iShares S&P 500 Growth ETF (ARCA:IVW), Trade Ideas

iShares S&P 500 Growth ETF

Tax_day_shutter

ETFs

Rydex ETF Trust Rydex S&P Equal Weight ETF

Tax Day usually coincides with a jittery stock market as the S&amp;P 500 Index typically declines during the first half of April.

How Does The Stock Market Perform Ahead Of Tax Day? &#39;Rough&#39; At First, Data Shows

Bitcoin ETF

Analyst Color

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

Equities

Large Cap

Sector ETFs

Bonds

Broad U.S. Equity ETFs

Specialty ETFs

New ETFs

Treasuries

Tech

$BTC

DYNF

Fidelity Wise Origin Bitcoin Fund Fidelity Wise Origin Bitcoin Fund

FBTC

GOVT

IBIT

QUAL

The opening quarter of the year ended with U.S. equity indices marking the fifth consecutive month of gains, gold prices soaring to all-time highs and Bitcoin‘s (CRYPTO: BTC) market cap surging by over $500 billion in the past three months.

Two Bitcoin-Related ETFs Shine In March&#39;s Top 10 Inflow Rankings: &#39;This Tailwind Should Persist,&#39; Analysts Say

Apple App Store Meta Facebook

Government

News

Regulations

Media

AAPL

ADBE

AMZN

GOOG

GOOGL

IRBT

MSFT

EU is investigating Apple, Meta, and Google&#39;s parent company Alphabet under the new Digital Markets Act for potential violations of competition laws.

Apple, Meta, and Google&#39;s Alphabet Under Scrutiny, EU Launches Antitrust Probes

There are tons of interesting <a href="https://www.benzinga.com/topic/taxes">tidbits about Tax Day</a>. 
According <a href="https://www.irs.gov/newsroom/irs-delivers-strong-2024-tax-filing-season-expands-services-for-millions-of-people-on-phones-in-person-and-online-with-expanded-funding">to</a> the Internal Revenue Service (IRS):
<ul>
<li>Officers answered more than one million taxpayer phone calls this season.</li>
<li>They processed over 100 million individual tax returns through April 6.</li>
<li>Tens of millions more filings will be made on the April 15 deadline.</li>
<li>About 19 million taxpayers will file extensions due Oct. 15.</li>
<li>More than $200 billion in refunds were already delivered. </li>
<li>The average refund was $3,011 — a 4.6% increase from last April's average of $2,878.</li>
</ul>
These numbers change yearly, but there&#8217;s at least one fairly consistent Tax-Day trend: a jittery stock market. 
According to <a href="https://www.bankrate.com/investing/the-tax-season-effect/">Bankrate</a>, citing data from S&amp;P Global&#8217;s Kensho unit, the first couple weeks of April are typically &#8220;rougher.&#8221;
Many taxpayers will liquidate stocks or tap their money market funds to fulfill immediate cash requirements.
And from 2000 to 2016, the S&amp;P 500 Index declined an average 0.2% during the first two weeks before Tax Day.
After Tax Day, it&#8217;s a different scenario. The S&amp;P 500 usually bounces back to finish April about 1.7% higher on average (climbing &#8220;an astonishing&#8221; 75% of the time, Bankrate notes). 
Per <a href="https://money.com/stocks-could-rise-after-tax-day/">Money.com</a>, the S&amp;P 500 index enjoyed an average gain of 0.83% in the week following the tax deadline from 1998 to 2022 (for 19 out of 25 years). The one-week median gain throughout the year is 0.31%.
In April, the market&#8217;s overall impact is minimal. Investors would be wise to stick to their long-term investment strategy and prioritize contributing to tax-advantaged retirement accounts (i.e., <a href="https://www.benzinga.com/money/what-is-a-401k">401k plans</a> and <a href="https://www.benzinga.com/money/best-ira-accounts">IRAs</a>).
Historically, the S&amp;P 500 has yielded around 10 percent annual gains. The goal is to stay invested over time rather than attempting to time the market. 
Financial advisors typically suggest that their clients invest in S&amp;P 500 index funds (see below) and remain focused on distant future outcomes rather than short-term fluctuations.
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/23/04/31731464/post-easter-spy-market-action-analyzing-s-p-500-etfs-historical-performance-after-the-ho">SPDR S&amp;P 500 ETF</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)</li>
<li>iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>)</li>
<li>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</li>
<li>iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>)</li>
<li>Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>)</li>
</ul>
Yardeni Research president Ed Yardeni predicts the S&amp;P 500 could surge <a href="https://www.benzinga.com/markets/equities/24/03/37724263/this-is-a-long-term-bull-market-market-expert-ed-yardeni-stands-by-his-5-400-year-end-s-p-500-ta">26% by 2026 to 6,500</a>.
"I think this is a long-term bull market,&#8221; the economist <a href="https://www.cnbc.com/video/2024/03/13/this-is-a-long-term-bull-market-says-ed-yardeni.html" target="_blank" rel="noreferrer noopener">told</a> CNBC in March. &#8220;I still got 5,400 by year-end and that was a pretty bold call a year ago, but right now that's looking pretty conservative, and why not more?"  
Now Read: <a href="https://www.benzinga.com/economics/macro-economic-events/24/04/38247125/retail-sales-rises-more-than-expected-in-march-indicate-strong-consumer-spending">Retail Sales Rises More Than Expected In March, Indicate Strong Consumer Spending</a>
Image: Shutterstock

How Does The Stock Market Perform Ahead Of Tax Day? 'Rough' At First, Data Shows

The opening quarter of the year ended with U.S. equity indices marking the fifth consecutive month of gains, gold prices soaring to all-time highs and Bitcoin&#8216;s (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) market cap surging by over $500 billion in <a href="https://www.benzinga.com/topic/bitcoin">the past three months.</a>
The exchange-traded fund (ETF) market witnessed significant activity, with certain funds capturing substantial inflows, reflecting shifting investor sentiment.
A review of March&#8217;s ETF inflows uncovers a notable trend: two Bitcoin-related ETFs, launched just at the start of the year, have swiftly made their way into the top 10 for inflows. This rapid ascent highlighted a significant shift toward embracing cryptocurrency within mainstream investment strategies.
According to Canaccord Genuity, this &#8220;tailwind should persist&#8221; in the quarters to come as retail investors increasingly seek to incorporate Bitcoin ETFs into IRAs and other tax-favored accounts. 
&#8220;The anticipation is that spot ETFs will play a more pivotal role in influencing Bitcoin&#8217;s price dynamics in the future,&#8221; analysts said in a note. 
A Bank of America&#8217;s recent analysis revealed a shift in investor behavior, with ETF inflows surpassing single stock inflows for the first time in five weeks.
Here&#8217;s an in-depth look at the top 10 ETFs by inflows for March, providing a clear view of where investors are placing their bets.
<h1 class="wp-block-heading">March&#8217;s Top 10 ETF By Inflows: A Surprising Entry of Two Bitcoin Funds</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Rank</th>
<th>ETF Name</th>
<th>Inflows (USD)</th>
</tr>
</thead>
<tbody>
<tr>
<td>1</td>
<td>SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)</td>
<td>21.288 B</td>
</tr>
<tr>
<td>2</td>
<td>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</td>
<td>8.294 B</td>
</tr>
<tr>
<td>3</td>
<td>iShares Bitcoin Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBIT#NASDAQ">IBIT</a>)</td>
<td>7.322 B</td>
</tr>
<tr>
<td>4</td>
<td>iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>) </td>
<td>4.808 B</td>
</tr>
<tr>
<td>5</td>
<td>iShares MSCI USA Quality Factor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QUAL#NYSE">QUAL</a>)</td>
<td>3.931 B</td>
</tr>
<tr>
<td>6</td>
<td>BlackRock U.S. Equity Factor Rotation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DYNF#NYSE">DYNF</a>)</td>
<td>3.597 B</td>
</tr>
<tr>
<td>7</td>
<td>Fidelity Wise Origin Bitcoin Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FBTC#NYSE">FBTC</a>)</td>
<td>3.018 B</td>
</tr>
<tr>
<td>8</td>
<td>iShares U.S. Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOVT#NYSE">GOVT</a>)</td>
<td>2.783 B</td>
</tr>
<tr>
<td>9</td>
<td>Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>) </td>
<td>2.693 B</td>
</tr>
<tr>
<td>10</td>
<td>Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)</td>
<td>2.682 B</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: Tradingview</figcaption></figure>
Read Now: <a href="https://www.benzinga.com/markets/equities/24/04/38026629/alarming-rise-in-home-insurance-costs-expected-to-continue-into-2024-insurance-stock-etf-soars-t">Alarming Rise In Home Insurance Costs Expected To Continue Into 2024: Insurance Stock ETF Soars To All-Time Highs</a>
Photo: Shutterstock

Two Bitcoin-Related ETFs Shine In March's Top 10 Inflow Rankings: 'This Tailwind Should Persist,' Analysts Say

