this reason, BulletShares behave more like a traditional bond than like a bond fund. This appeals to investors who want to lock in a fixed coupon while still gaining the diversification that an ETF portfolio provides. As the maturity date nears, BulletShares ETFs roll the proceeds of their maturing bonds into shorter-term corporate debt or Treasurys. Once the target date is reached, the fund distributes the capital back to investors and shuts down. Investors can, at any time, sell their BulletShares ETF on the stock market and reinvest elsewhere, including rolling over into another BulletShares ETF. Investors and advisers can “ladder” their BulletShares holdings across a range of maturity dates, which locks in fixed coupon payments and plans ahead for cash distributions at maturity. This makes them especially appealing for those who want the guaranteed income, combined with the ease and diversification benefits an ETF can provide. For most investors, it’s far easier and cheaper to buy a BulletShares ETF than it is for them to source one or two underlying bonds. BulletShares ETFs debuted in 2010 under the Claymore brand and eventually moved to Invesco when the company acquired Guggenheim’s ETF business in 2018. BulletShares provide income, diversification and liquidity, and all for an extremely competitive fee.
AGQ|15|This ETF offers 2x daily long leverage to the Silver bullion, making it a powerful tool for investors with a bullish short-term outlook for silver. Investors should note that AGQ’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. AGQ can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
HEWJ|15|PendingDownload the FactSet Analyst Insight Reporthere.
CATH|15|PendingDownload the FactSet Analyst Insight Reporthere.
ONEV|15|PendingDownload the FactSet Analyst Insight Reporthere.
EDOC|15|PendingDownload the FactSet Analyst Insight Reporthere.
BNDW|15|The Vanguard Total World Bond ETF provides exactly what the name implies: exposure to a diversified portfolio of investment-grade bonds from around the world, including short-, intermediate-, and long-term maturities. The portfolio includes government debt, corporate bonds, asset-backed securities, mortgage debt, and other securities. Like Vanguard’s U.S.-centric counterpart VTC, BNDW has an unusual way of achieving its exposure. Instead of investing directly in bonds, BNDW invests in two other Vanguard ETFs: BNDX and BND. This makes it a convenient one-stop-shop for investors who want a low-cost investment they can set and forget. For those who prefer to manage their own maturity or geographical exposure, or for traders looking for highly-liquid short-term trading vehicles, competing ETFs might be a better fit.
YINN|15|This ETF offers 3x daily long leverage to FTSE China 50 Index, making it a powerful tool for investors with a bullish short-term outlook for China large cap stocks. Investors should note that YINN’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. YINN can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
BBH|15|This ETF offers targeted exposure to the biotech industry, a corner of the health care sector that is capable of delivering big returns but also exhibiting significant volatility. Given that risk/return profile, accessing biotech through the exchange-traded wrapper has some obvious appeal; it allows investors to spread out exposure, thereby increasing the opportunity of holding a stock that hits it big. Given that targeted objective, this ETF is probably most useful for those seeking tactical exposure to this corner of the market; the underlying holdings are generally found in broad-based equity ETFs, so there should be little appeal to buy-and-holders.
SDS|15|This ETF offers 2x daily short leverage to the S&P 500 Index, making it a powerful tool for investors with a bearish short-term outlook for large cap U.S. equities. Investors should note that SDS’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. SDS can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
OUNZ|15|PendingDownload the FactSet Analyst Insight Reporthere.
SDG|15|PendingDownload the FactSet Analyst Insight Reporthere.
HYGV|15|The FlexShares High Yield Value-Scored Bond Index Fund (HYGV) tracks a proprietary index of high-yield bonds screened for value and quality. HYGV’s methodology rates issuers based on factors like valuation, solvency, management efficiency and profitability. The securities are screened for liquidity, and the portfolio imposes caps on individual bonds, issuers, sectors, duration, turnover and credit score.
JNUG|15|PendingDownload the FactSet Analyst Insight Reporthere.
VNM|15|VNM offers exposure to Vietnamese equities, including both companies that are domiciled in the country as well as those that generate at least 50% of their revenues from the country. For investors seeking investment in the nation, VNM is one of the only choices available as most ETFs do not offer any allocations to the emerging nation. VNM is a nice option for investors who want to load up on Vietnam but be aware the fund could experience high levels of volatility.
DWAS|15|The Invesco DWA SmallCap Momentum ETF tracks is based on proprietary Dorsey Write index designed to identify small-cap companies that demonstrate strong price momentum. Selection begins with the smallest 2,000 companies in the Nasdaq U.S. Benchmark Index, and winnows the universe to approximately 200 companies with the highest relative strength scores. The portfolio is weighted based on those scores. The fund imposes some constraints on how large any one sector or industry can grow relative to the underlying index. The fund fees are high compared to plain-vanilla indexes, and higher than other small-cap strategies on the market. By design, the fund is highly-concentrated in the fastest-growing small-cap U.S. equities, so investors should expect some price volatility. The portfolio also sacrifices some diversification, so it’s not a good pick for buy-and-hold investors. DWAS is really targeted toward investors and tactical traders with strong short-term or medium-term views on small-cap growth. Investors should compare liquidity, holdings and fund fees against other rivals in the small-cap space.
SPHY|15|The SPDR Portfolio High Yield Bond ETF (SPHY) offers broad exposure to “junk” bonds — debt issued by borrowers with a higher risk of default. For taking on the added risk, investors are rewarded with higher yields than those offered on ultra-safe U.S. Treasuries or investment-grade debt issued by the most creditworthy companies. ETFs offer quite a few high-yield options, including active management, so-called “smart” indexing, and even an ETF that screens junk debt based on environmental, social, and government criteria. Like all SPDR “Portfolio” ETFs, SPHY is competitively priced. It is much cheaper than its largest rivals: the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the SPDR Bloomberg Barclays High Yield Bond ETF (JNK). Yet SPHY has struggled to pick up assets and lacks the liquidity of its competitors.
PWZ|15|PWZ offers exposure to insured municipal bonds of California issuers, making this ETF potentially attractive for investors in a high tax bracket looking to take on additional risk and expected return relative to a broad-based muni bond ETF. PWZ is a fine option, but investors looking to minimize costs may want to consider CXA, while those seeking depth of holdings may be better off with CMF.
FCTR|15|PendingDownload the FactSet Analyst Insight Reporthere.
FEP|15|This ETF is one of many products offering exposure to the developed economies of Western Europe, an asset class that includes many of the world’s largest stocks markets and is often a core holding within long-term, buy-and-hold portfolios. As such, FEP may be appealing to both investors with a long-term focus and to those looking to establish a shorter-term tactical tilt towards European stock markets. FEP is unique from other options in the Europe Equities ETFdb Category thanks to the methodology of the underlying index; this fund seeks to replicate an AlphaDEX benchmark that employs a quant-based screening system designed to select the component stocks with the greatest potential for capital appreciation. In exchange for this attempt to generate alpha relative to cap-weighted benchmarks, investors can expect to pay a bit more; FEP has an expense ratio quite a bit higher than low cost options for European exposure such as VGK. For those who believe that the AlphaDEX methodology has the ability to generate excess returns over the long run, this ETF might be the optimal way to establish exposure to European stock markets. Those looking to minimize costs or who believe in fully efficient markets may prefer cheaper options such as VGK or FEZ.
DTN|15|The Analyst Report for DTN is not available.
ARKX|15|The ARK Space Exploration & Innovation ETF is an actively managed fund that invests in global companies engaged in space exploration and innovation. The portfolio includes orbital and suborbital aerospace companies, companies that stand to benefit from aerospace activities, and firms that develop technology that enables space exploration, including robotics, artificial intelligence, materials, 3D printing, and energy storage. Not surprisingly, the fund is heavy on technology stocks. The fund owns a narrow universe of companies, so it is not diversified enough to replace a core allocation to technology, but it could augment core holdings for investors who have faith in ARK’s management team. ARKX, which debuted in March 2021, is a relatively new addition to the active ETF lineup from ARK, which has had considerable success with some of its other actively managed products. Any actively managed product is ultimately a wager on the portfolio managers who pick the stocks. ARK’s products are geared toward investors who have the fortitude and faith to ride out short-term volatility in favor of long-term gains. ARKX’s management fee might seem pricey in the ultra-low-cost world of passive ETFs, but it’s cheap for active management, especially when the manager delivers significant alpha.
SMMU|15|This fund tracks an index of municipal bonds, a slice of the bond market that is highly coveted due to its tax features. These bonds are generally free from federal taxes and in some cases, state and local income taxes as well making these funds crucial components of portfolios for those in high tax brackets. Muni bonds are used by local entities to pay for a variety of services or to make improvements to infrastructure paying for everything from new sewer systems to school renovations and bridge construction as such, they are relatively low risk instruments. This is especially true in the case of SMMU since the fund only targets short term munis which have less default risk then their longer-dated counterparts. As a result SMMU is a solid choice for investors seeking broad exposure to the muni market but with lower levels of risk. The fund offers less diversification than most with under 80 total securities while charging one of the higher expense ratios in the Category of 35 basis points. As a result,  investors seeking short-term muni bond exposure should probably look beyond this PIMCO fund to any of the other funds in the space which could provide a better cross section of the market at a much more competitive rate.
NYF|15|This ETF offers exposure to the municipal bond market, specifically focusing in on notes that are issued by municipalities in the state of New York. As a result, the fund is likely to be heavily influenced by any New York specific events, budget dealings, or political changes in the region. Muni investing in New York is an interesting proposition as it offers investors a nice mix of urban, suburban, and rural projects, offering immense diversification in a relatively small area. NYF is the most popular fund in the Category with as much assets as the other funds in the space combined. NYF focuses in on investment grade notes in the New York bond market and offers a solid level of diversification, holding just under 175 securities in total. Although expenses are just middle of the road, the fund would probably be best suited for traders looking to establish a broad quick position in the New York muni market across a variety of cities and sectors. Long-term investors could also find use for this fund but INY offers similar exposure at a cheaper price.
TMFC|15|PendingDownload the FactSet Analyst Insight Reporthere.
UUP|15|This ETF offers exposure to a basket of currencies relative to the U.S. dollar, decreasing in value when the trade-weighted basket strengthens and increasing when the dollar appreciates. This fund could be appropriate for investors seeking to a fund that is inversely correlated to the broad stock market or for those making a bet on a flight to quality. For investors seeking exposure to the dollar against a broad range of developed market currencies, UUP is one of the best choices out there.
RYLD|15|PendingDownload the FactSet Analyst Insight Reporthere.
HAUZ|15|The Xtrackers International Real Estate ETF (HAUZ) tracks an index of publicly-traded global real estate securities in developed and emerging markets outside of the U.S., Pakistan and Vietnam. HAUZ has the potential to deliver broad-based access to an asset class that can deliver attractive current returns and significant appreciation for long term capital appreciation (along with meaningful volatility and risk). This ETF has the potential to be used as a tactical tool to establish a short-term tilt towards this riskier asset class, or as a component in a longer-term portfolio that fills a void left by many international index funds. The fund is one of the cheapest in the ETFdb global real estate category.
KIE|15|This ETF gives investors a way to play insurance companies, a sub-sector of the financial sector that offers a unique risk/return profile relative to traditional financial exposure. Whereas financial funds such as XLF are dominated by mega caps, KIE maintains significant exposure to mid and large cap firms which are not impacted by the same factors that drive the performance of big Wall Street investment banks. Instead, insurance companies tend to be far less volatile and tend to be more conservative. Firms in this sector are more likely to be impacted by news of natural disasters rather than new banking regulations. However, due to the capital constraints of the industry as well as some barriers to entry, the list of companies in the index remains very small as only 25 firms constitute KIE. As a result of this, diversification may not be as robust as some need in their portfolios and for those investors a broader financial fund would probably be preferable.
FCG|15|This ETF gives investors an opportunity to achieve exposure to natural gas, an important fuel for both heating and cooling. For investors looking to bet on increased demand for a raw material used widely in power production, but are wary of UNG and its heavily-contangoed nature, FCG is a nice option. FCG can trade as a leveraged play on the underlying natural resources, meaning that this fund can experience significant volatility but can be a powerful tool for profiting from a surge in commodity prices.
JHMD|15|PendingDownload the FactSet Analyst Insight Reporthere.
FGD|15|This ETF offers exposure to dividend paying stocks around the globe, including the U.S. and developed and international markets. As such, FGD is one option for investors seeking to construct a simplified long-term portfolio, as it delivers exposure to dozens of countries across all sectors of the global economy while also paying out a solid dividend yield. Thanks to this focus on dividend paying equities, this fund can be useful for enhancing current returns generated from the equity portion of a portfolio, or simply for those who believe that a dividend-focused strategy will generate alpha over the long run. FGD features the sector biases that are traditional in dividend-weighted ETFs, as financials, telecom, utilities, and energy make up big portions of this ETF. Exposure is balanced across several roughly one hundred individual holdings, with a bias towards large and mid cap stocks. FGD is more expensive than some alternatives in the Global Equities ETFdb Category, but that differential may be more than worthwhile for those seeking to implement a dividend-centric strategy.
LEMB|15|This ETF is one of several products that offers exposure to debt of emerging markets issuers, an asset class that is often overlooked by U.S.-based investors but that has the potential to deliver attractive yields and dollar diversification. Emerging market debt generally offers higher interest rates than debt of U.S. issuers, making this fund potentially appealing to those looking to boost the amount of current income derived from their portfolios. LEMB can be used to complement positions in U.S. debt generally achieved through funds such as AGG or BND, allowing investors to diversify their debt holdings geographically.
BSJL|15|The Analyst Report for BSJL is not available.
NANR|15|PendingDownload the FactSet Analyst Insight Reporthere.
PFFA|15|PendingDownload the FactSet Analyst Insight Reporthere.
FM|15|PendingDownload the FactSet Analyst Insight Reporthere.
IBDS|15|PendingDownload the FactSet Analyst Insight Reporthere.
FDRR|15|The Fidelity Dividend ETF for Rising Rates (FDRR) tracks a proprietary index of large- and mid-cap developed market stocks that are expected to continue to pay and increase their dividends and have a positive correlation of returns to increasing 10-year U.S. Treasury yields. In bond funds, rising interest rates are a concern because bond prices typically fall when rates rise. Dividend-paying stocks typically react the same way, underperforming the market when rates rise. The idea is that a closer correlation with 10-year Treasury yields will protect investors from rising interest rates. FDRR’s portfolio relies mainly on U.S. stocks, and its portfolio is relatively narrow, so FDRR is probably most useful for those investors seeking a dividend tilt.
BIZD|15|PendingDownload the FactSet Analyst Insight Reporthere.
IPO|15|The Renaissance IPO ETF adds positions of the most significant U.S. listed companies after they go public. They are added on a fast entry basis on the stock’s fifth day of trading or upon quarterly review. Positions are then removed after two years of trading.
RING|15|This ETF offers investors exposure to some of the largest gold mining companies in the world, thereby delivering what can be thought of as “indirect” exposure to gold prices. RING sets itself apart from competitors like GDX by offering international exposure; the underlying holdings are spread out across both developed and emerging markets. Because the profitability of gold miners depends on the prevailing market price for the goods that they sell, these stocks will generally exhibit a strong correlations to movements in spot gold prices. When gold prices go up, gold miners make more money (and vice versa). It should be noted, however, that this relationship is not perfect; in certain environments, gold miner stocks and physical gold prices can move in opposite directions, and correlation between the two can be less than perfect. There are a number of potential benefits to investing in gold through stocks. Some investors have a hard time with the fact that physical gold will never make a distribution or generate a cash flow; gold miner stocks make dividends and report earnings, which can make valuation more straightforward. Also, gold miner stocks tend to trade as leveraged plays on spot gold prices; investors seeking to ramp up exposure may prefer to use stocks instead of the physical metal. RING is by far the most appealing gold miners ETF available from a cost perspective; this fund charges a mere 0.39% in expense fees compared to the next cheapest product, GDX, which costs 0.53%. Similar to GDX, this ETF holds a number of diversified mining companies which generate revenues from metals other than gold. Investors should consider GGGG as it offer more a pure play on the gold mining sector by holding companies that derive a significant portion of their revenues from the previous yellow metal.
CALF|15|PendingDownload the FactSet Analyst Insight Reporthere.
FDLO|15|The Fidelity Low Volatility Factor ETF (FDLO) tracks a proprietary index of large- and mid-cap U.S. stocks that are less susceptible to market swings. The fund’s sector allocations are broadly similar to the Russell 1000 index, though there is some variation. FDLO owns more than 100 securities, and so may not be diversified enough to stand alone as a core U.S. equity holding. It is more likely to be useful to investors seeking to overlay a low-vol tilt on top of a core allocation to U.S. markets. There has been a proliferation of factor funds in recent years, and investors can compare FDLO to rivals like the iShares Edge MSCI Min Vol U.S.A. ETF (USMV) or the Invesco S&P 500 Low Volatility ETF (SPLV). FDLO is reasonably priced for the segment, though there are cheaper funds available.
CEMB|15|This ETF offers exposure to debt of emerging markets issuers, focusing specifically on bonds issued by corporations and quasi-sovereign corporations. As such, CEMB offers access to a corner of the global bond market that many fixed income portfolios overlook; it represents away to round out exposure to emerging markets with a position to complement emerging markets stock ETFs. Emerging markets corporate bonds offer a way to enhance returns relative to U.S. debt, potentially without taking on significant incremental risk. CEMB focuses on U.S. dollar-denominated debt, which removes the exchange rate risk from the equation. There are a number of other emerging markets bond ETFs that include currency exposure (such as ELD), though they generally include exposure to corporate as well as sovereign debt. A close competitor, EMCB, offers similar exposure for the same price as well as active-management and is also available commission free to E*TRADE account holders; however, CEMB features a deeper and less top heavy portfolio of holdings, potentially offering more in the way of diversity.
TZA|15|This ETF offers 3x daily short leverage to the Russell 2000 Index, making it a powerful tool for investors with a bearish short-term outlook for small cap equities. Investors should note that TZA’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. TZA can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
HERO|15|PendingDownload the FactSet Analyst Insight Reporthere.
CSM|15|This fund provides exposure to a ‘130/30’ strategy offering investors the chance to bring hedge fund-like techniques to their individual portfolios. 130/30 strategies take investors cash, invest it ‘long’ in securities and then sell short another 30% of the portfolio and buy more securities long with the proceeds. At the end of the process, the investment portfolio is 130% long and 30% short, hence the name. When done right, this strategy can provide investors will solid returns while at the same time taking out some of the overall volatility of a portfolio. However, it is all dependent on the analysts shorting the right stocks and investing those proceeds in the correct funds, if this is not done correctly the fund could significantly underperform the market. Unlike the other 130/30 fund, CSM is an ETF which means that the fund has no credit risk but it may face tracking error in some cases. CSM could make for a decent choice for investors seeking to implement this strategy in part of their portfolio, however, the fund should definitely not make up more than 5 or 10% of an overall portfolio.
DPST|15|PendingDownload the FactSet Analyst Insight Reporthere.
IQSU|15|PendingDownload the FactSet Analyst Insight Reporthere.
KBWD|15|This ETF is one of the more unique offerings in the financial sector, as KBWD offers a way to access banks and other institutions that pay out attractive dividend yields. KBWD is definitely a risky bet, as the underlying companies generally include the less stable financial institutions that aren’t necessarily on strong fiscal footing. As such, this fund probably isn’t appropriate for those with a low risk tolerance and the hyper-targeted nature diminishes the appeal to those constructing a balanced portfolio for the long run. But for those seeking to tilt towards dividend paying stocks and enhance the current return generated from the equity side of a portfolio, KBWD can be a very attractive option, as the effective dividend yield may be in excess of 10%. The dividend weighted methodology may have some appeal to investors, not only because it maximizes current returns but because the potential drawbacks of cap weighting are avoided entirely. KBWD is appropriate only for a very small slice of investors, but it can be a very powerful tool for opportunistic, yield-hungry individuals or clients.
FMAT|15|The Fidelity MSCI Materials Index ETF (FMAT) offers exposure to the U.S. materials sector, which includes companies involved in the production, extraction, and processing of natural resources. This segment may appeal to investors looking for indirect exposure to commodities prices. FMAT may be a useful tool for investors looking to implement a short-term tilt, or for long-term investors who want to augment the materials exposure provided by broad index funds. As of June 2020, FMAT owned more than 100 stocks, making it a more diversified option than the Materials Select Sector SPDR (XLB), though traders will likely prefer XLB’s size and liquidity. FMAT is competitively priced with rivals like XLB and the Vanguard Materials ETF (VAW).
DBO|15|This ETF provides exposure to light sweet crude oil (WTI), which is the most popular oil benchmark in the world. Commodity exposure in a portfolio used to be a binary choice, either one invested in them, or they did not. Now, commodities have been proven as powerful inflation hedging tools with the power to generate powerful returns for an individual portfolio. This fund is based on futures-contracts to makes it subject to the risks of contango, backwardation, and other problems that are associated with futures-backed products. Despite setbacks, this product can be a powerful tool if the investor fully understand the complexities of the ETF and how to trade it. Specifically, DBO provides returns on fossil fuels that are vital to economies all around the world. WTI is the preferred crude in the majority of the world, and as such, can be a powerful investment tool. This product may be a good choice for investors looking to gain exposure to futures contracts on fossil fuels, but do not want the risks associated with a futures-contract purchase.
