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Dividend investing is one of the oldest and most popular strategies amongst retail and institutional equity investors on Wall Street. Legends like Warren Buffet and Benjamin Graham are well known advocates of this value investing approach, and their success in the financial markets speaks volumes about this timeless strategy. Research conducted by Standard & Poor’s revealed that dividend components were responsible for 44% of the total return in the last 80 years of the S&P 500′s history. To put this into perspective, consider the following: an investment of one dollar, from 1950 to 2010, with dividends and reinvestment of those proceeds, would have performed eight times better than a dollar invested in a similar, but non-dividend paying, security. Clearly, investing in dividend paying companies has proven to be a formidable strategy in times of both prosperity and economic downturns, showcasing the versatility of this simple, but effective, investment strategy. [click to continue…]
The impressive pace of expansion in the ETF industry over the last several years has been well documented; continuous product development has resulted in the launch of more than 250 so far in 2011, and there are now more than 1,300 names in the ETF lineup. But while the depth of the ETF space has [...]
The roller coaster ride continues for investors as equity indexes oscillated between positive and negative territory on Tuesday in anticipation of the much awaited FOMC meeting tomorrow. Investor sentiment regarding the euro zone is quite uncertain and seems to change from hopeful to fearful at the flip of a switch; lawmakers overseas have failed to [...]
The ETF industry’s strong growth in recent years has led to innovation across the board. Now, investors can find products that offer exposure to nearly every corner of global markets through a single ticker. And while many of these new options have been welcomed with open arms, investors have been wary of others. One space [...]
As the economic situation continues to worsen, many investors have been running for the exits in the equity market. Concerns over an economic slowdown in America have combined with credit worries in a number of major European economies, not to mention inflation prospects in emerging markets, to push many into safe haven investments across the [...]
Inflation has been a particularly frustrating topic in recent months. Despite widespread predictions for a surge in CPI in the wake of unprecedented injections of liquidity into global financial markets, upward pressure on prices has not yet materialized–at least not in many developed markets. The prospect of what seems to be an inevitable outcome has [...]
The latest round of issues in Greece has reignited demand for safe havens across the board. The highly indebted nation appears on the verge of default unless austerity measures are swiftly passed and another bailout is received from richer nations in the euro zone. While these measures seemed relatively certain to pass a few weeks [...]
Thanks to continuing fears over the debt situation in Europe, as well as concerns over the health of the American economy, demand for safe haven investments has been soaring as of late. While gold has held up during this time period, the real focus has been on Treasury bonds which have seen the vast majority [...]
As investors have become more comfortable with the marriage of fixed income exposure and the ETF wrapper, billions of dollars have flowed into bond ETFs in recent years. Impressive innovation in the space has provided investors with more options than ever before, including enhanced granularity in virtually every corner of the fixed income market. Still, [...]
As the summer winds down, apparently so too does the impressive pace of expansion in the ETF space. Although August launches were a big dropoff from the previous month, the industry still saw the introduction of more than a dozen new exchange-traded products. Whereas many of the products rolled out in previous months have been [...]
There was a time not that long ago when investors harbored significant concerns over including fixed income ETFs within their portfolio. When the first bond ETFs were introduced many were uncertain that the marriage of fixed income and the exchange-traded structure would be an efficient and productive one. But as these securities have build a [...]