Apple Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>),&nbsp;Meta Platforms Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and&nbsp;Google&#8217;s&nbsp;parent company&nbsp;Alphabet Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) are now under investigation by the European Union, according to its&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/03/37828545/meta-bows-down-to-eu-regulations-after-apple-and-google-cut-subscription-prices-for-ad-free-facebook" rel="noreferrer noopener">new Digital Markets Act</a>.
The announcement on Monday signifies the first batch of probes since the act&#8217;s recent enactment.
This comes from the U.S. Justice Department&#8217;s lawsuit against Apple for allegedly hindering competitors&#8217; ability to integrate with the iPhone, potentially increasing consumer prices, the Wall Street Journal&nbsp;<a target="_blank" href="https://www.wsj.com/tech/eu-launches-probes-into-apple-meta-google-under-new-digital-competition-law-4d383201" rel="noreferrer noopener">reports</a>.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/02/36987709/microsoft-negotiates-with-european-cloud-providers-to-avert-eu-antitrust-action" rel="noreferrer noopener">Microsoft Negotiates with European Cloud Providers to Avert EU Antitrust Action</a>
The investigations will focus on whether Apple and Google adhere to regulations mandating that they allow app developers to inform customers of alternative purchasing options outside their primary app stores.
The European Commission expresses concern over the limitations these tech giants may impose on developers&#8217; freedom to communicate with users and market their products.
Additionally, the EU plans to review alterations Google has implemented to display search results within Europe. The law prohibits companies from favoring their services over their competitors.
Another line of inquiry will examine Apple&#8217;s compliance with mandates for user-friendly software removal and default setting adjustments on iPhones, including providing choice screens for alternative search engines and browsers.
Meta&#8217;s &#8220;pay or consent&#8221; scheme, which requires European users who opt out of targeted ads on Instagram and Facebook to subscribe for a monthly fee, will also be scrutinized.&nbsp;
EU regulators have conflicted with major tech companies, imposing substantial fines on firms such as Google and&nbsp;Microsoft Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) for violating antitrust rules.&nbsp;
Microsoft attracted scrutiny for its alleged misuse of market power by integrating its Teams videoconferencing application with its Office suite.
Additionally, significant financial maneuvers, such as Microsoft&#8217;s $10 billion investment in OpenAI, the parent of ChatGPT,&nbsp;Amazon.Com Inc&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) $1.4 billion merger with&nbsp;IRobot Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IRBT#NASDAQ">IRBT</a>), and Adobe Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADBE#NASDAQ">ADBE</a>) $20 billion acquisition of Figma, have all been subject to review by EU authorities.
Last week&#8217;s reports indicated Meta slashed the subscription cost for its ad-free versions of Facebook and Instagram in Europe to 5.99 euros a month, down from the initial rate of 9.99 euros, to mitigate the concerns of privacy and antitrust authorities in the region.
This adjustment seeks to balance the requirements of EU privacy regulations and the Digital Markets Act&#8217;s rules on ad personalization.&nbsp;
Investors can gain exposure to the U.S. Big Tech stocks via&nbsp;Invesco QQQ Trust, Series 1&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) and&nbsp;IShares S&amp;P 500 Growth ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>).
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/01/36609298/eu-cracks-down-on-tech-giants-apple-alphabet-and-qualcomm-in-regulatory-spotlight" rel="noreferrer noopener">EU Cracks Down on Tech Giants: Apple, Alphabet, and Qualcomm in Regulatory Spotlight</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: William Hook on Unsplash

Apple, Meta, and Google's Alphabet Under Scrutiny, EU Launches Antitrust Probes

To say Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) has had a wild week would be an understatement. After ascending to almost $969 on Tuesday, the electric vehicle maker closed around $749 on Thursday. Even with that slide, the stock enters Friday up nearly 17% over the past week.
While plenty of articles have been written about exchange traded funds <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/01/15116422/3-etfs-with-meaningful-tesla-exposure">with significant Tesla exposure</a>, it almost feels like heresy to discuss the fund&#39;s that are light on Elon Musk&#39;s company. But as <a href="https://www.cfraresearch.com/">CFRA Research</a> Director of ETF &amp; Mutual Fund Research Todd Rosenbluth points, some well-known ETFs have no exposure to shares of Tesla.
Here are some prominent examples.
Related: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/20/02/15272203/teslamania-runs-wild-now-what">Teslamania Runs Wild! Now What?</a>
<h3>SPDR S&amp;P 500 ETF (SPY)</h3>
It&#39;s not just the SPDR S&amp;P 500 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spy#NYSE">SPY</a>). It&#39;s the Vanguard S&amp;P 500 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/voo#NYSE">VOO</a>), the iShares Core S&amp;P 500 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ivv#NYSE">IVV</a>) and any ETF that follows the S&amp;P 500 or a related index. As Rosenbluth notes, the reasoning behind this is simple.
&ldquo;The S&amp;P 500 Index requires a company to generate four consecutive quarters of positive GAAP earnings before the stock is eligible to be added following an index committee vote,&rdquo; he said. &ldquo;While TSLA reported GAAP EPS of $0.58 in the fourth quarter of 2019, pushing its string to two quarters, CFRA Equity Analyst Garrett Nelson highlights that Tesla announced a delay in vehicle deliveries from its recently-started China factory due to the coronavirus outbreak.&rdquo;
<h3>Consumer Discretionary Select Sector SPDR (XLY)</h3>
Plenty of folks think of Tesla as technology company and perhaps a time will come that it&#39;s moved to that sector, but for now, the company, like auto manufacturing stocks, resides in the consumer discretionary sector.
The Consumer Discretionary Select Sector SPDR (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xly#NYSE">XLY</a>), <a href="https://www.ssga.com/us/en/intermediary/etfs/funds/the-consumer-discretionary-select-sector-spdr-fund-xly">famous for its massive weight to</a> Amazon.com (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), can&#39;t hold Tesla until meets the S&amp;P 500 profitability requirement because XLY&#39;s underlying index is essentially a representation of the S&amp;P 500 consumer cyclical constituency.
<h3>iShares S&amp;P 500 Growth ETF (IVW)</h3>
The iShares S&amp;P 500 Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ivw#NYSE">IVW</a>), as is the case with the aforementioned S&amp;P 500 ETFs, isn&#39;t alone in its exclusion. In addition to the iShares fund, several rivals track the S&amp;P 500 Growth Index and Tesla isn&#39;t yet part of that benchmark.
Based on Tesla&#39;s market value of almost $133 billion at Thursday&#39;s close, if the stock entered the S&amp;P 500 Growth Index tomorrow, it would be the third-largest consumer discretionary name in the benchmark, behind only Amazon and Home Depot (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hd#NYSE">HD</a>).
Rosenbluth has Overweight ratings on all of the ETFs mentioned here.

Long Ideas

Trading Ideas

TSLA

Select Sector SPDR-Consumer Discretionary

3 Popular ETFs With No Tesla Exposure

Among the many asset classes that performed well in the first quarter were mid-cap stocks. In the first three months of the year, the S&amp;P MidCap 400 Index returned 14.8&nbsp;percent, beating the S&amp;P 500 by 140 basis points.
<h3>What Happened</h3>
While traditional mid-cap exchange traded funds topped large-cap rivals in the first quarter, the really impressive returns were delivered by mid-cap growth funds.
&ldquo;The often overlooked and under-allocated mid-cap growth fund category cranked out one of its rare high notes during the first three months of 2019, with an <a href="http://news.morningstar.com/fund-category-returns/mid-cap-growth/$FOCA$MG.aspx">18.4% return</a> that beat the eight other equity style boxes,&rdquo; <a href="https://www.investmentnews.com/article/20190402/FREE/190409976/how-mid-cap-growth-funds-owned-the-first-quarter">according to InvestmentNews</a>.
<h3>Why It&#39;s Important</h3>
The recent outperformance of mid-cap growth stocks highlights an interesting scenario with two mid-cap growth ETFs: the iShares S&amp;P Mid-Cap 400 Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ijk#NYSE">IJK</a>) and the Invesco S&amp;P MidCap 400 Pure Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rfg#NYSE">RFG</a>). IJK and RFG gained 15.9 percent and 15.6 percent, respectively, in the first quarter.
While the names of those ETFs imply some similarities, their underlying indexes are much different. The $7.64 billion IJK tracks the S&amp;P 400 MidCap Growth Index while the $500.30 million RFG follows the S&amp;P MidCap 400 Pure Growth Index.
In RFG&#39;s index, &quot;growth is measured by the following risk factors: sales growth, earnings change to price and momentum,&quot; <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=RFG">according to Invesco</a>.
<h3>What&#39;s Next</h3>
Some market observers see attractive opportunity between the two mid-cap growth ETFs.
&quot;IJK has similar EPS growth estimates for 2019 and 2020 as the iShares S&amp;P 500 Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ivw#NYSE">IVW</a>) despite materially lower valuations,&quot; <a href="https://www.etfaction.com/">according to ETF Action.</a> &quot;RFG estimates are in a league of their own, but trade with similar multiples (likely because of lower trailing growth. If estimates hold, we expect RFG to outperform in the short to mid-term.&quot;
As ETF Action notes, sometimes these anomalies are attributable to sector-level differences. IJK three largest sector weights, in order, are technology, health care and industrials with that group combining for about half the fund&#39;s weight. RFG&#39;s top three sectors weights, in order, are health care, consumer discretionary and technology with that trio combining for over 51 percent of the Invesco ETF&#39;s roster.
Related Links
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/04/13497899/a-new-china-etf-to-consider">Consider This China ETF</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/04/13497898/yield-curve-normalization-lifts-leveraged-bond-etfs">Loving Leveraged Bond ETFs</a>