DBB|15|This ETF offers exposure to a basket of base metals, including copper, zinc, and aluminum. As such, DBB can be a tactical tool for investors with a bullish outlook on this corner of the commodities market; those seeking more broad-based exposure to natural resources would be better served by a fund such as DBC or DJP that includes a variety of other products including; precious metals, agriculture, and others. Those seeking more granular exposure have metal-specific ETPs available to them, such as JJC which tracks copper. The structure of DBB is worth noting; as an ETF that invests in futures contracts, this fund may be subject to some unique tax consequences; investors may want to take a look at the similar BDG or JJM, both of which are structured as ETNs, for treatment that potentially could be more favorable.
EMCR|15|PendingDownload the FactSet Analyst Insight Reporthere.
GNMA|15|This ETF offers targeted exposure to mortgage-backed pass-through securities issued by GNMA, a unique corner of the domestic fixed income market that has had its shares of ups and downs over the years. The GNMA portfolio will generally consist of bonds with strong credit ratings, though history has taught investors that these ratings are not always worth all that much. GNMA focuses on types of bonds that are often included in broad-based bond funds such as AGG or BND, so this fund might not be all that useful for those building a long-term portfolio (since it is a bit targeted). But it can certainly be very useful as a tactical tool for establishing exposure to this segment in the market for those who believe it offers superior risk adjusted returns or is poised for a period of strong performance.
SNSR|15|PendingDownload the FactSet Analyst Insight Reporthere.
RYF|15|This ETF focuses exclusively on the financial sector of the U.S. economy, making it one option available to investors looking to overweight banks and other financial institutions in their portfolio. RYF distinguishes itself from other broad-based financial ETFs by its weighting methodology. Unlike XLF and other cap-weighted products, RYF is linked to an equal-weighted index—meaning that each component receives an equivalent allocation in the fund upon rebalancing. As a result, RYF maintains considerably lower concentration than most financial ETFs, as exposure is spread around evenly as opposed to being concentrated among a handful of mega cap stocks. For investors who believe that equal weighting represents a more logical approach to asset allocation, RYF may be a better way to gain access to the U.S. financial sector. The downside is in the price; this type of exposure results in a considerably higher price tag than the low cost XLF or FFL.
FXZ|15|This ETF offers exposure to the U.S. materials sector, a corner of the domestic economy that includes companies engaged in the extraction and production of various natural resources (and therefore potentially useful as a means of establishing “indirect” commodity exposure through commodity-intensive companies). Given the sector-specific focus, FXZ likely doesn’t deserve a core allocation, but may be useful as a means of implementing a tactical tilt towards the materials sector. FXZ seeks to replicate an index that employs a unique strategy designed to generate excess returns relative to traditional cap-weighted benchmarks. The underlying AlphaDEX Index employs a quant-based screening methodology designed to identify stocks poised for outperformance. In return for exposure to this strategy, which has historically delivered impressive returns, investors can expect to pay a bit more; FXZ’s expense ratio is about 50 basis points higher than low cost options for materials exposure such as FBM and XLB. The unique index construction methodology has some other potential advantages; FXZ maintains much lower concentration of top holdings than do cap-weighted funds such as FBM and XLB. That means that performance isn’t as dependent on a handful of large cap stocks, potentially giving a better way to access materials. For those who believe in the merits of the AlphaDEX methodology and willing to pay a little extra for a shot at alpha, FXZ might be worth a closer look. Those looking to keep a cap on expenses and simply own the broader market have cheaper options available to them.
MMIN|15|PendingDownload the FactSet Analyst Insight Reporthere.
IG|15|The Principal Investment Grade Corporate Active ETF (IG) is an actively-managed fund that invests in investment-grade corporate debt denominated in U.S. dollars. The fund is unconstrained and has a duration — a measure of bond price sensitivity to interest rate moves — of about 7.8 years, putting it in the medium-term category. IG’s management fee is competitive for the category.
FPEI|15|PendingDownload the FactSet Analyst Insight Reporthere.
GINN|15|PendingDownload the FactSet Analyst Insight Reporthere.
PSCH|15|This fund gives investors exposure to the small cap health care industry, a market segment that has both value and growth characteristics. Securities in this corner of the market can be also be prone to quick shifts in sentiment thanks to changing government regulations or policies. Furthermore, many companies in this corner of the market are unprofitable and rely on FDA drug approval in order to snap back into the green, a very risky proposition. With that being said, PSCH gives investors a nice mix of biotech, pharma, medical tech, and facility companies spreading risk around the various corners of the health care world. However, it should be noted that the fund does still have singificant concentrattion in its top ten holdings as these companies make up close to one third of total assets, rather high considering the fund only has 70 securities in total. As a result, investors should consider this fund only if they are looking to tactically tilt towards the sector or round out exposure to the health care segment.
ULST|15|PendingDownload the FactSet Analyst Insight Reporthere.
IGE|15|This fund gives investors exposure to increasing commodity prices through a basket of U.S.-traded natural resource related equities. IGE has an attractively low expense ratio and the funds principal holdings are big-oil companies and precious metal miners. Investors can use IGE as a means of gaining exposure to the growing natural resources sector, while reasonably reducing their expected volatility given the giant market-cap size of its top holdings.
EUSA|15|This market cap weighted ETF is one of several options offering broad-based exposure to U.S. equity markets, including various sectors of the domestic economy and companies of all various sizes. While EUSA is found in the All Cap Equities ETFdb Category, it should be noted that this ETF has a heavy tilt towards large and mega cap stocks, with minimal exposure to smaller firms. Moreover, it holds far fewer individual securities than broad-based ETFs such as VTI or IWV, which may be better options for those seeking to cast a wider net across the U.S. stock market (EUSA is designed to offer exposure to the largest 85% of the U.S. stock market). This ETF boasts a low expense ratio, and as such could be appealing to investors looking to build a cost efficient long-term portfolio (though VTI is far cheaper). Those seeking a specific type of domestic equity exposure may gravitate towards EUSA, but there are generally better options available out there for access to the U.S. equity market.
MDIV|15|PendingDownload the FactSet Analyst Insight Reporthere.
DDM|15|This ETF offers 2x daily long leverage to the broad-based Dow Jones Industrial Average Index, making it a powerful tool for investors with a bullish short-term outlook for U.S. large cap stocks. Investors should note that DDM’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. DDM can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
FEM|15|This fund offers broad exposure to emerging markets by investing in the Defined Emerging Markets Index. This benchmark provides access to a variety of emerging markets across the globe although it is heavy in its exposure to countries such as China and Taiwan in particular. Emerging markets are a key allocation in many portfolios thanks to the high growth potentials that many of these markets have. Many citizens in these countries are entering the ranks of the middle class for the first time and are beginning to consumer more like their Western counterparts. However, risks remain high in many of these nations as corruption and inflation rates are through the roof suggesting that investors need to be concerned over the short term when investing in these securities. FEM invests in an index that provides less diversification than many others in the field and it also is slightly more expensive. However, the fund does seek to weed out some of the worst names across various countries making it a potentially less volatile play on a choppy corner of the market.
PSJ|15|This ETF seeks to replicate a benchmark that is comprised of various software companies. PSJ, an Invesco PowerShares product, invests in only U.S. companies, so this may not be the right fund for those who wish to gain exposure on a global scale. At first glance, investors may assume that the ETF would invest in mega cap software firms, when in actuality, the fund invests primarily in medium cap companies, giving investors access to a fair amount of lesser-known, potentially high growth firms. As we move more into cloud computing technology, software companies could get a huge boost from selling their products via the cloud instrumentation as opposed to selling through major retailers, which could turn into big gains for this ETF.
PSCT|15|PSCT tracks a broad index of small companies in the information technology sector which the issuer considers to be the following areas; software, internet, electronics, semiconductors, communication and hardware. As a result, this fund tracks some of the quickest growing and most volatile companies in the technology sector.  The fund focuses entirely on U.S. stocks, and is relatively well spread out; it holds 130 securities in total and puts just 19.5% in its top ten holdings. Investors should also note that while this is a small cap fund it also offers exposure to other asset class sizes as well; mid caps make up almost 2.1% while micro caps make up nearly 30% as well. As a result, this fund will be more of a growth play than one that presents strong value opportunities for investors. So while this is a decent fund for those looking to achieve broad exposure to the tech sector, most investors should look to broader fund which take into account all sectors of the technology industry instead for their portfolios. However, it should also be noted that this fund could make for an excellent compliment for investors who are bullish on tech but already have significant exposure to large caps; this fund could provide a different mix of companies and add to overall diversification within the sector.
EUSB|15|PendingDownload the FactSet Analyst Insight Reporthere.
EMHY|15|This ETF offers access to junk bonds from emerging markets issuers, an asset class that is generally excluded from long-term portfolios, but that has the potential to deliver very attractive returns and currency diversification. Most bond portfolios are dominated by holding in high quality debt of U.S. issuers. EMHY offers unique exposure in two regards; it focuses on junk bonds of companies headquartered in emerging markets. As such, this ETF has the potential to bring geographic and currency diversification to a fixed income portfolio while also delivering returns materially higher than those on investment grade debt.
PRNT|15|The 3D Printing ETF (PRNT) is an index fund from a team better known for its actively-managed products. The advisory firm, led by Catherine Wood, has an impressive track record doing what most stock pickers fail to do: beating the market. PRNT is one of ARK’s few passive products. The fund tracks a tiered, equal-weighted index of approximately 50 companies involved in 3D printing, including hardware, software, printing centers, scanners and materials. Each business line is assigned a certain weight within the index. Eligible companies hail from the U.S., developed markets outside the U.S., and Taiwan.
DNL|15|This unique ETF offers exposure to developed and emerging markets outside of the U.S., including dividend paying companies that are selected based on a methodology that includes growth of earnings and revenue metrics. As such, this fund is one of many options for investors looking to establish exposure to international equities, a core holding in any long-term portfolio. DNL maintains a more narrow focus than many of the products in the Global Equities ETFdb Category, resulting in a bit of a concentration in just a few securities. The other potential drawback is the expense structure; DNL is quite a bit more expensive than the other ETF options offering generally similar exposure. Still, for investors who understand the methodology used by the underlying index and are attracted to the investment strategy, DNL may be a compelling choice.
USXF|15|PendingDownload the FactSet Analyst Insight Reporthere.
IMCV|15|PendingDownload the FactSet Analyst Insight Reporthere.
UNG|15|This fund offers exposure to one of the America’s most important commodities, natural gas, and potentially has appeal as an inflation hedge. While natural gas may be appealing, UNG often suffers from severe contango making the product more appropriate for short-term traders.
IEUS|15|PendingDownload the FactSet Analyst Insight Reporthere.
VIDI|15|PendingDownload the FactSet Analyst Insight Reporthere.
SRET|15|PendingDownload the FactSet Analyst Insight Reporthere.
ISCG|15|PendingDownload the FactSet Analyst Insight Reporthere.
TPYP|15|PendingDownload the FactSet Analyst Insight Reporthere.
PTH|15|This ETF is a component of the suite of “dynamic” ETF products from PowerShares, seeking to replicate a benchmark that is constructed based on a proprietary screening methodology. While PTH is an index-based fund, the underlying index seeks to generate alpha by using quant-based filters to select individual stocks. For those who believe the methodology employed is capable of generating alpha over the long run, PTH might be an attractive way to access health care stocks. For those who believe in efficient markets and are looking to keep expenses down, there are probably better options out there; PTH is considerably more expensive than other options such as XLV and FHC. As a sector-specific fund, PTH is probably too targeted for inclusion in a long-term portfolio; this ETF will be more useful for establishing a short-term tactical tilt or as part of a sector rotation strategy.
FBCG|15|The Fidelity Blue Chip Growth ETF (FBCG) is an actively managed fund that invests in large cap U.S. stocks with earnings growth potential and sustainable business models. The fund’s managers aim to identify stocks that have been “mispriced by the market.” It is one of Fidelity’s contributions to the new space of actively managed, non-transparent ETFs. Would-be issuers lobbied regulators for years for permission to introduce ETFs run by stock pickers that don’t disclose their holdings. Firms like Fidelity wanted to protect their secret sauce from prying eyes. Fidelity was among a handful of firms that won approval in 2019. It remains to be seen whether ETF investors will be as excited as issuers about the prospect. An investment in an active fund is ultimately a bet on the manager’s ability to outperform the market — something many stock pickers fail to achieve. That’s a big reason why the biggest winners in the ETF marketplace have been cheap and transparent index products. FBCG, which debuted in June 2020, is reasonably priced for active management, though it looks expensive in an industry dominated by ultra-low-cost index funds. Investors might compare fund performance to plain vanilla U.S. index funds like the Vanguard Total Stock Market ETF (VTI) and the iShares Core S&P 500 ETF (IVV).
FTSD|15|The Franklin Liberty Short Duration U.S. Government ETF (FTSD) is an actively managed fund that invests in short-term investment-grade U.S. government bonds. The ETF invests in Treasuries with a remaining maturity of three years or less. The ETF provides minimal credit risk and low interest rate risk. By investing in shorter-term securities, FTSD reduces duration, a measure of bond price sensitivity to interest rate changes. Typically bond prices fall when rates rise. FTSD is reasonably priced for active fund, though there are cheaper index-tracking options available, like the Vanguard Short-Term Treasury ETF (VGSH), the Schwab Short-Term U.S. Treasury ETF (SCHO), and the SPDR Portfolio Short Term Treasury ETF (SPTS)
GII|15|This product dedicates its assets to an index which tracks the performance of the global infrastructure sector. Infrastructure makes for a unique but often risky investment, as any kind of economic downturn will see new project put on hold until the economy begins to prosper again. Nevertheless, with roads, bridges, and other transportation means constantly need updating or built, an investment in infrastructure could be a great long term play as both developed and emerging markets will need to upgrade their systems immensely in the coming years. In particular, IGF gives investors global exposure to infrastructure companies all across the world with a focus on European markets. Investors should note that this fund offers little emerging market exposure, meaning that it will be more stable, but may offer less growth opportunity than a fund that allocates more of its funds to emerging market securities. For those investors, there are a number of country specific infrastructure products which may be more suitable for their investment goals.
RHS|15|This ETF offers exposure to the consumer staples sector of the U.S. economy, making it one option available to investors implementing sector rotation strategies or looking to tilt exposure towards a low beta industry, perhaps in anticipation of a down market. Like many Rydex products, RHS is linked to an equal-weighted index, meaning that component companies receive approximately equal allocations. That results in exposure that is considerably more balanced than other alternatives such as XLP, and a methodology that some investors believe will add value over the long haul. In return for this exposure you can expect higher fees; this ETF is considerably more expensive than both XLP and FCD, though it is still extremely cost efficient compared to most mutual funds.
IDRV|15|PendingDownload the FactSet Analyst Insight Reporthere.
VRIG|15|The Invesco Variable Rate Investment Grade ETF is an actively-managed fund that tries to boost income while limiting vulnerability to interest rate increases. The fund will invest in investment-grade, variable rate securities, including floating rate U.S. Treasurys, mortgage-backed securities, asset backed debt, collateralized loan obligations, corporate debt, U.S. agency debt. The fund may invest up to 20% of its portfolio in junk-rated debt. The fund aims to limit duration, a measure of sensitivity to interest rate increases, to one year. Bonds with shorter duration typically take less of a hit from rate hikes than longer-term debt. Variable-rate debt adds another layer of protection since coupons adjust along with interest rates. Fund fees are reasonable, although there are lower cost indexed ETFs that track floating rate debt. VRIG could be a good choice for investors who are willing to accept a little more risk in order to bolster income while limiting interest rate risk.
SDOW|15|This ETF offers 3x daily short leverage to the Dow Jones Industrial Average, making it a powerful tool for investors with a bearish short-term outlook for large cap U.S. equities. Investors should note that SDOW’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. SDOW can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
CAPE|15|PendingDownload the FactSet Analyst Insight Reporthere.
TECB|15|PendingDownload the FactSet Analyst Insight Reporthere.
RTM|15|This ETF offers exposure to equities included in the S&P 500 Materials Index, which covers the following industries: chemicals, construction materials, containers and packaging, metals and mining, and paper and forest products. RTM is different from other ETF tracking the same index because it employs a unique equal-weighted strategy, meaning that component companies receive approximately equal allocations. That results in exposure that is considerably more balanced than other alternatives such as XLB, and a methodology that some investors believe will add value over the long haul. In return for this unique exposure you can expect higher fees; this ETF is considerably more expensive than both XLB and especially VAW, though it is still extremely cost efficient compared to most mutual funds.
BBSC|15|PendingDownload the FactSet Analyst Insight Reporthere.
IRBO|15|PendingDownload the FactSet Analyst Insight Reporthere.
GBF|15|This ETF offers broad-based exposure to investment grade U.S. bonds, making GBF a building block for any investor constructing a balanced long-term portfolio as well as a potentially attractive safe haven for investors pulling money out of equity markets. While GBF can potentially be a one stop shop for fixed income exposure, a close look at the composition of this fund is advised. Many may find the significant allocations to MBS and Treasuries somewhat insufficient for their return objectives; increased corporate bond exposure through LQD may result in a better balance and more attractive return. While GBF includes hundreds of individual securities, this ETF actually only holds a fraction of the bonds that make up the underlying benchmark; the sampling strategy employed avoids illiquid issues, but may lead to tracking error. GBF has reasonable levels of liquidity— there are more liquid options out there— but the expense ratio for this fund is pretty low and is among the lowest in the Category. However, for investors looking to avoid compounding costs and tracking error, the broad-based BND may be a better option for U.S. fixed income exposure.
QDEF|15|The FlexShares Quality Dividend Defensive Index Fund (QDEF) is part of Northern Trust’s stable of proprietary twists on factor investing. The fund follows a Northern Trust index that selects dividend-paying large-cap U.S. equities. Simple enough, but then the index weights the portfolio toward companies that earned the highest “dividend quality” scores. To prevent unintentional concentrations, the methodology caps the weighting of individual securities, industry groups, sectors and styles. Lastly, there’s the “defensive” spin. QDEF aims to deliver “below market beta exposure” — jargon used to describe how volatile the performance is relative to the market. It’s another way of saying QDEF tries to tamp down volatility.
RGI|15|This ETF offers exposure to equities included in the S&P 500 Industrials Index, which covers the following industries: aerospace and defense, building products, construction and engineering, electrical equipment, conglomerates, machinery; commercial services and supplies, air freight and logistics, airlines, and marine, road and rail transportation infrastructure. RGI is different from other ETF tracking the same index because it employs a unique equal-weighted strategy, meaning that component companies receive approximately equal allocations. That results in exposure that is considerably more balanced than other alternatives such as XLI, and a methodology that some investors believe will add value over the long haul. In return for this unique exposure you can expect higher fees; this ETF is considerably more expensive than both XLI and especially VIS, though it is still extremely cost efficient compared to most mutual funds.
YYY|15|PendingDownload the FactSet Analyst Insight Reporthere.
JVAL|15|The JPMorgan U.S. Value Factor ETF (JVAL) tracks a proprietary index that selects U.S. stocks that have attractive valuations based on characteristics like book yield, earnings yield, dividend yield, and cash flow yield. The fund is priced competitively for a factor fund but, as of June 2020, is considerably more expensive than traditional value ETFs. It also lags in assets and daily volume when compared with rivals like the the Schwab U.S. Large-Cap Value ETF (SCHV), the iShares Core S&P U.S. Value ETF (IUSV), and the Vanguard Value ETF (VTV).
JHSC|15|PendingDownload the FactSet Analyst Insight Reporthere.
WIP|15|This ETF can be thought of as the international counterpart to TIP, as it offers exposure to inflation-protected bonds issued by primarily European governments. Because the principal of the underlying holdings adjust with inflation, these securities have become popular as a tool to protect against rising asset prices and a jump in CPI. WIP is an attractive tool for investors looking to diversify fixed income holdings beyond U.S. borders, but it’s important to recognize the limitations of inflation-protected bonds.
GSSC|15|The Goldman Sachs ActiveBeta US Small Cap Equity ETF (GSSC) offers broad exposure to small-cap stocks with Goldman’s multi-factor twist. GSSC tracks a proprietary index that takes a multi-factor approach, looking for stocks that exhibit good value, strong momentum, high quality, and low volatility. Top holdings include Trex, Deckers Outdoor and Boston Beer Company.
EIDO|15|EIDO offers investors exposure to the emerging market of Indonesia by investing in securities of companies that are based in the nation. Since many of the large caps in this fund are likely to not be found in other EM funds, EIDO could make for an interesting satellite holding but is probably not appropriate as a core holding in a diversified portfolio. For investors seeking greater exposure to the Indonesian market, EIDO is one of the only ‘pure play’ option available.
VUSE|15|PendingDownload the FactSet Analyst Insight Reporthere.
