Vanguard Growth ETF (ARCA:VUG), Quote.Headers.trade-ideas

Vanguard Growth ETF

Vanguard Growth ETF - DNQ

Technology

Consumer Cyclical

Healthcare

Communication Services

Financial Services

Industrials

Consumer Defensive

Basic Materials

Real Estate

Energy

Other

The Fund employs an indexing investment approach designed to track the performance of the CRSP US Large Cap Growth Index (the Index), a broadly diversified index predominantly made up of growth stocks of large U.S. companies. The Fund attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the Index, holding each stock in approximately the same proportion as its weighting in the Index. The Fund may become non-diversified, as defined under the Investment Company Act of 1940, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the Index.

Microsoft Corp

Apple Inc

Nvidia Corp

Amazon.Com Inc

Meta Platforms, Inc.

Alphabet Inc.Class A

Alphabet Inc. Class C

Lilly And Company

Tesla Motors, Inc.

Visa Inc

Earnings

Large Cap

News

Sector ETFs

Markets

Analyst Ratings

Trading Ideas

ETFs

COST

OMFL

The Invesco Russell 1000 Dynamic Multifactor ETF (BATS: OMFL) was launched on 11/08/2017, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.

Should Invesco Russell 1000 Dynamic Multifactor ETF Be on Your Investing Radar?

pelosi-harris-shutter

Politics

Exclusives

AVGO

IEFA

NVDA

PANW

A Benzinga poll asked readers if Nancy Pelosi (and her husband) had the better investment style than Kamala Harris (and her husband).

Nancy Pelosi Vs. Kamala Harris: Poll Shows Who People Think Is the Better Investor

AMD Ryzen

Tech

Media

AMD unveils new AI PC architecture with powerful NPU and impressive performance, gaining investor interest as AI stocks surge

AMD Showcases New AI Capabilities with Ryzen AI Chips: Report

The Invesco Russell 1000 Dynamic Multifactor ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/omfl#BATS">OMFL</a>) was launched on 11/08/2017, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $5.28 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
<h2>Why Large Cap Growth</h2>
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
<h2>Costs</h2>
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.29%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.57%.
<h2>Sector Exposure and Top Holdings</h2>
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 26.30% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Berkshire Hathaway Inc accounts for about 5.30% of total assets, followed by Costco Wholesale Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cost#NASDAQ">COST</a>) and Meta Platforms Inc.
The top 10 holdings account for about 41.11% of total assets under management.
<h2>Performance and Risk</h2>
OMFL seeks to match the performance of the RUSSELL 1000 INVESCO DYNAMIC MLTIFCTR ID before fees and expenses. The Russell 1000 Invesco Dynamic Multifactor Index is constructed using a rules-based methodology by selecting equity securities from the Russell 1000 Index, which measures the performance of the 1,000 largest-capitalization companies in the United States.
The ETF has added about 0.46% so far this year and is up about 5.06% in the last one year (as of 09/04/2024). In the past 52-week period, it has traded between $43.21 and $55.23.
The ETF has a beta of 1.01 and standard deviation of 17.55% for the trailing three-year period. With about 249 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
Invesco Russell 1000 Dynamic Multifactor ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, OMFL is a sufficient option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (ARCA:VUG) and the Invesco QQQ (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>) track a similar index. While Vanguard Growth ETF has $131.14 billion in assets, Invesco QQQ has $279.37 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
<h2>Bottom-Line</h2>
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
<a href="https://www.zacks.com/stock/news/2331115/should-invesco-russell-1000-dynamic-multifactor-etf-omfl-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2331115">To read this article on Zacks.com click here.</a>

The investing portfolios of former Speaker of the House Nancy Pelosi and Vice President Kamala Harris may differ, with a preference of individual stocks versus <a href="https://www.benzinga.com/etfs">exchange traded funds.</a>
What Happened: With President Joe Biden dropping out of the 2024 election, Harris is the favorite to secure the Democratic Party nomination and <a href="https://www.benzinga.com/general/politics/24/07/39892716/nancy-pelosi-endorses-kamala-harris-for-president-full-confidence-that-she-will-lead-us-to-victo">has received endorsements</a> from many people, including Pelosi.
While they are both Democrats and key political figures, Harris and Pelosi differ when it comes to investing.
Pelosi and her venture capitalist husband Paul Pelosi prefer to buy individual stocks and options, often in the technology sector. Compare that to the investment style of Harris and her husband Doug Emhoff, who have their money parked in mutual funds and ETFs.
Benzinga recently polled readers to see which investment style could be better.
"Kamala Harris' investments include mutual funds and S&amp;P 500 holdings, while Nancy Pelosi and her husband have purchased stocks like Nvidia, Apple and Tesla. Who do you think is a better investor?" Benzinga asked.
The results were:
<ul>
<li>Kamala Harris: 34%</li>
<li>Nancy Pelosi: 66%</li>
</ul>
The<a href="https://www.benzinga.com/gov-trades/members/nancy-pelosi"> Benzinga Government trades page</a> for Pelosi shows recent purchases of NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Broadcom (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) and Palo Alto Networks (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>).
According to a report from <a href="https://www.barrons.com/amp/articles/kamala-harris-wealth-investments-12983bda">Barrons</a>, Harris and Emhoff have between $2.9 million and $6.6 million in investments and cash based on financial disclosures. Among the investments include Harris having between $250,000 and $500,000 in a Target Date 2030 fund and between $100,000 and $250,000 in an S&amp;P fund and large-cap growth fund.
Emhoff has investments in several ETFs, including the iShares Core MSCI EAFE ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEFA#BATS">IEFA</a>).
A Quiver Quant <a href="https://www.quiverquant.com/news/Kamala%20Harris%20Net%20Worth">report </a>shows the Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>) and the Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>) as two of the largest holdings by the vice president and first gentleman. The Vanguard Growth ETF is heavily weighting in technology stocks, making up 60% of the ETF. 
One thing the two political figures have in common with their investments is a preference to large cap stocks and not having large weightings of small cap stocks in their portfolios.
Read Also: <a href="https://www.benzinga.com/exclusives/24/07/39848818/exclusive-is-small-cap-rally-scaring-away-investors-only-1-of-benzinga-readers-polled-are-buying-few">EXCLUSIVE: Is Small Cap Rally Scaring Away Investors? Only 1% Of Benzinga Readers Polled Are Buying Fewer Stocks, Here&#8217;s How Many Are Buying More</a>
Why It's Important: The net worth of Harris and Emhoff pales in comparison to her 2024 election opponent Donald Trump, who is a billionaire thanks to his investments and large stake in Trump Media &amp; Technology Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DJT#NASDAQ">DJT</a>).
"Does the difference in wealth between Kamala Harris and Donald Trump make her a more or less appealing candidate?" Benzinga asked.
The results were:
<ul>
<li>More appealing: 32%</li>
<li>Less appealing: 4%</li>
<li>Makes no difference to me: 64%</li>
</ul>
The poll found that potential voters don't care too much that Trump is worth significantly more than Harris. A larger amount of respondents said Harris is more appealing than less appealing based on her lower wealth amount.
Benzinga also asked if people were surprised by the $2.9 million to $6.6 million figure that is being reported for Harris and her husband's wealth.
The results were:
<ul>
<li>More than I expected: 29%</li>
<li>Less than I expected: 34%</li>
<li>About what I expected: 37%</li>
</ul>
The poll results were close, with the majority of respondents indicating that Harris&#8217;s wealth was in line with their expectations. Additionally, about one-third of the respondents felt that the amount was less than they anticipated.
Disclosures of investments for political figures has been a hot topic in recent years, with calls to ban members of Congress from trading stocks and options. The significant allocation to ETFs and mutual funds indicates that Harris has not been actively buying and trading individual stocks like some members of Congress and their spouses.
Harris and Pelosi may have investment commonalities of preference for technology and large-cap stocks, while both also mostly avoid small-cap stocks.
Interested in learning more about small-cap stocks and ETFs? Then you don&#8217;t want to miss Benzinga Small Cap Conference, Oct. 10 in Chicago.&nbsp;<a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Click here</a>&nbsp;for more information.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/07/39716688/apple-microsoft-meta-google-which-would-you-buy-at-all-time-high-investor-poll-reveals">Apple, Microsoft, Meta, Google: Which Would You Buy At All-Time High? Investor Poll Reveals Split Opinions</a></li>
</ul>
The study was conducted by Benzinga in July 2024 and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 172 adults.
Image created with photos from Shutterstock and Midjourney.

Advanced Micro Devices Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) has unveiled its latest AI PC architecture, incorporating a new neural processing unit (NPU) in its AMD Ryzen AI chips.
This announcement was made at the Computex trade show in Taiwan last month, followed by a detailed presentation at a recent event in Los Angeles, VentureBeat <a target="_blank" href="https://venturebeat.com/ai/amd-takes-a-deep-dive-into-architecture-for-the-ai-pc-chips/" rel="noreferrer noopener">reports</a>.
The new NPU technology can handle AI workloads with remarkable efficiency.
Also Read: <a target="_blank" href="https://www.benzinga.com/m-a/24/07/39725192/amd-challenges-nvidia-with-strategic-665m-purchase-of-finnish-ai-lab" rel="noreferrer noopener">AMD Challenges Nvidia With Strategic $665M Purchase Of Finnish AI Lab</a>
According to Vamsi Boppana, AMD's SVP of AI, the NPUs can operate AI models at 35 times the performance per watt of a standard CPU and eight times that of an integrated GPU.
AMD's AI PCs provide enhanced privacy by containing data within local networks, reducing the need for cloud-based processing.
The latest AMD Ryzen AI chips integrate 16 RDNA 3.5 GPU compute units and 12 Zen CPU cores, and thanks to the XDNA 2 architecture, they offer 50 TOPS.
AMD's XDNA 2 architecture features 32 AI engines and 50 NPU TOPS, which supports various applications, including immersive collaboration, creative editing, gaming, personal AI assistance, and enterprise productivity.
AMD stock gained 52% in the last 12 months, buoyed by <a target="_blank" href="https://www.benzinga.com/news/24/07/39772563/whats-going-on-with-ai-stocks-nvidia-amd-on-monday" rel="noreferrer noopener">the AI wave</a>. Investors can gain exposure to the stock through Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>) and VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>).
Price Action: AMD is down 2.04% at $176.17 at the last check on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
<h2 class="wp-block-heading">Is AMD A Good Stock To Buy?</h2>
Wall Street analysts view Advanced Micro Devices on the whole as a Outperform, given the history of coverage over the past three months. Christopher Danely from Citigroup in Advanced Micro Devices is the most optimistic, expecting a 19.32% rise in the stock in the coming year.
But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past 3 months, Advanced Micro Devices rose 12.83%, which indicates that opinion improved on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 2.24% over the past year.
A complete overview of how Wall Street views individual stocks is available <a href="https://www.benzinga.com/analyst-stock-ratings">here</a>, while real time updates on the latest analyst actions will be delivered via <a href="https://pro.benzinga.com">Benzinga PRO</a>. Try it for free.
Photo courtesy of AMD.