Rydex ETF Trust S&P Midcap 400 Pure Growth ETF

An Interesting Opportunity Is Brewing With Mid-Cap ETFs

Exchange traded funds dedicated to a single investment factor can take on sector bets that are often significantly larger than broad market funds.
Sector concentration is particularly prevalent in growth and value ETFs. The sectors that often dominate those funds are technology (growth) and financial services (value).
<h3>What To Know</h3>
Growth stocks have been trouncing their value rivals for over a decade due in large part to the global financial crisis taking a heavy toll on the financial services sector. While no sector was immune to the crisis, its aftermath was punitive for the financial services sector.
From 2014 through 2017, the S&amp;P 500 Technology Index outperformed the equivalent financial services index in three of four years and appears poised to do the same again this year.
&ldquo;Although the trend remains intact so far in 2018, a recent uptick in volatility left many investors wondering if value might be in line for a comeback,&rdquo; S&amp;P Dow Jones Indices said&nbsp;<a href="http://www.indexologyblog.com/2018/12/17/value-versus-growth-a-sector-perspective/">in a recent note</a>. &ldquo;Indeed, value outperformed in October and November as many growth-oriented stocks came under pressure from investors looking to take risk off the table. While it remains to be seen if this nascent trend is here to stay, historical sector exposures may be useful for assessing the relative prospects of growth and value.&rdquo;
<h3>Why It&#39;s Important</h3>
The iShares S&amp;P 500 Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ivw#NYSE">IVW</a>), which tracks the S&amp;P 500 Growth Index, devotes 31.52 percent of its weight to tech stocks. By comparison, the fund&#39;s second-largest sector weight, health care, represents just 18.12 percent of the fund&#39;s weight. Three of IVW&#39;s top 10 holdings are technology stocks. IVW has $20.41 billion in assets under management.
The $14.71 billion iShares S&amp;P 500 Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ive#NYSE">IVE</a>), which tracks the S&amp;P 500 Value Index, has a financial services weight of 22.31 percent. That&#39;s more than 1,000 basis points above its second-largest sector allocation, which is also health care.
Year-to-date, IVE is down almost 6 percent while IVW, the growth ETF, is up almost 3.6 percent.
<h3>What&#39;s Next</h3>
For over two decades, financials have loomed large in the value index while technology has dominated growth benchmarks. That sector&nbsp;exposure had significant impacts on returns attributable to growth and value stocks.
&ldquo;This result held across all three time frames, capturing 1) the run-up to the height of the Tech bubble (Jan. 1995 to Mar. 2000); 2) the subsequent bursting of that bubble and the run-up to the Global Financial Crisis (Apr. 2000 to Dec. 2007); and 3) the Global Financial Crisis and the most recent bull market in U.S. equities (Jan. 2008 to Nov. 2018),&rdquo; according to S&amp;P Dow Jones.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/12/12856324/how-to-focus-on-a-hot-corner-of-the-reit-market">The Right REIT ETF Right Now</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/12/12849932/rethinking-global-fixed-income-strategies">A New Global Bond ETF</a>

These Sectors Dominate Growth, Value ETFs

Among individual investment factors, growth is proving sturdy this year. While some investors are waiting on a value resurgence, the iShares S&amp;P 500 Growth ETF (NYSE: <a class="ticker" href="/stock/ivw#NYSE">IVW</a>) is up more than 19 percent year to date, well ahead of the S&amp;P 500.
IVW, which tracks the S&amp;P 500 Growth Index, has rightfully earned its spot as <a href="https://newpublic.cfraresearch.com/">CFRA Research&#39;s</a> focus ETF for the month of October. CFRA rates IVW Overweight, the research firm&#39;s top rating given to exchange-traded funds.
The $19.1 billion IVW is one of the largest growth ETFs on the market. It holds 331 stocks, indicating that a significant portion of the S&amp;P 500 can be considered growth fare.
<h3>Calendar Favors IVW</h3>
Historical seasonal data indicate considering growth stocks early in the fourth quarter could be rewarding as November marks the start of the strongest six-month period for equities.
&ldquo;The November-April period that begins shortly has been a favorable one for growth-oriented strategies,&rdquo; said CFRA director of ETF &amp; mutual fund research Todd Rosenbluth in a note out Monday. &ldquo;According to Sam Stovall, chief investment strategist for CFRA, the S&amp;P 500 Growth index rose on average 6.7 percent in the period dating back to 1990, ahead of the 2.5 percent gain for the benchmark in the May-October period.&rdquo;
As is the case with many growth funds, IVW is highly allocated to the technology and consumer discretionary sectors. Those are the ETF&#39;s largest and third-largest sector weights, respectively, combining for about 52 percent of the fund&#39;s roster. Healthcare is IVW&#39;s second-largest sector exposure at 16.2 percent.
Related Link: <a href="https://www.benzinga.com/trading-ideas/long-ideas/17/10/10123238/tech-tempts-but-valuations-look-high">Tech Tempts, But It&#39;s Pricey</a>
<h3>High Beta Benefit </h3>
&ldquo;The S&amp;P 500 Growth index benefits in part we think from its relatively high exposure to cyclical sectors that also performed the best during this seasonal six-month period,&rdquo; said Rosenbluth.
IVW&#39;s top 10 holdings, which combine for about 29 percent of the ETF&#39;s weight, include familiar growth names such as Apple Inc. (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>), Facebook Inc (NASDAQ: <a class="ticker" href="/stock/fb#NASDAQ">FB</a>), Amazon.com, Inc. (NASDAQ: <a class="ticker" href="/stock/amzn#NASDAQ">AMZN</a>) and Google parent Alphabet Inc (NASDAQ: <a class="ticker" href="/stock/goog#NASDAQ">GOOG</a>) (NASDAQ: <a class="ticker" href="/stock/googl#NASDAQ">GOOGL</a>).
While some actively managed growth funds are performing well this year, historical data indicate that is not typical over the long term.
&ldquo;In the three-year period ended June 2017, just 25 percent of actively managed large-cap growth mutual funds in the S&amp;P Dow Jones Index Versus Active Scorecard (SPIVA) outperformed the S&amp;P 500 Growth index,&rdquo; said Rosenbluth. &ldquo;On an equal-weighted basis, the 9.25 percent average gain among these 266 mutual funds lagged the index by 178 basis points.&rdquo;
Related Link: <a href="https://www.benzinga.com/trading-ideas/long-ideas/17/10/10118290/a-global-consumer-staples-idea">A Global Staples ETF</a>

Markets

Analyst Ratings

A Growth ETF For October

This year, the growth factor resumed its outperformance of the value factor, benefiting a host of exchange traded funds along the way. Investors can easily access growth stocks via ETFs, whether be by sector funds or more diversified products that emphasize the growth factor. There are over 170 US-listed ETFs are considered growth funds.
Plenty of those growth ETFs are establishing lengthy records of topping their value-oriented rivals. Many value ETFs are heavily allocated to the financial services sector, one of this year&#39;s most disappointing groups, and 2017&#39;s worst-performing sector, the energy sector.
&ldquo;Over the past nine years, value only outperformed growth once (in 2012), making last year&#39;s rotation into value notable,&rdquo; said <a href="https://newpublic.cfraresearch.com/">CFRA Research </a>Director of ETF &amp; Mutual Fund Research Todd Rosenbluth in a note out Thursday. &ldquo;Prior to last year, and going back to the years leading into the financial crisis, investors had favored growth stocks as a lack of economic growth made it difficult for value oriented stocks to perform well.&rdquo;
<h3>
	Good Ideas Among Growth ETFs</h3>
Some of the most venerable names among growth ETFs include the iShares S&amp;P 500 Growth ETF (NYSE: <a class="ticker" href="/stock/ivw#NYSE">IVW</a>) and the Vanguard Growth ETF (NYSE: <a class="ticker" href="/stock/vug#NYSE">VUG</a>). IVW and VUG, homes to a combined $47.4 billion in assets under management, are up an average of 19.4 percent year-to-date compared to a gain of 13 percent for the S&amp;P 500.
IVW follows the S&amp;P 500 Growth Index and holds 330 stocks. The ETF allocates 36.3 percent of its weight to technology stocks, meaning the combined weights of healthcare and consumer discretionary, the next largest sector weights in the ETF, do not exceed IVW&#39;s technology exposure.
Top 10 holdings in IVW including familiar growth fare, such as Apple Inc. (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>), Amazon.com, Inc. (NASDAQ: <a class="ticker" href="/stock/amzn#NASDAQ">AMZN</a>) and Facebook Inc (NASDAQ: <a class="ticker" href="/stock/fb#NASDAQ">FB</a>).
<h3>
	A Big Dichotomy</h3>
&ldquo;CFRA has been keeping a close eye on the growth versus value dichotomy,&rdquo; said Rosenbluth. &ldquo;The S&amp;P 500 Growth index has advanced 17.6% year-to-date, and the S&amp;P 500 Value Index is 4.6% higher since the start of the year. In April, CFRA signaled that we expected growth to be the leader this year as economic uncertainty would weigh on the market, especially in the near term. While valuation for the growth index, at an average price-to-earnings (P/E) ratio of 29.4x, is expensive compared to the overall S&amp;P 500 as well as the technology sector, we note that the Sharpe ratio is attractive.&rdquo;
As CFRA notes, the best six-month period for stocks commences in November. That also marks the time of year when cyclical growth stocks can start outperforming broader benchmarks, so investors may want to consider ETFs such as IVW and VUG now.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/09/10054873/a-quality-perk-with-this-etf">A Quality Perk With This ETF</a>
<a href="http:// https://www.benzinga.com/trading-ideas/long-ideas/17/09/10054886/a-new-preferred-etf-on-the-cheap">A Cheap Preferred ETF</a>

Going With Growth ETFs

The leading developer of liquid alternative investment products, <a href="http://www.indexiq.com">IndexIQ</a>, launched two new ETFs Tuesday. The IQ Hedge Long/Short Tracker ETF (NYSE: QLS) and the IQ Hedge Event-Driven Tracker ETF (NYSE: QED), are the fifth and sixth additions to IndexIQ&#39;s hedge fund replication product portfolio.
<h3>
	Hedge Fund Replication Product Portfolio</h3>

	With the addition of the two new ETFs, IndexIQ has covered the four major hedge fund categories (equity hedge or long/short, event-driven, market neutral and global macro).