FNY|15|This ETF is one of several products offering exposure to mid cap growth stocks, a corner of the domestic equity market that may feature a unique risk/return profile and be attractive in certain environments. Given the narrow focus, FNY might not be on the radar screens of those building a long-term, buy-and-hold portfolio; many investors will elect to achieve exposure to this slice of the market through more broadly-based equity ETFs that don’t focus exclusively on a single style. FNY can, however, be useful to those building U.S. equity exposure piece by piece or for those looking to implement a tactical tilt towards this corner of the market. FNY stands apart from other options in the Mid Cap Growth ETFdb Category because of the unique methodology behind the underlying index. FNY is part of the AlphaDEX suite of products that seek to replicate “enhanced” indexes that rely on quant-based screens to determine component companies. This process aims to select the most promising stocks from the broader universe, which if successful would result in a product that outperforms indexes that simply own the market. As such, FNY blurs the lines between active and passive management; this indexed product essentially seeks to outperform cap-weighted benchmarks. For those who think the AlphaDEX methodology can generate excess returns over the long run, FNY might be a nice way to access this asset class. For those looking to keep costs down and happy to simply own the market; FNY probably doesn’t have much appeal; this fund is considerably more expensive than alternatives such as VOT or IJK.
SOCL|15|This ETF offers exposure to companies engaged in some way in social media, including companies that provide social networking, file sharing, and other web-based media applications. As such, SOCL delivers targeted access to a relatively new—and potentially volatile—corner of the global technology industry. Given the concentration in a few names and potentially big swings in prices, SOCL probably shouldn’t receive a huge allocation in any long-term buy-and-hold portfolio. But this EF can certainly be useful as a “satellite” position for investors who believe that social media companies will be successful in the future, and can be a way of establishing positions to companies not included in more popular, broad-based equity ETFs.
GSUS|15|PendingDownload the FactSet Analyst Insight Reporthere.
PTMC|15|PendingDownload the FactSet Analyst Insight Reporthere.
IYZ|15|This ETF offers exposure to the U.S. telecom market, making it one option available to investors implementing a sector rotation strategy or focusing on corners of the domestic stock market that generally offer attractive dividend yields. Like most other telecom ETFs, IYZ is concentrated in a relatively small number of mega cap companies, resulting in a top heavy structure (State Street’s XTL is linked to an equal-weighted index, delivering more balanced exposure to the telecom sector). Another drawback of this ETF is expenses. IYZ is not competitive on price; both VOX and FCQ offer similar exposure with a much lower price tag. Those looking to achieve exposure to the global telecom market may consider IYZ, while those looking to steer clear of the U.S. altogether might like IST or AXTE.
SVXY|15|This ETF offers inverse exposure to an index comprised of VIX futures contracts, making it an intriguing tool in certain environments. The VIX is a widely followed indicator of expected equity market volatility, and as such has a tendency to exhibit a strong negative correlation to equity markets. Inverse exposure to the VIX, therefore, can expected to generally move in the same direction as equities—though products such as SVXY can be considerably more volatile.
PDN|15|This ETF offers exposure to mid cap equities in developed markets outside of the U.S., thereby delivering a way to access an asset class that is often overlooked by investors. Most international equity ETFs are dominated by large cap stocks, potentially resulting in both sector biases and diminished connection to local events. Mid and small caps can offer a unique risk/return profile, delivering increased sensitivity to local consumption and exposure that some consider to be more reflective of a national economy. As such, PDN can be appealing to those looking to construct a long-term portfolio with well-rounded exposure to international stocks, complementing large cap-heavy ETFs. This ETF could also be viewed as an alternative to EAFE ETFs such as VEA or EFA, offering exposure to the same region with a different methodology. PDN is linked to a RAFI-weighted index, utilizing a methodology that may have appeal compared to traditional market cap-weighting. This exposure comes with a heftier price tag than other options such as SCZ or MDD, but those who subscribe to the merits of RAFI weighting may believe that long-term outperformance will more than make up for any differential in fees.
XSVM|15|The Invesco S&P SmallCap Value with Momentum ETF tracks an index of undervalued U.S. small-cap stocks that exhibit strong price momentum. The methodology begins with the S&P SmallCap 600 Index and assesses book value, earnings and sales to determine the 240 most undervalued companies. Of the remaining stocks, the 120 with the strongest price momentum are included in the index. The portfolio is weighed based on companies’ value scores. The fund fees are reasonable for a factor strategy, though there are cheaper ultra-low-cost options in the small-cap market. The strategy is too targeted for most buy-and-hold investors, but may suit a tactical investor who wants to apply a value and momentum tilt to their small-cap exposure. Prior to June 21, 2019, the fund tracked a different index of value stocks.
VFVA|15|The Vanguard U.S. Value Factor ETF aims to invest in U.S. stocks that are priced cheaply compared with their fundamental value. Investors familiar with Vanguard’s enormously popular Vanguard Value ETF (VTV), which debuted in 2004, may wonder why Vanguard would launch a rival U.S. value ETF. The biggest difference is management style: VTV tracks an index, while VFVA is actively managed. This might come as something of a surprise to Bogleheads, those devotees of the late Vanguard founder Jack Bogle, a pioneer and champion of passive investing. But Vanguard has been steadily adding to its active ETF lineup. Another key difference between VTV and VFVA is in the portfolio. Both invest in U.S. value stocks, but VTV is limited to large cap companies while VFVA invests across the size spectrum. VFVA relies on a quantitative methodology to evaluate U.S. companies of all sizes, and uses a rules-based screen to ensure diversification and to mitigate exposure to less liquid stocks. Money managers have long recognized that certain factors, when deployed during certain market conditions, consistently reward investors. There are macroeconomic trends like economic growth and inflation, as well as fairly predictable performance patterns for certain types of stocks. For example, so-called value stocks — defined as companies with low share prices relative to their fundamentals — have historically outperformed the market over the long-term. Over time, money managers have devised methodologies to identify and exploit factors such as volatility, value, quality, growth, and price momentum. Factor ETFs have proliferated in recent years and there are many active and passive ETF options that target different factors. Some funds combine factors while others, like VFVA, target a single factor. VFVA’s fees are quite low for active management and the fund has attracted significant assets since its 2018 launch. But after decades of drilling investors in the futility of stock-picking, it remains to be seen whether Vanguard’s managers can consistently beat the market after all. For investors with a strong value conviction who want a reasonably-priced fund, VFVA makes a good compliment to a core portfolio holding in U.S. equities. Investors should compare price, performance, and portfolio against other U.S. quality funds, both active and passive.
DMRL|15|PendingDownload the FactSet Analyst Insight Reporthere.
FVAL|15|The Fidelity Value Factor ETF (FVAL) tracks a proprietary index that selects U.S. stocks with low prices relative to fundamentals. The fund is priced competitively for a factor fund but, as of June 2020, is considerably more expensive than traditional value ETFs. It also lags in assets and daily volume as compared with rivals like the the Schwab U.S. Large-Cap Value ETF (SCHV), the iShares Core S&P U.S. Value ETF (IUSV), and the Vanguard Value ETF (VTV).
PJP|15|PJP is designed to give investors exposure to numerous U.S. pharmaceuticals companies. This ETF, however, hand picks its individual securities based on a wide variety of investment merit criteria, including stock valuation and risk factors. Investing in pharmaceuticals can be a difficult task because of the various regulations outlined by the FDA and rigorous testing it takes for a product to hit the U.S. markets. Investors interested in PJP should keep up to date on FDA regulations and policies to see how it will affect their holdings. Another factor that investors should be aware of is the patent lives of the drugs from some of these brand name companies. Once major drugs lose their patent, the companies can take a big hit as the generic competitors aim to swoop in and undercut big business. PJP offers an excellent spread of the major players in domestic pharmaceuticals, and will be a great addition for any investor willing to keep up with the happenings of this fast-paced industry.
PREF|15|The Principal Spectrum Preferred Securities Active ETF (PREF) is an actively-managed fund that seeks to invest in preferred securities that offer attractive yields, diversification and reduced risk compared with other fixed-income funds. The portfolio team at Principal also seeks out securities that have variable or floating interest rates that might result in increased coupons and help manage interest rate risk. PREF’s management fee is below average for the ETFdb preferred stock/ convertible bond ETF category.
BUFR|15|PendingDownload the FactSet Analyst Insight Reporthere.
SPBO|15|The SPDR Portfolio Corporate Bond ETF (SPBO) is State Street’s offering for investors looking to access a corner of the bond market essential to any long-term, buy-and-hold portfolio. SPBO is one of the least expensive investment-grade bond ETFs in this ETFdb category, yet it has been slow to gain assets since its 2011 launch. The reason might be performance: SPBO has had consistently lagged behind the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), the dominant ETF in this segment. SPBO has a larger slice of its portfolio in shorter-dated bonds, which may explain some of the underperformance. Liquidity is another issue: SPBO tends to trade at wider spreads than LQD.
ERTH|15|The Invesco MSCI Sustainable Future ETF invests in companies from around the world that offer products and services that contribute to a more environmentally sustainable economy. The fund invests in small-, mid- and large-cap companies from around the world. Companies are eligible for inclusion in the index if they derive 75% or more of their cumulative revenue from six areas: alternative energy, energy efficiency, green building, sustainable water, pollution prevention and control, and sustainable agriculture. The index excludes companies that faced very severe controversies related to environmental, social and governance issues in the last three years, as well as companies involved in controversial weapons. The fund is among dozens of ETFs that target companies that compare favorably on environmental, social and governance criteria, also known as ESG. ESG funds are an increasingly popular segment of the ETF marketplace, offering values-driven investors a diverse portfolio of U.S. stocks without compromising their conscience. ERTH is part of a narrower subset of ESG known as impact funds, whose goal is to invest in companies that try to bring about a measurable, beneficial social or environmental impact. Invesco’s fund fees are reasonable for the segment, though fees for impact ETFs tend to be significantly higher than plain-vanilla index funds and some broad-based ESG funds. The holdings are also significantly narrower. Due to the increased diversification and concentration risk of its portfolio, ERTH is not a good replacement for a core global equity position though it may be a good complement for investors committed to sustainable businesses. Prior to March 24, 2021, the fund traded under a different name and ticker and followed a different index and strategy. The was formerly known as the Invesco Cleantech ETF and traded under the ticker PZD.
ECH|15|ECH offers exposure to Chilean equities, by holding companies that are domiciled in the South American nation. For investors seeking investment in the nation, ECH is one of the only choices available as most ETFs do not offer any allocations to the emerging nation except for broad Latin America funds. ECH is a nice option for investors who want to load up on Chile but be aware the fund could experience high levels of volatility.
SHYD|15|PendingDownload the FactSet Analyst Insight Reporthere.
ISCV|15|PendingDownload the FactSet Analyst Insight Reporthere.
QQQE|15|This ETF offers exposure to one of the most widely followed indexes in the world, but with a unique twist that makes the exposure offered very different from many other products linked to the NASDAQ. The NASDAQ is an index consisting of blue chip U.S. stocks, with a significant tilt towards the technology sector (tech stocks account for more than half of the underlying index).
FDT|15|This ETF is one of many options that offers exposure to developed markets outside of the U.S., an asset class that includes stocks from Western Europe, Japan, and Australia. It should also be noted that FDT includes meaningful exposure to Canadian stocks, distinguishing this fund from EAFE ETFs that avoid North American equities altogether. Given this focus, FDT may have appeal to investors building a long-term, buy-and-hold portfolio; ex-U.S. developed markets exposure should be a core component of portfolios for those in it for the long run. FDT is unique because of the methodology employed by the underlying index; this ETF is part of the AlphaDEX suite of products that employs a quant-based approach with the goal of identifying component companies that maintain the greatest potential for capital appreciation. In exchange for this attempt to generate alpha, which may be appealing to those opposed to market cap weighting, investors can expect to pay a little bit more. FDT’s expense ratio is on the high end of the range for its ETFdb Category; those who believe the AlphaDEX methodology is capable of generating excess returns over the long run may be willing to pay for this exposure, while those looking to keep costs down and simply own the market may prefer other options (such as SCHF).
RXI|15|This ETF offers exposure to the global consumer discretionary sector, splitting holdings roughly evenly between U.S. and international stocks. As such, RXI can be a useful tool for investors looking to implement a sector rotation strategy on a global level, and may also be useful for those looking to tilt exposure towards a high beta industry that may perform well in bull markets. This fund probably doesn’t have much use for long-term buy-and-holders, who would be better suited by a broader fund offering exposure to multiple sectors. RXI receives high marks on the diversification front; in addition to including more than a dozen different countries, individual security concentration is low. Those seeking U.S. only exposure to the consumer discretionary sector may gravitate towards XLY or VCR, while those seeking to avoid the U.S. entirely may like AXDI or IPD.
GQRE|15|The FlexShares Global Quality Real Estate Index Fund (GQRE) tracks a proprietary index that assesses real estate investments based on quality, momentum, and value. The index weights its holdings based on how well they score on those factors, then imposes caps to ensure diversification. GQRE invests in real estate companies in developed U.S. and international markets, including real estate investment trusts and and real estate operating companies.
VBND|15|PendingDownload the FactSet Analyst Insight Reporthere.
FTLS|15|PendingDownload the FactSet Analyst Insight Reporthere.
DSTL|15|PendingDownload the FactSet Analyst Insight Reporthere.
FLGV|15|PendingDownload the FactSet Analyst Insight Reporthere.
EXI|15|This ETF offers exposure to the global industrial sector, a corner of the economy that includes transportation firms, providers of commercial and professional services, and manufacturers of capital goods. Given the targeted nature of the underlying benchmark, EXI probably isn’t very useful for those building a long-term portfolio; it will be more useful as a means of establishing a tactical tilt towards the industrials sector or as part of a global sector rotation strategy. A few items are noteworthy with respect to EXI. U.S. stocks have a heavy weighting in the portfolio, accounting for about half of total assets. In addition, it should be noted that this ETF achieves good balance, spreading exposure across close to 200 stocks and generally avoiding major concentrations in individual securities. EXI probably is too targeted for most investors out there, but for those looking to bet on industrials with a global focus, it can be a useful tool. Those seeking U.S. exposure may prefer XLI or the equal-weighted RGI, while those looking to steer clear of the U.S. may want to consider IPN.
DUSA|15|PendingDownload the FactSet Analyst Insight Reporthere.
AAAU|15|PendingDownload the FactSet Analyst Insight Reporthere.
EEMS|15|This ETF offers exposure to small cap stocks in emerging markets, an asset class that is often overlooked by investors but that should be included in most buy-and-hold portfolios. In addition to being a very useful tool for investors with a long-term time horizon, EEMS can be appealing to more active traders as well; this ETF offers a way to achieve quick exposure to risky assets that often exhibit relatively high volatility in both directions.
PLW|15|This PowerShares ETF is unique from many other funds offering exposure to government bonds; instead of focusing on specific maturities or implementing a barbell strategy, PLW offers exposure to the entire maturity curve. This ETF can be an efficient means of implementing a laddered Treasury strategy, or can be used to achieve well-balanced exposure to government bonds.
RWK|15|This ETF is one of several ETFs available that offers exposure to mid cap U.S. stocks, an asset class that can make up a significant portion of long-term, buy-and-hold portfolios. As such, this ETF may be more appealing to those in the portfolio construction process as opposed to short term traders. Mid cap stocks are appealing to many because they still have significant growth potential but they are less risky than their small and micro cap brethren. While many products in this category utilize a cap-weighted system, RWK weights companies by top line revenues instead. Due to this the weightings of the fund are far different than those using a cap weighting system, even though both styles still chose from the same number of funds. In total RWK holds about 400 securities and has less than 20% of its portfolio in its top ten securities suggesting that a solid level of diversification is present. Unfortunately, the expense ratio for this product is far higher than some of the cap weighted funds but for those willing to put up with a higher expense ratio RWK could make for a key building block in numerous buy and hold portfolios.
DFAE|15|PendingDownload the FactSet Analyst Insight Reporthere.
ROUS|15|PendingDownload the FactSet Analyst Insight Reporthere.
RFG|15|This ETF is one of several options available to investors looking to access mid cap U.S. stocks exhibiting growth characteristics, such as low dividend yields and high pricing multiples. As such, RFG may be a useful tool for those looking to implement a tactical tilt towards a sector of the U.S. equity market that may perform relatively well in certain economic environments. It is probably too targeted for those looking to build a long-term, buy-and-hold portfolio, though it can potentially useful for fine-tuning exposure offered by other ETFs. RFG is noteworthy because of the “pure style” distinction, making this product is very different from funds like IJK and IWP, which often have considerable overlap with their value counterparts. RFG focuses on a much smaller universe of mid cap growth stocks, including only those with the most significant growth characteristics. So for investors seeking to establish a growth tilt, RFG will be a much more effective tool than broadly based funds that cast a significantly wider net and are likely to include value stocks as well.
NAIL|15|PendingDownload the FactSet Analyst Insight Reporthere.
DWLD|15|PendingDownload the FactSet Analyst Insight Reporthere.
NUMG|15|PendingDownload the FactSet Analyst Insight Reporthere.
FNDB|15|PendingDownload the FactSet Analyst Insight Reporthere.
THD|15|THD offers exposure to Thai equities specifically focusing on companies that are based in the nation. For investors seeking investment in the nation, THD is one of the only choices available as most ETFs only offer small allocations to the emerging country. THD is a nice option for investors who want to load up on Thai but be aware the fund could experience high levels of volatility.
GOVZ|15|PendingDownload the FactSet Analyst Insight Reporthere.
FAN|15|This ETF offers exposure to the global wind power industry, a corner of the market that may have tremendous long term potential but often exhibits significant volatility in the short term. Given FAN’s narrow focus, it is likely most effective for those looking to establish a tactical tilt towards the wind power industry, either as part of a long term strategy or a shorter term move. The most noteworthy attribute of FAN is the composition of the underlying index, which includes both pure play wind power companies and firms with more broad-based operations that maintain some focus on wind power. As a result, this ETF is more broadly based than PWND (i.e., contains a greater number of holdings) but may include firms whose primary operations focus on oil and gas or auto parts, as well as diversified industrial conglomerates. The impact of this inclusion is felt on the risk/return profile; while FAN and PWND have some overlap, these products are actually quite different. If you’re considering FAN for wind power exposure, be sure to take a look under the hood and understand the consequences of the index construction methodology. This fund can be an very useful tool for certain objectives, but the composition of the portfolio may be somewhat surprising as well.
CNRG|15|PendingDownload the FactSet Analyst Insight Reporthere.
BETZ|15|PendingDownload the FactSet Analyst Insight Reporthere.
BSJO|15|The Invesco BulletShares 2024 High Yield Corporate Bond ETF tracks an index of junk-rated U.S. corporate bonds that mature in the indicated year. BulletShares are different than traditional bond ETFs because once the scheduled maturity date is reached, the funds distribute the principal back to investors. Traditional bond ETFs continuously buy and sell their underlying bonds to maintain their target maturity. For this reason, BulletShares behave more like a traditional bond than like a bond fund. This appeals to investors who want to lock in a fixed coupon while still gaining the diversification that an ETF portfolio provides. As the maturity date nears, BulletShares high-yield ETFs roll the proceeds of their maturing bonds into cash, cash equivalents, Treasurys or investment-grade corporate paper. This acts as an automatic risk-off tool; in the final year of the fund’s life, the portfolio will steadily tilt more and more heavily toward ultra-safe Treasurys. This is appealing for investors looking for a guaranteed cash distribution at maturity, and are willing to accept steadily lower yields in the final year. Once the target date is reached, the fund distributes the capital back to investors and shuts down. Of course, the appeal of junk debt is the increased yields over Treasurys or investment-grade corporates. Investors who want to maintain the income from high-yield exposure can sell their maturing BulletShares ETF on the stock market and reinvest in a comparable BulletShares with a later maturity. One popular strategy is “laddering” BulletShares across a range of maturity dates, which locks in fixed coupon payments and plans ahead for cash distributions at maturity. This makes them especially appealing for those who want the guaranteed income combined with the ease and diversification benefits an ETF can provide. For most investors, it’s far easier and cheaper to buy a BulletShares ETF than it is for them to source one or two underlying bonds. BulletShares ETFs debuted in 2010 under the Claymore brand and eventually moved to Invesco when the company acquired Guggenheim’s ETF business in 2018. BulletShares provide income and diversification for a competitive fee, though large investors may want to be conscious that the liquidity constraints of the underlying market may lead to wider spreads. Investors should also compare performance and liquidity against some of the popular active and passive junk-debt ETFs on the market.
JQUA|15|The JPMorgan U.S. Quality Factor ETF (JQUA) tracks a proprietary index that selects stocks in large- and mid-cap U.S. stocks based on quality, profitability, and solvency. JQUA is priced competitively with other single-factor funds that invest in U.S. equities. The fund owns more than 200 securities. As with many single-factor funds, JQUA may not be diversified enough to stand alone as a core U.S. equity holding. It tends to be useful to investors who want to overlay a quality tilt on top of a core allocation to U.S. markets.
URTY|15|This ETF offers 3x daily long leverage to the Russell 2000 Index, making it a powerful tool for investors with a bullish short-term outlook for small cap equities. Investors should note that URTY’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. URTY can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
IHE|15|This ETF is one of the options available for investors looking to access the pharmaceutical industry, a sub-sector of health care that has the potential to perform well during periods of consolidation and that may be appealing as a source of capital appreciation over the long run. Given the targeted focus of IHE, this ETF probably isn’t that useful as a core holding in a long-term portfolio; it may, however, be appealing to those looking to apply a tactical tilt towards pharma or implement a sector rotation strategy. IHE is somewhat concentrated, with a relatively shallow basket of holdings and significant weightings afforded to the larger companies in the underlying index. Other options for exposure to pharmaceutical firms include PPH (which is extremely concentrated) and XPH, which is linked to an equal-weighted index and therefore may offer better balance. There is also the “Dynamic” PJP, a more expensive option that may be attractive for those who believe the quant-based methodology adds value.