Exchange-traded funds (ETFs) focused on growth equities &#8211; characterized by robust revenue growth, high valuations, and strong potential for innovation – experienced elevated <a href="https://www.benzinga.com/etfs">inflows in June.</a>
This surge in interest towards growth-linked funds coincided with a significant outperformance of growth over value stocks, reflecting increased investor confidence in the tech sector and disruptive innovations like artificial intelligence.
The eight largest growth-linked ETFs by assets under management (AUM) collectively experienced a substantial $12.2 billion in inflows from the beginning of the month through June 24.
Leading the pack, the Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>) saw the highest monthly inflows among its peers, attracting an impressive $5.68 billion. This remarkable figure is set to mark the Vanguard Growth ETF&#8217;s record monthly inflows, ranking second in June only to the nearly $10 billion attracted by the broader iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>). 
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Growth ETF</th>
<th>AUM</th>
<th>June Flows (as of June 24)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Vanguard Growth ETF </td>
<td>$139.84B</td>
<td>$5.68B</td>
</tr>
<tr>
<td>IShares Russell 1000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWF#NYSE">IWF</a>)</td>
<td>$97.00B</td>
<td>$0.03B</td>
</tr>
<tr>
<td>IShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>)</td>
<td>$52.96B</td>
<td>$4.01B</td>
</tr>
<tr>
<td>Schwab U.S. Large-Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHG#NYSE">SCHG</a>)</td>
<td>$30.62B</td>
<td>$0.44B</td>
</tr>
<tr>
<td>SPDR Portfolio S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPYG#NYSE">SPYG</a>)</td>
<td>$29.40B</td>
<td>$0.47B</td>
</tr>
<tr>
<td>Vanguard Mega Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGK#NYSE">MGK</a>)</td>
<td>$22.39B</td>
<td>$1.08B</td>
</tr>
<tr>
<td>Vanguard Russell 1000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VONG#NYSE">VONG</a>)</td>
<td>$20.81B</td>
<td>$0.08B</td>
</tr>
<tr>
<td>IShares Core S&amp;P U.S. Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IUSG#NYSE">IUSG</a>)</td>
<td>$18.94B</td>
<td>$0.15B</td>
</tr>
<tr>
<td>Vanguard Small-Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VBK#NYSE">VBK</a>)</td>
<td>$17.25B</td>
<td>$0.26B</td>
</tr>
</tbody>
<tfoot>
<tr>
<td>Total</td>
<td></td>
<td>$12.2B</td>
</tr>
</tfoot>
</table>
<figcaption class="wp-element-caption">Source: TradingView</figcaption></figure>
<h3 class="wp-block-heading">Growth Stocks Surge To Record Highs Against Value</h3>
The Vanguard Growth ETF&#8217;s relative performance against its counterpart, the Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>), set new record highs in June, surpassing the previous peaks achieved in November 2021, as illustrated in the chart below, <a href="https://www.benzinga.com/pro/register0524b?utm_source=BZprocontent062524&amp;t=be2bearmibe3na1">sourced from Benzinga Pro.</a>
The primary drivers of the growth style&#8217;s outperformance in June were tech giants Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), which saw robust rallies of 15% and 8.8%, respectively. 
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/pro/register0524b?utm_source=BZprocontent062524&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1024" height="460" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-1024x460.png" alt="" class="wp-image-405212" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-1024x460.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-300x135.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-768x345.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-1536x690.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
Read Next:
<ul>
<li> <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39440559/growth-stocks-leave-value-stocks-in-the-dust-4-reasons-for-biggest-monthly-lead-in-">Growth Stocks Leave Value Stocks In The Dust: 4 Reasons For Biggest Monthly Lead In Over A Year</a></li>
</ul>
Image generated using artificial intelligence via Midjourney.

Equities

Broad U.S. Equity ETFs

New ETFs

AAPL

IUSG

SCHG

SPYG

VONG

Tech, AI Drive $12.2B Inflows Into Growth ETFs, Marking Record Outperformance Over Value

In a bid to boost the market success of its mixed-reality Vision Pro headset, Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) has added the two largest online retailers in China to its roster of supported applications.
What Happened: The Vision Pro headset, priced at $3,500, will now be supported by the native apps of Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) and JD.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>), <a href="https://www.bloomberg.com/news/articles/2024-06-24/apple-adds-alibaba-jd-to-list-of-vision-pro-apps-for-china">reported</a> Bloomberg on Friday. The apps will offer various features such as virtual test drives of Xiaomi cars and makeup simulations.
App support is seen as crucial for the success of Vision Pro, which has had a rocky start in the U.S. with Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) opting out of creating a bespoke app.
The headset, which is set to launch in China, Japan, and Singapore on Jun. 28, has seen a significant sales premium for imported units in overseas markets but has failed to generate significant sales so far.
Apple&nbsp;stock gained nearly 12% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>) and&nbsp;Vanguard Information Tech ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>)
See Also:&nbsp;<a href="https://www.benzinga.com/m-a/24/06/39399228/nvidia-to-acquire-shoreline-io-for-100m-as-jensen-huang-led-ai-stalwart-aims-to-cut-revenue-reliance?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Nvidia To Acquire Shoreline.Io For $100M As Jensen Huang-Led AI Stalwart Aims To Cut Revenue Reliance On Microsoft, Amazon And More: Report</a>
Why It Matters: Apple&#8217;s expansion into the Chinese market with the Vision Pro headset comes amid several challenges. The company has been facing obstacles in its artificial intelligence push in China due to stringent regulations and rising <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39425871/apples-ai-push-encounters-obstacles-in-china-with-stricter-regulations-and-local-co">competition from local firms</a> like Huawei. 
Additionally, Apple has reportedly been struggling to develop a more <a href="https://www.benzinga.com/news/24/06/39449011/apple-struggling-to-create-its-cheaper-vision-pro-model-says-expert-its-dealing-with-some-difficult">affordable version of the Vision Pro</a>. The high price tag and lack of mainstream appeal have led to a re-evaluation of the Vision Pro&#8217;s roadmap. The company aims to make the headset more accessible by introducing a range of devices with varying price points.
Apple is also in ongoing discussions with several Chinese companies, including Baidu and Alibaba, <a href="https://www.benzinga.com/markets/asia/24/06/39434301/apples-ai-strategy-faces-hurdles-in-china-talks-with-local-firms-are-ongoing">to integrate AI functions</a> into its devices sold in China. This is part of Apple&#8217;s strategy to navigate the complex regulatory environment and enhance its product offerings in the region.
Read Next: <a href="https://www.benzinga.com/news/24/06/39444283/sydney-sweeney-was-allegedly-watching-pirated-version-of-law-order-but-fans-say-honestly-cant-blame?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Sydney Sweeney Was Allegedly Watching Pirated Version Of &#8216;Law &amp; Order,&#8217; But Fans Say &#8216;Honestly Can&#8217;t Blame Her&#8217; Amid Rising Streaming Costs</a>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Global

BABA

NFLX

Apple Adds Alibaba, JD To Vision Pro Apps In China Amid Global Struggle

Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is seeking a <a href="https://www.benzinga.com/topic/china">local partner in China</a>.
What Happened: The Cupertino, California-based company is in talks with several <a href="https://www.benzinga.com/government/24/03/37892837/apple-wants-to-strengthen-presence-in-china-in-talks-with-baidu-over-ai-collaboration" target="_blank" rel="noreferrer noopener">Chinese companies</a>, including Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) and Alibaba Group Holding Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), to integrate artificial intelligence (AI) functions into its devices that are sold in China.
Western AI models like OpenAI's ChatGPT <a href="https://www.benzinga.com/topic/artificial-intelligence">remain unavailable in the region</a>.
Also Read: <a href="https://www.benzinga.com/government/24/04/38460042/apple-strengthens-supply-chain-in-china-while-growing-presence-in-southeast-asia-and-india" target="_blank" rel="noreferrer noopener">Apple Strengthens Supply Chain in China While Growing Presence in Southeast Asia and India</a>
Earlier this year, Apple explored the possibility of obtaining approval for a foreign large language model to be used in its devices in China but found the chances to be slim. This led Apple to intensify talks with potential local partners. The region, including mainland China, Taiwan, Hong Kong, and Macau, accounted for 18% of Apple's global revenue in the quarter ended March 30.
Why It Matters: Local companies pose a growing threat to Apple's market position in China. In the first quarter of this year, the iPhone <a href="https://www.benzinga.com/government/24/03/37479073/apples-iphone-sales-dip-24-in-china-falls-to-fourth-place-behind-vivo-and-huawei" target="_blank" rel="noreferrer noopener">dropped to third place</a> by handset market share among smartphone brands in China, falling behind two local brands, the Wall Street Journal <a href="https://www.wsj.com/tech/ai/for-apples-ai-push-china-is-a-missing-piece-7d2b0ec6" target="_blank" rel="noreferrer noopener">reports</a>.
Huawei will likely increase its market share to 17% this year, while Apple's share will drop to 16%.
In 2023, Apple increased the number of its <a target="_blank" href="https://www.benzinga.com/government/24/06/39164337/apples-streaming-ambitions-in-china-continue-despite-geopolitical-tensions" rel="noreferrer noopener">China-based suppliers</a> and manufacturing sites. The company opened a new Apple store in Shanghai, and CEO Tim Cook attended the China Development Forum in Beijing, highlighting the market's significance.
Apple&nbsp;stock gained 14% in the last 12 months. Investors can gain exposure to the stock via Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>) and Vanguard Information Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>).
Price Action: AAPL shares are trading higher by 0.49% at $210.70 premarket at the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Now Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39410071/nvidia-and-hewlett-packard-enterprise-join-forces-to-dominate-enterprise-ai-market-">Nvidia And Hewlett Packard Join Forces To Dominate Enterprise AI Market &#8211; JPMorgan</a>

Asia

Government

Regulations

BIDU

Apple's AI Strategy Faces Hurdles In China, Talks With Local Firms Are Ongoing

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) is trading higher Thursday, bearing testimony to the unstoppable artificial intelligence frenzy.
Nvidia, along with Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), and Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), has almost fully booked the TSMC 3nm chip production process until 2026.
Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) is looking to convert some 5nm equipment to boost 3nm production capacity, TechNode <a href="https://technode.com/2024/06/12/apple-qualcomm-nvidia-amd-fully-book-tsmcs-3nm-capacity-until-2026/" target="_blank" rel="noreferrer noopener">reports</a>. 
This could potentially increase 3nm wafer production to between 120,000 and 180,000 units monthly.
Meanwhile, <a href="https://www.benzinga.com/news/24/06/39293929/whats-going-on-with-nvidia-amd-stocks-on-wednesday#google_vignette" target="_blank" rel="noreferrer noopener">the U.S. government</a> looks to add Russia to its semiconductor embargo list after China and the Middle East. The Biden administration flagged Russia&#8217;s flourishing trade relations with China.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/13083326/newplot-1-6.png" alt="" class="wp-image-386608" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/13083326/newplot-1-6.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/13083326/newplot-1-6-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Nvidia stock gained over 205% in the last 12 months. Investors can gain exposure to the stock via Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>) and Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>).
Price Action: NVDA shares were trading higher by 3.32% to $129.36 premarket at the last check on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

AMZN

QCOM

What's Going On With Nvidia Stock On Thursday?