	The new ETFs aim to provide investment results similar to that of a hedge fund; however, they offer high liquidity. This is a luxury that is not usually afforded in the alternative investment world, as investors&#39; money is typically locked up for a period of time.

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/etfs/specialty-etfs/15/03/5333884/2-new-super-dividend-etfs">2 New Super-Dividend ETFs</a></bzrelatedlink>

	Both ETFs use a series of short and long positions to take a position on one side, while hedging on the other side to hedge in the event of a market move in an unexpected direction. The new ETFs, along with IndexIQ&#39;s existing products, allow investors to create a hedge fund style portfolio with lower costs and more liquid ETFs.
<h3>
	IQ Hedge Long/Short Tracker ETF</h3>

	QLS is made up of 18 long and 21 short ETFs, for a total of 39 positions. The ETF seeks to provide performance similar to a long/short hedge fund with low correlation to the equity market.

	The top individual holdings include:
<ul>
<li>
		PowerShares Exchange-Traded Fund Trust II (NYSE: <a class="ticker" href="/stock/bkln#NYSE">BKLN</a>) with a 29.7 percent holding</li>
<li>
		iShares IBoxx $ Invest Grade Corp Bd Fd (NYSE: <a class="ticker" href="/stock/lqd#NYSE">LQD</a>) making up 12.9 percent of the ETF</li>
<li>
		iShares Russell 2000 Growth Index (ETF) (NYSE: <a class="ticker" href="/stock/iwo#NYSE">IWO</a>) coming in at 10.9 percent</li>
</ul>

	The largest short position is the iShares MSCI Emerging Markets Indx (ETF) (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>) at 9.8 percent allocation.

	QLS began trading Tuesday at $20 and has an expense ratio of 1.10 percent.
<h3>
	IQ Hedge Event-Driven Tracker ETF</h3>

	QED is made up of 20 ETFs with nine long positions and 11 short positions. The ETF seeks to provide investment results similar to hedge funds that use an event-driven strategy.

	The top individual holding include:
<ul>
<li>
		SPDR Barclays Convertible SecETF (NYSE: <a class="ticker" href="/stock/cwb#NYSE">CWB</a>) making up 42 percent of the ETF</li>
<li>
		Vanguard Total Bond Market ETF (NYSE: <a class="ticker" href="/stock/bnd#NYSE">BND</a>) at 21.4 percent</li>
<li>
		iShares Barclays Aggregate Bond Fund (NYSE: <a class="ticker" href="/stock/agg#NYSE">AGG</a>) totaling 19.8 percent</li>
</ul>

	The largest short position is the iShares S&amp;P 500 Growth Index (ETF) (NYSE: <a class="ticker" href="/stock/ivw#NYSE">IVW</a>) with a 7.6 percent holding.

	The new ETF began trading Tuesday at $20 and has an expense ratio of 1.00 percent.

Short Ideas

BKLN

Spdr Barclays Capital Convertible Securities Etf

2 New ETFs Going After Hedge Funds

With just a few trading days left in 2012, it is fair to say, broadly speaking, that the soon-to-be completed year was kind to growth stocks. Even with a recent downturn, Apple (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>) is up 28.4 percent for the year. Amazon (NASDAQ: <a class="ticker" href="/stock/amzn#NASDAQ">AMZN</a>) is sitting on a gain of 49.4 percent and the list goes on from there.

However, as S&amp;P Capital IQ notes, value stocks in the S&amp;P 500 have outperformed the index's growth constituents this year. The good news is that improvements in the U.S. and global economies, a recovery in S&amp;P 500 earnings along with modest valuations mean 2013 could work out to be a good year for growth stocks.

One ETF with which to play a resurgence in large-cap growth names is the iShares S&amp;P 500 Growth Index Fund (NYSE: <a class="ticker" href="/stock/ivw#NYSE">IVW</a>), which has over $6.6 billion in assets under management. The fund received an Overweight rating from S&amp;P Capital IQ in a recent research note by the firm.

"Generally, growth stocks trade at a higher price to earnings (P/E) multiple to the broader market, but have
appeal for their stronger earnings prospects," said S&amp;P Capital IQ in the note. "This is currently the case as, according to S&amp;P/Dow Jones Indices data as of December 14, the S&amp;P 500 Growth Index trades at a premium 2013 P/E multiple of 13.6X Capital IQ consensus estimated EPS for 2013, vs. the 12.5X of the broader S&amp;P 500 Index, but had a P/E-to-growth ratio of 1.1X, vs. 1.2X."

IVW, which charges annual fees of 0.18 percent, is similar to many large-cap growth ETFs in that it is debatable as to how many of the fund's holdings can legitimately wear the growth label. Apple and Google combine for about 10 percent of the ETF's weight, but other top-10 holdings includes stocks that can be accurately described as value names including Exxon Mobil (NYSE: <a class="ticker" href="/stock/xom#NYSE">XOM</a>), Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>) and Procter &amp; Gamble (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>). S&amp;P Capital IQ notes that it has Strong Buy or Buy ratings on eight of the ETF's top-10 holdings.

Overall, IVW is home to 285 stocks and the value tilt is heavy as health care and consumer staples names account for nearly 30 percent of the fund's weight. 

"Despite its growth bias, IVW has exposure to all 10 GICS sectors, with the largest representation in information technology (27% of assets as of October 2012, vs. 19% in the S&amp;P 500 Index), health care (16%, vs. 12%) and consumer staples (14%, vs. 11%). In contrast, financials, telecom services and utilities sectors are underrepresented in this ETF compared to the parent benchmark," said S&amp;P Capital IQ.

In addition to its significant exposure to the technology sector, IVW does sport valuations that underscore the ETF's growth bias. The ETF has a price-to-earnings ratio of 20.31 and a price-to-book ratio of 5.11, <a href="http://us.ishares.com/product_info/fund/overview/IVW.htm?fundSearch=true&amp;qt=IVW">according to iShares data</a>. Conversely, the iShares Core S&amp;P 500 ETF (NYSE: <a class="ticker" href="/stock/ivv#NYSE">IVV</a>) has a P/E ratio of 19.16 and price-to-book ratio of 3.8. In IVW's favor is a beta of 0.95 against the S&amp;P 500, a statistic that implies the ETF can help investors temper some of the volatility that often accompanies growth stocks.

Investors looking for an alternative to IVW should evaluate the Vanguard Growth ETF (NYSE: <a class="ticker" href="/stock/vug#NYSE">VUG</a>), which is home to 457 stocks and expense ratio of 0.1 percent. VUG and IVW share many of the same holdings, though VUG's top-10 constituents represent 28.2 percent of that ETF's weight compared to IVW's top-10 lineup accounting for 29.15 percent of that ETF's weight. 

VUG's beta is slightly higher than IVW's and that may be one reason why the ETF has gained 17.2 percent this year compared to nearly 14.6 percent for IVW.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Pre-Market Outlook

Intraday Update

A Growth ETF for 2013 

Starting in 2013, federal and state taxes hikes are set to hit many of the nations hardest working families and retirees. If you have a company or appreciated asset that you are planning to sell, you may want to do it before the end of the year. Beginning in 2013, the cost and taxes on selling any tangible asset or your business may go up by a whopping 60 percent.

The established tax rates on long-term gains and qualified dividends will expire on December 31, 2012. Starting 2013, the federal tax rate on long-term gains will go up to 20 percent (or up to 10 percent if a taxpayer is in the fifteen percent tax bracket). In addition to this tax hike, the state income tax is added to the 20 percent. Thus, if you live in New York for instance, your federal and state combined tax to sell an asset for a profit would be about 28 percent if you add the 8 percent New York state income tax. But wait, there is more. Beginning in 2013, you will also be hit with another new tax on long-term capital gains and dividends where you get whacked with an additional 3.8 percent "Medicare contribution tax.

Also starting in 2013, the distinction between ordinary and qualified dividends will disappear, and all dividends will be subject to the ordinary tax rates. Thus, the maximum rate on dividends is scheduled to increase from 15 percent to max out at 39.6 percent as the Bush Taxpayer Relief Act provisions expire. Thus, taxes on fixed income dividend assets will go over 100 percent. I would only assume that these new taxes may hurt the share price and demand for dividend yielding stocks.

To sum it up, if you have worked for 30 years in New York to build a company and you sell your small business for $500 thousand dollars, your federal taxes will go up on that retirement sale from about 15 percent to a whopping 23.8 percent in federal taxes plus state tax. And yes, you then would owe on top of that another 7 or 8 percent to the state of New York to bring you up to well over $150,000 dollars or 30 percent percent of your retirement being gobbled up by the state and federal governments.

To make a comparison, there may be some folks in a (state with no income tax) such as: Texas or Florida right now who have recently established residency. By the end of the 2012 year, they can sell their stock or company in a long-term capital gain transaction with the tax rate at a flat rate of 15 percent or only $75,000 dollars. This is 100% less than what the New Yorker or Californian might pay in 2013. "Viva el la Estado de Texas y la Florida" .....