SPXS|15|This ETF offers 3x daily short leverage to the broad-based S&P 500 Index, making it a powerful tool for investors with a bearish short-term outlook for U.S. large cap stocks. Investors should note that the leverage on SPXS resets on a daily basis, which results in compounding of returns when held for multiple periods. BGZ can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
BKLC|15|The BNY Mellon US Large Cap Core Equity ETF (BKLC) tracks an index of large cap U.S. equities…and does it for free. That’s right: BKLC’s management fee is zero. BKLC is part of a lineup of ETFs introduced by BNY Mellon in April 2020. As a latecomer to a crowded market, BNY Mellon is betting that its fee-free and ultra-low-cost funds will help win over investors.
CWEB|15|PendingDownload the FactSet Analyst Insight Reporthere.
IBMK|15|PendingDownload the FactSet Analyst Insight Reporthere.
PBD|15|This ETF offers exposure to the global clean energy index, including both U.S. and international stocks in the underlying portfolio. PBD also diversifies across various types of clean energy—such as wind, solar, and hydro—making it an interesting option for those looking to bet on a clean energy boom but unwilling to make a concentrated bet on a specific sub-sector. Relative to competing options such as ICLN or GEX, PBD may be appealing because it maintains a much smaller concentration of assets among its top holdings—thereby minimizing the fund’s dependence on a few select stocks. On the downside, PBD is significantly more expensive than some alternatives, particularly ICLN. Those who value balanced exposure may find that PBD is worth the extra fees charged relative to other options.
ZROZ|15|This unique ETF offers investors an opportunity to access long-dated Treasuries, and is one of the most effective tools out there for those looking to dial up interest rate risk and extend the effective duration of a fixed income portfolio. ZROZ invests exclusively in STRIPS, the final principal payments of U.S. Treasuries with at least 25 years remaining until maturity. As such, this product will be very sensitive to changes in interest rate movements, performing very well when rates fall but likely struggling if rates begin to climb. In return for exposing investors to this interest rate risk, ZROZ often exhibits a very attractive yield—though those looking for actual dividends may want to look elsewhere. ZROZ probably doesn’t have much use as a core holding in a fixed income portfolio, but can be a very useful tool for those looking to extend overall duration or bet on a decline in interest rates.
FXN|15|This ETF offers exposure to the U.S. energy sector, seeking to replicate an index that employs a unique strategy designed to generate excess returns relative to traditional cap-weighted benchmarks. As such, FXN is probably too targeted for some investors, but can be a useful tool in sector rotation strategies and an efficient means of tilting exposure towards the energy sector (it may also be useful in long/short pairs trades). The underlying AlphaDEX Index employs a quant-based screening methodology designed to identify stocks poised for outperformance relative to a broader universe consisting of oil and gas stocks. In return for exposure to this strategy, which has historically delivered impressive returns across the entire suite, investors can expect to pay a bit more; FXN’s expense ratio is about 50 basis points higher than low cost options for financial exposure such as FEG and XLE. The unique index construction methodology has some other potential advantages; FXN maintains much lower concentration of top holdings than do cap-weighted funds such as XLE. As such, performance isn’t as dependent on a handful of large cap stocks, potentially giving a better way to access financials. For those who believe in the merits of the AlphaDEX methodology and willing to pay a little extra for a shot at alpha, FXG can be an excellent way to gain exposure to the energy sector.
RAVI|15|The FlexShares Ready Access Variable Income Fund (RAVI) is part of Northern Trust’s sizable stable of ETFs built with the firm’s twist on factor investing. RAVI is one of several short-term debt funds marketed to investors who want to preserve capital while wringing out a bit more income than they can get from Treasuries. The Northern Trust portfolio team behind RAVI looks for short-term investment-grade debt, including public and private securities from U.S. and non-U.S. issuers.
PALL|15|This fund offers exposure to one of the world’s most famous precious metals, palladium. PALL is designed to track the spot price of palladium bullion by holding bars of the metal in a secure vault, allowing investors to free themselves from finding a place to store the commodity. PALL is one of the only ways that investors can obtain exposure to the metal beyond holding a futures contract on palladium as there are no pure palladium miners. While futures contracts are an option, they encounter roll yield issues and are inherently more expensive and risky than just holding the physical metal. Due to this, PALL is an excellent choice for investors looking to load up on the precious metal, just don’t let it be the only commodity that you hold as palladium is often highly correlated to the car industry and can be very cyclical.
ULVM|15|PendingDownload the FactSet Analyst Insight Reporthere.
ILTB|15|This ETF offers broad-based exposure to investment grade U.S. bonds, making ILTB a building block for any investor constructing a balanced long-term portfolio as well as a potentially attractive safe haven for investors pulling money out of equity markets. While ILTB can potentially be a one stop shop for fixed income exposure, a close look at the composition of this fund is advised. Many may find the significant allocations to MBS and Treasuries somewhat insufficient for their return objectives; increased corporate bond exposure through LQD may result in a better balance and more attractive return. Furthermore, the fund only has securities that are maturing in ten years or longer. While this will help to boost the overall yield for the fund, it will also make it more susceptible to default and interest rate risk as well. While ILTB includes hundreds of individual securities, this ETF actually only holds a fraction of the bonds that make up the underlying benchmark; the sampling strategy employed avoids illiquid issues, but may lead to tracking error. ILTB has reasonable levels of liquidity— there are more liquid options out there— but the expense ratio for this fund is pretty low and is among the lowest in the Category. However, for investors looking to avoid compounding costs and tracking error, the broad-based BND may be a better option for U.S. fixed income exposure, although ILTB is certainly a viable option for those seeking longer-dated securities in their portfolio.
SPEU|15|The SPDR Portfolio Europe ETF (SPEU) tracks an index of European stocks, and does it for an extremely competitive price. The fund owns more than a thousand securities, making it a well-diversified option for long-term investors building a balanced portfolio. Its portfolio is dominated by the United Kingdom, France, Switzerland, and Germany. Like all of State Street’s SPDR Portfolio ETFs, SPEU’s management fee was set low enough to compete with ultra-low-cost rivals like the iShares Core MSCI Europe ETF (IEUR) and the Vanguard FTSE Europe ETF (VGK). SPEU also has competition from newer low-cost rivals like the JPMorgan BetaBuilders Europe ETF (BBEU).
DOL|15|This ETF offers exposure to dividend-paying stocks in developed markets outside of the U.S. and Canada, making it a potential cornerstone of a balanced long-term portfolio that may have appeal to investors who value the approach offered by dividend-weighted funds. DOL should be seen as a potential alternative to cap-weighted funds such as EFA or VEA, focusing on the EAFE region. Because the underlying index determines components and allocations based on dividends paid, this ETF may feature a risk/return profile that is unique compared to EFA, including different sector and region allocations (DOL is heavily tilted towards Europe). DOL is more expensive than other developed market ETF options, but for investors who believe that a dividend-weighted approach offers value over the long run, the additional fees will be worthwhile.
SMIN|15|SMIN offers exposure to a portfolio of nearly 240 small cap Indian stocks, meaning that this fund may serve as a better “pure play” on the Indian economy than products dominated by mega cap equities such as EPI, INP, or INDA. SMIN can exhibit significant volatility in the short term, but its long term potential is tremendous, especially if India’s economy continues to expand at an impressive rate. This ETF is similar to SCIF and SCIN, which also offer exposure to small Cap Indian stocks; however, SMIN boasts a deeper portfolio and features a lower expense fee than both of its competitors. SMIN is an attractive, well diversified small cap offering that could serve as a useful complement to large cap India exposure.
EWN|15|EWN offers investors exposure to the European market of the Netherlands by investing in securities that trade on the national stock exchange of the nation. Since many of the large caps in this fund are likely to be found in other EFA holdings, the fund is not appropriate for investors seeking broad diversification across Europe. For investors looking for high levels of exposure to the Dutch market in particular, EWN is probably the best ‘pure play’ option available.
SMMD|15|PendingDownload the FactSet Analyst Insight Reporthere.
USD|15|This ETF offers 2x daily long leverage to the Dow Jones U.S. Semiconductors Index, making it a powerful tool for investors with a bullish short-term outlook for semiconductor equities. Investors should note that USD’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. USD can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
NUAG|15|PendingDownload the FactSet Analyst Insight Reporthere.
TMV|15|This ETF offers 3x short leveraged exposure to the broad-based NYSE 20 Year Plus Treasury Bond Index, making it a powerful tool for investors with a bearish short-term outlook for U.S. 30 year treasuries. An investment in leveraged debt can be a very risky one, as there are numerous factors that can converge to drastically change the returns of these products. Investing in leveraged bond ETFs requires a careful understand of the specific economy, in this case the US, and what kind of policies and regulations are currently in place and are set to be enforced in the future. TMV can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy. For those who feel educated enough on the specific economy and its inner workings, this ETF can be a great addition to an investment portfolio.
UIVM|15|PendingDownload the FactSet Analyst Insight Reporthere.
BSCR|15|The Invesco BulletShares 2027 Corporate Bond ETF tracks an index of U.S. investment-grade corporate bonds that mature in the indicated year. BulletShares are different than traditional bond ETFs because, once the scheduled maturity date is reached, the funds distribute the principal back to investors. Traditional bond ETFs continuously buy and sell their underlying bonds to maintain their target maturity. For this reason, BulletShares behave more like a traditional bond than like a bond fund. This appeals to investors who want to lock in a fixed coupon while still gaining the diversification that an ETF portfolio provides. As the maturity date nears, BulletShares ETFs roll the proceeds of their maturing bonds into shorter-term corporate debt or Treasurys. Once the target date is reached, the fund distributes the capital back to investors and shuts down. Investors can, at any time, sell their BulletShares ETF on the stock market and reinvest elsewhere, including rolling over into another BulletShares ETF. Investors and advisers can “ladder” their BulletShares holdings across a range of maturity dates, which locks in fixed coupon payments and plans ahead for cash distributions at maturity. This makes them especially appealing for those who want the guaranteed income, combined with the ease and diversification benefits an ETF can provide. For most investors, it’s far easier and cheaper to buy a BulletShares ETF than it is for them to source one or two underlying bonds. BulletShares ETFs debuted in 2010 under the Claymore brand and eventually moved to Invesco when the company acquired Guggenheim’s ETF business in 2018. BulletShares provide income, diversification and liquidity, and all for an extremely competitive fee.
AWAY|15|The ETFMG Travel Tech ETF (AWAY), which launched in early 2020, is a variation on a handful of funds that invest in transportation and travel businesses. AWAY tracks an index of companies involved in travel technology, and top holdings include Webjet, Booking Holdings, Uber, Lyft, and travel website operators like Trip.com and Expedia. Niche ETFs like AWAY are typically used for short-term tactical allocations. AWAY has competition in the broader travel and transportation space, such as the SPDR S&P Transportation ETF (XTN), and the triple-leveraged Direxion Daily Transportation Bull 3X Shares (TPOR). There’s also the U.S. Global Jets ETF (JETS), the only pure-play air travel ETF on the market. AWAY’s management fee is a bit high for indexed equity ETFs, but comparable to other niche products.
FLGB|15|The Franklin FTSE United Kingdom ETF (FLGB) tracks an index of large- and mid-size U.K. companies. The fund is part of a series of single-country ETFs that Franklin Templeton began rolling out in 2017. The funds debuted with significantly lower management fees than rival iShares funds, which have long dominated the single-country ETF space. Many of the stocks in FLGB’s portfolio are likely to be found in diversified European or developed market funds, and investors should be careful not to take on an unintentional overweight. Single-country funds are typically not appropriate for investors seeking a diversified portfolio, and FLGB is more likely to appeal to short-term traders placing tactical bets on U.K. markets. As of June 2020, FLBR’s management fee is a fraction of the price of the iShares MSCI United Kingdom ETF (EWU), though FLGB continues to trail its iShares rival in size and liquidity. FLBR invests in more stocks, including more mid cap names than EWU. The sector exposure of the two funds is broadly similar though there is some variation in sector weightings.
FYC|15|FYC looks to track an index which offers exposure to small cap firms that exhibit growth characteristics in the American equity market. The investment idea behind small caps is that these firms are likely to provide quality growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, focuses on a modified equal-dollar weighted index, the Defined Small Cap Growth Index, which seeks to select stocks from the S&P Small Cap 600 that may be able to generate alpha relative to traditional indexes. As a result, this fund is far less diversified than other products in the space and it charges a much higher expense ratio, one that is nearly three times higher than other funds in the space. However, the fund does do a decent job of removing some of the worst securities from the index and it may be a decent choice for those looking for greater exposure to small cap growth equities with lower levels of risk. Nevertheless, cost conscious investors should probably look elsewhere to a fund like VBK or VIOG instead.
GSID|15|PendingDownload the FactSet Analyst Insight Reporthere.
SPD|15|PendingDownload the FactSet Analyst Insight Reporthere.
IDNA|15|PendingDownload the FactSet Analyst Insight Reporthere.
EELV|15|Emerging market investments are known to exhibit a fair amount of volatility, which wards some risk-averse investors away from their potential gains. EELV seeks to eliminate that gap by offering a methodology that chooses low volatility emerging market stocks. The fund tracks an index which picks 200 of the least volatile securities from emerging markets all around the world.
PTF|15|This ETF is comprised of stocks of various companies based in the technology sector of the market. PTF invests all of its assets in domestic securities, and its top holdings feature some of the biggest names in the tech sector, including Apple and IBM. The U.S. tech sector is one of the few left that is still exhibiting strong growth, while others have grown dormant. With new innovations year after year, an investment in a PTF will afford investors the opportunity to cash in on the inevitable forward momentum that the tech sector carries. What investors may fund surprising about this broad-based technology fund is that PTF spreads its assets across companies of various market cap sizes, with a bias towards those of medium capitalization.
EFIV|15|PendingDownload the FactSet Analyst Insight Reporthere.
PAWZ|15|PendingDownload the FactSet Analyst Insight Reporthere.
TLTE|15|This ETF offers exposure to emerging market economies, an asset class that is at the core of many long term, buy-and-hold portfolios. Given the tremendous growth potential of developing economies, many investors now make substantial allocations to this asset class; TLTE is one of several ETFs in the Emerging Markets Equities ETFdb Category that can be used to tap into this corner of the market.
IEO|15|This ETF offers exposure to the exploration and production sub-sector of the U.S. industry, a corner of the market that may be appealing for investors bullish on the outlook of the energy sector. Given the targeted focus of IEO, this ETF is likely inappropriate for those constructing a long-term portfolio, but it can be very useful for more active traders seeking to establish a tilt towards domestic energy companies. Like many energy ETFs IEO faces some concentration issues, as a handful of stocks account for a significant chunk of this portfolio. XOP stands out as a more balanced option that delivers generally similar exposure, spreading assets more equally among component companies.
DFE|15|This ETF offers exposure to small cap European stocks, giving investors a way to access an asset class that is often overlooked (most European ETFs are tilted heavily towards large cap stocks). Because their performance is generally more closely tied to local consumption, small caps may be a better way to access the local economies of Western Europe. As such, DFE can potentially be used for complementary exposure to large caps, or perhaps as an alternative means of overweighting this region. It should be noted that SCZ is a more broadly-based small cap option; that fund offers exposure to small caps throughout the EAFE region. DFE’s dividend-weighting methodology may have appeal to those looking to enhance current returns or simply steer clear of the potential pitfalls associated with cap-weighting. DFE is a little on the pricey side, but the depth and balance of exposure offered are impressive.
XITK|15|PendingDownload the FactSet Analyst Insight Reporthere.
KBWY|15|This ETF offers exposure to the real estate industry within the U.S. equity market, an asset class that has been recently overlooked by many investors following the unprecedented housing crisis. KBWY follows the KBW Premium Yield Equity REIT Index, which is constructed using a dividend yield weighted methodology that seeks to reflect the performance of approximately 24 to 40 small- and mid-cap equity REITs in the United States. Real estate has historically been embraced because of its ability to deliver excess returns during bull markets and low correlation with traditional stock and bond investments. REITs might appeal to investors seeking current income, as these trusts must distribute at least 90% of their income to investors, and offer an efficient way for investors to gain indirect exposure to real estate prices (as opposed to direct exposure gained through ownership of a residential property). VNQ is a more liquid and cheaper alternative with similar exposure, while FRL boasts the lowest expense fee in this category.
VSDA|15|PendingDownload the FactSet Analyst Insight Reporthere.
SFY|15|PendingDownload the FactSet Analyst Insight Reporthere.
WDIV|15|PendingDownload the FactSet Analyst Insight Reporthere.
IBML|15|PendingDownload the FactSet Analyst Insight Reporthere.
TAIL|15|PendingDownload the FactSet Analyst Insight Reporthere.
SCHI|15|PendingDownload the FactSet Analyst Insight Reporthere.
JEMA|15|PendingDownload the FactSet Analyst Insight Reporthere.
SMB|15|This fund tracks an index of municipal bonds, a slice of the bond market that is highly coveted due to its tax features. These bonds are generally free from federal taxes and in some cases, state and local income taxes as well making these funds crucial components of portfolios for those in high tax brackets. Muni bonds are used by local entities to pay for a variety of services or to make improvements to infrastructure paying for everything from new sewer systems to school renovations and bridge construction as such, they are relatively low risk instruments. This is especially true in the case of SMB since the fund only targets short term munis which have less default risk then their longer-dated counterparts. As a result SMB is a solid choice for investors seeking broad exposure to the muni market but with lower levels of risk. The fund still has solid levels of diversification— holding over 190 securities— and one of the cheapest expense ratios in the category at just 16 basis points. However, investors should be aware that these shorter term instruments are likely to pay out a lower rate of interest than some of the longer-term bonds that are out there, potentially limiting current income.
FMHI|15|PendingDownload the FactSet Analyst Insight Reporthere.
PPH|15|This ETF is one of several options for achieving exposure to the pharma industry, a corner of the health care market that is capable of delivering big returns but that also comes with some unique risk factors. Given this investment objective, PPH is probably more useful for those looking to achieve tactical exposure to this specific corner of the market; the appeal to buy-and-holders will be limited since many of the components are included in more broad-based funds.
ONEO|15|PendingDownload the FactSet Analyst Insight Reporthere.
GSST|15|The Goldman Sachs Access Ultra Short Bond ETF (GSST) is Goldman’s answer to the hugely successful ETF launched by its competitors at JPMorgan. Like the JPMorgan Ultra-Short Income ETF (JPST), GSST is an actively-managed fund that invests in short-term investment-grade debt. GSST may be suitable for investors looking for a relatively safe way to eke out a little more yield than they can get from brokerage sweep accounts, money market funds or long-term Treasuries. The fund is a smidge cheaper than JPST, but JPST has attracted the most assets and trading volume.
SSUS|15|PendingDownload the FactSet Analyst Insight Reporthere.
HFXI|15|PendingDownload the FactSet Analyst Insight Reporthere.
CLRG|15|PendingDownload the FactSet Analyst Insight Reporthere.
MORT|15|This ETF offers exposure to mortgage REITs, a corner of the real estate market that features both significant risks and potential for significant returns. Unlike more traditional REITs, mortgage REITs don’t actually own real estate. Instead, these entities generate revenue through real estate financing by issuing mortgages or acquiring loans and mortgage-backed securities. The streams of revenue generated from these operations can often be substantial, making MORT a potentially attractive tool for investors seeking to enhance the current returns generated from their portfolios. As such, this ETF has the potential to be useful as a yield enhancement tool in a long-term portfolio, and it can certainly also be useful in shorter-term strategies as well.
FLHY|15|The Franklin Liberty High Yield Corporate ETF (FLHY) is an actively managed fund for investors looking to access to U.S.-dollar denominated ‘junk’ bonds — debt issued by borrowers with a higher risk of default. For taking on the added risk, investors are rewarded with higher yields than those offered on ultra-safe U.S. Treasuries or investment-grade debt issued by the most creditworthy companies. FLHY may invest assets in high-yield corporate debt, convertible securities, bank loans, corporate loans, and other instruments. Bonds have been one of the bright spots for active managers, and many bond ETFs manage to outperform their benchmarks — something stock pickers often fail to achieve. An investment in FLHY is ultimately a bet on the manager’s ability to beat the market. FLHY’s management fee is competitive when compared with passive rivals like the SPDR Bloomberg Barclays High-Yield Bond ETF (JNK) or the iShares iBoxx USD High Yield Corporate Bond ETF (HYG). The ETF marketplace offers offer quite a few high-yield variations, including active management, so-called ‘smart’ indexing, and even an ETF that screens junk debt based on environmental, social, and government criteria.