The Invesco S&amp;P 500 GARP ETF (ARCA:SPGP) was launched on 06/17/2011, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $4.98 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.34%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.28%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund&#39;s holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Energy sector--about 24.80% of the portfolio. Information Technology and Materials round out the top three.
Looking at individual holdings, Diamondback Energy Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fang#NASDAQ">FANG</a>) accounts for about 2.49% of total assets, followed by Marathon Petroleum Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mpc#NYSE">MPC</a>) and Steel Dynamics Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/stld#NASDAQ">STLD</a>).
The top 10 holdings account for about 20.39% of total assets under management.
Performance and Risk
SPGP seeks to match the performance of the S&amp;P 500 GROWTH AT A REASONABLE PRICE IDX before fees and expenses. The S&amp;P 500 Growth at a Reasonable Price Index is composed of securities with strong growth characteristics selected from the Russell Top 200 Index.
The ETF has added roughly 7.06% so far this year and is up about 24.48% in the last one year (as of 05/20/2024). In the past 52-week period, it has traded between $84.30 and $106.72.
The ETF has a beta of 1.10 and standard deviation of 17.94% for the trailing three-year period. With about 77 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&amp;P 500 GARP ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SPGP is a good option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (ARCA:VUG) and the Invesco QQQ (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>) track a similar index. While Vanguard Growth ETF has $123.57 billion in assets, Invesco QQQ has $266.83 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
<a href="https://www.zacks.com/stock/news/2275794/should-invesco-s-p-500-garp-etf-spgp-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2275794">To read this article on Zacks.com click here.</a>

FANG

SPGP

STLD

Should Invesco S&P 500 GARP ETF Be on Your Investing Radar?

In the quest for lucrative investment opportunities, young investors on Reddit&#8217;s r/stocks are tapping into the wisdom of the crowd. Redditor werewere223 kicked off a conversation by stating, &#8220;I have a pretty long runway because of my age, and I&#8217;d like to focus on growth as of now,&#8221; and asked for growth <a href="http://benzinga.com/money/best-growth-stocks">stocks to consider.</a>
<figure class="wp-block-embed is-type-rich is-provider-reddit wp-block-embed-reddit"> 
<div class="wp-block-embed__wrapper">
<blockquote class="reddit-embed-bq" style="height:316px" ><a href="https://www.reddit.com/r/stocks/comments/1c12x9s/growth_stocks_for_2024_and_beyond/">Growth Stocks for 2024 and beyond?</a> by<a href="https://www.reddit.com/user/werewere223/">u/werewere223</a> in<a href="https://www.reddit.com/r/stocks/">stocks</a></blockquote>
<script async src="https://embed.reddit.com/widgets.js" charset="UTF-8"></script></div>
</figure>
Also Read: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/03/37596823/apple-and-4-more-stocks-on-the-rise-prime-reddit-picks">Apple And 4 More Stocks On The Rise: Prime Reddit Picks</a>
Here are the top picks from the Reddit community:
<ol>
<li>Fluence Energy Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FLNC#NASDAQ">FLNC</a>): Redditor 8000000MadeinMarket recommends FLNC, a leader in energy storage with a promising growth trajectory. With strong quarterly growth, substantial contracted backlog and a bullish outlook from analysts, Fluence Energy presents a compelling opportunity for long-term growth investors.</li>
<li>Palantir Technologies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>): Highlighted by Redditor NeonDr33mer, PLTR stands out for its data analytics and software solutions. As a key player in the tech sector, PLTR offers potential for substantial growth in the years to come.</li>
<li>NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>): Redditor tomato119 recommends NVDA for its dominance in the semiconductor industry. With its innovative technology and market leadership, NVDA is positioned for continued success in the evolving tech landscape.</li>
</ol>
While these three stocks take the spotlight, there were other noteworthy mentions from the Reddit community as well. Celsius Holdings, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CELH#NASDAQ">CELH</a>) &#8211; a global leader in functional beverages, and SoFi Technologies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOFI#NASDAQ">SOFI</a>) &#8211; a fintech disruptor. These offer additional avenues for growth-minded investors. 
Moreover, Redditor jeffh19 suggests considering growth-focused ETFs such as Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>), Vanguard Information Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>), and Invesco NASDAQ 100 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QQQM#NYSE">QQQM</a>), for diversified exposure to high-growth sectors. 
As investors navigate the dynamic market landscape, these top picks and ETF recommendations provide valuable insights into potential opportunities for growth in 2024 and beyond.
Read Next: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/04/38169084/what-is-the-most-undervalued-mango-semiconductor-stock-right-now">What Is The Most Undervalued MANGO (Semiconductor) Stock Right Now?</a>
Photo: Shutterstock

Long Ideas

Social Media

Opinion

CELH

FLNC

PLTR

QQQM

SOFI

Top 3 Growth Stocks For 2024 And Beyond: 'I Have a Pretty Long Runway Because Of My Age,' Says Redditor

Last week, the House of Representatives moved forward on a bill that could<a href="https://www.benzinga.com/general/entertainment/24/03/37664282/tiktok-bill-passes-house-vote-influencers-on-edge-chinese-owned-app-used-by-150m-americans"> ban TikTok in the U.S.</a> unless it is sold by its owner ByteDance Ltd.
The move has already faced rejection from Beijing and <a href="https://www.benzinga.com/news/24/03/37620686/tiktok-ban-looms-as-expert-predicts-harsher-us-china-restrictions-decoupling-is-really-in-full-force">is risking adding yet another complication</a> to the already unstable relationship between the world's two largest economies.
<h3 class="wp-block-heading">The TikTok Bill, Explained</h3>
TikTok, the popular short-video social media app used by more than 170 million Americans is facing scrutiny in Congress over concerns that ByteDance, its Chinese parent company, could comply with the Chinese government in actions liable to undermine national security.
The bill cleared the House with ease on Wednesday, but its passage received strong criticism from TikTok CEO Shou Zi Chew, who warned that banning TikTok <a href="https://www.benzinga.com/news/24/03/37688964/tiktok-ban-could-take-out-billions-of-dollars-out-of-creators-pockets-and-put-over-300k-american-job">could put &#8220;more than 300,000 jobs&#8221; in the U.S. at risk</a>.
If the bill passes in the Senate, ByteDance will be given the option to sell its U.S. operations or face a shutdown. In recent days, several prospective buyers came out to announce their interest, including former Treasury Secretary Steven Mnuchin and<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37713530/tiktok-bidding-war-mnuchin-kotick-emerge-as-potential-buyers"> former Activision Blizzard CEO </a>Bobby Kotick.
Analysts expect competitor companies in the social media space to benefit in<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37689925/tiktok-ban-benefits-meta-and-others-but-us-is-playing-a-little-with-fire-says-wedbu"> the event of a TikTok ban</a>. These include Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and Snap Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNAP#NYSE">SNAP</a>), as U.S. users would naturally move to other platforms offering similar products.
In a recent poll, <a href="https://www.benzinga.com/news/23/03/31282325/if-tiktok-is-banned-readers-overwhelmingly-say-theyll-flock-to-one-specific-app">38% of Benzinga users responded</a> that they're most likely to migrate to Instagram, owned by Meta, in the event of a ban, while 26% said they would move to X, formerly known as Twitter.
ETFs with heavy exposure to Meta and other U.S.-listed social media apps include Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>), Invesco QQQ Trust Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) and Vanguard Growth Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>).
<h3 class="wp-block-heading">What The Bill Means For U.S.-China Relations</h3>
A ban on TikTok, which has been talked about in Washington for years, could have vast consequences for U.S.-China relations. The issue was first brought forth in 2020 by former President Donald Trump, who raised the fact that a Chinese-owned company could hand over U.S. user data to the Chinese government or even be infiltrated by government officials who could manipulate the content algorithms to spread misinformation.
According to OpenSecrets, ByteDance is actively lobbying to fight restrictions in U.S. courts and in Congress, having spent north of $8.7 million in these efforts in 2023 alone, 77% more than the previous year.
Also read: <a href="https://www.benzinga.com/news/24/03/37649116/china-using-tiktok-to-interfere-in-us-elections-national-intelligence-chief-raises-alarm">China Using TikTok To Interfere In US Elections? National Intelligence Chief Raises Alarm</a>
Trump issued an executive order in 2020 to force a sale of the company's U.S. operations, but it was blocked in court.
Surprisingly, Trump <a href="https://www.benzinga.com/general/social-media/24/03/37722366/why-did-donald-trump-change-his-mind-about-tiktok-follow-the-money-says-rep-nancy-pelosi">has come out to say he's against the ban now</a>, as he sees it benefiting Meta, a company that is in competition with Truth Social, the social media platform he owns. Trump has blamed Meta for "cheating" in the 2020 presidential election, which he lost.
The new piece of legislation comes at a time when U.S.-China tensions are rising. The TikTok bill can be read within the context of a broader strategy to limit Chinese control over key strategic technologies.
The U.S. has already set out measures to slowing China's development of AI systems by <a href="https://www.benzinga.com/government/24/01/36714857/nvidias-key-market-china-wants-to-beat-us-embargo-boosts-chipmaking-machinery-imports-by-14">limiting its access to high-end semiconductors</a>, as well as preventing <a href="https://www.benzinga.com/government/24/02/37313622/chinese-ev-entry-could-trigger-extinction-level-event-for-us-auto-industry-report-warns">Chinese electric vehicles from entering the U.S. market</a>.
Biden has recently referred to technology aboard Chinese-made EVs <a href="https://www.benzinga.com/government/24/02/37388707/chinese-tech-in-cars-now-a-security-threat-biden-says-not-going-to-let-that-happen-on-my-watch-as-us">as a "security threat."</a>
Taiwan, a holder of key tech manufacturing infrastructure, <a href="https://www.benzinga.com/news/24/02/37049135/china-taiwan-conflict-poses-common-risk-for-apple-amazon-tesla-and-other-magnificent-7-giants-jeremy">would be at the center of any potential military escalations</a>, as its territory is claimed by China, while remaining a U.S. strategic ally.
<h3 class="wp-block-heading">Does China Have The Upper Hand?</h3>
Last Thursday, a spokesman for China's Ministry of Commerce signaled that the Chinese government would interfere with an effort to divest TikTok, forcing the app to forgo its U.S. user base before being sold, as <a href="https://www.wsj.com/tech/tiktok-ban-chinese-owners-bytedance-1a857a06?">reported</a> by the WSJ.
Chinese authorities have previously stated that any sale of TikTok to U.S. buyers would need to be approved by the Chinese government as it would signify the sale of Chinese technology. Content-recommendation algorithms, like the ones behind TikTok's massive success, are within China's export-control list, CNBC <a href="https://www.cnbc.com/2024/03/14/tiktok-ban-china-would-block-sale-of-short-video-app.html">reports</a>.
A TikTok ban in the U.S., given its large user base, would likely face significant public backlash, potentially allowing China to use its influence to obstruct the sale and compel the U.S. government to seek alternative solutions.
Now read: <a href="https://www.benzinga.com/news/24/03/37768428/is-congress-causing-tiktoks-user-growth-to-stall">Is Congress Causing TikTok&#8217;s User Growth To Stall?</a>
Photo: Rokas Tenys/Shutterstock.com