From a philosophical standpoint, the less federal tax on capital gains, the more money that goes into a local economy where the seller resides. In the end, high capital gains rates tend to freeze up assets, constrict the sale of property, and the middle class generally end up waiting till they die to sell a company so as to avoid the capital gains taxes.

Overall, if a taxpaying citizen does not receive a reasonable majority of the proceeds from the sale of a business or property, they will not sell or spend or circulate the money in local communities. Further, if people don't sell things, taxes are not generated.

This whole capital gains tax debate brings me back to a vivid but real experience. I remember as a teenager reading the list of the Forbes 400 richest people in the world. The list in the 70's was primarily people who inherited money, businesses, assets, or trusts. This list made me believe that being rich may be just luck and inheriting a 2nd or 3rd generational business. However, after the tax rates were lowered in the 80's, the list changed quickly over the next few years to be comprised mostly of hard working folks who were "self-made". Thus, my personal belief in the possibility for all Americans to become prosperous changed. The moral of the story is that lower tax rates helps create new wealth and new abundance. In sum, the incentives for hard work are directly correlated to the potential rewards, and everyone benefits from creativity and inventions in the form of cures, technology, and even tax receipts. And of course, higher taxes reduces global investing into new American ventures that may grow the economy.

For instance, even if you read the self-help book, Super Rich, by the famous music mogul Russell Simmons, you will see that even Mr. Simmons claimed to have used the favorable capital-gains rates to sprinkle around the vast proceeds from the sale of one of his businesses and share some of his good fortune with his workers who loyally invested their energy into his company over the years. I personally commend Mr. Simmons for rewarding his people for their contributions.

In the end, we must continue to think of ways to incentivize the hardest working and provide reasonable benefits for those who contribute with great creativity and effort.

Some Ideas for our Readers to Avoid Undue Tax:

1. Subchapter S Corporations may be more useful going forward to mitigate self-employment taxes or other taxes. However, dividend rates are going up if nothing is done by the administration. 
2. The Purchase of ETFs, Funds or Stocks that do not produce interest or dividends may be a better investment for long term growth. iShares S&amp;P 500 Growth Index Fund (NYSE: <a class="ticker" href="/stock/ivw#NYSE">IVW</a>) and WisdomTree LargeCap Growth Fund (NYSE: <a class="ticker" href="/stock/roi#NYSE">ROI</a>) Read more <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/02/2320350/growth-etfs-for-all-seasons#ixzz20LhXdkeF">here</a>. 
3. Use of Tax Deferred Variable or Fixed Annuities or Self Directed 401Ks or IRAs may also become even more popular. 
4. Read my previous article on Estate Tax Adjustments in 2013 and learn to prepare for those tax hikes and changes. 
5. Consider donating appreciated assets to charity rather than cash to avoid undue taxes.

Dr. George Mentz is a world recognized wealth management commentator and professor who has authored several revolutionary books. Prof. Mentz, an international attorney, has been a keynote speaker globally in Asia, Arabia, USA, Mexico, Switzerland, and in the West Indies. Mentz can be contacted for speaking engagements <a href="www.gmentz.com">here</a> or <a href="www.managementconsultant.us">here</a>.

*No tax investment or legal advice provided herein. Please consult with a licensed professional in your jurisdiction before making any important financial or legal decision.

Financial Advisors

Economics

Investment Taxation- Long-Term Tax Rates Set to Explode

Ah yes, triple-digit stocks. So alluring and yet so off limits to many investors. It's an unfortunate reality that has been highlighted many times during Apple's (Nasdaq: <a class="ticker" href="/stock/aapl#Nasdaq">AAPL</a>) amazing run. A stock trading over $100 is prohibitive to a many ordinary investors. Go over $400, $500 and above and the pool of investors that can get involved with these types of stocks shrinks even more dramatically.

No need to fret because there's an ETF for that. Actually, there are a few ETFs that can help investors can access to a fair amount of triple-digit darlings without owning the shares directly. The good news is none of the ETFs mentioned here sport triple-digit price tags and all represent viable ways of gaining exposure to some well known triple-digit divas.

Let's get started with the...

Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>)
Currently trading just above $29, the Technology Select Sector SPDR is one of the best ETFs an investor can turn to for exposure to multiple triple-digit stocks. Everyone knows the Apple story by now and that stock is XLK's largest holding at 17.6% of the ETF's weight, but XLK doesn't stop there. 

Dow component IBM (NYSE: <a class="ticker" href="/stock/ibm#NYSE">IBM</a>) and Google (Nasdaq: <a class="ticker" href="/stock/goog#Nasdaq">GOOG</a>) combine for almost 12% of XLK's weight and the ETFs also features smaller allocations to MasterCard (NYSE: <a class="ticker" href="/stock/ma#NYSE">MA</a>) and Salesforce.com (NYSE: <a class="ticker" href="/stock/crm#NYSE">CRM</a>).

Financial Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlf#NYSE">XLF</a>)
On a percentage basis, XLF's allocations to triple-digit stocks is far smaller than that of XLK, but there are still home high-priced in this financial services fund. Goldman Sachs (NYSE: <a class="ticker" href="/stock/gs#NYSE">GS</a>) and Simon Property (NYSE: <a class="ticker" href="/stock/spg#NYSE">SPG</a>) are found in the ETF's top-10 holdings and BlackRock (NYSE: <a class="ticker" href="/stock/blk#NYSE">BLK</a>) receives a weight of 1.1%. Buy one share of each and it would cost about $475. On the other hand, XLF currently trades for less than $15.

Global X China Energy ETF (NYSE: <a class="ticker" href="/stock/chie#NYSE">CHIE</a>)
We were bullish on CHIE to <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/01/2240661/checking-in-an-estranged-china-play">start the year</a> and that thesis has been validated with a gain of almost 13%. For those that love high-priced oil stocks, China has got plenty of them. The country's three largest oil companies – PetroChina (NYSE: <a class="ticker" href="/stock/ptr#NYSE">PTR</a>), Sinopec (NYSE: <a class="ticker" href="/stock/snp#NYSE">SNP</a>) and Cnooc (NYSE: <a class="ticker" href="/stock/ceo#NYSE">CEO</a>) all trade for well over $100. In the case of Cnooc, that stock trades over $200.

Those investors looking for access to one or all of those Chinese oil giants would do well to investigate the thinly traded CHIE, which devotes almost a third of its weight to the aforementioned stocks.

iShares S&amp;P 500 Growth Index Fund (NYSE: <a class="ticker" href="/stock/ivw#NYSE">IVW</a>)
Apple is by far the iShares S&amp;P 500 Growth Index Fund's largest holding with a weight of 7.5%, but this ETF offers exposure to more than 30 additional triple-digit stocks. We didn't include in our count IVW holdings such as Mcdonald's (NYSE: <a class="ticker" href="/stock/mcd#NYSE">MCD</a>), which are close to $100. In addition to McDonald's, IVW is home to several other stocks that with the benefit of a couple of good trading days could easily surpass $100.

First Trust ISE Cloud Computing Index Fund (Nasdaq: <a class="ticker" href="/stock/skyy#Nasdaq">SKYY</a>)
It only trades for just over $20, but the First Trust ISE Cloud Computing Index Fund's current roster includes allocations to nine triple-digit stocks and that's not including Vmware (NYSE: <a class="ticker" href="/stock/vmw#NYSE">VMW</a>), which is just a few pennies below the $100 mark.

Familiar triple-digit names in SKYY's lineup include Netflix (Nasdaq: <a class="ticker" href="/stock/nflx#Nasdaq">NFLX</a>), Equinix (Nasdaq: EQNX), Salesforce, Apple, Google and Amazon (Nasdaq: <a class="ticker" href="/stock/amzn#Nasdaq">AMZN</a>).

Emerging Market ETFs

Futures

Technicals

Commodities

Movers

CHIE

NFLX

SKYY

ETFs For Access to $100+ Stocks (AAPL, XLK, SKYY)

So many growth ETFs, so little time. These days, many growth ETFs are delivering solid returns to investors and with this corner of the ETF universe so densely populated, it might just be easier for investors to focus on two simple factors before making a decision: The fund's expense ratio and its allocation to Apple (Nasdaq: <a class="ticker" href="/stock/aapl#Nasdaq">AAPL</a>).

Those two factors set us up nicely for an interesting ETF Showdown between the Vanguard Growth ETF (NYSE: <a class="ticker" href="/stock/vug#NYSE">VUG</a>), one of the largest and cheapest growth ETFs, and the iShares S&amp;P 500 Growth Index Fund (NYSE: <a class="ticker" href="/stock/ivw#NYSE">IVW</a>), which is no shrinking violet.

For those that like ETFs that are home to a lot of stocks, either VUG or IVW will do. The Vanguard offering is home to about 480 stocks while nearly 280 populate IVW. 

With VUG, that means a 30.4% exposure to tech stocks. Consumer discretionary names check in at almost 18% while industrials and staples are the only other sectors to receive double-digit allocations in the ETF.

IVW is a tad more conservative in its sector allocations as tech comes in at 27% and health care and staples combine for another 28%. Energy and industrials also land double-digit allocations. IVW's top-10 holdings represent almost 30% of the ETF's weight while that number falls to just under 26% with VUG.

