Displaying items by tag: income

Monday, 13 September 2021 20:00

Here is the Best Model Portfolio

(New York)

Model portfolios are seeing great inflows recently, but their popularity has created its own problems. The biggest of those problems—a dizzying proliferation of funds. Today we are going to make an off-the-cuff recommendation. How about a one-stop, no fee “model portfolio” for retirement. The model portfolio? Buy these four ETFs: the Vanguard Total Stock Market ETF (VTI), the Vanguard Total International Stock ETF (VXUS), the iShares Core Total USD Bond Market ETF (IUSB), and the Schwab US REIT ETF (SCHH).

FINSUM: This is in jest of course, but this is a dead simple and well-conceived set of ETFs for retirement.

Published in Wealth Management
Saturday, 11 September 2021 08:10

Why REITs are Great Buy Right Now

(New York)

Income investors and many wealthy clients have struggled to find the outlet post-pandemic for relatively safe capital accumulation, but real estate investment trusts are that release valve. Reflation trade, stimulus-driven output in the economy, is driving a boom in commercial and residential properties. Reopening of the parts of the economy is driving REITs like EPR Properties, which hold movie theaters, ski resorts, water parks, indoor skydiving. It’s not limited to just adventure opportunities, data centers, cannabis cultivation, and crypto mining facilities are all burgeoning opportunities in REITs. David Auerbach of World Equity Group says that capital raising is ‘in vogue in the REIT sector because they proxy traditional capital appreciation vehicles. Ground leases in particular are one of the best investments in this sector. Along with additional measures that can be taken for a tax advantage, ground leases offer the upside of equity with maturity risks and capital structure to bonds.

FINSUM: The flight to safe assets is driving a groundswell of opportunities in REITs. With the economy reopening, and stimulus pumping through it, REITs are an opportunity to hit the safe return of bonds with the equity upside. 

Published in Eq: Real Estate
Friday, 03 September 2021 09:52

How to Choose Annuities More Wisely

(New York)

The annuities market is healthy and doing well. According to Ken Burger, national sales director for annuities at Luma, “When you look at our current market environment of minimal low fixed-income yields, high levels of volatility, and fears of mounting inflation, it’s easy to see the attractiveness of the annuity category”. The issue for advisors though is that annuities have long been a complicated and crowded space that is too complex and time-consuming for advisors. That is where Luma is trying to expand the market, as they have a slick annuities comparison tool that allows advisors to easily compare annuities side-by-side.

FINSUM:Annuities are a great fit for the current market given ultra-low rates and the huge mass of Americans who are retiring. Check out Luma.

Published in Wealth Management
Thursday, 26 August 2021 20:48

The Big Gap in ESG Funds

(New York)

ESG has grown exponentially over the last couple of years as trillions of dollars have flowed into the sector. However, as the sector has grown, some gaps in its coverage have emerged. One big glaring hole is in income-focused ESG funds. Traditionally, it has always been thought that an investor who cares about income, just wants income and doesn’t care much where it comes from. This helps explain how out of 439 ESG funds aggregated by Morningstar, only 8 had an income focus.

FINSUM: The lack of ESG income funds makes sense as income-focused products often cater to retirees—the current age of whom generally makes them less interested in ESG. But opportunity awaits.

Published in Eq: Dividends
Wednesday, 18 August 2021 14:35

Why It’s Time to Choose Quality

The market has almost everyone worried. Indices have been back and forth for months, but valuations keep grinding inexorably higher even as anxieties about the Fed and the economy proliferate. So how can advisors find the best returns for their clients in a way that potentially offers upside but also protects against a correction? The answer may be to add quality.

Take a look at the O’Shares US Quality Dividend ETF (OUSA). The fund is a quality-focused ETF that selects highly profitable, high quality companies with stable dividends. Investors intuitively understand that profitability is tied to returns, but many don’t understand the extent. Looking at five year returns in the S&P 500 using return on assets as a measure, one can see that top quartile companies have averaged a 20% return per year, more than double that of companies in the 4th quartile* . In other words, high quality companies provide a great deal more upside than their peers, and in a down market, these uber-profitable companies have also shown to exhibit better downside mitigation. Since inception (7/14/2015), OUSA has only captured 85% downside vs. 109% for the Russell 1000 Value Index using the S&P 500 as the reference benchmark, as of 6/30/2021.

Get ahead of the flight to quality in a down market. Get OUSA.

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. For performance current to the most recent month-end, please visit https://oshares.com/ousa-us/#performance. Returns beyond 1 year are annualized. The total expense ratio is 0.48%. Click here for the fund's standardized returns.

Shares of the Funds are not individually redeemable and the owners of Shares may purchase or redeem Shares from each Fund in Creation Units only. The purchase and sale price of individual Shares trading on an Exchange may be below, at or above the most recently calculated NAV for such Shares.

Market Price returns are generally based on market value at 4:00PM Eastern time (when NAV is normally determined), and do not represent the returns you would receive if you traded shares at other times. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV.


Russell 1000 Value Index: Measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.

S&P 500: The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities and serves as the foundation for a wide range of investment products. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.

1st Quartile: Contains the top 25% of companies in the S&P 500 based on average 5-year return on assets. 2nd Quartile: Contains the top 25%-50% of companies in the S&P 500 based on average 5-year return on assets. 3rd Quartile: Contains the top 50%-75% of companies in the S&P 500 based on average 5-year return on assets. 4th Quartile: Contains the bottom 25% of companies in the S&P 500 based on average 5-year return on assets. ROA (Return on Assets): Indicator of how profitable a company is relative to its total assets, in percentage. Calculated as (Trailing 12M Net Income / Average Total Assets) x 100. Higher ROA: Defined as companies with ROA that is above the average for the sector. Lower ROA: Defined as companies with ROA that is below the average for the sector.


- This is sponsored content by O’Shares ETFs -

Before you invest in O’Shares ETF Investments Funds, please refer to the prospectus for important information about the investment objectives, risks, charges and expenses. To obtain a prospectus containing this and other important information, please visit www.oshares.com to view or download a prospectus online. Read the prospectus carefully before you invest.

There are risks involved with investing including the possible loss of principal. Concentration in a particular industry or sector will subject the Funds to loss due to adverse occurrences that may affect that industry or sector. The Funds may use derivatives which may involve risks different from, or greater than, those associated with more traditional investments. A Fund's emphasis on dividend-paying stocks involves the risk that such stocks may fall out of favor with investors and underperform the market. Also, a company may reduce or eliminate its dividend after the Fund's purchase of such a company's securities. Past performance does not guarantee future results. Shares are bought and sold at market price (not NAV), are not individually redeemable, and owners of Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, consisting of 50,000 Shares. Brokerage commissions will reduce returns. The market price of Shares can be at, below, or above NAV. Market Price returns are based upon the midpoint of the bid/ask spread at 4:00 PM Eastern time (when NAV is normally determined), and do not represent the returns you would receive if you traded Shares at other times. O’Shares ETF Investments Funds are distributed by Foreside Fund Services, LLC. Foreside Fund Services, LLC is not affiliated with O’Shares ETF Investments or any of its affiliates.

Published in Eq: Growth
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