General

SNAP

TikTok Ban: China Has The Power To Block Sale, Gains Leverage Over Washington

Vanguard has become a towering figure <a href="https://www.benzinga.com/etfs">in the world of exchange-traded funds (ETFs)</a>. 
As investors increasingly turn to ETFs for their diversification, lower costs, and liquidity, understanding the offerings and strategies of major players like Vanguard is essential. 
Yet, amidst this expansive array of financial instruments, one notable absence in Vanguard&#8217;s portfolio raises eyebrows: the lack of a <a href="https://www.benzinga.com/topic/bitcoin-etf">Bitcoin ETF. </a>
Here, we delve into the five critical factors about Vanguard ETFs, also explaining why a Bitcoin ETF is deliberately missing from their portfolio lineup.
<h3 class="wp-block-heading">Vanguard&#8217;s Status In The ETF Arena</h3>
Vanguard ranks as the second-largest ETF issuer globally, overseeing a diverse portfolio of over a hundred ETFs and boasting an impressive $2.5 trillion in assets under management (AUM), just shy of BlackRock Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>), which leads with $2.7 trillion AUM.
The Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), with $426 billion in AUM as of Mar. 14, 2024, is not only Vanguard&#8217;s flagship fund but also the world&#8217;s second-largest ETF, trailing slightly behind the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) at $503 billion. 
Top 7 Vanguard&#8217;s ETFs By AUM
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF</th>
<th>AUM (bn)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Vanguard S&amp;P 500 ETF </td>
<td>426.87 </td>
</tr>
<tr>
<td>Vanguard Total Stock Market ETF </td>
<td>385.48 </td>
</tr>
<tr>
<td>Vanguard FTSE Developed Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEA#NYSE">VEA</a>)</td>
<td>130.07 </td>
</tr>
<tr>
<td>Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>)</td>
<td>119.81 </td>
</tr>
<tr>
<td>Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>)</td>
<td>115.14</td>
</tr>
<tr>
<td>Vanguard Total Bond Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BND#NYSE">BND</a>)</td>
<td>105.94</td>
</tr>
<tr>
<td>Vanguard Div Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>) </td>
<td>77.92</td>
</tr>
</tbody>
</table>
</figure>
<h3 class="wp-block-heading">Champion of Low Fees</h3>
In the competitive ETF marketplace, cost efficiency is a significant battleground. Vanguard emerges as a victor here, offering the lowest average expense fees among its funds—an AUM-weighted average expense ratio of a mere 0.05%, according to data from VettaFi. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Issuers</td>
<td>Expense Rank</td>
<td>Avg. Expense Ratio (%)</td>
</tr>
<tr>
<td>Vanguard</td>
<td>1</td>
<td>0.05%</td>
</tr>
<tr>
<td>BNY Mellon</td>
<td>2</td>
<td>0.05%</td>
</tr>
<tr>
<td>Charles Schwab</td>
<td>3</td>
<td>0.08%</td>
</tr>
<tr>
<td>Bondbloxx Investment Management Corp.</td>
<td>4</td>
<td>0.10%</td>
</tr>
<tr>
<td>GAMCO Investors, Inc.</td>
<td>5</td>
<td>0.11%</td>
</tr>
<tr>
<td>Humankind USA LLC</td>
<td>6</td>
<td>0.11%</td>
</tr>
<tr>
<td>State Street</td>
<td>7</td>
<td>0.12%</td>
</tr>
<tr>
<td>Deutsche Bank AG</td>
<td>8</td>
<td>0.13%</td>
</tr>
<tr>
<td>Goldman Sachs</td>
<td>9</td>
<td>0.15%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: VettaFi</figcaption></figure>
The cheapest ETFs issued by Vanguard are the Vanguard S&amp;P 500 ETF, Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>), and the Vanguard Total Bond Market ETF, all screening an expense ratio of just 0.03%.
<h3 class="wp-block-heading">Leading The 2024 Inflow Race</h3>
In 2024, Vanguard outshines its competitors in attracting investment flows. The issuer has seen a staggering $75 billion in inflows over the past three months, eclipsing BlackRock&#8217;s $55.7 billion, thereby securing its position as the top performer in fund flows thus far this year.
The Vanguard S&amp;P 500 ETF has attracted $21 billion over the past three months, topping the ranking among its peers. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Issuers</td>
<td>Fund Flow Rank</td>
<td>3-Month Fund Flow ($MM)</td>
</tr>
<tr>
<td>Vanguard</td>
<td>1</td>
<td>$70,097.57</td>
</tr>
<tr>
<td>BlackRock, Inc.</td>
<td>2</td>
<td>$55,791.59</td>
</tr>
<tr>
<td>Invesco</td>
<td>3</td>
<td>$20,380.07</td>
</tr>
<tr>
<td>State Street</td>
<td>4</td>
<td>$16,097.65</td>
</tr>
<tr>
<td>Dimensional</td>
<td>5</td>
<td>$9,362.99</td>
</tr>
<tr>
<td>JPMorgan Chase</td>
<td>6</td>
<td>$9,263.38</td>
</tr>
<tr>
<td>Fidelity</td>
<td>7</td>
<td>$9,240.89</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: VettaFi</figcaption></figure>
<h3 class="wp-block-heading">A Conservative Product Range</h3>
Unlike some of its peers, Vanguard has opted for a more conservative route in its ETF offerings. The company does not offer leveraged ETFs, sticking strictly to equity and fixed-income products. 
This strategic choice highlights Vanguard&#8217;s focus on traditional investment vehicles over speculative or alternative assets. Vanguard&#8217;s portfolio notably lacks any commodities, currency, or Bitcoin-related ETFs.
<h3 class="wp-block-heading">Absence of Bitcoin and Crypto ETFs</h3>
This absence isn&#8217;t due to oversight but a deliberate decision. Vanguard has explicitly stated it has no plans to introduce a Bitcoin ETF or any other crypto-related products, distinguishing itself from other major ETF issuers — such as BlackRock, VanEck, Franklin Templeton, WisdomTree, Invesco, Fidelity, Global X, 21 Shares and ProShares – who have embraced the crypto bandwagon.
Why No Bitcoin ETF? Vanguard&#8217;s Reasoning
Vanguard&#8217;s stance on Bitcoin and cryptocurrencies is grounded in a cautious approach to investment merit and client needs. Janel Jackson, global head of ETF Capital Markets and broker &amp; index relations at Vanguard, has expressed skepticism about the role of cryptocurrencies in long-term portfolios. 
Citing crypto&#8217;s speculative nature, lack of inherent economic value, and potential to disrupt portfolio stability, Vanguard sees crypto as an &#8220;immature asset class.&#8221; 
Instead, the company invests its interest in blockchain technology for its potential to enhance capital market efficiency, steering clear of cryptocurrencies as investment products.
Now Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/03/37712624/tightening-the-tap-regional-banks-tech-stocks-bitcoin-brace-for-liquidity-crunch-as-fed-li">Tightening The Tap: Regional Banks, Tech Stocks, Bitcoin Brace For Liquidity Crunch As Fed Lifeline Ends</a>

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

Cryptocurrency

Specialty ETFs

5 Things You Need To Know About Vanguard ETFs: Why There's No Bitcoin ETF In Their Lineup?

Blake Moore, a Representative from Utah, reported a purchase of Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>) stock on January 24, 2024. According to the Periodic Transaction Report the transaction was placed on January 24, 2024.
What Happened: A recent report from the House of Representatives Clerk's Office on January 24, 2024 reveals that Moore made a purchase of <a href="www.benzinga.com/quote/VUG">Vanguard Growth ETF</a> stock valued between $102,003 - $280,000.
Vanguard Growth ETF shares are trading up 0.31% at $323.67 at the time of writing.
<h3>The Importance of Congressional Transactions</h3>
Congressional transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
A Congressional transaction is when any Representative or Senator either buys or sells an individual stock. Anyone working in Congress must file a Periodic Transaction Report to inform the public of their recent transaction within 30 days of being notified of the transaction and within 45 days of the transaction date.
When a Senator or Representative makes a new purchase, that could be an indication that they expect the stock to rise.
A sale, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
In April 2012, Former President Barack Obama signed the STOCK Act into law. The act prohibits members of Congress from using private information given to them by their position for personal gain such as buying or selling a stock. The act also expanded disclosure requirements for members of Congress by requiring them to file a monthly disclosure. 
<h3>Trade Recap</h3>
A January filing states that Utah Representative Blake Moore bought shares of Vanguard Growth ETF. The exact amount of the transaction remained unknown but the filing states a range of $102,003 - $280,000.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Recent Filing Shows That Rep. Blake Moore Bought Over $102K Worth of Vanguard Growth ETF Stock

On Wednesday&#8217;s <a href="https://www.benzinga.com/money/podcast-show/pmp">Benzinga PreMarket Prep</a>, Todd Gordon, founder of Inside Edge Capital and TradingAnalysis.com, provided a rich analysis of market strategies, offering a sharp focus on the tech sector as <a href="https://www.benzinga.com/premarket-prep">we head into 2024.</a>
<h2 class="wp-block-heading">2023 In Review: Diversification And Growth Fund Performance</h2>
Gordon highlighted his biggest mistake in 2023 as over-diversifying his growth fund, resulting in an excessive sector allocation. Despite this, the year was generally positive, without any major setbacks. 
He emphasized the importance of focusing on mega-cap growth, which affected the growth portfolio's performance.
Gordon observed the tech sector&#8217;s resilience amid global economic headwinds, noting its strong recovery post-pandemic and the sustained demand for technological solutions.
<h2 class="wp-block-heading">Looking Ahead: 2024 Predictions And Market Indicators To Watch</h2>
For 2024, Gordon stressed the significance of yield curves, specifically the relationship between nominal and real yields. He pointed out the inversion scenario in the market, with a focus on the 10-2 real yield curve. His analysis suggests that a high interest rate environment (around 7.5% for mortgages), when offset by net costs and inflation, isn't as daunting as it appears.
He predicted a potentially more stable interest rate environment in 2024, which could benefit long-term investments in tech.
As yields go down, growth stocks, as tracked by the Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>), should outperform value counterparts, as monitored by the Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>).
The expert pointed out the significant amount of money parked in money market funds (around $6.14 trillion in Q2 of 2023) and discussed how shifts in interest rates could influence market dynamics and investor behavior.
Gordon also delved into the potential impact of the Federal Reserve&#8217;s rate adjustments. He expressed cautious optimism, anticipating a continuation of the bullish market, but remains vigilant about possible downturns.
He suggested that any significant change in unemployment could be a precursor to a recession, highlighting the importance of monitoring these indicators.
Gordon, an Elliott Wave analysts, also provided a technical perspective on the S&amp;P 500, discussing potential resistance zones and forecasting a need for a pullback after a five-wave move in the market.
For 2024, Gordon anticipates further growth, particularly in areas like AI, cloud computing, and cybersecurity, driven by ongoing digital transformation trends.
Read now: <a href="https://www.benzinga.com/markets/equities/23/12/36395611/s-p-500-nasdaq-set-for-wobbly-open-as-santa-claus-rally-fades-analyst-sees-final-trading-session">S&amp;P 500, Nasdaq Set For Wobbly Open As Santa Claus Rally Fades: Analyst Sees Final Trading Sessions As &#8216;Last Great Buying Opportunity&#8217;</a>
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
<div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Looking For More In 2024! &#x7C; PreMarket Prep &#x7C; December 27, 2023" width="500" height="281" src="https://www.youtube.com/embed/WG1c5824Wiw?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
</div>
</figure>
Photo: Shutterstock