Apple is the largest holding in both ETFs, though the tech darling lands a 7.1% allocation in IVW compared to just over 6.1% in VUG. Dow components Coca-Cola (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>), International Business Machines (NYSE: <a class="ticker" href="/stock/ibm#NYSE">IBM</a>) and Microsoft (Nasdaq: <a class="ticker" href="/stock/msft#Nasdaq">MSFT</a>) are found among the top-10 holdings of both ETFs as is Google (Nasdaq: <a class="ticker" href="/stock/goog#Nasdaq">GOOG</a>).

For those that just love analyst ratings, it's worth noting S&amp;P Capital IQ recently rated IVW “overweight” while touting the ETF's exposure to high quality tech names.

Both ETFs have betas that hover around one, so that factor won't help us declare a winner. At the start of trading today, both ETF's were sitting near new 52-week highs, but VUG was up about 3% more year-to-date and that's with a lower weight to Apple.

So if you want more 1% more Apple, go with IVW. If you want lower fees (0.18% for IVW and 0.12% for VUG) and more tech exposure overall, go with VUG.

As for our winner, we're going to lean with VUG due to the recent outperformance and lower expense ratio.

ETF Showdown:  Grasping For Growth (VUG, IVW, AAPL)

With consumer discretionary and technology playing big parts in the 2012 rally, it's no surprise to see many ETFs with the "growth" label threatening new 52-week highs on an almost daily basis. One of those funds is iShares S&amp;P 500 Growth Index Fund (NYSE: <a class="ticker" href="/stock/ivw#NYSE">IVW</a>), which as of this writing, is up almost 8% year-to-date and is sitting less than a nickel below its 52-week high.

In a note out today, S&amp;P Capital IQ says it has "favorable top-down views" of the consumer discretionary, industrial and consumer staples sectors while noting the iShares S&amp;P 500 Growth Index Fund has significant allocations to that trio. S&amp;P Capital IQ rates IVW "overweight."

The "iShares S&amp;P 500 Growth Index Fund earns an Overall Overweight ETF ranking from S&amp;P Capital IQ, with favorable assessments in the Performance Analytics, Risk Considerations and Cost Factors categories of our methodology," the research firm said in the note.

With an expense ratio of just 0.18%, IVW has over $6.8 billion in assets under management and is home to almost 280 stocks. Seven Dow components are found in IVW's top-10 holdings, but Apple (Nasdaq: <a class="ticker" href="/stock/aapl#Nasdaq">AAPL</a>) is the largest individual holding with a weight of 7.16%.

We've previously mentioned <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/02/2343618/not-the-usual-suspects-other-etfs-benefiting-from-apples-run-">other growth ETFs with solid Apple exposure</a> among them is the Vanguard Growth ETF (NYSE: <a class="ticker" href="/stock/vug#NYSE">VUG</a>).

S&amp;P says of IVW's top-10 holdings "nine of the 10 are currently considered attractive based on S&amp;P STARS and six are considered attractive based on S&amp;P Fair Value. Some of the stocks that are appealing to S&amp;P Capital IQ on both metrics include Apple, IBM (NYSE: <a class="ticker" href="/stock/ibm#NYSE">IBM</a>) and Philip Morris International (NYSE: <a class="ticker" href="/stock/pm#NYSE">PM</a>).

Technology is the largest sector weight at 27% with health care next at 15% followed by staples at 13%. Energy, industrials and consumer discretionary all receive double-digit allocations as well.

"In comparison to all ETFs in our universe, IVW also earns a favorable score, with a standard deviation of 16.7. Within the Cost Factors analysis, we use the gross expense ratio, the bid/ask spread and the price to NAV of the ETF. IVW receives positive assessments for the first two inputs and a neutral for the third one, as the ETF recently was trading essentially in line with its $73 NAV," S&amp;P said in the note. 

IVW is one of 163 ETFs S&amp;P Capital rates "overweight."

S&P Touts A Growth ETF Led By Apple

Finding an ETF that is chock full of growth stocks isn't a trying task. The big ETF sponsors such as iShares and <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/01/2299595/etfs-for-the-golden-cross">Vanguard even offer multiple growth funds</a> with some of the more widely known being the Vanguard Growth ETF (NYSE: <a class="ticker" href="/stock/vug#NYSE">VUG</a>) and the iShares Morningstar Large Growth Index Fund (NYSE: <a class="ticker" href="/stock/jke#NYSE">JKE</a>).

With consumer discretionary and technology fare leading the early 2012 market rally, the time could be right to consider other options in the growth ETF universe and the folks at S&amp;P Capital IQ offer up three ideas.

The iShares Russell 1000 Growth Index Fund (NYSE: <a class="ticker" href="/stock/iwf#NYSE">IWF</a>), iShares S&amp;P 500 Growth Index Fund (NYSE: <a class="ticker" href="/stock/ivw#NYSE">IVW</a>) and WisdomTree LargeCap Growth Fund (NYSE: <a class="ticker" href="/stock/roi#NYSE">ROI</a>) are all trading near 52-week highs and all three are rated Overweight by S&amp;P Capital IQ.

The iShares S&amp;P 500 Growth Index Fund, which is home to $6.7 billion in AUM and a cheap expense ratio of 0.18%, devotes over 26% of its weight to technology stocks with Apple (Nasdaq: <a class="ticker" href="/stock/aapl#Nasdaq">AAPL</a>) leading the charge at 6.5% of the ETF's weight. Other tech titans found among IVW's top-10 holdings include IBM (NYSE: <a class="ticker" href="/stock/ibm#NYSE">IBM</a>), Google (Nasdaq: <a class="ticker" href="/stock/goog#Nasdaq">GOOG</a>), Microsoft (Nasdaq: <a class="ticker" href="/stock/msft#Nasdaq">MSFT</a>) and Oracle (Nasdaq: <a class="ticker" href="/stock/orcl#Nasdaq">ORCL</a>). 

The iShares Russell 1000 Growth Index Fund would appear to have some similarities with IVW, as S&amp;P Capital IQ notes, but with $15.5 billion in AUM and an expense ratio of 0.2%, IWF is bigger and slightly more expensive. The similarities include technology being the top sector allocation and the aforementioned five tech stocks are also top-10 holdings in IWF though with different weights. IWF has topped IVW in terms of year-to-date performance.

The WisdomTree LargeCap Growth Fund is the smallest of the three ETFs with almost $19.7 million in AUM and the priciest with an expense ratio of 0.38%. Home to nearly 300 stocks, Apple Oracle, Texas Instruments (NYSE: <a class="ticker" href="/stock/txn#NYSE">TXN</a>) are the only tech names found among ROI's top-10 holdings. In fact, at almost 31%, energy is the ETF's top sector weight. Tech is next at almost 25%. Other top holdings include Exxon Mobil (NYSE: <a class="ticker" href="/stock/xom#NYSE">XOM</a>) and Union Pacific (NYSE: <a class="ticker" href="/stock/unp#NYSE">UNP</a>). Year-to-date, ROI has outperformed IVW but has slightly lagged IWF.

"In contrast to 2011, the U.S. equity market in 2012 has been led by the cyclical sectors, as investors appear more prepared to take on risk in light of improving macroeconomic trends domestically and in Europe. S&amp;P Capital IQ believes that many of these strong performing sectors will continue to do well and recommends relatively high exposure to Consumer Discretionary, Information Technology and Industrials," S&amp;P analyst Todd Rosenbluth said in a note.

iShare Morningstar Large Growth Index Fund

ORCL

Growth ETFs For All Seasons?

After it was Chic, the bulls are singing… 
Good times, these are the good times
Our new state of mind, these are the good times
Happy days are here again
The time is right for making gains
Let's get together, how ‘bout quarter after 9
Come tomorrow, we will do it again.

<a href="http://www.etfstocks.com">ETF Stocks</a> weekly sector scorecard is humming the same tune as last week's rally changed the charts' state of mind – these are good times. 
Many sectors were pulled out of technical ditches and reset to neutral. In fact, we only had eight industries/styles make either bear list. Although, a few emerging bear qualifiers have been market leaders and may be ready to rotate to the bottom of the pack?

ETF Stocks would be cautious about adding any new money to these industries.
MATURE BEAR: industries that have under-performed and based on their current chart patterns and could continue to lag:
•	Coal 
•	Construction and Materials 

EMERGING BEAR: industries that have fresh negative technical analysis set ups and could have subpar performance in the weeks ahead:
•	Medical Equipment 
•	Building Materials 
•	Financial Administration 
•	Property &amp; Casualty Insurance 
•	Value Stocks 
•	Small Cap Value Stocks 

On the B side, ETF Stocks sees mostly consumer driven industries dominating the bull leaderboard.
EMERGING BULL: industries with positive technical analysis traits that are in the early stages, indicating possible above average returns in the near-term:
•	Auto Parts 
•	Gambling 
•	Defense 
•	Electronic Office Equipment 
•	Broad Line Retail 
•	Large Cap Growth 
•	Software 

MATURE BULL: industries that have outperformed and their charts suggest the above average returns could continue:
•	Clothing 
•	Travel &amp; Leisure 
•	Industrial Suppliers 
•	Business Support 
•	Leisure Goods 
•	Multiutilities 
•	Personal Goods 
•	Specialty Goods 
•	Restaurants &amp; Bars 
•	Consumer Finance 
•	Footwear 
•	Trucking 
•	Toys 
•	Growth Stocks 

Many of the bull sectors/styles made it into our Monthly Model Portfolios. We certainly hope they continue to outperform – fingers crossed!
If the “soft patch” economists are correct and economic growth returns in the second half of 2011, then high P/E, revenue and earnings growth stocks make perfect sense. And that's what the sector scorecard is forecasting for the immediate future.