TMF|15|This ETF offers 3x long leveraged exposure to the broad-based NYSE 20 Year Plus Treasury Bond Index, making it a powerful tool for investors with a bullish short-term outlook for U.S. long-term treasuries. An investment in leveraged debt can be a very risky one, as there are numerous factors that can converge to drastically change the returns of these products. Investing in leveraged bond ETFs requires a careful understand of the specific economy, in this case the US, and what kind of policies and regulations are currently in place and are set to be enforced in the future. TMF can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy. For those who feel educated enough on the specific economy and its inner workings, this ETF can be a great addition to an investment portfolio.
AMZA|15|PendingDownload the FactSet Analyst Insight Reporthere.
PIO|15|This ETF offers exposure to a group of companies operating generally in the water industry, including both water utilities and infrastructure companies and water equipment and materials companies. As such, this ETF likely doesn’t belong in a long-term buy-and-hold portfolio due to the targeted nature of exposure, but may be appealing to those who believe that scarcity issues will prompt increased demand for water treatment companies. While this investment thesis may seem compelling, it is not clear how strong the link between water usage/scarcity trends and performance will be going forward. Given the complexity of the issues, as well as the various other business operations of component companies, we’re skeptical of the ability of this ETF to accomplish the objective investors may be expecting of it. Moreover, PIO faces severe concentration issues, as a few individual stocks receive huge allocations— arguably the most so out of the Category— and it is the priciest fund in the Category as well. From the universe of water ETFs—which includes FIW, PHO, and CGW, this fund is probably the worst choice; it it the most concentrated and expensive and investors looking for exposure to the industry would be better served by looking elsewhere.
SYLD|15|PendingDownload the FactSet Analyst Insight Reporthere.
IQDG|15|PendingDownload the FactSet Analyst Insight Reporthere.
SKOR|15|The FlexShares Credit-Scored U.S. Corporate Bond Index Fund (SKOR) is part of Northern Trust’s sizable stable of ETFs built with the firm’s twist on factor investing. SKOR follows a proprietary index that looks for investment-grade bonds maturing in one to 10 years. SKOR then uses an in-house scoring strategy to weight those bonds based on measures of the issuer’s quality and value, such as profitability and solvency. To prevent unintended concentrations, the index imposes limits on issuers, individual bonds, sectors and duration. The index is reconstituted monthly.
IXP|15|This ETF offers exposure to the global telecom industry, splitting holdings between U.S. and international stocks. As such, IXP could be potentially useful for investors looking to implement a global sector rotation strategy, or for those looking to overweight the sector as part of a tactical overlay. Like many telecom ETFs, IXP will generally offer an attractive dividend payout, making it an interesting option for yield-hungry investors. Also like other telecom ETFs, IXP is extremely top heavy; while the underlying portfolio consists of about 50 individual securities, a small handful of those account for the majority of total assets. IST and AXTE may be alternatives for investors looking to avoid the U.S., while VOX and FCQ exists as U.S.-only alternatives.
SMOG|15|PendingDownload the FactSet Analyst Insight Reporthere.
QQH|15|PendingDownload the FactSet Analyst Insight Reporthere.
DFEN|15|The Direxion Daily Aerospace & Defense Bull 3X Shares aims to triple the daily return of an index of defense industry stocks like Boeing, United Technologies, Lockheed Martin and Raytheon.
ACIO|15|PendingDownload the FactSet Analyst Insight Reporthere.
PJAN|15|PendingDownload the FactSet Analyst Insight Reporthere.
FCVT|15|PendingDownload the FactSet Analyst Insight Reporthere.
VIXY|15|This ETF offers investors a way to access equity market volatility, an asset class that may have appeal thanks primarily to its negative correlation to U.S. and international stocks. The VIX index tends to spike when anxiety increases, and as such often moves in the opposite direction of stocks. However, it’s important to note that VIXY does not represent a spot investment in the VIX, but rather is linked to an index comprised of VIX futures. As such, the performance of this product will often vary significantly from a hypothetical investment in the VIX (which isn’t possible to establish). The focus on short-dated futures increases the correlation to the VIX, but also increases the potential for the adverse impacts of contango. Longer-dated options such as VIIZ, VIXM, or VXZ may be appropriate for longer holding periods. This ETF should never be held over the long term in a buy-and-hold portfolio; it is designed as a trading instrument that appeals to those looking to place a short term bet against the market or use as a hedging tool. One structural note: VIXY is an ETF, while other options for similar exposure (VXX and VIIX) are ETNs. That distinction can have an impact on the potential tracking error, tax treatment, and credit risk.
IBDT|15|PendingDownload the FactSet Analyst Insight Reporthere.
ISDX|15|The Invesco RAFI Strategic Developed ex-US ETF tracks a proprietary index that targets large companies in developed markets outside the U.S. which exhibit strong sales, cash flow, return on capital and book value. Companies are scored and weighted based on these quality metrics rather than on company size. As a result of the methodology, the sector breakdown of the fund’s portfolio diverges significantly from traditional market-cap weighted options in the same markets — which may be exactly what strategic investors are looking for. The fund fees are reasonable for a factor strategy investing in international equities, though there are cheaper plain-vanilla ETFs on the market. The fund also lacks the assets and liquidity of some plain-vanilla rivals. Investors should note that the fund owns a narrower universe of companies than some broad-based rival ETFs, which may reduce diversification benefits and increase concentration risk. It’s also important to note that the fund relies on an index that includes South Korea among developed markets, whereas other indices classify the country as an emerging market. Investors who mix and match funds from different providers should make sure they’re not unintentionally overweighting or underweighting South Korea. Investors should compare fees, holdings and performance against both plain-vanilla developed market ETFs and factor strategies investing in the same markets.
USVM|15|PendingDownload the FactSet Analyst Insight Reporthere.
WOOD|15|The cleverly named WOOD offers investors a way to access the global timber industry, making this ETF a potentially attractive option for fine tuning a portfolio or implementing a targeted sector rotation strategy. This ETF may also have appeal to investors looking to protect against inflation, as timber has been shown to hedge effectively against a general rise in prices. Like many targeted sector ETFs, WOOD is relatively concentrated; there are only about 30 names in total in this fund, and a relatively small handful accounts for a substantial portion of total assets. Still, WOOD gives a good representation of the global timber industry, splitting exposure between international and domestic stocks. The other option for investors seeking timber exposure is CUT.
INDS|15|PendingDownload the FactSet Analyst Insight Reporthere.
RZV|15|RZV seeks to replicate a benchmark which offers exposure small cap firms that exhibit value characteristics in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular ETF, since it focuses on value securities, has certain biases in its portfolio holdings and may not offer as much of a cross section as funds such as IWM. However, RZV is unique in the space because it implements a ‘pure’ system. This forces the provider to classify companies in the space as either growth or value ensuring that there is no overlap between this fund and its counterpart RZG. Thanks to this shift, this fund has substantially  less securities than similar products in the space and is relatively more concentrated. In fact, RZV holds just 150 securities and puts close to 17.5% of its assets in the top ten holdings, a far cry from some funds in the space that hold over 1,200 securities. Due to this, investors should consider this fund if they are looking to only tap into value securities and want nothing to do with growth companies in the space. The fund does charge more than others in the category but its methodology may be worth it to many investors.
EDIV|15|This ETF offers exposure to a number of emerging markets, focusing on dividend paying stocks in the developing world. Many emerging markets companies offer substantial distributions, making EDIV a potentially intriguing option for investors looking to enhance current returns to their portfolio. EDIV may be viewed as an alternative to more popular EM ETFs such as VWO and EEM, offering exposure to similar countries but skewing the sector profile towards utilities, financials, and telecoms. It should be noted that EDIV doesn’t offer quite the depth of exposure maintained by some broad-based emerging markets ETFs, and that quasi-developed economies such as Taiwan and South Korea find their way into the underlying portfolio. With a competitive expense ratio, EDIV can be a useful tool for fine-tuning international equity exposure. VWO might be a better choice for those looking to minimize expenses, while EMVX could also be appealing for those seeking a value tilt within emerging markets.
PSEP|15|PendingDownload the FactSet Analyst Insight Reporthere.
UWM|15|This ETF offers 2x daily long leverage to the Russell 2000 Index, making it a powerful tool for investors with a bullish short-term outlook for small cap equities. Investors should note that UWM’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. UWM can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
BSJP|15|The Invesco BulletShares 2025 High Yield Corporate Bond ETF tracks an index of junk-rated U.S. corporate bonds that mature in the indicated year. BulletShares are different than traditional bond ETFs because once the scheduled maturity date is reached, the funds distribute the principal back to investors. Traditional bond ETFs continuously buy and sell their underlying bonds to maintain their target maturity. For this reason, BulletShares behave more like a traditional bond than like a bond fund. This appeals to investors who want to lock in a fixed coupon while still gaining the diversification that an ETF portfolio provides. As the maturity date nears, BulletShares high-yield ETFs roll the proceeds of their maturing bonds into cash, cash equivalents, Treasurys or investment-grade corporate paper. This acts as an automatic risk-off tool; in the final year of the fund’s life, the portfolio will steadily tilt more and more heavily toward ultra-safe Treasurys. This is appealing for investors looking for a guaranteed cash distribution at maturity, and are willing to accept steadily lower yields in the final year. Once the target date is reached, the fund distributes the capital back to investors and shuts down. Of course, the appeal of junk debt is the increased yields over Treasurys or investment-grade corporates. Investors who want to maintain the income from high-yield exposure can sell their maturing BulletShares ETF on the stock market and reinvest in a comparable BulletShares with a later maturity. One popular strategy is “laddering” BulletShares across a range of maturity dates, which locks in fixed coupon payments and plans ahead for cash distributions at maturity. This makes them especially appealing for those who want the guaranteed income combined with the ease and diversification benefits an ETF can provide. For most investors, it’s far easier and cheaper to buy a BulletShares ETF than it is for them to source one or two underlying bonds. BulletShares ETFs debuted in 2010 under the Claymore brand and eventually moved to Invesco when the company acquired Guggenheim’s ETF business in 2018. BulletShares provide income and diversification for a competitive fee, though large investors may want to be conscious that the liquidity constraints of the underlying market may lead to wider spreads. Investors should also compare performance and liquidity against some of the popular active and passive junk-debt ETFs on the market.
TDSD|15|PendingDownload the FactSet Analyst Insight Reporthere.
MEAR|15|PendingDownload the FactSet Analyst Insight Reporthere.
FDHY|15|The Fidelity High Yield Factor ETF (FDHY) is an actively managed fund for investors looking to access to U.S.-dollar denominated ‘junk’ bonds — debt issued by borrowers with a higher risk of default. For taking on the added risk, investors are rewarded with higher yields than those offered on ultra-safe U.S. Treasuries or investment-grade debt issued by the most creditworthy companies. FDHY may invest in securities issued by G10 member countries, Western European nations, and U.S. territories. Bonds have been one of the bright spots for active managers, and many bond ETFs manage to outperform their benchmarks — something stock pickers often fail to achieve. An investment in FDHY is ultimately a bet on the manager’s ability to beat the market. FDHY’s management fee is reasonable for active management, but there are cheaper options out there, especially passive rivals like the SPDR Bloomberg Barclays High-Yield Bond ETF (JNK) and the iShares iBoxx USD High Yield Corporate Bond ETF (HYG). The ETF marketplace offers quite a few high-yield variations, including active management, so-called ‘smart’ indexing, and even an ETF that screens junk debt based on environmental, social, and government criteria.
SHE|15|PendingDownload the FactSet Analyst Insight Reporthere.
EZA|15|EZA offers investors exposure to the emerging market of South Africa by investing in securities of companies that are based in the nation. Since many of the large caps in this fund are likely to not be found in other EM funds, EZA could make for an interesting satellite holding but is probably not appropriate as a core holding in a diversified portfolio. For investors seeking greater exposure to the South African market, EZA is one of the only ‘pure play’ option available.
GAL|15|This ETF is one of the many funds that offers exposure to multiple asset classes through a single ticker. GAL in particular targets a mix of roughly 60% equities and 40% fixed income. As such, this fund will appeal to investors looking to preserve capital, while also generating a meaningful current income without having to stomach excessive portfolio volatility.  While using a product like GAL simplifies the portfolio construction process, there are some drawbacks to this approach as well. First and foremost, because risk tolerances and objectives vary from investor to investor, it’s unlikely that the one size fits all approach will work perfectly for you. There’s also the issue of expenses; as a fund-of-funds, GAL has multiple layers of fees and more seasoned investors may be capable of constructing a similar portfolio on their own. However, this ETF is actively-managed and boasts one of the cheapest price tags in the Diversified Portfolio ETFdb Category; investors looking for an all-in-one strategy should also consider PERM and IYLD.
PBE|15|This ETF offers exposure to the biotech sub-sector of the U.S. health care industry, serving up access to a group of stocks that can thrive on technological breakthroughs and increased investment in medical processes. PBE is part of the suite of Dynamic ETFs from PowerShares, using quant-based screening to identify component companies that may be poised for outperformance relative to a broad-based universe. As such, the portfolio of this ETF is considerably more limited than IBB, which includes more than 100 individual names. That feature can be particularly important in the biotech space, where company-specific developments can send a single stock soaring. PBE does a nice job of spreading exposure evenly across the portfolio components, which include a balance of large caps, mid caps, and small cap stocks. IBB and FBT are other ETF options for biotech exposure; those considering this sector should take a close look at depth of exposure and weighing methodology, as these factors can have a major impact on the risk and return profiles achieved. The expense differentials are also worth noting; PBE is a bit more expensive than the iShares alternative.
BLCN|15|PendingDownload the FactSet Analyst Insight Reporthere.
FDD|15|This ETF offers investors a way to target a group of European equities that exhibit high dividend yields, screening the universe of potential components by various dividend-related metrics. As such, while FDD is probably too narrow and too targeted for most long-term portfolios, but it can be a useful tool for investors looking to enhance current returns from their equity allocations or implement a value tilt in the European equity portion of their portfolios. Not surprisingly, FDD has a heavy tilt towards large cap stocks, though a significant allocation to mid caps is present as well. Though FDD is inherently concentrated due to the fixed number of index components, this fund spreads exposure across the portfolio in a relatively even manner. It’s worth taking a closer look at the country breakdown, as FDD has been known to make big weightings to a small handful of European economies. Those seeking broader European exposure would be better served by ETFs such as VGK or IEV, though neither of these options is likely to come close to FDD’s dividend yield.
FTXO|15|PendingDownload the FactSet Analyst Insight Reporthere.
EPOL|15|This ETF offers exposure to Polish equity markets, allowing investors to tap into a potentially promising emerging market in Eastern Europe. While Poland is included in many emerging markets funds, the weighting afforded to the country is often very minor. As such, investors with a bullish outlook for this economy may find EPOL to be a useful tool for implementing a tactical overlay or for use in a country rotation strategy. There are a few noteworthy items regarding the exposure offered by EPOL. First, the fund is somewhat lacking on the diversification front, as financials make up a huge portion of the portfolio and a small handful of stocks account for roughly 50% of assets. PLND is another option for Poland exposure; that Van Eck fund maintains fewer total holdings, but is spread more evenly (and also has a heavy tilt towards financials). EPOL is a fine option for Poland exposure, but be sure to take a look under the hood and understand exactly what this fund offers.
KNG|15|PendingDownload the FactSet Analyst Insight Reporthere.
LGH|15|PendingDownload the FactSet Analyst Insight Reporthere.
RYE|15|This ETF offers a unique way to access the U.S. energy market, giving investors seeking to avoid cap-weighted products an alternative way to bet on oil stocks. RYE is likely too targeted for those investors with a long-term focus, but can be useful as a way to tilt portfolio exposure towards a specific sector or as part of a long/short pairs trade. Like many Rydex ETFs, RYE is equal-weighted, meaning that exposure is spread evenly across portfolio components. This methodology may be particularly appealing in the top-heavy energy industry, where traditional cap-weighting can result in significant concentration issues. ETF options such as XLE or FEG will be cheaper form a cost perspective, but this Rydex ETF offers an opportunity to achieve more balanced exposure to the energy sector that avoids the potential performance drags of cap-weighted ETFs.
BIBL|15|PendingDownload the FactSet Analyst Insight Reporthere.
FLTB|15|The Fidelity Limited Term Bond ETF (FLTB) is an actively managed bond fund that invests in investment-grade securities. FLTB aims to provide a higher rate of income, and normally maintains an average maturity between two and five years. The fund may invest in lower-quality securities or derivatives that increase leverage. The fund is managed to have the same overall interest rate risk as the Fidelity Limited Term Composite Index. The management fee is reasonable for active management, though there are cheaper options available. Investors may want to compare FLTB to funds like the Vanguard Short-Term Corporate Bond Fund (VCSH) or the iShares Short-Term Corporate Bond Fund (IGSB).
KARS|15|PendingDownload the FactSet Analyst Insight Reporthere.
ADME|15|PendingDownload the FactSet Analyst Insight Reporthere.
XMHQ|15|The Invesco S&P MidCap Quality ETF tracks an index of U.S. mid-cap stocks with stronger balance sheets and financial fundamentals than their peers. The methodology begins with the S&P MidCap 400 Index and assesses return on equity, operating assets, and financial leverage. Approximately 80 of the top scoring stocks are included in the index. The portfolio is weighed based on a combination of companies’ market capitalization and quality scores. The fund fees are reasonable for a mid-cap factor strategy, though there are cheaper ultra-low-cost options in the mid-cap market. The strategy is too targeted for most buy-and-hold investors, but may suit a tactical investor who wants to apply a quality overlay to their mid-cap exposure. Prior to June 21, 2019, the fund tracked an equal weight index of mid-cap stocks.
COMB|15|PendingDownload the FactSet Analyst Insight Reporthere.
RWM|15|This ETF offers inverse exposure to an index comprised of small cap U.S. equities as chosen by Russell, making it a potentially attractive option for investors looking to bet against this sector of the U.S. economy. It’s important to note that MYY is designed to deliver inverse results over a single trading session, with exposure resetting on a monthly basis. Investors considering this ETF should understand how that nuance impacts the risk/return profile, and realize the potential for “return erosion” in volatile markets. MLPS should definitely not be found in a long-term, buy-and-hold portfolio, but may be a useful tool for more active investors looking to either hedge existing exposure or bet on a decline in small cap U.S. securities. Investors also have the option of simply selling short a traditional small cap fund, though that strategy will generally involve greater potential losses than utilizing an inverse ETF.
IFGL|15|This ETF offers exposure to global real estate markets, excluding American securities in favor of assets in developed countries in either Europe, or the Asia Pacific region. The fund also provides some level of exposure to Canada and China, helping to round out holdings across the globe. As such, IFGL has the potential to deliver broad-based access to an asset class that can deliver attractive current returns and significant appreciation for long term capital appreciation (along with meaningful volatility and risk). IFGL has a reasonable level of diversification with more than 175 holdings spread across a variety of countries. IFGL may be appropriate for investors looking to compliment their American real estate holdings with similar exposure abroad but it is unlikely to function as a one stop shop for some due to its exclusion of American assets. Nevertheless, thanks to its broad exposure and its relatively cheap expense ratio, IFGL could make for a solid choice for a number of investors who are in it for the long term. .
FLGE|15|The Analyst Report for FLGE is not available.
PKB|15|This ETF offers exposure to the U.S. homebuilding industry, and as such offers exposure to a corner of the domestic economy that tends to be cyclical in nature. In addition to pure play homebuilders, this fund includes companies related generally to the homebuilding industry, such as Home Depot. PKB might have appeal for investors looking for exposure to homebuilders who believe the methodology used by the underlying index—which utilizes quant-based stock screens—is capable of generating alpha. For homebuilder exposure PKB makes sense for those looking to avoid cap-weighting, though options such as XHB are cheaper.
NUMV|15|PendingDownload the FactSet Analyst Insight Reporthere.
IBMJ|15|The Analyst Report for IBMJ is not available.
TDSB|15|PendingDownload the FactSet Analyst Insight Reporthere.
CURE|15|This ETF offers 3x daily leveraged exposure to an index consisting of healthcare stocks, including companies engaged in the manufacture of health care products and materials, and those responsible for providing health-related services. Given the narrow focus and the leveraged exposure, CURE doesn’t belong in any long-term, buy-and-hold portfolios; this ETF is designed for risk-tolerant investors looking to express a bullish outlook on a specific sector of the U.S. economy over a relatively short period of time. Investors looking to establish a non-leveraged tilt towards health care stocks have a number of choices in the Health & Biotech Equities ETFdb Category, including XLV (which is linked to the same index as this product).
FXE|15|This ETF offers exposure to the euro, the official currency of the eurozone, relative to the U.S. dollar, increasing in value when the euro strengthens and declining when the dollar appreciates. This fund could be appropriate for investors seeking to hedge exchange rate exposure or bet against the greenback. For investors seeking exposure to the EUR/USD exchange rate, FXE is the only real ETF option available.
DOG|15|This ETF offers inverse exposure to an index comprised of 30 “blue-chip” U.S. stocks, making it a potentially attractive option for investors looking to bet against this sector of the U.S. economy. It’s important to note that DOG is designed to deliver inverse results over a single trading session, with exposure resetting on a daily basis. Investors considering this ETF should understand how that nuance impacts the risk/return profile, and realize the potential for “return erosion” in volatile markets. DOG should definitely not be found in a long-term, buy-and-hold portfolio, but may be a useful tool for more active investors looking to either hedge existing exposure or bet on a decline in the U.S. large cap firms. Investors also have the option of simply selling short a traditional large cap ETF, though that strategy will generally involve greater potential losses than utilizing an inverse ETF.