Analyst Color

Mid Cap

Technicals

Pre-Market Outlook

EXCLUSIVE: Todd Gordon Tells 'PreMarket Prep' Bull Market Will Continue In 2024

The House of Representatives is counting its 13th day without a leader <a href="https://www.benzinga.com/23/10/35135359/kevin-mccarthy-resigning-from-congress-after-being-ousted-as-top-house-republican-heres-what-former">after the ouster of U.S. Rep. Kevin McCarthy from the speakership position</a>.
McCarthy was removed from his role Oct. 3 in a vote in which the Democrats, together with eight hard-right Republicans, decided to remove a House speaker for the first time in U.S. history.
In the meantime, the House is frozen, unable to act. The situation has caused several urgent bills to become untouched, including <a href="https://www.benzinga.com/news/23/10/35270063/biden-pledges-support-for-israel-against-hamas-ukraine-against-putin-were-the-united-states-of-ameri">a proposal by President Joe Biden to send aid to Israel to assist in its conflict with Hamas</a>, as well as a new measure needed to avoid a looming government shutdown, which is approaching in one month.
Government Shutdown Stopgap Expires In 1 Month: The vote earlier this month left the Speaker chair vacant and the House in mayhem. The historic event proved a testament to the growing difficulties gnawing away at the GOP, whose increasingly bitter internal disputes are grinding Washington, D.C. to a halt. 
It remains to be seen which political figure will have the power to unite the GOP-led House and harness the necessary votes to win the speakership.
McCarthy's run as speaker was short-lived and tumultuous. Throughout his tenure, McCarthy negotiated <a href="https://www.benzinga.com/news/23/06/32704441/biden-signs-debt-ceiling-bill-to-avert-government-default">a high-stakes bill to raise the debt ceiling</a>, avoiding a default. Just last month, <a href="https://www.benzinga.com/news/23/09/35019457/government-shutdown-avoided-congress-acts-just-in-time">Congress approved a stopgap bill aimed at preventing a full government shutdown</a>.
Yet the continuous resolution that allowed the government to continue to operate only lasts until Nov. 17, one month from now. If the House can't agree on a speaker in time, the government risks facing new shutdown risks. 
A House Divided: Within McCarthy's turbulent ride through the speakership position, one event stands out: his tortuous election for the role. It took 15 voting sessions to get McCarthy elected in January. He won the vote by 216 votes against New York Democrat Hakeem Jeffries, who received 212 votes.
McCarthy achieved the position after giving major concessions to hard-right Republicans who had been holding out on the vote.
Nine months later, the House appears even more divided. The House reconvenes on Monday and is expected to hold a vote for speaker at noon Tuesday. 
So far, only one candidate has been put forward by the GOP: U.S. Rep. Jim Jordan, from Ohio.
Jordan is one of the co-founders of the conservative Freedom Caucus, and a friend and ally to former President Donald Trump. Jordan won a secretly held internal vote, by which the GOP voted 124 to 81 to put him ahead of Georgia's Austin Scott.
Scott, a more moderate Republican who sides with McCarthy, decided to run against Jordan in an effort to avoid ceding control of the House to far-right Republicans.
An internal poll conducted by House Republicans on Friday revealed that only 152 of them would vote for Jordan on a floor vote, while 55 would oppose him, <a href="https://www.nytimes.com/2023/10/13/us/politics/house-speaker-jordan-scalise.html">according</a> to The New York Times. Jordan needs 217 votes to win the speakership if the House has full attendance.
All 212 House Democrats are expected to vote again for Jeffries. That leaves a big gap to fill for Jordan to win the speakership in a narrowly controlled House.
Jeffries said he would consider a coalition with Republicans who don't want Jordan on the role only if there's a change in House rules, allowing for both parties to choose what legislation is put up to vote. In the current scheme, Republicans have full control over which bills get a vote.
On Sunday, he told NBC "there are informal conversations that have been underway. When we get back to Washington tomorrow, it's important to begin to formalize those discussions."
Concurrently, allies of Jordan spent the weekend campaigning for him on social media, in an effort to flip the necessary representatives needed to put him in the speaker seat.
A recurring argument they used says that those Republicans who oppose Jordan are standing in the way of allowing the House to return to action.
Over the weekend, <a href="https://www.benzinga.com/news/23/10/35251860/kevin-mccarthy-on-speakership-chaos-how-do-you-allow-4-of-the-conference-to-do-this-to-the-entire-co">McCarthy blamed the hard-right Republicans who voted against him</a> for being the ones who caused the turmoil and blocked the House.
"How do you allow 4% of the conference to do this to the entire country?" he said to reporters.
Stocks To Watch: Further turmoil in Congress could have a negative effect on high-risk stocks. Investors often shy away from risk during times of instability in favor of safer options like <a href="https://www.benzinga.com/money/what-is-a-bond">government bonds</a> or defensive stocks from consumer staple companies followed by Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) or Vanguard Consumer Staples Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDC#NYSE">VDC</a>).
ETFs based on growth and innovation, normally used to follow aggressive stocks, could have a thesis against them in a deadlocked Congress situation. The innovation ETF Invesco QQQ Trust Series I (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), following the Nasdaq-100 index is among this group, along with the Vanguard Growth Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>).
Image made using Midjourney AI.

Congress In Chaos: House Is Set For Speaker Vote Tuesday, But GOP Candidate Jim Jordan Has A Long Way To Go

Markets displayed a response Friday to the Federal Reserve&#8217;s Jackson Hole symposium that <a href="https://www.benzinga.com/economics/23/08/34042963/chair-powell-at-jackson-hole-fed-is-ready-to-raise-rates-further-if-appropriate">defied pre-event concerns</a>.
The first day of the annual Fed conference unveiled a mix of hawkish and dovish insights from the Federal Reserve, ultimately providing a reassuring tone to investors. 
Fed Chair Jerome Powell&#8216;s statements carried significant weight. Despite underlining the Fed&#8217;s commitment to raise rates further if necessary, Powell also remarked that it will proceed carefully and base decisions on data-driven assessments. 
The event featured a lineup of prominent Fed officials, including Philadelphia Fed President Patrick Harker, Chicago Fed President Austan Goolsbee and Cleveland Fed President Loretta Mester. Harker and Goolsbee, both voting members of the FOMC, <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/23/08/34045414/feds-harker-breaks-ranks-with-powell-rejects-further-rate-increases-signaling-board-di">struck a dovish note</a>, in contrast to <a href="https://www.benzinga.com/news/23/08/34045506/feds-loretta-mester-says-we-only-get-a-trophy-if-inflation-hits-2">Mester&#8217;s hawkish stance</a>.
Speculators, sensing potential policy shifts, raised their bets on a rate hike in November, pushing implied probabilities above 50%. Despite this uncertainty, the broader market showcased resilience during the symposium&#8217;s opening day Friday. 
All three major U.S. stock indices concluded the session on a positive note, demonstrating a collective upward trajectory. The S&amp;P 500&#8217;s 11 sectors followed suit, with every sector in the green. Volatility, gauged by the &#8220;Vix&#8221; fear index, saw a notable drop of 10%, reflecting calmer market sentiment.
Amid this backdrop, a snapshot of five major ETFs reveals intriguing insights:
1. SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)
The SPY ETF turned the tide with a 0.8% increase, snapping a streak of three consecutive weeks of losses. The ETF closely mirroring the S&amp;P 500 index enjoyed positive price action throughout the latter half of the trading day. Friday&#8217;s rebound partially offset the 3.5% dip observed since the beginning of the month. Notably, Hasbro Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAS#NYSE">HAS</a>) emerged as the top performer within the SPY, marking a 6.7% gain for the day.
2. Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)
Friday saw the technology sector taking the lead in performance, as the XLK surged by 1.3%. Despite widespread expectations that hawkish remarks from Jackson Hole might exert pressure on tech giants, this did not materialize.
Likewise, the day&#8217;s gains only managed to partially offset Thursday&#8217;s losses, leaving XLK down by 5.4% since the beginning of August. 
Intuit Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTU#NASDAQ">INTU</a>) emerged as the top performer, displaying a notable 4.5% increase.
3. Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)
Securing the second spot in daily performance among S&amp;P 500 sectors is the energy sector, with a robust 1.2% upswing. This surge was primarily propelled by escalating oil and natural gas prices. WTI crude oil confidently crossed the $80 per barrel mark, up 1.8%, while natural gas echoed the sentiment with an equally robust 1.8% surge. Among energy stocks, Valero Energy Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>) emerged as the leader of the pack, charting a substantial 4.5% gain for the day.
4. iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>)
The Russell 2000 index responded positively, notching a 0.6% daily gain. Nevertheless, the index has posted a 6.5% decline month-to-date, reflecting the small cap&#8217;s underperformance in comparison to other prominent indices.
The standout of the day is Cano Health, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CANO#NYSE">CANO</a>), soaring by an astonishing 46% within the day&#8217;s trading, despite having plummeted by as much as 85% during the preceding week.
5. Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>)
Mitigated concerns about the Federal Reserve potentially over-tightening sparked a surge in the growth segment, overshadowing its value counterpart.
The Vanguard Growth ETF surged by 1.1%, outperforming the Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>) which marked a more modest 0.7% increase.
Standing out among growth stocks is Workday Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WDAY#NASDAQ">WDAY</a>), achieving a noteworthy 6% gain, setting it apart from the competition.
<h2 class="wp-block-heading">Chart: Intraday Price Action of SPY, IWM, VUG, XLK, XLE Friday</h2>
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="795" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/25154829/SPY_2023-08-25_21-48-01_d7d27-1024x795.png" alt="" class="wp-image-94959" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/25154829/SPY_2023-08-25_21-48-01_d7d27-1024x795.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/25154829/SPY_2023-08-25_21-48-01_d7d27-300x233.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/25154829/SPY_2023-08-25_21-48-01_d7d27-768x596.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/25154829/SPY_2023-08-25_21-48-01_d7d27.png 1391w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Read now: <a href="https://www.benzinga.com/news/earnings/23/08/34039589/us-stocks-eye-strong-open-even-despite-powell-jitters-this-analyst-says-market-moves-indicate-inves">US Stocks Surge, Defying Fed Concerns; Dollar Notches Sixth Green Week: What&#8217;s Driving Markets Friday?</a>
Photo via Shutterstock.