With growth stocks in the bull column and value in the bear pile, a ZERO Trade strategy could make sense. To execute the strategy, buy a large cap growth ETF – iShares S&amp;P 500 Growth Index (<a class="ticker" href="/stock/ivw#">IVW</a>) – and short an equal dollar amount of a small cap value exchange traded fund – iShares Russell 2000 Value Index (<a class="ticker" href="/stock/iwn#">IWN</a>). As long as growth (<a class="ticker" href="/stock/ivw#">IVW</a>) continues to show more muscle than value (<a class="ticker" href="/stock/iwn#">IWN</a>), no matter if the stock market goes up, down or sideways, investors will profit (minus commissions and costs of course.)

ETF Stocks Weekly Sector Scorecard for the Week of July 6, 2011

By Lowell Herr at <a href="http://itawealthmanagement.com/">ITA Wealth Management</a>
Yesterday, I picked up <a href="http://seekingalpha.com/article/264344-lack-of-reits-and-commodities-now-shows-in-bernstein-s-no-brainer-portfolio-s-performance">this article</a> on Seeking Alpha titled, "Lack of REITs &amp; Commodities Now Shows in Bernstein's No-Brainer Portfolio's Performance." I first needed to look up the Bernstein No-Brainer Portfolio and found it included four ETFs. The <a href="http://itawealthmanagement.com/?p=5899">asset allocation</a> is quite simple.
IVW = 25%
VB = 25%
EFA or VFA = 25% I prefer to use VEU as my international investment.
BND = 25%
When I ran a Quantext Portfolio Planner analysis, I found the projected return to be 6.6%, projected uncertainty equals 13.8% for a ratio of 0.48. The Diversification Metric (DM) is a meager 16%. While this may be a No-Brainer Portfolio, it is projected to return less than the S&amp;P 500 without much diversity.
When I substituted TLT for the BND bond fund, projections improved slightly. With only this change, projected return increased to 7.65% or better than expected from the S&amp;P 500. <a href="http://itawealthmanagement.com/?p=4663">Risk </a>or projected uncertainty actually decreased slightly to 13.7%%. DM rose to 24%.
In the Seeking Alpha article, adding REITs and Commodities implied better results. While this was true in the past, is it likely to be true in the future? One would think so. However, when I ran the QPP analysis, including VWO, DBC, and VNQ lifted the return to 7.8% or only slightly better than the No-Brainer projections. Uncertainty jumped to 16.3% and DM actually fell to 23%. The Return/Uncertainty ratio was about the same at 0.54.
Given that QPP analysis is coming up with projections, and they are not significantly different from the No-Brainer Portfolio, I would go with the portfolio that adds more asset classes.
Exchange Tickers: (NYSE:BND), (NYSE:DBC), (NYSE:EFA), (NYSE:IVW), (NYSE:TLT), (NYSE:VB), (NYSE:VEU), (NYSE:VNQ), (NYSE:VWO)
Symbols: <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=BND&amp;count=00165'>BND</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=DBC&amp;count=00109'>DBC</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=EFA&amp;count=00158'>EFA</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=IVW&amp;count=0048'>IVW</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=TLT&amp;count=0088'>TLT</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=VB&amp;count=0036'>VB</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=VEU&amp;count=00139'>VEU</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=VNQ&amp;count=00112'>VNQ</a>, <a href ='http://www.myplaniq.com/LTISystem/f401k_symbols.action?symbol=VWO&amp;count=00123'>VWO</a>
 
 
					<a href = "http://www.myplaniq.com/LTISystem/f401k_news.action?PID=3075">comments(0)</a>  
					<a class="a2a_dd" href="http://www.addtoany.com/share_save"><img src="http://static.addtoany.com/buttons/share_save_171_16.png" width="171" height="16" border="0" alt="Share/Bookmark" /></a>

PowerShares DBmmodity Index Optimum Yield Diversified Fund

iShares Trust Barclays 20+ Year Treasury Bond Fund

Improving on the No-Brainer Portfolio: Add More Asset Classes

WisdomTree Trust WisdomTree SmallCap Dividend

DODGX

streetTRACKS Dow Jones U.S. Large Cap Value Index Fund

FCNTX

iShares S&P SmallCap 600 Growth Index Fund

iShares Trust Russell Midcap Growth Index Fund

iShares Trust Russell MidCap Value Index Fund

iShares Morningstar Large Value Index Fund

iShares Morningstar Small Growth Index Fund

PowerShares Dynamic Developed International Opportunities Portfolio

PowerShares ETF Trust International Dividend Achievers Portfolio

PowerShares Exchange Traded Fund Dynamic Mid Cap Portfolio

PowerShares Exchange Traded Fund Dynamic Small Cap Portfolio

PowerShares Exchange Traded Fund Trust Dynamic Mid Cap Value Portfolio

PowerShares Exchange Traded Fund Trust Dynamic Small Cap Growth Portfolio

PowerShares Exchange Traded Fund Trust Dynamic Large Cap Value Portfolio

QQQQ

Rydex ETF Trust S&P Midcap 400 Pure Value ETF

Rydex ETF Trust S&P Smallcap 600 Pure Growth ETF

SCHA

SCHV

SCHX

National Semiconductor Provides Good Funds in Their Retirement Plan

streetTRACKS Dow Jones U.S. Small Cap Value Index Fund

iShares Trusthen & Steers Realty Majors Index Fund

iShares S&P SmallCap 600 Value Index Fund

iShares Trust Dow Jones US Real Estate Fund Index

iShares Morningstar Small Value Index Fund

LSVEX

PTTRX

PowerShares Exchange Traded Fund Trust Dynamic Small Cap Value Portfolio

PowerShares Exchange-Traded Fund Trust II PowerShares FTSE RAFI Emerging Markets Portfolio

Rydex ETF Trust S&P Smallcap 600 Pure Value ETF

Accenture 401K Retirement Plan: High Quality and Low Cost Funds with Proper Diversification

Amazon.com (Ticker: AMZN) is the largest online book and goods seller. It was founded in 1994 and is headquartered in Seattle, Washington. It pioneered in online ecommerce and has been very successful in its aggressive business expansion. When it comes to its retirement plan investment choices, however, it provides a somewhat U.S. centric and old style plan.
The <a rel="nofollow">Amazon.com 401K Plan</a> consists of 12 funds. These funds enable participants to gain exposure to 3 major assets: US Equity, Foreign Equity, Fixed Income. This is a very conventional retirement plan that has been clearly U.S. and developed countries centric.
<table style="width: 50%;" border="0">
<thead>
<tr>
<th align="left">Asset Class</th>
<th align="left">Ticker</th>
<th align="left">Name</th>
</tr>
</thead>
<tbody>
<tr>
<td width="40%">LARGE GROWTH</td>
<td width="20%">RGAEX</td>
<td width="40%">American Funds Growth Fund of Amer R4</td>
</tr>
<tr>
<td width="40%">LARGE BLEND</td>
<td width="20%">VFINX</td>
<td width="40%">Vanguard 500 Index Investor</td>
</tr>
<tr>
<td width="40%">LARGE GROWTH</td>
<td width="20%">VFTSX</td>
<td width="40%">Vanguard FTSE Social Index Inv</td>
</tr>
<tr>
<td width="40%">LARGE VALUE</td>
<td width="20%">VWNFX</td>
<td width="40%">Vanguard Windsor II</td>
</tr>
<tr>
<td width="40%">MID-CAP BLEND</td>
<td width="20%">VSEQX</td>
<td width="40%">Vanguard Strategic Equity</td>
</tr>
<tr>
<td width="40%">SMALL VALUE</td>
<td width="20%">AVPAX</td>
<td width="40%">American Beacon Small Cp Val Plan</td>
</tr>
<tr>
<td width="40%">Small Growth</td>
<td width="20%">VEXPX</td>
<td width="40%">Vanguard Explorer</td>
</tr>
<tr>
<td width="40%">Foreign Large Blend</td>
<td width="20%">JIEIX</td>
<td width="40%">Artio International Equity I</td>
</tr>
<tr>
<td width="40%">Intermediate-Term Bond</td>
<td width="20%">PTTRX</td>
<td width="40%">PIMCO Total Return Instl</td>
</tr>
<tr>
<td width="40%">Retirement Income</td>
<td width="20%">VTINX</td>
<td width="40%">Vanguard Target Retirement Income</td>
</tr>
<tr>
<td width="40%">US EQUITY</td>
<td width="20%">AMZN</td>
<td width="40%">Amazoncom Inc</td>
</tr>
<tr>
<td width="40%">Money Market</td>
<td width="20%"></td>
<td width="40%"> </td>
</tr>
</tbody>
</table>
 
