Seeking Alpha

Greg Group's  Instablog

Greg Group
Send Message
MBA with extensive background in strategy and investing. Founder of investing company specializing in advanced option strategies and monthly income generation through covered calls and other investments.
My company:
Get Rich - Stay Rich
My blog:
Get Rich - Stay Rich: Investing for Monthly Income
My book:
Get Rich - Stay Rich: Investing for Monthly Income
  • How To Get Monthly Income From A Low Volatility Portfolio 0 comments
    Oct 2, 2011 11:47 AM | about stocks: SPLV
    In the current market, volatility is moving up and down on a regular basis. Volatility is a statistical measure of how much a stock price will fluctuate over a period of time. In general, the technology sector will have a higher volatility than the utility sector. This is why you see more price movement in technology shares compared to utility companies. For conservative investors, they are more comfortable investing in low volatility stocks. Now, Proshares has developed a portfolio of low volatility stocks in an ETF for these investors.
    This is the definition from the prospectus for this ETF: The PowerShares S&P 500 Low Volatility Portfolio is based on the S&P 500 Low Volatility Index. The Fund will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is compiled, maintained and calculated by Standard & Poor’s and consists of the 100 stocks from the S&P 500 Index with the lowest realized volatility over the past 12 months.
     
    The fund inception date was May 2011. The ticker for Proshares S&P 500 Low Volatility Portfolio is SPLV. The ETF is currently trading at $23.70 with a NAV of $23.68. The weighted average price to earnings ratio is 15.6 with a ROE of 25%. 
    The fund pays a monthly dividend of $0.06984 for an annual yield of 3.5%. this makes this ETF a perfect choice for those seeking monthly income from their portfolio. In addition, the fund’s low expense ratio — 25 cents a year per $100 invested — gives you a powerful edge over actively managed funds.
    The top fund holding are listed below. 
    Top 30 Fund Holdings – Name & Weight
    Southern Co. 1.41
    Consolidated Edison Inc. 1.34
    Kimberly-Clark Corp. 1.32
    Johnson & Johnson 1.27
    Progress Energy Inc. 1.25
    H.J. Heinz Co. 1.25
    Procter & Gamble Co. 1.25
    Campbell Soup Co. 1.23
    Duke Energy Corp. 1.23
    Hormel Foods Corp. 1.21
    Coca-Cola Co. 1.20
    PepsiCo Inc. 1.19
    Abbott Laboratories 1.19
    McDonald’s Corp. 1.19
    Wal-Mart Stores Inc. 1.19
    Xcel Energy Inc. 1.15
    McCormick & Co. Inc. 1.15
    Kraft Foods Inc. 1.15
    Eli Lilly & Co. 1.13
    Altria Group Inc. 1.13
    AT&T Inc. 1.12
    ConAgra Foods Inc. 1.11
    C.R. Bard Inc. 1.09
    Waste Management Inc. 1.09
    Wisconsin Energy Corp. 1.08
    Colgate-Palmolive Co. 1.08
    AutoZone Inc. 1.06
    J.M. Smucker Co. 1.05
    NextEra Energy Inc. 1.04
    American Electric Power Co. Inc. 1.03


    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Back To Greg Group's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • How To Get 50% Of Your Stock Purchase In Monthly Income Installments http://seekingalpha.com/p/1jxsz
    Jan 24, 2014
  • I an using a covered call with blanket put on Intel (INTC) to generate monthly income. Read more at http://bit.ly/p4QKGD/
    Sep 23, 2011
  • I think gold stocks are cheap compared to gold so I am going long GDX.
    Feb 22, 2010
More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.