Displaying items by tag: ETFs

The Invesco QQQ Trust and Invesco NASDAQ 100 ETF continue to serve as efficient vehicles for tapping into the performance of leading large-cap growth stocks through their tracking of the Nasdaq-100 Index. While passively managed, these funds remain highly relevant for active investors, especially as many portfolio managers increase exposure to familiar tech giants. 

During the first quarter of 2025, a temporary pullback in mega-cap names prompted several high-performing active managers to increase holdings in companies like Alphabet, Amazon, Microsoft, and Nvidia. 

These four names, which collectively represent over a quarter of the QQQ and QQQM portfolios, have shown resilience and strong earnings momentum, particularly in areas like cloud computing and artificial intelligence. Microsoft’s Azure business, for instance, exceeded expectations with robust demand for AI services, while Amazon rebounded following earlier weakness tied to trade concerns. 

Finsum: As fundamentals remain intact and investor interest stays elevated, these ETFs continue to offer a compelling entry point into the most influential names in the growth space.

Value investing pays off long term, but only a few funds consistently get it right—seven top performers just made the cut. Standouts like ClearBridge Dividend Strategy (LCBEX) and Dodge & Cox Stock (DODGX) delivered strong one-, three-, and five-year returns, outpacing peers with disciplined, research-driven approaches. 

Fidelity Equity-Income (FEKFX) and Fidelity High Dividend ETF (FDVV) combine yield with quality, offering income without overloading on risk. 

Oakmark Select (OANLX) and Natixis Oakmark (NOANX) take concentrated bets on undervalued giants, while WisdomTree U.S. LargeCap Dividend (DLN) adds a smart dividend tilt with broad exposure. On average, large-value funds gained 8.58% over the past year, but these funds beat that benchmark while sticking to sound fundamentals. 

Finsum: Some of the listed share classes may be geared toward institutional investors, but retail alternatives could be attractive to retail investors

Value investing may have struggled in the U.S., but it’s been quietly thriving in international markets. While U.S. growth stocks—especially the “Magnificent Seven”—have soared thanks to tech-driven narratives and rising valuations, overseas markets have favored banks, energy companies, and industrials that benefit from higher rates and more modest expectations. 

Regions like Europe, Japan, and emerging markets have seen value stocks consistently outperform growth, driven by sectors like financials and energy rather than mega-cap tech. The absence of trillion-dollar giants abroad has meant more balanced index compositions, allowing traditional value sectors to shine. 

Dan Rasmussen’s point is that value investing isn’t broken—it’s simply been overshadowed in an exceptional U.S. environment dominated by innovation waves and monetary policy tailwinds. 

Finsum: Global performance trends remind us that style leadership is cyclical, and value’s apparent decline may be more about regional concentration than a fundamental flaw.

Growth ETFs offer a simplified way to invest in high-potential stocks without the time-consuming analysis required for picking individual winners. Key factors to consider when choosing a growth ETF include its long-term performance, sector diversification, expense ratio, and top holdings. 

The best ETFs typically maintain strong five- and ten-year returns, low costs, and broad exposure to tech-heavy but diversified portfolios. Notable examples include the iShares Russell Top 200 Growth ETF (IWY), Schwab U.S. Large-Cap Growth ETF (SCHG), and Vanguard Mega Cap Growth ETF (MGK), all boasting annualized 5-year returns near or above 18%. 

While many of these funds are concentrated in companies like Apple, Amazon, and Microsoft, they differ in fees, yield, and sector weightings. 

Finsum: Overall, growth ETFs offer an efficient path to access strong market performers with minimal effort and competitive returns.

In a market rattled by volatility in both stocks and bonds, dividend ETFs are drawing attention as a middle ground between growth and income strategies. While passive giants like Vanguard’s VIG and Schwab’s SCHD dominate with low fees and broad exposure, a growing number of active ETFs—like T. Rowe Price’s TDVG—are betting they can outperform by handpicking high-quality dividend payers. 

TDVG blends income with potential capital appreciation and holds familiar names like Apple and Microsoft, offering tech exposure without overconcentration. Active managers argue their flexibility allows them to adapt to changing market conditions in ways passive index funds cannot, especially when navigating risks like dividend cuts or sector shifts. 

Although passive dividend ETFs still attract more investor flows due to cost advantages, actively managed funds are slowly gaining traction, particularly among investors seeking income stability amid rising macroeconomic uncertainty. 

Finsum: For those dependent on income—like retirees—dividend strategies remain appealing, but experts caution that yield alone shouldn’t drive decisions.