Macro Economic Events

Economics

Federal Reserve

CANO

INTU

WDAY

Bulls Regain Momentum After Fed's Reassuring Start At Jackson Hole: 5 ETF Reactions

In recent weeks, value stocks have outperformed growth counterparts, proving to be a hedge <a href="https://www.benzinga.com/news/23/08/33889379/warren-buffett-michael-burry-waiting-for-stock-market-crash-rich-dad-poor-dad-author-says">against the market&#8217;s downturn.</a>
The Vanguard Value Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>) has beaten the Vanguard Growth Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>) by 5% during the past month. The momentum shift comes as investors recalibrate their strategies amidst fluctuating market dynamics.
Growth equities, which are more sensitive to risk aversion and interest rates, have been hit more by the recent rise in U.S. Treasury yields. 
The combination of hawkish comments from the Fed, an acceleration of inflation in July, and higher-than-expected Treasury issuances this month has pushed up the costs of U.S. government debt to a level not seen since November 2007. The yield on the 10-year Treasury note is now at 4.34%.
Investors and analysts commonly utilize the 10-year Treasury yield as a gauge to discount the value of future cash flows for stocks. Higher Treasury yields negatively affect the value of those future cash flows, and vice versa, exerting downward pressure on growth stocks. 
Read Also: <a href="https://www.benzinga.com/money/how-to-buy-treasury-bonds">How to Buy Treasury Bonds</a>
Chart: 10-year Treasury Yields Hit November 2007 Peak
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="618" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/21121952/US10Y_2023-08-21_16-56-13_e3f5e-1-1024x618.png" alt="" class="wp-image-91581" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/21121952/US10Y_2023-08-21_16-56-13_e3f5e-1-1024x618.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/21121952/US10Y_2023-08-21_16-56-13_e3f5e-1-300x181.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/21121952/US10Y_2023-08-21_16-56-13_e3f5e-1-768x464.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/21121952/US10Y_2023-08-21_16-56-13_e3f5e-1-1536x927.png 1536w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/21121952/US10Y_2023-08-21_16-56-13_e3f5e-1.png 1789w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">Value vs. Growth: Sector Standouts </h2>
The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) took the lead as the highest-performing sector in the previous month, boasting impressive gains of 5.5%. Its influence is prominently felt in the VTV portfolio, comprising over 7%, while in the VUG portfolio, it holds a modest 1.2% weight. 
On the flip side, the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) faced a setback, plummeting by 5% over the past month. It&#8217;s joined in this performance dip by the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) and the Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>).
Technology stocks cast a significant weight, exceeding 40%, in the Vanguard Growth ETF, but screen a more subdued presence of 9.4% within the Vanguard Value ETF.
<h2 class="wp-block-heading">Value vs. Growth: Stock Contributors</h2>
Now, let&#8217;s delve into the stocks driving this trend.
In the realm of the Vanguard Value Index Fund ETF, the most noteworthy positive contribution during the recent month comes from Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>), carrying a substantial 2.5% weight. In the same period, Marathon Oil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRO#NYSE">MRO</a>) and Regeneron Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/REGN#NASDAQ">REGN</a>) stand out with the most substantial returns, both up by 13%. 
However, the value spectrum witnessed its own share of challenges. Bank of America Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), and JP Morgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) grappled with notable declines, recording 9.7%, 5.8%, and 4.3% drops, respectively.
Turning to the Vanguard Growth Index Fund ETF, the past month&#8217;s primary boost came from Eli Lilly &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>), showing an impressive 19% surge. Alphabet Inc. (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>) also shone with a 5.9% uptick, though its influence within the portfolio is marked at 6.4%.
On the flip side, Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) faced a formidable challenge, bearing the weight of a 13% decrease, followed by Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) with a 12% weight and a 7.1% drop. Among the growth stocks, ZoomInfo Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZI#NASDAQ">ZI</a>) took the title of the poorest performer in the past month, down by 35%. 
Now Read: <a href="https://www.benzinga.com/government/23/08/33966569/elon-musks-shadow-rule-the-unofficial-power-behind-us-government-decisions">Elon Musk: The Unofficial Power Behind US Government Decisions?</a>
Photo: Shutterstock

Bonds

Treasuries

GOOG

GOOGL

MSFT

REGN

XLRE

Value Stocks Outshine Growth Amidst Rising Treasury Yields: Key Sectors and Stocks Analyzed

The Bureau of Labor Statistics&#8217; long-awaited July Consumer Price Index (CPI) data is scheduled to be released on Thursday at 8:30 a.m., <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/08/33607832/what-economists-expect-when-key-inflation-data-arrives-thursday-as-market-looks-for">ahead of the opening bell.</a>
This critical economic data will have a significant impact on market expectations for future Fed rate hikes. Therefore, market fluctuations could be anticipated if inflation data surprises&nbsp;expectations.&nbsp;
Currently, there is widespread consensus around the Fed&#8217;s decision to keep rates unchanged in September, with a market-based probability standing at 85%, according to CME Group. The likelihood of rates staying unchanged also in the November meeting drops to 71%, still reflecting a substantial majority in this regard.
<h2 class="wp-block-heading">July CPI Data: What Are Economists Expecting?</h2>
Economists anticipate that the annual inflation rate will rise from 3% to 3.3% in July, snapping a streak of 12 consecutive declines. This is mainly due to the so-called base effect, which Benzinga recently explained in an article where we also gathered some <a href="https://www.benzinga.com/economics/macro-economic-events/23/08/33638208/us-inflation-preview-experts-anticipate-both-disinflation-progress-and-potential-">analysts&#8217; forecasts</a>.
Core inflation, which excludes energy and food and is closely monitored by the Fed to gauge underlying price pressures in the economy, is expected to remain steady at 4.8% year-over-year in July. Both inflation measures are projected to advance at a monthly rate of 0.2%.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/08/33672500/goldman-sachs-was-right-about-lucid-and-celsius-why-plug-power-stock-could-be-the-n">Goldman Sachs Was Right About Lucid And Celsius: Why Plug Power Stock Could Be The Next &#8216;Earnings-Day Short Squeeze&#8217;</a>
<h2 class="wp-block-heading">These 5 ETFs Could Heavily React To Inflation Data</h2>
Let&#8217;s focus on five exchange-traded funds (ETFs) that could experience significant fluctuations if tomorrow&#8217;s data differs from economists&#8217; expectations.
<ol>
<li>ProShares Trust VIX Short-Term Futures ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIXY#NYSE">VIXY</a>)</li>
</ol>
The VIXY ETF, designed to mirror the performance of the VIX Short-Term Futures Index, aims to offer investors a means to tap into volatility without engaging in direct options trading.
Higher-than-expected inflation can disrupt a market that largely believes the Fed will keep rates steady in September, thereby potentially increasing market volatility.
The VIXY ETF is down 55% year-to-date, but last week marked its second-best week of the year, surging by 12%.
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="868" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09113350/VIXY_2023-08-09_17-33-35_a9c80-1024x868.png" alt="" class="wp-image-84439" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09113350/VIXY_2023-08-09_17-33-35_a9c80-1024x868.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09113350/VIXY_2023-08-09_17-33-35_a9c80-300x254.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09113350/VIXY_2023-08-09_17-33-35_a9c80-768x651.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09113350/VIXY_2023-08-09_17-33-35_a9c80.png 1274w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
 2. Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>)
Growth stocks have been on the rise in 2023, with the Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>) up 35% year-to-date, the move higher has been closely linked to the decline in consumer inflation.
The drop in inflation has eased concerns of excessive hikes by the Federal Reserve, causing the market to start pricing in rate cuts for 2024. This has provided significant relief to stocks highly sensitive to future interest rates.
However, a resurgence in price pressures could potentially slow down or reverse the trajectory that growth stocks have been following thus far. 
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="868" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09113949/VUG_2023-08-09_17-36-32_02d82-1024x868.png" alt="" class="wp-image-84440" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09113949/VUG_2023-08-09_17-36-32_02d82-1024x868.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09113949/VUG_2023-08-09_17-36-32_02d82-300x254.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09113949/VUG_2023-08-09_17-36-32_02d82-768x651.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09113949/VUG_2023-08-09_17-36-32_02d82.png 1274w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
3. ARK Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARK#NYSE">ARK</a>)
Due to its investment focus on innovative and high-growth companies, particularly in sectors like technology, healthcare, and disruptive industries, the ARK Innovation ETF is also highly sensitive to inflation data and thus rate expectations. 
Many of Cathie Wood&#8216;s ARKK investments rely on borrowing to support their research, development, and expansion. Funding those activities becomes more expensive when interest rates rise, dampening the growth forecast for these companies. 
A reemergence of inflationary pressures could potentially place some downward pressure on the ARK Innovation ETF, which has returned 36% year to date.
4. Fidelity Stocks for Inflation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCPI#NYSE">FCPI</a>)
This ETF, launched and managed by Fidelity Management &amp; Research Company LLC, invests in stocks that may be better positioned to perform well during inflationary periods. 
Its largest holdings include Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) and the oil giant Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>)
As inflation tumbled in 2023, the Fidelity Stocks for Inflation ETF trailed the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) by 7%. If inflation returns, we can anticipate this underperformance to come to a halt, if not reverse.
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="830" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09120015/FCPI_SPY_2023-08-09_17-58-00_8d737-1024x830.png" alt="" class="wp-image-84451" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09120015/FCPI_SPY_2023-08-09_17-58-00_8d737-1024x830.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09120015/FCPI_SPY_2023-08-09_17-58-00_8d737-300x243.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09120015/FCPI_SPY_2023-08-09_17-58-00_8d737-768x622.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09120015/FCPI_SPY_2023-08-09_17-58-00_8d737.png 1333w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
5. Simplify Interest Rate Hedge ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFIX#NYSE">PFIX</a>)
The ETF, operated by Simplify Asset Management Inc., engages in direct and derivative investments in various U.S. Treasury securities, U.S. Treasury Inflation-Protected Securities (TIPS), and investment grade bonds with different maturity dates.
The primary objective of this ETF is to provide investors with a safeguard against potential increases in interest rates. Notably, during the period between March 14, 2022, and October 25, 2022, the Simplify Interest Rate Hedge ETF experienced a remarkable 100% increase in value. This gain was propelled by the Federal Reserve&#8217;s notably aggressive monetary policy tightening during that time.
Should inflation once again experience an upswing, the demand for instruments designed to hedge against interest rate fluctuations is also likely to surge.
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="830" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09121249/PFIX_2023-08-09_18-12-37_f17ca-1024x830.png" alt="" class="wp-image-84459" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09121249/PFIX_2023-08-09_18-12-37_f17ca-1024x830.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09121249/PFIX_2023-08-09_18-12-37_f17ca-300x243.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09121249/PFIX_2023-08-09_18-12-37_f17ca-768x622.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/08/09121249/PFIX_2023-08-09_18-12-37_f17ca.png 1333w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Now Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/08/33672438/3-rivian-analysts-on-q2-earnings-ev-production-margins-shine-but-is-cash-burn-ahead">3 Rivian Analysts On Q2 Earnings: EV Production, Margins Shine, But Is &#8216;Cash Burn&#8217; Ahead?</a>
Photo: Shutterstock