ROBT|15|PendingDownload the FactSet Analyst Insight Reporthere.
BULZ|15|PendingDownload the FactSet Analyst Insight Reporthere.
DEED|15|PendingDownload the FactSet Analyst Insight Reporthere.
SDVY|15|PendingDownload the FactSet Analyst Insight Reporthere.
JUST|15|The Goldman Sachs JUST U.S. Large Cap Equity ETF (JUST) tracks an index of Russell 1000 companies “that demonstrate just business behavior.” The methodology scores companies on issues such as customer privacy, diversity, inclusion, gender diversity and greenhouse gas emissions. The portfolio invests in those companies with above-average scores.
USTB|15|PendingDownload the FactSet Analyst Insight Reporthere.
FCOR|15|The Fidelity Corporate Bond ETF (FCOR) is an actively managed fund that invests in investment-grade corporate bonds, a core holding of any diversified portfolio. The strategy is the same that underlies the Fidelity Corporate Bond mutual fund. FCOR is reasonably priced for active management, though cheaper options exist. Investors may also want to compare FCOR with index-tracking rivals like the iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD) and iShares Core U.S. Aggregate Bond ETF (AGG), both of which lead FCOR in assets and liquidity.
IFV|15|PendingDownload the FactSet Analyst Insight Reporthere.
PSP|15|This ETF is among the more unique exchange-traded products available to U.S. investors; it offers a way to invest in publicly-traded private equity firms. This sector of the market likely receives little allocation in most portfolios, and as such PSP can offer access to an asset class that most investors generally overlook. It should be noted that private equity firms can exhibit significant volatility, and the downside risks in unfavorable environments can be significant. However, the opportunity to gain indirect exposure to hundreds of private companies that may maintain promising growth characteristics has obvious appeal, and as such PSP may be worth a closer look for risk tolerant investors. There are some other similar options out there; BDCS, structured as an ETN, has some overlap but is different in several ways as well.
DFEB|15|PendingDownload the FactSet Analyst Insight Reporthere.
GNOM|15|PendingDownload the FactSet Analyst Insight Reporthere.
NUBD|15|PendingDownload the FactSet Analyst Insight Reporthere.
FFTY|15|PendingDownload the FactSet Analyst Insight Reporthere.
TFLO|15|PendingDownload the FactSet Analyst Insight Reporthere.
DINT|15|PendingDownload the FactSet Analyst Insight Reporthere.
SLVP|15|This ETF gives investors an opportunity to achieve exposure to silver without holding the physical metal or encountering the nuances of a futures-based strategy. For investors looking to bet on increased demand for this raw material used widely in various applications, SLVP is a viable option. Like other commodity producers ETFs, this product can be expected to trades as a leveraged play on the underlying silver spot price, meaning that this fund can experience significant volatility, while also serving as a potentially powerful tool for profiting from a surge in commodity prices. The word global in SLVP’s name could be interpreted as a bit misleading; this ETF allocates less than a quarter of its total assets to stocks from emerging markets. Similar to its only competitor, SIL, this ETF is also tilted towards Canadian mining stocks. However, SLVP is the more appealing option from a cost perspective as it boasts a cheaper expense ratio. Investors should however also note that SIL is available for commission free trading on the E* Trade and Interactive Brokers platforms.
XVV|15|PendingDownload the FactSet Analyst Insight Reporthere.
FEMB|15|PendingDownload the FactSet Analyst Insight Reporthere.
USCI|15|This ETF is often described as a “third generation” product, and is noteworthy in that the composition of the underlying index changes monthly based on observable price signals. USCI screens out commodities that show the most significant backwardation or moderate contango, making it appealing to those frustrated by the nuances of futures-based investing. The rules-based index is designed so that exposure is spread across multiple types of commodities at all times, making USCI an alternative to products such as DBC or DJP for investors who buy into the academic research behind the underlying index. USCI is slightly more expensive than DBC or DJP, but the manner in which the index is constructed arguably makes this ETF a better way to gain exposure to prices of natural resources.
IZRL|15|The ARK Israel Innovative Technology ETF (IZRL) is an index fund from a team better known for its actively-managed products. The advisory firm, led by Catherine Wood, has an impressive track record doing what most stock pickers fail to do: beating the market. IZRL is one of ARK’s few passive products. As the name implies, IZRL tracks an equal-weighted index of fewer than 40 Israeli companies “causing disruptive innovation” in health care, biotechnology, genomics, industrials, manufacturing, the Internet and IT. Like most niche products, IZRL is best suited for high-conviction investors seeking concentrated risk. The fund has been on the market since late 2017, but has picked up fewer assets than its main competitor: BlueStar Israel Technology ETF (ITEQ). ITEQ launched two years earlier and still enjoys the first-move advantage despite a significantly higher price tag. ITEQ charges 75 basis points while IZRL costs 49 bps. Both are price for passive, but reasonable for niche products.
FXG|15|This ETF offers exposure to the U.S. consumer staples sector, seeking to replicate an index that employs a unique strategy designed to generate excess returns relative to traditional cap-weighted benchmarks. The underlying AlphaDEX Index employs a quant-based screening methodology designed to identify stocks poised for outperformance relative to a broader universe consisting of consumer staples stocks. In return for exposure to this strategy, which has historically delivered impressive returns across the entire suite, investors can expect to pay a bit more; FXG’s expense ratio is about 50 basis points higher than low cost options for financial exposure such as FCD and XLP. The unique index construction methodology has some other potential advantages; FXG maintains much a lower concentration of top holdings than do cap-weighted funds such as XLP. As such, performance isn’t as dependent on a handful of large cap stocks, potentially giving a better way to access financials. For those who believe in the merits of the AlphaDEX methodology and willing to pay a little extra for a shot at alpha, FXG can be an excellent way to gain exposure to the consumer staples sector.
EWM|15|EWM offers investors exposure to the emerging market of the Malaysia by investing in securities of companies that are based in the nation. Since many of the large caps in this fund are likely to not be found in other EM funds, EWM could make for an interesting satellite holding but is probably not appropriate as a core holding in a diversified portfolio. For investors seeking greater exposure to the Malaysian market, EWM is one of the only ‘pure play’ option available.
HCRB|15|PendingDownload the FactSet Analyst Insight Reporthere.
CPER|15|This ETP seeks to replicate an index which is comprised of a basket of exchange traded futures contracts. The underlying index is designed to reflect the performance of a portfolio of copper futures contracts, diversified across multiple maturities, fully collateralized with 3-month U.S. Treasury Bills. CPER utilizes a unique roll methodology in an effort to maximize backwardation and minimize the potentially adverse effects of contango; it selects futures contracts in liquid positions alog the futures curve as it deems necessary. Copper is one of the oldest metals, having been used as currency more than ten thousand years ago. Copper has also been instrumental in the development of human civilization, playing a key role in various developments throughout history. Copper’s widespread use has not diminished; it is still one of the most widely-used industrial metals, a key component of construction activity and other industrial uses around the globe. It has also become popular as an investable asset, acting as both a potential inflation hedge as well as an opportunity to profit from increased demand for raw materials from emerging markets. CPER could be an effective tool for achieving exposure to this industrial metal, although investors should consider the nearly identical JJC and CUPM, both of which are cheaper alternatives.
FFEB|15|PendingDownload the FactSet Analyst Insight Reporthere.
DEF|15|This ETF offers exposure to a unique investment strategy, seeking to identify stocks that perform well during bearish market periods by analyzing valuation multiples, accounting practices, and dividend payments. Given this objective, DEF probably doesn’t make much sense as a holding in a long-term portfolio, though it may be useful as a tactical play for those looking to scale back beta and volatility in anticipation of a bear market. In terms of the portfolio, DEF offers a somewhat predictable tilt towards low beta industries, though all corners of the economy receive some allocation in the fund. It’s worth noting that DEF isn’t simply a mega cap fund; companies of all sizes are included in the underlying portfolio. Those considering an investment in DEF would be wise to analyze the efficiency with which this ETF has achieved its stated objective; a quick look at the beta should give a general impression of how well DEF has identified stocks that hold up well in bear markets. DEF is a bit on the pricey side, but those who believe the methodology succeeds at identifying defensive stocks will likely be happy to pay for the specialized exposure.
PRN|15|This ETF is a component of the suite of “dynamic” ETF products from PowerShares, seeking to replicate a benchmark that is constructed based on a proprietary screening methodology. While PRN is an index-based fund, the underlying index seeks to generate alpha by using quant-based filters to select individual stocks. For those who believe the methodology employed is capable of generating alpha over the long run, PRN might be an attractive way to access industrials stocks. For those who believe in efficient markets and are looking to keep expenses down, there are probably better options out there; PRN is considerably more expensive than other options such as XLI and FIL. As a sector-specific fund, PRN is probably too targeted for inclusion in a long-term portfolio; this ETF will be more useful for establishing a short-term tactical tilt or as part of a sector rotation strategy.
BNO|15|Unlike most oil ETPs, this product tracks Brent Crude Oil instead of its West Texas Intermediate Cousin. Brent Crude is the benchmark for the EMEA region and often trades at a different price than WTI. For investors seeking exposure to crude beyond WTI, BNO could make for an interesting choice.
DMXF|15|PendingDownload the FactSet Analyst Insight Reporthere.
PGJ|15|This ETF offers an option for accessing companies that are listed on U.S. exchanges but derive a substantial portion of their revenues from China. As such, it may be a unique tool for accessing Chinese equity markets while mitigating some of the risk that comes with emerging markets (e.g., less stringent accounting standards, etc.). Unlike some China ETFs, PGJ does a pretty good job of spreading exposure throughout the economy; weightings to banks and energy aren’t overwhelming, and the often-overlooked tech sector receives a significant weighting as well. PGJ is tilted towards mega cap companies, but does include some degree of exposure to smaller Chinese firms as well. And this ETF casts a wide net, investing in more than 200 names (though ten of those account for about half of total assets). PGJ has the potential to deliver more balanced China exposure than funds like FXI; other options for similar exposure may include GXC.
FAD|15|This ETF offers broad-based exposure to U.S. equity markets, including stocks across a number of different sectors and companies of various sizes. As such, FAD may be appealing to investors building a long-term, buy-and-hold portfolio; this fund covers an asset class that is a core holding of most investor portfolios. FAD is one of the AlphaDEX products from First Trust, meaning that it is linked to an index that employs stock screening tactics with the objective of outperforming simple cap-weighted benchmarks. The AlphaDEX methodology has an impressive track record, so those in hunt of alpha may want to take a closer look at this “enhanced” ETF that is linked to a quant-based index. Those seeking to minimize costs will probably steer clear, as FAD is considerably more expensive than IWZ (which seeks to replicate the Russell 3000 Growth Index). FAB is a trade-off between the potential to beat a broad cap-weighted benchmark (such as the Russell 3000) and increased annual expenses.Those who believe the AlphaDEX methodology can generate alpha over the long term may prefer this fund, while those who believe in efficient markets may want to stick to simple cap-weighting.
PIZ|15|This ETF is linked to an index deemed to maintain powerful relative strength characteristics, utilizing a metric valued by many investors to develop a way to access developed markets outside of the U.S. This fund can be seen as an alternative to broad-based EAFE funds such as VEA or EFA in long-term portfolios, potentially appealing to investors who believe the relative strength screens are capable of generating excess returns. While the exposure offered is generally similar, there are several noteworthy differences as well. PIZ holds only a fraction of the names that funds like EFA do, and as such the concentration in a small handful of stocks can be greater. Moreover, the nature of the underlying methodology will generally result in higher turnover, potentially creating tax liabilities and occasionally resulting in skews towards certain sectors, regions, or individual economies. Finally, PIZ is considerably more expensive than many alternative ETFs, creating a substantial hurdle of excess returns that must be generated annually by the relative strength methodology (compare PIZ to VEA to quantify the gap this fund must make up on an annual basis).
SIXH|15|PendingDownload the FactSet Analyst Insight Reporthere.
RYU|15|This ETF offers exposure to equities included in the S&P 500 Utilities Index, which covers the following industries: electric utilities, gas utilities, multi-utilities and unregulated power and water utilities, telecommunication service companies, including fixed-line, cellular, wireless, high bandwidth and fiber-optic cable networks. RYU is different from other ETF tracking the same index because it employs a unique equal-weighted strategy, meaning that component companies receive approximately equal allocations. That results in exposure that is considerably more balanced than other alternatives such as XLU, and a methodology that some investors believe will add value over the long haul. In return for this unique exposure you can expect higher fees; this ETF is considerably more expensive than both XLU and IDU, though it is still extremely cost efficient compared to most mutual funds.
FNGO|15|PendingDownload the FactSet Analyst Insight Reporthere.
IGRO|15|PendingDownload the FactSet Analyst Insight Reporthere.
EFAX|15|PendingDownload the FactSet Analyst Insight Reporthere.
COM|15|PendingDownload the FactSet Analyst Insight Reporthere.
FLV|15|The American Century Focused Large Cap Value ETF, which debuted in March 2020, is part of the first wave of active, non-transparent ETFs to reach the market. This means the fund’s stock pickers don’t have to disclose their holdings every day, unlike most ETFs. The fund’s objective is to invest in large cap companies that are selling at a discount to their fair value. For years, many active managers resisted launching ETFs because of fears that the daily portfolio transparency would give away their trade secrets. The Securities and Exchange Commission finally approved non-transparent funds in 2019. Whether active non-transparent will pay off remains to be seen. While other active money managers can close their funds to new investors if they believe their trade is getting too crowded, ETF managers can’t. An active ETF must continue to accept new money, and therefore must be mindful of the capacity constraints of the underlying market. In practice, this means many active equity ETFs, transparent or not, may lean heavily on large cap U.S. equities. The biggest U.S. stocks are highly liquid, but they’ve also proven a challenging market for active managers and very few consistently beat their benchmarks. Moreover, some active non-transparent ETFs target the same investment strategies pursued by factor funds. Money managers have long recognized that certain factors, when deployed during certain market conditions, have consistently rewarded investors. So-called value stocks — defined as companies with low share prices relative to their fundamentals — have historically outperformed the market over the long-term. There are plenty of value funds on the market, including index-tracking funds, factor ETFs, and active funds like FLV. FLV’s fees are competitive for active management, though significantly higher than low-cost value index funds. With a limited real-world performance history, it remains to be seen whether FLV will beat its indexed rivals over the long haul. Investors should compare price, liquidity, and performance to other active and passive value ETFs.
IQIN|15|PendingDownload the FactSet Analyst Insight Reporthere.
DTEC|15|PendingDownload the FactSet Analyst Insight Reporthere.
FXF|15|This ETF offers exposure to the Swiss franc relative to the U.S. dollar, increasing in value when the franc strengthens and declining when the dollar appreciates. This fund could be appropriate for investors seeking to hedge exchange rate exposure or bet against the greenback. For investors seeking exposure to the CHF/USD exchange rate, FXF is the only real ETF option available.
SLVO|15|PendingDownload the FactSet Analyst Insight Reporthere.
MSTB|15|PendingDownload the FactSet Analyst Insight Reporthere.
YOLO|15|PendingDownload the FactSet Analyst Insight Reporthere.
CSB|15|PendingDownload the FactSet Analyst Insight Reporthere.
PHDG|15|The  Invesco S&P 500 Downside Hedged ETF is an actively-managed fund that invests in a combination of S&P 500 stocks, cash and contracts pegged to the CBOE Volatility Index, also known as the VIX. The aim is to maintain exposure to rising equities while using VIX-linked derivatives to hedge against a sudden stock market downturn. The VIX, a gauge of market turbulence, typically rises when stocks fall, making it appealing as a kind of insurance against a crash. However, maintaining VIX hedges can get pricey, especially during stable markets. This means PHDG could lag during steadily rising markets and outperform when the market tumbles. The fund is reasonably priced for an active strategy. Is it worth it? Investors should compare PHDG’s performance against ultra-low-cost S&P 500 index funds, both over the long haul and during downdrafts.
TUR|15|TUR offers exposure to Turkish equities specifically focusing on companies that are based in the nation. For investors seeking investment in the nation, TUR is one of the only choices available as most ETFs do not offer any allocations to the emerging country. TUR is a nice option for investors who want to load up on Turkey but be aware the fund could experience high levels of volatility.
ISCB|15|PendingDownload the FactSet Analyst Insight Reporthere.
IBMM|15|PendingDownload the FactSet Analyst Insight Reporthere.
UEVM|15|PendingDownload the FactSet Analyst Insight Reporthere.
VCEB|15|PendingDownload the FactSet Analyst Insight Reporthere.
TCHP|15|PendingDownload the FactSet Analyst Insight Reporthere.
CCOR|15|PendingDownload the FactSet Analyst Insight Reporthere.
MLN|15|This fund tracks an index of municipal bonds, a slice of the bond market that is highly coveted due to its tax features. These bonds are generally free from federal taxes and in some cases, state and local income taxes as well making these funds crucial components of portfolios for those in high tax brackets. Muni bonds are used by local entities to pay for a variety of services or to make improvements to infrastructure paying for everything from new sewer systems to school renovations and bridge construction as such, they are relatively low risk instruments. This particular fund targets munis that mostly mature more than 17 years from now, giving the fund a higher risk profile but also greater current income potential. As a result MLN is a solid choice for investors seeking broad exposure to the muni market but are looking for higher levels of current income and risk, but still in the investment grade segment of the market.  The fund still has impressive levels of diversification— holding over 150 securities— and a below average expense ratio, making it a quality choice for a building block of portfolios, especially for those seeking to keep costs down but are unwilling to look at total market funds or those that target the short or intermediate sections of the curve.
PMAY|15|PendingDownload the FactSet Analyst Insight Reporthere.
JPME|15|The JPMorgan Diversified Return US Mid Cap Equity ETF (JPME) tracks a broad index of midsize U.S. stocks. The methodology combines risk-based portfolio construction with multi-factor security selection based on value, momentum, and quality. The ETF marketplace has recently seen an explosion of ‘factor’ funds covering every asset class. Investors can compare it to funds like the John Hancock Multifactor Mid Cap ETF (JHMM). U.S. mid-cap stocks are likely to be a core holding in almost any portfolio and may already be included in broad U.S. equity funds. Investors should ensure they’re not doubling down on mid-caps when buying a focused fund like JPME.
QGRO|15|The American Century STOXX U.S. Quality Growth ETF tracks an index that tries to identify U.S. companies that have higher growth potential and stronger financial fundamentals relative to rivals. The index screens stocks based on growth, quality, and income, using measures like sales, profitability, cash flow, and return on assets and equity. By focusing on larger companies with sound fundamentals and less volatility, QGRO attempts to mitigate some of the risk inherent in growth equities. The fund aims to have 35 percent to 65 percent of its portfolio in high-growth stocks, and 30 percent to 65 percent in so-called stable growth companies that exhibit attractive profitability and valuation. QGRO has a larger allocation to mid cap names than some single-factor quality and growth ETFs on the market, making it appealing for investors who want some diversification out of the large cap space. Money managers have long recognized that certain factors, when deployed during certain market conditions, have consistently rewarded investors, such as volatility, value, quality, growth, and price momentum. Factor ETFs have proliferated in recent years and there are many active and passive ETF options that target single factors or a combination. QGRO is reasonably priced for a multi-factor index fund, though it’s more expensive than ultra-low-cost plain-vanilla index ETFs. QGRO also owns a relatively narrow slice of the market, so investors sacrifice diversification in exchange for the factor strategy. QGRO could make a good complement for a core equity holding for investors who want a multi-factor approach and believe in American Century’s strategy. Investors should compare price, performance, and portfolio against plain-vanilla index funds and other multi-factor ETFs in the U.S. equity space, as well as quality, growth, and dividend-focused ETFs.
PAPR|15|PendingDownload the FactSet Analyst Insight Reporthere.
BGRN|15|PendingDownload the FactSet Analyst Insight Reporthere.
IYLD|15|This ETF offers multi-asset class exposure to high yielding securities, delivering a diversified, balanced portfolio that is capable of paying a meaningful distribution yield. As such, IYLD can be used in a number of ways within a portfolio. Those focusing on the long-term may see an allocation to IYLD as a tool for enhancing current returns while also achieving exposure to asset classes that are often overlooked or underweighted in long-term portfolios. More active investors may see IYLD as a handy tactical tool for pulling back slightly on risk exposure in anticipation of declines in risky assets.
PGHY|15|The Invesco Global Short Term High Yield Bond ETF tracks an index of U.S.-dollar denominated debt issued by junk-rated U.S. and foreign companies. The fund attempts to mitigate interest rate risk by targeting short-term debt with remaining maturities of three years or less. The largest single slice of the portfolio is devoted to debt issued by U.S. corporations, but the majority comes from outside the U.S., including a sizable allocation to sovereign debt. The fund mitigates interest rate risk by targeting short-term debt, which is less susceptible to interest rate hikes. But high-yield debt is tricky and expensive to trade, and the short-term methodology narrows PGHY’s universe even further. The fund fees are reasonable, but investors should compare fees, liquidity and performance against other short-term debt ETFs, including investment grade and high-yield funds.
