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The Stratospheric Growth Of ETFs Creates Significant Tailwinds For Blackrock And WisdomTree
- U.S. ETF assets under management have grown at a 29.0% CAGR since 2002, and are poised to continue delivering double digit growth rates.
- Worries about declining expense ratios have created an opportunity within both mutual fund and ETF sponsors, as valuations imply modest growth.
- ETF providers, as well as other investment management companies, enjoy competitive advantages helping to protect their high returns on capital.
- BlackRock and Wisdom Tree represent the best opportunities within the industry, and both stand to benefit considerably from the continued growth of ETFs.
McDonald's Recipe For Low-Risk, 7%+ Dividend Growth And Attractive Total Returns
- McDonald’s dividend can be expected to grow at a 7%+ rate over the next decade, giving an investment in MCD an attractive total return.
- MCD is inexpensive, trading 25% below its estimated fair value.
- McDonald’s dividend benefits from a number of stable, low-risk sources of growth, making the company a reliable income source.
- An investor putting new money into McDonald’s today can expect a yield on cost of around 7.5% by 2024, making MCD an attractive choice for those nearing retirement.
Ignore Sensationalist Articles About The Market Run-Up
- Bulls and Bears can “Cherry-Pick” data, making the market look overvalued or undervalued.
- Recent market movements make it easier to put a negative or positive spin on the data and create sensationalist articles.
- It benefits an investor to take a long-term mindset, and view any market related discussion with a wide lens.
- Look beyond the market’s recent run-up, to the long term wealth creation of equity investing.
These Currency-Based, Alternative ETFs Provide Better Diversification Than Gold
- UUP and UUPT have significant negative correlation with equities, helping stabilize a portfolio during market corrections.
- The dollar appears attractively valued, giving these pro-dollar ETFs attractive return prospects.
- Owning UUP and UUPT helps to reduce a portfolio’s standard deviation more efficiently than gold or cash.
How A Billionaire's Portfolio Can Boost Your Returns
- Many of the companies owned by people on the Forbes 400 exhibit attractive investment characteristics.
- Many of these companies should continue to outperform due to high insider ownership and other attractive investment characteristics.
- Investors would be well suited adding many of these companies to their watchlists.
Why This Spin-Off ETF Keeps Beating The Market
- Spin-offs have a proven history of outperformance, with CSD doubling the S&P 500’s return since its inception in late 2006.
- Directly after a spin-off there is forced selling and underperformance by the spun off company, with outperformance occurring in the following months and years.
- A spin-off gives both the parent company and the spun off company the ability to focus on their core operations.
- Following a spin-off both the parent and spin-off are more likely to be acquired, leading to a portion of their historic outperformance.
Earn Equity-Like Returns With Less Risk In CWB, The Market Leading Convertible Bond ETF
- CWB, the largest convertible bond ETF, is one of the lowest risk methods of obtaining equity exposure.
- A convertible bond has less downside relative to equity ownership, as it can be redeemed at par if prices decline below its face value.
- CWB has posted spectacular returns since its inception in 2009, largely keeping pace with the S&P with less standard deviation.
- High coupon payments and downside protection will help CWB outperform during sideways markets or corrections.
Protect Your Portfolio And Profit When Equity Markets Are Declining With The New CDS ETF
- The first 2 CDS ETFs have just hit the U.S. market, making it easier for individual investors to gain direct exposure to credit risk.
- With credit spreads near historic lows, it is inexpensive to bet on declining credit quality using WYDE, an ETF that is short high yield credit default swaps.
- Credit default swaps have the potential to deliver strong positive returns when other asset classes are plummeting.
- WYDE has significant negative correlation with equities, so owning a position in the ETF helps reduce portfolio volatility.
Hotel Industry: Competitive Factors And Discussion Of Hotel Franchisors As An Investment Opportunity
- Both hotel franchisors and franchisees experience inflation resistant growth, helping to deliver positive real returns to investors.
- Hotel franchisors exhibit strong competitive advantages and impressive returns on capital, especially amongst market leaders, making a strong case for investing in the sector.
- The hotel industry goes through regular, predictable cycles, which affects the number of guests staying at hotels, the revenue per room, and growth in the number of hotels.
- This market cycle dramatically affects the profits of hotel owners due to their high level of operating leverage, but has a diminished impact on franchisors.
- Many of the top hotel franchisors have reached lofty relative valuations, and would warrant a pullback before purchasing shares, with IHG presenting the best buying opportunity.
- Kinder Morgan Relative Valuation: KMI Vs. KMP And EPB
- Berkshire's Earnings Are Understated By $4.5 Billion Annually
- How Kinder Morgan Is Like Berkshire Hathaway And Why Both Should Outperform
- One-Of-A-Kind Companies To Help Diversify Your Portfolio
- Despite Breaking New Highs, The S&P Is Not In A Bubble
- The Junk Bond Market Is Telling You To Sell Stocks
- Angie's List A Compelling Short Opportunity
- Why Netflix Is Outperforming
- Mobile Is Part Of A Greater Trend Which Could Hurt Satellite And Cable
- A New Method For Calculating Fundamental Returns
- Will Verizon Acquire Vodafone?
- S&P 500 Market Valuation And Historic Returns