FCPI

PFIX

VIXY

CPI Inflation Data Hits Thursday: 5 ETFs With Potential For Wild Market Moves

Austin Hankwitz, a 27-year-old investor and Tiktok influencer targets a $2 million retirement portfolio, heavily favoring index funds, Business Insider <a href="https://www.businessinsider.com/top-index-funds-one-with-high-returns-early-retirement-2023-8">reports</a>.
Hankwitz, a financial analyst from Nashville, has a TikTok follower base of over 700,000. He is on a mission to amass $2 million for retirement in eight years. 
Starting his investment journey in January, he&#8217;s already accumulated $120,174 across a brokerage and retirement account.
Hankwitz&#8217;s strategy is a mix of individual stocks and index funds. He believes index funds, like the S&amp;P 500, offer a &#8220;set-and-forget&#8221; approach, providing exposure to top US companies. 
&#8220;I think index-fund investing is the best way the everyday retail investor can begin building wealth for the future,&#8221; he stated. 
Among his top picks are the Vanguard 500 Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), Vanguard Information Technology Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>), and Vanguard Growth Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>).
Image via Shutterstock
Read Next: <a href="https://www.benzinga.com/23/08/33601450/do-i-have-to-pay-taxes-on-my-retirement-income-the-answer-may-surprise-you">Do I Have To Pay Taxes On My Retirement Income? The Answer May Surprise You.</a>
<div style="font-family: 'Lato', sans-serif">
<div>
<hr style="border: 0;height: 5px;background: #225aa9" />
<div style="background-color: #f5f5f5;background-position: center;background-size: cover;justify-content: center"></div>

 Engineered by Benzinga Neuro, Edited by 
 Pooja Rajkumari 
 
 
<hr style="border: 0;height: 1px;background: #225aa9" />

 The GPT-4 Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. 
 <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Learn more.</a>
 
<hr style="border: 0;height: 5px;background: #225aa9" />
 </div>
</div>

A 27-Year-Old TikTok Influencer-Investor Reveals Strategy: $2M Retirement Portfolio In 8 Years, Including Funds With Over 500% Return

At the start of the week, the U.S. stock market is attempting to break the negative streak of four consecutive sessions in the red, with all major indices for large-cap stocks showing gains at <a href="https://www.benzinga.com/movers">midday trading in New York.</a>
The outperformance of value stocks compared to growth stocks continues, as the ratio between Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>) and Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>) reaches its highest point since mid-June.
A climb in Treasury yields is resuming, particularly in longer maturities, with the 10-year and 30-year yields rising by 6 basis points to 4.1% and 4.27%, respectively.
Recent Federal Reserve speakers <a href="https://www.benzinga.com/economics/macro-economic-events/23/08/33602927/hawks-vs-doves-battle-on-fed-board-heightens-interest-rate-uncertainty-for-invest">have sent conflicting messages</a>, while the anticipated auction sizes for this month are weighing on Treasuries.
Cues From Monday&#8217;s Trading:
The S&amp;P 500 Index gained 0.6%, while blue chips in the Dow Jones Industrial Average outperformed, gaining 350 points or 1% on the day. 
The tech-heavy Nasdaq 100 index edged 0.3% higher, while small caps in the Russell 2000 weakened, easing 0.2%. 
 US Index Performance On Monday
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index </td>
<td>Performance (+/-)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>+0.31%</td>
<td>15,328.64</td>
</tr>
<tr>
<td>S&amp;P 500 </td>
<td>+0.62%</td>
<td>4,506.33</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>+0.98%</td>
<td>35,410.42</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>-0.16%</td>
<td>1962.47</td>
</tr>
</tbody>
</table>
</figure>
Monday&#8217;s&nbsp;Trading In Major US&nbsp;Equity ETFs:&nbsp;In midday trading on Monday, the SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was 0.6% higher to&nbsp;$449.61, the SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) rose 0.96%&nbsp;to $354.03&nbsp;and&nbsp;the Invesco QQQ Trust&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) was 0.4% higher to $373.61, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a>
All U.S. equity sectors traded in the green, excluding the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>), which inched 0.1% lower. 
The Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) was the best performer of the day, up 1.4%, followed by the Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>), up 1.3%. 
See also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How To Trade Futures</a>
Stocks In Focus:
Berkshire Hathaway, Inc.'s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) Class B shares moved up over 4%, reaching new all-time highs, in reaction to the investment holding company's quarterly results released Saturday.
Moderna Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>) tumbled 8%, being both the S&amp;P 500&#8217;s and Nasdaq 100&#8217;s worst performer of the day, on track for its sixth straight day of losses. 
Booking Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BKNG#NYSE">BKNG</a>) rose 4.7%, following a slew of analyst price target increases. 
Companies reporting after the close include ADTRAN Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADTN#NASDAQ">ADTN</a>), Lucid Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>), Paramount Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARA#NASDAQ">PARA</a>) and Palantir Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>).
Commodities, Bonds, Other Global Equity Markets:
Crude oil weakened 0.4%, with a barrel of WTI-grade crude trading at $82. The United States Oil Fund&nbsp;ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) was 0.2% lower to $73.&nbsp;&nbsp;
Treasury yields rose further, with the 10-year yield up by 6 basis points to 4.1% and the two-year yield up by 6 basis points to 4.28%. The iShares 20+ Year Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NYSE">TLT</a>) was 0.8% lower for the day. 
The dollar slightly gained, with the U.S. dollar index, which is tracked by the&nbsp;Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), up 0.1%. The EUR/USD pair, which is tracked by the Invesco CurrecyShares Euro Currency Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXE#NYSE">FXE</a>),&nbsp;was 0.1% lower to 1.10.
European equity indexes closed in the green. The SPDR DJ Euro STOXX 50 Etf&nbsp;&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FEZ#NYSE">FEZ</a>) rose 1%.&nbsp;
Gold fell 0.4%&nbsp;to $1,934/oz.&nbsp;The SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) was 0.3% lower to $179.&nbsp;Silver fell 2.1% to $23.12, with the&nbsp;iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>) down 2% to&nbsp;$21.22.&nbsp;Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) was 0.3% lower to $28,931.
Staff writer Piero Cingari updated this report midday Monday.&nbsp;
Read Next: <a href="https://www.benzinga.com/news/23/08/33590826/feds-bowman-says-inflation-and-these-2-factors-could-guide-future-monetary-policy-action-even-as-she">Fed&#8217;s Bowman Says Inflation And These 2 Factors Could Guide Future Monetary Policy Action, Even As She Hints At More Future Rate </a>
Photo via Pixabay.

Futures

$BTC

ADTN

BKNG

BNTX

SPDR Dow Jones Industrial Average ETF Trust

DISH

LCID

MRNA

PARA

iShares Trust Barclays 20+ Year Treasury Bond Fund

PowerShares DB US Dollar Index Bullish Fund

Stocks Rebound, Value Makes Comeback, Treasury Yields  Resume Climb: What's Driving Markets Monday?

U.S. large-cap value stocks have outperformed growth peers by a modest&nbsp;margin in July, potentially indicating a reversal of the <a href="https://www.benzinga.com/money/best-value-stocks">trend witnessed throughout 2023.</a>
The Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>), the largest and most liquid exchange traded fund investing in U.S. large-cap value stocks, has outperformed the Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>) by around 2 percentage points so far this month.
Despite the recent outperformance of value stocks over growth stocks, they are still trailing by approximately 22% for the year-to-date, erasing a significant part of the gains that value stocks achieved in 2022.
The strong rally of blue-chip companies within the Dow Jones Industrial Average index reflects the recent upswing observed in value stocks. The blue chips&rsquo; index posted its 12th straight profitable session on July 25, a feat that has only twice been accomplished since the <a href="https://www.benzinga.com/news/large-cap/23/07/33379276/dows-12-day-winning-streak-enters-record-books-in-rarity-seen-only-twice-post-wwii">end of World War II.</a>
In July, the Dow Jones Index, as closely tracked by the Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>), similarly outperformed the Nasdaq 100 index, represented by the Invesco QQQ Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NYSE">QQQ</a>).
Chart: Value vs Growth Mirrored Dow vs Nasdaq in July
<img alt="" class="wp-image-75378" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/26093734/VTV_VUG_2023-07-26_15-37-19_b50cf-1024x778.png" style="height:778px; width:1024px" />
<h2 class="wp-block-heading">Major Contributors To The Value Rally</h2>
Financial stocks contributed significantly to the value&rsquo;s rally in July, as they hold a 20% weight in the VTV ETF&rsquo;s portfolio. Banks&nbsp;such as JP Morgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Bank of America Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), Wells Fargo Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>), and The Charles Schwab Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHW#NYSE">SCHW</a>) delivered significant weighted returns ranging from 12% to 23%.
Stocks in the industrials and energy sectors, such as Caterpillar Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>), General Electric Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>), Chevron Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>), and ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>), also contributed favorably to the value outperformance.
Except for ConocoPhillips, which will report on Aug. 3, all of them beat Wall Street expectations both in terms of earnings per share (EPS) and revenues last quarter.
<h2 class="wp-block-heading">Value Investing In A Rising Rate Scenario: 3&nbsp;Stocks To Hedge Against Fed Uncertainty</h2>
The Federal Reserve is expected to announce a rate hike by 0.25% on Wednesday, pushing borrowing costs to a range between 5.25% and 5.5%, the highest since February 2001.
Much of the uncertainty revolves around whether the Fed will continue to raise interest rates this year, and how long it intends to keep rates elevated before cutting them.
In such an uncertain environment, some value stocks that demonstrated extreme resilience during the Fed&rsquo;s aggressive hikes last year and that show compelling valuations may provide an important hedge for investors.
1) The Kraft Heinz Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KHC#NYSE">KHC</a>)
The prospect of the Fed raising interest rates further or keeping them elevated for longer won&rsquo;t significantly deter people from adding sauces and condiments on their burgers.
Over the past three years, The Kraft Heinz Company has consistently exceeded Wall Street&rsquo;s earnings estimates each quarter, and the stock managed to surge 11% from March to the end of 2022, even amid broader risk-off sentiments in the market.
KHC stands out as an attractive value play during periods of market turmoil and Federal Reserve rate risks due to its elevated dividend yields (currently at 4.4%) and appealing cheap valuations (forward P/E ratio at 12x).
2) Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>)
Although oil prices usually fall when interest rates rise, the robustness of the U.S.&nbsp;economy has supported&nbsp;crude recently. The cost of a barrel of West Texas Intermediate (WTI) crude has increased by 13% in July, reaching nearly $80.
Exxon Mobil Corporation, the largest publicly traded oil and gas company in the United States, enjoys&nbsp;a very strong balance sheet and attractive valuations.
The company sits on a $32 billion cash reserve, shows a net debt-EBITDA ratio that is among the lowest in the markets&nbsp;(0.1x), and earnings before interest and taxes (EBIT) that are 100 times higher than the interest paid on&nbsp;debt.
3) Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>)
The U.S. defense and aerospace industry is almost insensitive to interest-rate risks.
In 2022, the stock market experienced its most challenging year since 2008, with the S&amp;P 500 declining by 20% due to the Federal Reserve&rsquo;s aggressive rate hikes. Despite this turbulent market environment, Lockheed Martin emerged as a standout performer, with its stock soaring by an impressive 37%.
Presently, Lockheed Martin remains an attractive value stock, supported by compelling valuations, with a forward P/E ratio at 16x. Additionally, the company maintains a solid financial position, further enhancing its appeal to investors seeking stability and growth in uncertain market conditions.
Now Read: <a href="https://www.benzinga.com/news/23/07/33392503/watch-out-alphabet-meta-microsoft-amazon-join-forces-to-create-open-maps-data-alternative-to-google">Watch Out, Alphabet &ndash; Meta, Microsoft, Amazon Join Forces to Create Open Maps Data Alternative to Google and Apple</a>
Photo: Shutterstock