DFJ|15|This ETF gives investors an option for exposure to small cap Japanese stocks, a targeted asset class that is absent from most portfolios. Some investors see small cap stocks as a better “pure play” on the local economy than large caps that generally derive revenues from a number of different geographic regions. As such, DFJ may be appealing for investors looking to tilt exposure towards Japan, or perhaps as part of a long/short play. This ETF includes hundreds of individual holdings—the vast majority of which most U.S. investors have likely never heard of. Exposure is spread evenly across component companies; DFJ features very little concentration among the largest names. Because this ETF seeks to replicate a dividend-weighted benchmark, it may have appeal for investors seeking to enhance current returns from their equity allocation or simply looking to avoid the potential pitfalls of cap-weighted ETFs. JSC and SCJ are the closest alternatives to this WisdomTree ETF; both of those funds are cheaper but do not offer a dividend-weighted strategy, and thus may be more volatile as well.
GCOR|15|PendingDownload the FactSet Analyst Insight Reporthere.
ULTR|15|PendingDownload the FactSet Analyst Insight Reporthere.
FLDR|15|The Fidelity Low Duration Bond Factor ETF (FLDR) tracks an index of U.S. investment-grade floating-rate notes and U.S. Treasuries maturing in seven to 10 years. The fund aims to maintain a duration of one year or less. Duration is a measure of bond price sensitivity to interest rate moves. Typically bond prices fall when interest rates rise. A fund like FLDR may appeal to investors who want to earn a little more yield but don’t want to risk taking a hit when rates begin to climb. FLDR is reasonably priced for what it offers, though there are cheaper options available. Ultra-short debt ETFs are a popular option for investors looking for a relatively safe way to eke out a little more yield than they can get from brokerage sweep accounts or long-term Treasuries. There are several competitors, such as the JPMorgan Ultra-Short Income ETF (JPST), the iShares Ultra Short-Term Bond ETF (ICSH), and the Goldman Sachs Access Ultra Short Bond ETF (GSST).
HTEC|15|PendingDownload the FactSet Analyst Insight Reporthere.
DFNL|15|PendingDownload the FactSet Analyst Insight Reporthere.
IBD|15|PendingDownload the FactSet Analyst Insight Reporthere.
SPFF|15|PendingDownload the FactSet Analyst Insight Reporthere.
YLD|15|The Principal Active Income ETF (YLD) is an actively-managed fund that seeks to provide income from a mix of stocks, master-limited partnerships and fixed-income securities. YLD is a truly active fun, with no constraints on security type, sectors, countries or regions. Its stated goal is provide “current income with diversified risk” by investing in companies with a “defensive quality bias.” YLD’s management fee is reasonable for an active fund.
AIRR|15|PendingDownload the FactSet Analyst Insight Reporthere.
MILN|15|PendingDownload the FactSet Analyst Insight Reporthere.
SGDM|15|PendingDownload the FactSet Analyst Insight Reporthere.
VALT|15|PendingDownload the FactSet Analyst Insight Reporthere.
XPH|15|This ETF is one of several options for investors looking to establish exposure to the U.S. pharmaceutical industry, a sub-sector of the health care space that can post big returns during periods of consolidation or as a result of advancements in medicine. Given this narrow focus, XPH probably doesn’t belong in a long-term portfolio, though it may be useful for covering a corner of the domestic equity market that receives minimal weight in most portfolios. XPH is noteworthy because of the methodology employed by the underlying index; as an equal-weighted benchmark, this fund offers balanced exposure to the pharma sector, avoiding the potential pitfalls of cap-weighted benchmarks. This equal-weighted methodology distinguishes XPH from other pharma ETFs, such as PJP, PPH, and IHE.
CSML|15|PendingDownload the FactSet Analyst Insight Reporthere.
VLU|15|PendingDownload the FactSet Analyst Insight Reporthere.
MMIT|15|PendingDownload the FactSet Analyst Insight Reporthere.
GVIP|15|The Goldman Sachs Hedge Industry VIP ETF (GVIP) is one of a handful of funds that tries to imitate the stock picks of top hedge fund managers. GVIP screens publicly-available data of fundamentally-driven hedge fund managers and identifies the stocks that appear most often in their top 10 holdings, i.e., their “very-important positions.” The universe of hedge funds is limited to those that hold $100 million or more in U.S.-listed stocks, and 10 to 200 distinct equity positions. GVIP typically owns about 50 stocks and is rebalanced quarterly. Top holdings include Sea Ltd., Raytheon, Change Healthcare, Citigroup, and Booking Holdings.
CACG|15|PendingDownload the FactSet Analyst Insight Reporthere.
CZA|15|This ETF offers exposure to the mid cap segment of the U.S. market, making it one option for accessing an asset class that is a critical component of many long-term portfolios. This ETF is linked to an enhanced index that seeks to generate alpha relative to traditional cap-weighted indexes by employing a proprietary screening methodology. As such, CZA won’t be as broad-based as funds such as IJH or MDY, and may exhibit unique sector allocations depending on the environment. It should be noted that this opportunity for alpha comes with a heftier price tag than other mid cap ETFs, a potential drawback for cost conscious investors who believe that markets are completely efficient. FNX and PJG are similar funds that seek to generate excess returns through a quant-based methodology; a historical comparison of these ETFs may be a good idea for investors considering this fund.
EPRF|15|PendingDownload the FactSet Analyst Insight Reporthere.
CDL|15|PendingDownload the FactSet Analyst Insight Reporthere.
UGL|15|This ETF offers 2x daily leverage to gold prices, making UGL a powerful tool for expressing a bullish outlook on precious metals. It should be noted that the daily reset feature combined with the explicit leverage in this ETF make UGL inappropriate for investors without the ability or willingness to monitor this position on a regular (daily) basis. Moreover, investors should note that the underlying index won’t always move in unison with spot gold prices, even over the course of simply a single trading session. For sophisticated investors with a fair amount of tolerance for risk and volatility, this ETF can be a very powerful tool. But UGL shouldn’t ever be found in a long-term, buy-and-hold portfolio; it’s simply too risky, and the nuances of this fund make significant losses possible when held for an extended period of time in volatile markets. UGL is a trading instrument, and should be treated as such.
QVAL|15|PendingDownload the FactSet Analyst Insight Reporthere.
BSCS|15|The Invesco BulletShares 2028 Corporate Bond ETF tracks an index of U.S. investment-grade corporate bonds that mature in the indicated year. BulletShares are different than traditional bond ETFs because, once the scheduled maturity date is reached, the funds distribute the principal back to investors. Traditional bond ETFs continuously buy and sell their underlying bonds to maintain their target maturity. For this reason, BulletShares behave more like a traditional bond than like a bond fund. This appeals to investors who want to lock in a fixed coupon while still gaining the diversification that an ETF portfolio provides. As the maturity date nears, BulletShares ETFs roll the proceeds of their maturing bonds into shorter-term corporate debt or Treasurys. Once the target date is reached, the fund distributes the capital back to investors and shuts down. Investors can, at any time, sell their BulletShares ETF on the stock market and reinvest elsewhere, including rolling over into another BulletShares ETF. Investors and advisers can “ladder” their BulletShares holdings across a range of maturity dates, which locks in fixed coupon payments and plans ahead for cash distributions at maturity. This makes them especially appealing for those who want the guaranteed income, combined with the ease and diversification benefits an ETF can provide. For most investors, it’s far easier and cheaper to buy a BulletShares ETF than it is for them to source one or two underlying bonds. BulletShares ETFs debuted in 2010 under the Claymore brand and eventually moved to Invesco when the company acquired Guggenheim’s ETF business in 2018. BulletShares provide income, diversification and liquidity, and all for an extremely competitive fee.
BATT|15|PendingDownload the FactSet Analyst Insight Reporthere.
REML|15|The Analyst Report for REML is not available.
FVC|15|PendingDownload the FactSet Analyst Insight Reporthere.
FLIA|15|The Franklin Liberty International Aggregate Bond ETF (FLIA) is an actively managed bond fund that invests that invests primarily in investment-grade fixed- or floating-rate bonds issued by governments, government agencies, or corporate issuers outside the U.S. The bulk of the portfolio is in government and agency debt.
AGZD|15|PendingDownload the FactSet Analyst Insight Reporthere.
BIB|15|This ETF offers 2x daily long leverage to the broad-based NASDAQ Biotechnology Index, making it a powerful tool for investors with a bullish short-term outlook for biotechnology or pharmaceuticals companies. Investors should note that BIB’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. BIB can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
SMLV|15|PendingDownload the FactSet Analyst Insight Reporthere.
VALQ|15|The American Century STOXX U.S. Quality Value ETF tracks an index that tries to identify undervalued large cap companies that have stronger financial fundamentals relative to rivals. The index screens stocks based on value, quality, and income. The fund aims to have 30 percent to 80 percent of its portfolio in value stocks, and 20 percent to 65 percent in stocks that exhibit sustainable income. Money managers have long recognized that certain factors, when deployed during certain market conditions, have consistently rewarded investors, such as volatility, value, quality, growth, and price momentum. So-called value stocks — defined as companies with low share prices relative to their fundamentals — have historically outperformed the market over the long-term. Factor ETFs have proliferated in recent years and there are many active and passive ETF options that target different factors. Some target a single factor while others invest in a combination. VALQ is reasonably priced for a multi-factor index fund, though it’s more expensive than ultra-low-cost plain-vanilla index ETFs. VALQ also owns a relatively narrow slice of the market, so investors sacrifice diversification in exchange for the factor strategy. VALQ could make a good complement for a core equity holding for investors who want a multi-factor approach and believe in American Century’s strategy. Investors should compare price, performance, and portfolio against plain-vanilla index funds and other multi-factor ETFs in the U.S. equity space, as well as quality, value, and dividend-focused ETFs.
FYT|15|This ETF seeks to replicate a benchmark which offers exposure small cap firms that have value characteristics in the U.S. equity market. The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing then their large cap counterparts. However, these securities are extremely volatile and can experience large losses or gains in a very short period of time. Despite their volatility, these products should probably be in every investors’ portfolio as they tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy. This particular fund, since it focuses on value securities, has certain biases in its portfolio holdings and may not offer as much of a cross section as funds such as IWM. However, the fund does employ an ’alphaDEX methodology which makes it somewhat different from other products in the space. This method uses an equal dollar weighting system which looks to only invest in the best companies in the small cap space. While this greatly decreases the number of securities that the fund holds, it also increases expenses as well as FYT has a much higher expense ratio than comparable products, close to three times higher than many other funds in the space. As a result, cost conscious investors would be wise to look at other products and avoid FYT for their portfolios.
PJUL|15|PendingDownload the FactSet Analyst Insight Reporthere.
QID|15|This ETF offers 2x daily short leverage to the NASDAQ-100 Index, making it a powerful tool for investors with a bearish short-term outlook for technology equities. Investors should note that QID’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. QID can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
FQAL|15|The Fidelity Quality Factor ETF (FQAL) tracks a proprietary index that selects U.S. stocks based on factors like higher profitability, a good balance sheet, and stable cash flows. The fund owns about 125 securities. As with many single-factor funds, FQAL may not be diversified enough stand alone as a core U.S. equity holding. It is more likely to be useful to investors seeking to overlay Fidelity’s version of a quality tilt on top of a core allocation to U.S. markets. FQAL is reasonably priced for a factor fund, but there are cheaper options available. There has been a proliferation of factor funds in recent years, and investors can compare FQAL to rivals like the iShares Edge MSCI U.S.A. Quality Factor ETF (QUAL), the Schwab Fundamental U.S. Large Cap Company Index ETF (FNDX), or the JPMorgan U.S. Quality Factor ETF (JQUA).
EDC|15|This ETF offers 3x daily long leverage to the broad-based MSCI Emerging Markets Index, making it a powerful tool for investors with a bullish short-term outlook for emerging markets. Investors should note that EDC’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. EDC can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
HMOP|15|PendingDownload the FactSet Analyst Insight Reporthere.
JMOM|15|The JPMorgan U.S. Momentum Factor ETF (JMOM) tracks an index of large- and mid-cap U.S. stocks with that exhibit positive price momentum. The index is diversified across sectors on a market-cap weighted basis, and individual securities within each sector are weighted to ensure diversification. The fund owns more than 200 securities. As with many single-factor funds, JMOM may not be diversified enough stand alone as a core U.S. equity holding. It is more likely to be useful to investors who want to overlay a momentum tilt on top of a core allocation to U.S. markets.
RTH|15|This ETF is one of several options for achieving exposure to the retail industry, a corner of consumer discretionary market that is capable of delivering big returns but that also comes with some unique risk factors. Given this investment objective, RTH  is probably more useful for those looking to achieve tactical exposure to this specific corner of the market; the appeal to buy-and-holders will be limited since most of the underlying holdings are included in more broad-based funds. A couple aspects of RTH are noteworthy. First and foremost, RTH is now structured as a true ETF, it used to be one of the HOLDRS products offered by Merrill Lynch. However, some of the concentration that was characteristic of those products remains in RTH; the underlying portfolio is relatively shallow and concentration in the top allocations is significant. Further, RTH includes only U.S. stocks, meaning that some of the biggest players located in booming emerging markets are absent from the underlying portfolio. RTH is a decent option for retail exposure, but there are probably some better ETFs out there for tapping into this segment of the market. XRT offers better depth of holdings, while PMR utilizes an array of investment criteria to select its holdings.
TOK|15|This ETF offers exposure to a unique segment of the international economy, including economies classified by MSCI as developed except for Japan. As such, this fund can be potentially appealing as a building block of a portfolio for investors who believe Japanese equities will underperform, functioning as a one stop shop for global equity exposure (many global and EAFE ETF options make a meaningful allocation to Japan, one of the world’s largest economies). While Japan is one of the world’s largest economies, it has struggled from a performance perspective for several decades, exhibiting low growth rates and accumulating significant debt burdens. So there are many investors who would rather avoid this potential return drag when constructing their portfolio, especially in certain environments. Investors considering TOK should not the heavy tilt towards U.S. stocks; those seeking greater international allocations may prefer to utilize a piecemeal approach. TOK is very efficient in terms of expenses, and offers impressive depth of holdings; for those looking to avoid Japan but tap into the other developed markets of the world, there is a lot to like about this fund.
KURE|15|PendingDownload the FactSet Analyst Insight Reporthere.
PIE|15|This ETF offers exposure to emerging market economies, standing out as a potential alternative to cap-weighted products such as EEM or VWO. Instead of simply including the largest emerging market stocks, PIE screens potential components based on relative strength factors, selecting approximately 100 securities. For investors who buy into the investment thesis behind the relative strength strategy, PIE might make for a better way to access emerging economies. The methodology may also be appealing because it avoids the concentration issues that can plague cap-weighted products; though PIE has only 100 or so components, exposure is spread very evenly across the names that make up the portfolio. It’s also likely to have a bigger allocation to small caps and mid caps, while EEM and VWO are primarily comprised of large cap stocks. The biggest drawback of PIE is the expenses; the management fee is considerably higher than low cost options such as VWO, and the potentially higher turnover may lead to less-than-optimal tax efficiency. If you buy the relative strength methodology, PIE might be very attractive. Otherwise, there are a number of alternatives, including the equal-weighted EWEM or the RAFI-weighted PXH.
FDG|15|The American Century Focused Dynamic Growth ETF, which debuted in March 2020, is part of the first wave of active, non-transparent ETFs to reach the market. This means the fund’s stock pickers don’t have to disclose their holdings every day, unlike most ETFs. The fund’s objective is to invest in large- and mid-cap U.S. companies that have the potential for rapid growth and high profitability. For years, many active managers resisted launching ETFs because of fears that the daily portfolio transparency would give away their trade secrets. The Securities and Exchange Commission finally approved non-transparent funds in 2019. Whether active non-transparent will pay off remains to be seen. While other active money managers can close their funds to new investors if they believe their trade is getting too crowded, ETF managers can’t. An active ETF must continue to accept new money, and therefore must be mindful of the capacity constraints of the underlying market. In practice, this means many active equity ETFs, transparent or not, may lean heavily on large cap U.S. equities. The biggest U.S. stocks are highly liquid, but they’ve also proven a challenging market for active managers and very few consistently beat their benchmarks. Moreover, some active non-transparent ETFs target the same investment strategies pursued by factor funds. Money managers have long recognized that certain factors, when deployed during certain market conditions, have consistently rewarded investors.There are plenty of other growth ETFs on the market, including index-tracking funds, factor ETFs, and active funds like FDG. FDG’s fees are competitive for active management, though significantly higher than low-cost index funds. With a limited real-world performance history, it remains to be seen whether FDG will beat its indexed rivals over the long haul. Investors should compare price, liquidity, and performance to other active and passive value ETFs, including plain-vanilla funds and factor ETFs focused on growth.
BUZZ|15|PendingDownload the FactSet Analyst Insight Reporthere.
MLPB|15|PendingDownload the FactSet Analyst Insight Reporthere.
QINT|15|The American Century Quality Diversified International ETF tracks an index of large- and mid-cap global stocks outside the U.S. that exhibit sound financials, strong growth prospects, and attractive fundamentals relative to their share price. The fund seeks to manage risk by focusing on larger, less volatile companies, and shifting its emphasis between growth and value stocks depending on market conditions. QINT owns a narrower portfolio of stocks than a plain-vanilla index ETF, and is probably best used to complement a core position in international stocks rather than replace it. QINT is one of several multi-factor ETFs that invests in international equities. The fund’s fees are reasonable for an international factor ETF but there are cheaper options out there. Investors should compare price, performance, liquidity, and holdings against both active and passive options, including plain-vanilla index ETFs and factor funds.
ATMP|15|PendingDownload the FactSet Analyst Insight Reporthere.
EQL|15|This ETF offers exposure to the domestic equity market, but utilizes a unique methodology to access this asset class. Each sector of the economy receives an equal weight in EQL, a strategy that results in a drastically different composition relative to market cap-weighted products such as SPY. EQL is designed to offer more balanced exposure and has the added benefit of avoiding the potentially adverse impact of rallies or crashes in specific sectors of the economy. EQL is an alternative to SPY, and is backed by a sound and compelling investment methodology; the downside is the price tag, as the expense ratio is significantly higher than other U.S. equity ETFs, close to four times greater in some cases.
ISCF|15|PendingDownload the FactSet Analyst Insight Reporthere.
DIG|15|This ETF offers 2x daily long leverage to the broad-based Dow Jones U.S. Oil & Gas Index, making it a powerful tool for investors with a bullish short-term outlook for U.S. energy large cap stocks. Investors should note that DIG’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. DIG can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.
TIPZ|15|This ETF offers broad-based exposure to TIPS, bonds issued by the U.S. government featuring principal that adjusts based on certain measures of inflation. As such, TIPZ may have appeal as a minor allocation in a long-term portfolio, with increased weighting given if investors are particularly concerned about inflationary pressures. TIP is one of several broad TIPS ETFs; and it is arguably the second most popular of the bunch, right behind TIP in terms of assets under management in the Category. This fund is competitive from a cost perspective and offers up impressive liquidity, making it worthy of consideration for any investors seeking exposure to this corner of the bond market. While TIPS have become popular as a means of protecting against inflation, it is noted that there are potential limitations to this asset class in accomplishing this objective as well. Short-term TIPS ETFs such as STIP or STPZ may be forth a closer look, as well as more creative alternatives such as CPI or other ‘alternative’ ETFs.
QVMM|15|PendingDownload the FactSet Analyst Insight Reporthere.
FRI|15|This ETF offers exposure to the investable U.S. real estate investment trust market , an asset class that has been recently overlooked by many investors following the unprecedented housing crisis. FRI follows the S&P United States REIT Index, which has just over 100 holdings diversified primarily across large and mid-cap size companies. Real estate has historically been embraced because of its ability to deliver excess returns during bull markets and low correlation with traditional stock and bond investments. REITs might appeal to investors seeking current income, as these trusts must distribute at least 90% of their income to investors, and offer an efficient way for investors to gain indirect exposure to real estate prices (as opposed to direct exposure gained through ownership of a residential property). IYR is a viable alternative and the most liquid fund in this category, while VNQ offers similar exposure for a much lower expense fee.
BWZ|15|This ETF offers exposure to bonds issued by governments outside the U.S., offering an efficient way to access an asset class that is overlooked within the portfolios of many U.S.-based investors. Most fixed income portfolios are comprised almost entirely of securities from U.S. issuers, but the addition of international debt has the potential to enhance returns and add diversification benefits as well. By focusing on short-term debt, BWZ may appeal to investors concerned about the adverse impact of rising interest rates, and is primarily a tactical tool to be used for fine tuning the fixed income side of a portfolio. ISHG will offer generally similar exposure to this ETF, and IGOV and BWX offer a way to access international Treasuries across multiple maturities. When evaluating these ETF options, factors to consider include the breakdown by country, effective duration, and attractiveness of the current yield.
BUFD|15|PendingDownload the FactSet Analyst Insight Reporthere.
DEUS|15|The Xtrackers Russell US Multifactor ETF (DEUS) tracks an index of U.S. equities that selects, and weights securities based on quality, size, volatility, momentum, and value. DEEF debuted in 2015 and is priced competitively but hasn’t gained as much traction as rivals with better brand recognition, like Goldman Sachs and JPMorgan.