The list of minor asset classes covered: Foreign Large Blend: EFA, VEU, GWL, PFA Intermediate-term Bond: AGG, CIU, BIV, BND Large Blend: IVV, IYY, IWV, VTI, VV, SPY, DLN, RSP, SCHX Large Growth: IVW, IWZ, JKE, VUG, ELG, QQQQ, RPG, SCHG Large Value: IVE, IWW, JKF, VTV, ELV, PWV, RPV, SCHV Mid-cap Blend: IJH, IWR, JKG, VO, MDY, EMM, PJG, DON, EZM, MVV Retirement Income: Small Growth: IJT, IWO, JKK, VBK, DSG, PWT, RZG, UKK Small Value: IJS, IWN, JKL, VBR, DSV, PWY, RZV, UVT Us Equity: IVV, IYY, IWV, VTI, VV, SPY, DLN, RSP, SCHX
<table border="0">
<thead>
<tr>
<th align="left">Asset Class</th>
<th>Number of funds</th>
</tr>
</thead>
<tbody>
<tr>
<td>REITs</td>
<td>0</td>
</tr>
<tr>
<td>Balanced Fund</td>
<td>1</td>
</tr>
<tr>
<td>Fixed Income</td>
<td>1</td>
</tr>
<tr>
<td>Commodity</td>
<td>0</td>
</tr>
<tr>
<td>Sector Fund</td>
<td>0</td>
</tr>
<tr>
<td>Foreign Equity</td>
<td>1</td>
</tr>
<tr>
<td>Emerging Market Equity</td>
<td>0</td>
</tr>
<tr>
<td>US Equity</td>
<td>8</td>
</tr>
<tr>
<td>Other</td>
<td>9</td>
</tr>
<tr>
<td>Total</td>
<td>12</td>
</tr>
</tbody>
</table>
As of Mar 21, 2011, this plan investment choice is rated as below average based on MyPlanIQ <a rel="nofollow">Plan Rating methodology </a> that was designed to measure how effective a plan's available investment funds are . It has the following detailed ratings:
Diversification -- Rated as average (43%) Fund Quality -- Rated as below average (19%) Portfolio Building -- Rated as average (38%) Overall Rating: 		below average (34%)
Since Amazon.com was founded in 1994, the world has gone through dramatic changes. Globalization has enabled countries like China, India and Brazil to emerge as strong economic powers in the world, partly due to the rapid development in internet and communication. Ironically, Amazon.com, while being aggressive to pursue its cutting edge business practice and technology, has provided its employees a very traditional retirement plan that lacks of other major asset exposure including emerging market stocks and real estate investments (REITs). This is reflected in the performance of the following model portfolios that adopt asset allocation strategies: strategic and tactical asset allocation strategies (<a rel="nofollow">SAA </a>and <a rel="nofollow">TAA </a>for participants in Amazon.com 401K Plan).
Strategic Asset Allocation is based on well known modern portfolio theory and its key features include: diversification, proper fund selection and periodically re-balancing.
Tactical Asset Allocation works on a diversified array of assets provided by funds in a plan and adjusts asset mixes based on market conditions such as asset price momentum utilized by TAA.
The chart and table below show the historical performance of moderate model portfolios employing strategic and tactical asset allocation strategies. For comparison purpose, we also include the moderate model portfolios of a typical 3 asset <a rel="nofollow">SIB (Simpler Is Better) plan </a>. This SIB plan has the following candidate index funds and their ETFs equivalent:
US Equity: SPY or VTI Foreign Equity: EFA or VEU Fixed Income: AGG or BND Performance chart (as of Mar 21, 2011)
<a rel="lightbox"> </a>
<a rel="lightbox" href="../LTISystem/article_viewchart.action?portfolioID=17111,17117,31628,31631"> <img style="margin: 6px;" title="chart" src="http://www.myplaniq.com/LTISystem/article_viewchart.action?portfolioID=17111,17117,31628,31631" alt="chart" /></a><a rel="lightbox" href="../LTISystem/article_viewchart.action?portfolioID=17111,17117,31628,31631"> </a>
Performance table (as of Mar 21, 2011)
<div id="show_Port_div" style="display: block;">
<table id="comparetablePort" class="tablesorter" style="width: 100%;" border="0" cellspacing="1" cellpadding="0">
<thead>
<tr>
<th class="header" width="40%">Portfolio Name</th>
<th class="header" width="10%">1Yr AR</th>
<th class="header" width="10%">1Yr Sharpe</th>
<th class="header" width="10%">3Yr AR</th>
<th class="header" width="10%">3Yr Sharpe</th>
<th class="header" width="10%">5Yr AR </th>
<th class="header" width="10%">5Yr Sharpe</th>
</tr>
</thead>
<tbody>
<tr>
<td><a> Amazon.com 401K Plan Tactical Asset Allocation Moderate</a></td>
<td>4%</td>
<td>32%</td>
<td>7%</td>
<td>70%</td>
<td>8%</td>
<td>70%</td>
</tr>
<tr>
<td><a> Amazon.com 401K Plan Strategic Asset Allocation Moderate</a></td>
<td>7%</td>
<td>60%</td>
<td>4%</td>
<td>26%</td>
<td>5%</td>
<td>30%</td>
</tr>
<tr>
<td><a> Three Core Asset ETF Benchmark Tactical Asset Allocation Moderate</a></td>
<td>-2%</td>
<td>-32%</td>
<td>2%</td>
<td>16%</td>
<td>4%</td>
<td>28%</td>
</tr>
<tr>
<td><a> Three Core Asset ETF Benchmark Strategic Asset Allocation Moderate</a></td>
<td>11%</td>
<td>69%</td>
<td>4%</td>
<td>13%</td>
<td>4%</td>
<td>14%</td>
</tr>
</tbody>
</table>
</div>
Currently Commodities, Real Estate and US Equity are doing well. Only US Equity is available to Amazon.com 401K Plan participants.
This plan beats the three asset benchmark by virtue of the US asset class choices. If would be a stronger plan with more fixed income choices and an additional asset class.
To summarize, Amazon.com 401K Plan would do well by their employees to consider reviewing their existing funds and adding additional asset classes such as REITs and emerging market stocks.
Symbols:<a href ='../../../../LTISystem/f401k_symbols.action?symbol=AMZN&amp;count=002'>AMZN</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=SPY&amp;count=00127'>SPY</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VTI&amp;count=0091'>VTI</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=EFA&amp;count=00142'>EFA</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VEU&amp;count=00124'>VEU</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=AGG&amp;count=00134'>AGG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=BND&amp;count=00144'>BND</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IVV&amp;count=0044'>IVV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IYY&amp;count=0036'>IYY</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWV&amp;count=0041'>IWV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VV&amp;count=0036'>VV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=DLN&amp;count=0038'>DLN</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=RSP&amp;count=0040'>RSP</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=SCHX&amp;count=0036'>SCHX</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=CIU&amp;count=00104'>CIU</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=BIV&amp;count=0045'>BIV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=GWL&amp;count=0038'>GWL</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=PFA&amp;count=0035'>PFA</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IVE&amp;count=0035'>IVE</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWW&amp;count=0032'>IWW</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=JKF&amp;count=0025'>JKF</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VTV&amp;count=0037'>VTV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=ELV&amp;count=0024'>ELV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=PWV&amp;count=0025'>PWV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=RPV&amp;count=0025'>RPV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=SCHV&amp;count=0027'>SCHV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IVW&amp;count=0040'>IVW</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWZ&amp;count=0032'>IWZ</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=JKE&amp;count=0029'>JKE</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VUG&amp;count=0041'>VUG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=ELG&amp;count=0028'>ELG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=QQQQ&amp;count=0081'>QQQQ</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=RPG&amp;count=0029'>RPG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=SCHG&amp;count=0031'>SCHG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IJH&amp;count=0026'>IJH</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWR&amp;count=0026'>IWR</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=JKG&amp;count=0017'>JKG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VO&amp;count=0026'>VO</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=MDY&amp;count=0072'>MDY</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=EMM&amp;count=0020'>EMM</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=PJG&amp;count=0017'>PJG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=DON&amp;count=0020'>DON</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=EZM&amp;count=0020'>EZM</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=MVV&amp;count=0016'>MVV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IJS&amp;count=0022'>IJS</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWN&amp;count=0022'>IWN</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=JKL&amp;count=0013'>JKL</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VBR&amp;count=0021'>VBR</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=DSV&amp;count=0014'>DSV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=PWY&amp;count=0013'>PWY</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=RZV&amp;count=0013'>RZV</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=UVT&amp;count=0013'>UVT</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IJT&amp;count=0019'>IJT</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=IWO&amp;count=0020'>IWO</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=JKK&amp;count=0013'>JKK</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=VBK&amp;count=0024'>VBK</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=DSG&amp;count=0013'>DSG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=PWT&amp;count=0011'>PWT</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=RZG&amp;count=0010'>RZG</a>,<a href ='../../../../LTISystem/f401k_symbols.action?symbol=UKK&amp;count=0010'>UKK</a>,
Exchange Tickers:(AMZN),(SPY),(VTI),(EFA),(VEU),(AGG),(BND),(IVV),(IYY),(IWV),(VV),(DLN),(RSP),(SCHX),(CIU),(BIV),(GWL),(PFA),(IVE),(IWW),(JKF),(VTV),(ELV),(PWV),(RPV),(SCHV),(IVW),(IWZ),(JKE),(VUG),(ELG),(QQQQ),(RPG),(SCHG),(IJH),(IWR),(JKG),(VO),(MDY),(EMM),(PJG),(DON),(EZM),(MVV),(IJS),(IWN),(JKL),(VBR),(DSV),(PWY),(RZV),(UVT),(IJT),(IWO),(JKK),(VBK),(DSG),(PWT),(RZG),(UKK)
Disclosure:
MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.
 
					<a href = "http://www.myplaniq.com:80/jforum/posts/preList/2851/2998.page">comments(0)</a>  
					<a class="a2a_dd" href="http://www.addtoany.com/share_save"><img src="http://static.addtoany.com/buttons/share_save_171_16.png" width="171" height="16" border="0" alt="Share/Bookmark" /></a>