SCHW

Value Stocks Defy Rate Hikes: 3 Blue Chips Showing Resilience In The Face Of Federal Reserve's Tightening

BofA clients were net buyers of U.S. equities for the first week in five

Investing in ETFs that hold companies with high income and provide long-term growth have significant potential and can effectively diversify the portfolio. Thus, it could be wise to invest in robust tech equities ETFs Vanguard Growth Index Fund ETF Shares (VUG), Vanguard Dividend Appreciation Index Fund ETF Shares (VIG), and Schwab U.S. Dividend Equity ETF (SCHD) for potential gains. Read more... Investing in ETFs which invest in regular income generating and wide growth opportunities stocks can be an efficient strategy to have balanced exposure and invest in different sectors without having to pick individual stocks. They typically hold a broad range of companies that pay dividend regularly.
Given the backdrop, let's look at some of the best-performing ETFs Vanguard Growth Index Fund ETF Shares (<a href="https://stocknews.com/stock/VUG/">VUG</a>), Vanguard Dividend Appreciation Index Fund ETF Shares (<a href="https://stocknews.com/stock/VIG/">VIG</a>), and Schwab U.S. Dividend Equity ETF (<a href="https://stocknews.com/stock/SCHD/">SCHD</a>) for a balanced and income oriented portfolio.
Most investors sought for investment alternates which combining growth and regular income prospects and provide balanced exposure. In such case, large cap investments with regular dividend payments emerge as a suitable choice.
With falling prices, inflation pressures are easing leading to reduced fears. However, the current job market has raised concerns in the market. Recently, the Bureau of Labor statistics reported that the <a href="https://www.nbcnews.com/business/markets/us-recession-fears-international-selloff-markets-nikkei-rcna165119">U.S. unemployment rate</a> had increased to 4.3% with the economy adding just 114,000 jobs.
However, for of the second quarter of 2024, the <a href="https://www.statista.com/statistics/188185/percent-change-from-preceding-period-in-real-gdp-in-the-us/#:~:text=As%20of%20the%20second%20quarter,a%20certain%20period%20of%20time.">GDP of the U.S. grew by 2.8%</a> from the first quarter of 2024 raising hopes for the upcoming quarters supported by rising consumer spending, and business investments. Also, the expected <a href="https://www.forbes.com/sites/dereksaul/2024/08/12/only-one-interest-rate-cut-expected-by-september-as-emergency-cut-potential-evaporates/">interest rate cuts</a> by the Fed in September add positive insights.
Therefore, a well-diversified portfolio consisting income oriented and growth prospects ETFs could be apt choice for attaining balanced exposure.
Considering these conducive trends, let's analyze the fundamental aspects of the three best performing ETFs such as VUG, VIG, and SCHD for great returns.
Vanguard Growth Index Fund ETF Shares (<a href="https://stocknews.com/stock/VUG/">VUG</a>)
VUG is an ETF launched and managed by The Vanguard Group, Inc. The fund invests in public equity markets in the United States and target stocks of companies operating across diversified sectors. It invests in growth stocks of large-cap companies. It seeks to track the performance of the CRSP US Large Cap Growth Index.
The fund has assets under management (<a href="https://www.investopedia.com/terms/a/aum.asp">AUM</a>) of $131.75 billion. VUG's top holdings include Microsoft Corporation (<a href="https://stocknews.com/stock/MSFT/">MSFT</a>) with a 13.02% weighting, followed by Apple Inc. (<a href="https://stocknews.com/stock/AAPL/">AAPL</a>) at 12.02%, and NVIDIA Corporation (NVDA) and Amazon.com, Inc. (AMZN) at 11.32% and 4.95%, respectively.
The ETF has a total of 190 holdings, with its top 10 assets comprising 60.01% of its AUM. VUG's expense ratio is 0.04%, lower than the category average of 0.37%. Over the past month, its fund inflows were $7.79 billion and $11.95 billion over the past year.
VUG pays an annual dividend of $1.88, which translates to a 0.51% yield at the current price level. The fund's dividend payouts have increased at a CAGR of 5.1% over the past three years. Notably, VUG has paid dividends for 19 consecutive years.
VUG has surged 10.9% over the past six months and 32.8% over the past year to close the last trading session at $372.34. It has a beta of 1.11. The fund's NAV was <a href="https://investor.vanguard.com/investment-products/etfs/profile/vug">$372.51 as of August 15, 2024</a>.
VUG's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect solid prospects. The fund has an overall rating of B, translating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
VUG has an A grade for Buy &amp; Hold. It also has a B grade for Trade. Within the B-rated <a href="https://stocknews.com/category/large-cap-growth-etfs/">Large Cap Growth ETFs</a> group, it is ranked #12 of the 61 ETFs.
To access all VUG's POWR Ratings, <a href="https://stocknews.com/stock/VUG/">click here</a>.
Vanguard Dividend Appreciation Index Fund ETF Shares (<a href="https://stocknews.com/stock/VIG/">VIG</a>)
VIG is managed by The Vanguard Group, Inc. The fund holds investments in companies which offers exposure to dividend paying large-cap companies exhibiting growth characteristics within the U.S. equity market. It seeks to track the performance of the NASDAQ US Dividend Achievers Select Index.
The ETF tracks the S&amp;P U.S. Dividend Growers Index. With $80.11 billion in AUM, VIG's top holdings are Apple Inc. (<a href="https://stocknews.com/stock/AAPL/">AAPL</a>) with a 4.48% weighting, Microsoft Corporation (<a href="https://stocknews.com/stock/MSFT/">MSFT</a>) at 4.26%, and Broadcom Inc. (<a href="https://stocknews.com/stock/AVGO/">AVGO</a>) and JPMorgan Chase &amp; Co. (JPM) at 4.01% and 3.34%, respectively.
The fund has a total of 341 holdings, with its top 10 assets comprising 30.55% of its AUM. It has an expense ratio of 0.06%, lower than the category average of 0.37%. VIG fund inflows were $703.27 million over the past six months and $1.37 billion over the past year.
VIG pays an annual dividend of $3.35, which translates to a 1.78% yield at the current price level. Moreover, the fund's dividend payouts have increased at a CAGR of 11.6% over the past three years. VIG has raised its dividends for 10 consecutive years.
VIG has gained 8.3% over the past six months and 17.7% over the past year to close the last trading session at $190.64. It has a beta of 0.85. The fund's NAV was <a href="https://investor.vanguard.com/investment-products/etfs/profile/vig">$190.58 as of August 15, 2024</a>.
VIG's sound fundamentals are reflected in its POWR Ratings. The fund has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
The fund has an A grade for Trade, Peer, and Buy &amp; Hold. Of the 280 ETFs in the <a href="https://stocknews.com/category/large-cap-blend-etfs/">Large Cap Blend ETFs</a> group, VIG is ranked #5.
<a href="https://stocknews.com/stock/VIG/">Click here</a> to see all the VIG ratings.
Schwab U.S. Dividend Equity ETF (<a href="https://stocknews.com/stock/SCHD/">SCHD</a>)
SCHD is a market-cap-weighted fund which invests in companies with a 10-year history of paying dividends. SCHD applies fundamental screens to build its portfolio and focuses on quality companies with sustainable dividends. The fund tracks the Dow Jones U.S. Dividend 100 Index.
The fund has an AUM of $57.43 billion. Its top holdings include Lockheed Martin Corporation (LMT) with a 4.64% weighting, followed by AbbVie, Inc. (ABBV) at a 4.46% weighting, and BlackRock, Inc. (BLK) and Coca-Cola Company (KO) at 4.18% and 4.13%, respectively. SCHD has a total of 101 holdings, with the top 10 assets comprising 41.16% of its AUM.
The fund has an expense ratio of 0.06%, compared to the category average of 0.49%. Over the past six months, SCHD fund inflows came in at $2.16 billion and $3.93 billion over the past year. Also, it has a beta of 0.88.
SCHD pays an annual dividend of $2.83, which translates to a 3.47% yield at the current price level. The fund's dividend payouts have grown at a CAGR of 12.9% over the past five years. Also, SCHD has raised its dividends for 12 consecutive years.
SCHD has gained 5.6% over the past six months and 10.9% over the past year to close the last trading session at $81.59. The fund has a NAV of <a href="https://www.schwabassetmanagement.com/products/schd">$80.74 as of August 14, 2024</a>.
SCHD's POWR Ratings reflect its strong outlook. The ETF has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
SCHD has an A grade for Buy &amp; Hold, and Trade. It also has a B grade for Peer. The fund is ranked #2 among 89 ETFs in the A-rated <a href="https://stocknews.com/category/large-cap-value-etfs/">Large Cap Value ETFs</a> group.
To access all the POWR Ratings for SCHD, <a href="https://stocknews.com/stock/SCHD/">click here</a>.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
VUG shares were trading at $373.38 per share on Friday afternoon, up $1.04 (+0.28%). Year-to-date, VUG has gained 20.41%, versus a 17.39% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/vug-vig-schd-3-etfs-for-a-balanced-growth-and-income-portfolio/>3 ETFs for a Balanced Growth and Income Portfolio</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 ETFs for a Balanced Growth and Income Portfolio

Global Markets Regain Their Footing

Most people are unaware that Labor Day originated to celebrate the laborers in our country who built this country from the ground up.  These were the people who made our economy go and who also built the housing, bridges and office towers.

We Are in the Period of Hot Air and Blue Skies, But the Month of September is Ahead!

Get Our Top Trade Ideas Delivered Daily - 65% Off Now

Get Our Top Trade Ideas Delivered Daily - 65% Off Now

Comments

Vanguard Growth ETF

Overview

Vanguard Growth ETF (ARCA:VUG), Quote.Headers.trade-ideas