EBIZ|15|PendingDownload the FactSet Analyst Insight Reporthere.
CMDY|15|PendingDownload the FactSet Analyst Insight Reporthere.
ALTL|15|PendingDownload the FactSet Analyst Insight Reporthere.
DGRS|15|PendingDownload the FactSet Analyst Insight Reporthere.
IQSI|15|PendingDownload the FactSet Analyst Insight Reporthere.
TTAC|15|PendingDownload the FactSet Analyst Insight Reporthere.
KCE|15|KCE offers targeted exposure to a sub-sector of the U.S. financial sector, focusing on companies that include securities brokers and dealers, asset managers, and securities or commodities exchanges. As is often the case with niche funds offering such targeted exposure, KCE is relatively concentrated with fewer than 30 individual holdings. That level of concentration is often required to deliver such fine tuned exposure, but may result in a few big names driving total return. This ETF does a nice job spreading exposure across the components. Investors seeking broader exposure to the U.S. financial sector may prefer a fund such as XLF or RYF that include a more diverse lineup of component companies. KCE offers exposure to a very specific type of financial firms, though it is noted that many components are involved in a wide variety of financial activities, and as such may not serve efficiently as pure plays on the investment thesis behind this fund. For example, Goldman Sachs and Morgan Stanley, two of the largest components, generate substantial revenues from other financial activities. KCE isn’t the only ETF available for investors seeking targeted broker-dealer exposure— there is also IAI— but investors should be aware of the potential limitations to this fund.
OVL|15|PendingDownload the FactSet Analyst Insight Reporthere.
FAUG|15|PendingDownload the FactSet Analyst Insight Reporthere.
SBIO|15|PendingDownload the FactSet Analyst Insight Reporthere.
LDSF|15|PendingDownload the FactSet Analyst Insight Reporthere.
KGRN|15|PendingDownload the FactSet Analyst Insight Reporthere.
POCT|15|PendingDownload the FactSet Analyst Insight Reporthere.
DBJP|15|This ETF offers exposure to large cap Japanese stocks, making DBJP one of several ETFs for establishing targeted exposure to one of the world’s largest economies. This product is unique from many ETFs in the Japan Equities ETFdb Category in that DBJP hedges out the currency exposure that an investment in international equities brings. This essentially delivers isolated exposure to the performance of the underlying equities in local prices. The impact of currency appreciation or depreciation can be significant in many cases, especially considering the sometimes meaningful swings in the JPY/USD exchange rate. Though EWJ and DBJP maintain substantially identical portfolios, the risk/return profiles of these ETFs may vary significantly.
KLDW|15|PendingDownload the FactSet Analyst Insight Reporthere.
XMPT|15|This ETF offers a unique way of accessing the municipal bond market; XMPT invests in closed end funds that in turn invest in munis; an approach to this asset class that has both potential advantages and drawbacks. XMPT features impressive diversity of exposure, and also offers investors a way to gain access to some of the world’s most successful muni bond managers through a single ticker. Moreover, because the methodology is designed to overweight CEFs trading at a discount to their NAV, this product may be able to deliver attractive current returns. XMPT will be most appealing to investors in a higher tax bracket given the nature of the underlying holdings. This ETF can be used in a number of different ways; it could have appeal as a tactical tool for establishing short term exposure to this segment of the bond market, and could also be useful as a longer-term core fixed income holding.
FLEE|15|The Franklin FTSE Europe ETF (FLEE) tracks an index of large and mid-size companies in 16 developed countries in Europe, and does so at an extremely competitive price. The fund owns more than 500 securities, making it a well-diversified option for long-term investors building a balanced portfolio. However, investors should be aware that FLEE has little allocation to small cap stocks. Investors looking for deeper market coverage of Europe may prefer rivals like the iShares Core MSCI Europe ETF (IEUR) or the Vanguard FTSE Europe ETF (VGK). Like other European equity funds, FLEE’s portfolio is dominated by the United Kingdom, France, Switzerland, and Germany. There is plenty of competition in the category. In addition to VGK and IEUR, investors can compare FLEE to the JPMorgan BetaBuilders Europe ETF (BBEU) or the SPDR Portfolio Europe ETF (SPEU).
FLBR|15|The Franklin FTSE Brazil ETF (FLBR) tracks an index of large- and mid-size Brazilian companies. The fund is part of a series of single-country ETFs that Franklin Templeton began rolling out in 2017. The funds debuted with significantly lower management fees than rival iShares funds, which have long dominated the single-country ETF space. As of June 2020, FLBR’s management fee is about a third of the iShares MSCI Brazil ETF (EWZ), though FLBR continues to trail its iShares rival in size and liquidity. EWZ focuses on the largest and most liquid names in the portfolio while FLBR invests in more stocks, including more small cap names. The sector exposure of the two funds is broadly similar.
ITEQ|15|PendingDownload the FactSet Analyst Insight Reporthere.
ADRE|15|This market cap weighted ETF offers investors exposure to fifty of the largest companies based in emerging markets that have depository receipts. These receipts allow the securities to be cross listed on develop market exchanges which can provide higher levels of liquidity or regulation. For investors looking for greater emerging market exposure with minimal risks, ADRE could make for a fine choice.
HEEM|15|PendingDownload the FactSet Analyst Insight Reporthere.
JSMD|15|PendingDownload the FactSet Analyst Insight Reporthere.
TTT|15|This ETF offers a way for investors to bet heavily against long-term Treasuries, amplifying exposure against debt obligations with more than 20 years remaining until maturity. As such, TTT could be a way to bet on rising interest rates, a phenomenon that would impact long-dated Treasuries most substantially. TTT can also be a way for betting against bonds in anticipation of strong equity market performance.
BOIL|15|This ETF offers 2x daily leveraged exposure to natural gas, an asset class that is capable of delivering big swings in price over a relatively short period of time. Combining this volatility with explicit leverage results in a fund that has the potential to churn out big gains or losses, meaning that BOIL is really only appropriate for sophisticated, active investors.
STOT|15|PendingDownload the FactSet Analyst Insight Reporthere.
TPLC|15|PendingDownload the FactSet Analyst Insight Reporthere.
GCC|15|PendingDownload the FactSet Analyst Insight Reporthere.
FFTI|15|PendingDownload the FactSet Analyst Insight Reporthere.
ETHO|15|PendingDownload the FactSet Analyst Insight Reporthere.
GHYB|15|The Goldman Sachs Access High Yield Corporate Bond ETF (GHYB) is Goldman’s offering for investors looking to access to the riskier corner of the corporate debt market. GHYB tracks the proprietary FTSE Goldman Sachs High Yield Corporate Bond Index. The index tries to eliminate issuers that exhibit deteriorating fundamentals, like worsening operating margins and leverage.
BRZU|15|PendingDownload the FactSet Analyst Insight Reporthere.
WFHY|15|PendingDownload the FactSet Analyst Insight Reporthere.
ESG|15|FlexShares STOXX US ESG Select Index Fund (ESG) tracks a proprietary STOXX index that rates companies based on environmental, social and governance factors that influence risk and return, such as workplace safety, executive compensation, and board diversity. The portfolio is weighted in favor of the best performers.
PAUG|15|PendingDownload the FactSet Analyst Insight Reporthere.
FXC|15|This ETF offers exposure to the Canadian dollar relative to the U.S. dollar, increasing in value when the ‘loonie’ strengthens and declining when the dollar appreciates. This fund could be appropriate for investors seeking to hedge exchange rate exposure or bet against the greenback. For investors seeking exposure to the CAD/USD exchange rate, FXC is the only real ETF option available.
MVV|15|This ETF offers 2x daily long leverage to the S&P MidCap 400 Index, making it a powerful tool for investors with a bullish short-term outlook for MidCap U.S. equities. Investors should note that MVV’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. MVV can be a powerful tool for sophisticated investors who are bearish on the financial industry, but should be avoided by those with a low risk tolerance.
FLBL|15|The Franklin Liberty Senior Loan ETF (FLBL) is an actively managed ETF that seeks to invest in senior loans, a segment of the debt market that can offer great yields for those investors willing to take on significant risks. FLBL invests in leveraged loans, bank loans, and floating-rate loans, which are often extended to ‘junk’ borrowers with below investment-grade credit ratings. The fund may invest in loans of companies whose financial condition is uncertain, including companies involved in bankruptcy proceedings and restructuring. FLBL is priced competitively for active management. Investors can compare performance and fees against passive rivals like the Invesco Senior Loan ETF (BKLN).
XMVM|15|The Invesco S&P MidCap Value with Momentum ETF tracks an index of undervalued U.S. mid-cap stocks that exhibit strong price momentum. The methodology begins with the S&P MidCap 400 Index and assesses book value, earnings and sales to determine the 160 most undervalued companies. Of the remaining stocks, the 80 with the strongest price momentum are included in the index. The portfolio is weighed based on companies’ values scores. The fund fees are reasonable for a mid-cap factor strategy, though there are cheaper ultra-low-cost options in the mid-cap market. The strategy is too targeted for most buy-and-hold investors, but may suit a tactical investor who wants to apply a value and momentum tilt to their mid-cap exposure. Prior to June 21, 2019, the fund tracked a different index of mid-cap value stocks.
VFMO|15|The Vanguard U.S. Momentum Factor ETF aims to invest in U.S. stocks with strong recent price gains. VFMO, which is part of Vanguard’s suite of actively managed ETFs, relies on a quantitative methodology to evaluate U.S. companies of all sizes, and uses a rules-based screen to ensure diversification and to mitigate exposure to less liquid stocks. Money managers have long recognized that certain factors, when deployed during certain market conditions, consistently reward investors. There are macroeconomic trends like economic growth and inflation, as well as fairly predictable performance patterns for certain types of stocks. For example, so-called value stocks — defined as companies with low share prices relative to their fundamentals — have historically outperformed the market over the long-term. Over time, money managers have devised methodologies to identify and exploit factors such as volatility, value, quality, growth, and price momentum. Factor ETFs have proliferated in recent years and there are many active and passive ETF options that target different factors. Some funds combine factors while others target a single factor. VFMO’s portfolio can be expected to diverge from its Russell 3000 benchmark. For example, VFMO holds a significantly narrower universe of stocks than Vanguard’s Russell 3000 ETF, a passive index-tracking fund that draws from the same universe of stocks. VFMO’s fees are quite low for active management, but after decades of drilling investors in the futility of stock-picking, it remains to be seen whether Vanguard can convince investors that some managers can consistently beat the market after all. For investors with a strong momentum conviction who want a reasonably-priced fund, VFMO makes for a good complement to a core portfolio holding in U.S. equities. While VFMO is quite reasonably priced, investors should compare price, performance, and portfolio against other U.S. momentum funds, both active and passive.
GHYG|15|This ETF offers exposure to the global high yield bond market, making GHYG one of many options available to investors looking to gain access to junk bonds. GHYG could be a component of a long-term, buy-and-hold portfolio, especially since many broad-based bond ETFs focus only on the investment grade segment of the market. This ETF could also be a useful tactical tool for beefing up current returns or increasing the risk exposure within a fixed income portfolio.
XLSR|15|PendingDownload the FactSet Analyst Insight Reporthere.
DMRI|15|PendingDownload the FactSet Analyst Insight Reporthere.
IDOG|15|PendingDownload the FactSet Analyst Insight Reporthere.
ESGG|15|The FlexShares STOXX Global ESG Impact Index Fund (ESGG) tracks a proprietary STOXX index that rates companies based on environmental, social and governance factors that influence risk and return, such as workplace safety, executive compensation, and board diversity. The portfolio is weighted in favor of the best performers.
EIS|15|EIS offers exposure to Israeli stocks with a heavy focus on mega cap firms. Israeli equities are often overlooked by popular developed market funds so many of the securities in this fund may receive minimal allocations in some portfolios. Due to this, EIS has appeal as a compliment to EFA funds or those who are bullish on the overall Israeli economy.
FXU|15|This ETF invests in an “enhanced” index which employs an quantitative methodology to picking individual utilities securities from the Russell 1000 index. An investment in the utilities sector offers several advantages to the average investor. Firstly, many utilities are a necessity in today’s world, and as our population continues to grow in the future, the demand for these companies will only increase in theory. Second, utility companies are known for their high dividend yields, giving investors a steady stream of income despite what market conditions may be like. Finally, these companies may prove to be somewhat recession proof; no matter what the economic conditions are, people still need to use electricity and other utilities to go about their daily lives. FXU invests the majority of its assets in the U.S., and has a bias towards companies of medium market capitalization. Investors should also note that this product has an attractive dividend yield to generate stable returns for a portfolio.
HYZD|15|PendingDownload the FactSet Analyst Insight Reporthere.
PBP|15|This ETF offers investors exposure to the total rate of return from a ‘covered call’ strategy on the S&P 500. In this method, a long position is taken in the S&P 500 while a call is sold one month out on S&P 500 index options. PBP could be appropriate for investors seeking exposure to the S&P 500 with a measure of downside protection should the bottom fall out of the market.
IUS|15|The Invesco RAFI Strategic US ETF tracks a proprietary index that targets U.S. companies that exhibit strong sales, cash flow, return on capital, and book value. The companies are assigned a score based on the ratio of sales to assets in the prior year, and on the growth of sales-to-assets in the previous five years. Component companies are then ranked, with the top tier being eligible for inclusion. Companies are weighted according to their scores. The result is a portfolio of large- and mid-cap U.S. equities that has a markedly different sector breakdown compared with a market-cap weighted S&P 500 ETF. Fund fees are reasonable, though more expensive than some of the cheapest plain-vanilla U.S. equity ETFs on the market. Is it worth it? The fund launched in September 2018, so there’s limited real-world trading but it has had some periods of outperformance compared with S&P 500 funds. For investors who believe in the strategy, IUS could be a good complement to core U.S. equity exposure. Investors should compare price, performance and portfolio to plain-vanilla index ETFs as well as other U.S. factor strategies.
BJUL|15|PendingDownload the FactSet Analyst Insight Reporthere.
XSMO|15|The Invesco S&P SmallCap Momentum ETF tracks an index of U.S. small-cap stocks that exhibit strong price momentum. The methodology begins with the S&P 600 SmallCap 600 Index and assesses the percentage change in the stock price in the past 12 months, excluding the most recent month, and then adjusts for volatility. Approximately 120 of the top scoring stocks are included in the index. The portfolio is weighed based on a combination of companies’ market capitalization and momentum scores. The fund fees are reasonable for a small-cap factor strategy, though there are cheaper ultra-low-cost options in the small-cap market. The strategy is too targeted for most buy-and-hold investors, but may suit a tactical investor who wants to apply a momentum overlay to their small-cap exposure. Prior to June 21, 2019, the fund tracked an index of small-cap growth stocks.
FXY|15|This ETF offers exposure to the Japanese yen relative to the U.S. dollar, increasing in value when the yen strengthens and declining when the dollar appreciates. This fund could be appropriate for investors seeking to hedge exchange rate exposure or bet against the greenback. For investors seeking exposure to the JPY/USD exchange rate, FXY is the only real ETF option available.
BKSE|15|The BNY Mellon US Small Cap Core Equity ETF (BKSE) tracks an index of hundreds of small cap U.S. stocks, including REITs. BKSE’s index methodology first screens for liquidity. The index is composed of companies whose cumulative total market capitalization represents approximately the bottom 3% to 10% of the remaining securities. The investment thesis behind a small cap investment is the growth factor that comes along with these securities. While mega cap firms have already hit their peak, smaller companies may be the next juggernaut. The downside to small cap investing is additional risk. Changes in regulation, credit availability, or product viability could send share prices plummeting. While some exposure to these small companies is healthy for a portfolio, the allocation should be kept relatively low since this market segment experiences extreme volatility. Investors in total-market ETFs already have some allocation to small caps and should ensure they are not unintentionally overweighting a risky space. Conversely, investors with strong convictions about small caps might want to augment a total market fund with a targeted small cap fund. BKSE is priced to match or beat rivals like the iShares Core S&P Small Cap ETF (IJR) or the SPDR Portfolio S&P 600 Small Cap ETF (SPSM).
EDEN|15|This fund, which launched in early 2012, was the first fund to employ a Denmark-specific strategy. The fund, which was quick to grab investor attention, charges an expense ratio of 53 basis points, somewhat high for a developed economy exposure. As is typical of first to market country products, EDEN’s portfolio is relatively shallow. The fund has just over 30 securities with nearly two thirds of the fund’s assets dedicated to the top ten holdings. Investors will also notice a large tilt towards health care and industrial equities while leaving other sectors relatively untouched.
IBMN|15|PendingDownload the FactSet Analyst Insight Reporthere.
AUSF|15|PendingDownload the FactSet Analyst Insight Reporthere.
EEMX|15|PendingDownload the FactSet Analyst Insight Reporthere.
BKAG|15|The BNY Mellon Core Bond ETF (BKAG) tracks an index that offers broad exposure to investment-grade, U.S.-dollar denominated debt … and it does it for free. That’s right: BKAG’s management fee is zero. BKAG is part of a lineup of ETFs introduced by BNY Mellon in April 2020. As a latecomer to a crowded market, BNY Mellon is betting that its fee-free and ultra-low-cost funds will help win over investors. BKAG includes corporate debt, mortgage-backed securities, Treasuries, and other debt having at least one year remaining until maturity.
HAIL|15|PendingDownload the FactSet Analyst Insight Reporthere.
AIQ|15|PendingDownload the FactSet Analyst Insight Reporthere.
FUMB|15|PendingDownload the FactSet Analyst Insight Reporthere.
SHAG|15|PendingDownload the FactSet Analyst Insight Reporthere.
XES|15|This ETF offers exposure to the equipment and services sub-sector of the U.S. energy industry. XES is probably too targeted for any investor with a long-term focus, though it can be useful for those seeking exposure to the energy industry without focusing exclusively on major refiners and drillers such as Exxon and Chevron. XES is unique because it seeks to replicate an equal-weighted index; as such, exposure is balanced more evenly across the portfolio stocks than a fund such as IEO, which includes many of the same companies but allocates big percentages to a few large cap companies. XES is also more appealing from a cost perspective, making this ETF the preferred way to gain exposure to companies that provide equipment and services to the oil industry.
DTH|15|This ETF offers exposure to developed markets outside of the U.S. and Canada, applying a twist to distinguish itself from other options focusing in on the EFA region. DTH could potentially have appeal to investors looking to build a long-term portfolio that overweights high dividend paying foreign equities, this ETF could also be appealing to investors looking for a shorter-term tilt towards EFA equities with a focus on enhancing current returns. This ETF has a heavy tilt towards Western Europe, though exposure is spread across a number of different countries in that region. Australia also makes up a large chunk of assets although Japanese holdings are curiously missing from the fund. Besides financials, which make up roughly one-fourth of the fund’s total assets, DTH does a reasonable job of spreading exposure across a number of sectors—something that can’t often be said about ETFs focusing on dividend payers. DTH can be used to beef up dividend payments to a portfolio while still maintaining equity upside, and investors may be surprised at the types of yields this asset class can deliver.
MFMS|15|The Analyst Report for MFMS is not available.
JPSE|15|The JPMorgan Diversified Return U.S. Small Cap Equity ETF (JPSE) tracks a broad index of small-cap U.S. stocks. The methodology combines risk-based portfolio construction with multi-factor security selection based on value, momentum, and quality. The case for investing in small companies is growth potential. Mega-cap stocks that may have already hit their peak. The downside is that small companies also come with a fair amount of risk. Changes in regulations, economic circumstances, or access to credit could send share prices tumbling. While some exposure to small companies is standard for many portfolios, investors should avoid the risk of leaning too heavily on a notably volatile segment.
TAXF|15|The American Century Diversified Municipal Bond ETF is an actively managed bond ETF that mixes investment-grade and high-yield municipal bonds to boost income while reducing taxes. Municipal bonds are a popular segment because they are generally exempt from exempt from federal taxes and, in some instances, may be exempt from state and/or local taxes. This makes munis especially appealing to investors in high tax brackets. Municipal bonds are issued by federal, state, and local governments and agencies to pay for everything from road projects to school buildings. They are typically considered a relatively safe investment since the issuer can impose taxes to repay the debt, though defaults are not unheard of. TAXF allocates up to 35% of its portfolio to riskier municipal securities, depending on market conditions. The fund is competitively priced compared with rivals in actively managed municipal bonds, though investors should compare performance and portfolio credit quality against some of the cheaper index options available.
FSMB|15|PendingDownload the FactSet Analyst Insight Reporthere.
OPER|15|PendingDownload the FactSet Analyst Insight Reporthere.
DJD|15|The Invesco Dow Jones Industrial Average Dividend ETF tracts an index of dividend-paying stocks included in the Dow Jones Industrial Average, weighted by their dividend yield over the prior year. The index comprises 30 of the best-known U.S. companies, largely some of the biggest blue-chip  stocks. Given the design of the index, DJD will own 30 stocks or less, a very narrow slice of the U.S. equity market. This is not meant to be a diversified core holding of large-cap U.S. equities. For investors who don’t mind concentrated exposure, DJD offers an inexpensive way to boost dividend yield. Fund fees are quite low, though investors should compare price, performance and portfolio against competing ETFs, both plain-vanilla index funds and rivals that follow similar strategies on broader indices, such as the S&P 500 index.