QUESTION: Why should fund investors rely on backward-looking NAV trends?
ANSWER: They should not.
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Tagged:
best etf ratings,
best fund ratings,
ETF ratings,
etf screen,
etf screener,
fund ratings,
fund screener,
mutual fund screener,
portfolio management rating,
Predctive fund rating,
predictive ETF rating,
Total Annual Costs rating
The radically higher number of US equity mutual funds (4,700+) versus ETFs (380+) is not indicative of better stock selection from active management. On the contrary, the vast majority of actively-managed funds do not justify the higher fees they charge. They do not, in terms of stock selection and expected returns, add value versus passively managed benchmarks.
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Tagged:
ALV,
asset allocation rating,
BKPIX,
CPB,
CRM Mutual Fund Trust: CRM All Cap Value Fund,
CRMEX,
DELL,
DISH,
DO,
ETFs,
FCX,
FDSAX,
Forum Funds: Payson Total Return Fund,
FRX,
GILD,
GIS,
GPS,
Hennessy Funds Trust: Hennessy Cornerstone Large Growth Fund,
HFLGX,
Inc: Focused Dividend Strategy Portfolio,
INTC,
iShares MSCI USA Minimum Volatility dIndex Fund,
LLY,
LRCX,
MSFT,
mutual funds,
NEM,
PBFDX,
PEOFX,
Pioneer Equity Opportunity Fund,
PKW,
portfolio management rating,
PowerShares Buyback Achievers,
ProFunds: Banks UltraSector ProFund,
Rydex Dynamic Funds: Russell 2000 2x Strategy Fund,
Rydex Series Funds: Russell 2000 1.5x Strategy Fund,
RYMKX,
RYRSX,
stock ratings,
SunAmerica Focused Series,
total annual costs,
TXN,
UNH,
USMV,
WMT
New Constructs assigns a rating to every stock under coverage according to what we believe are the 5 most important criteria for assessing the risk versus reward of stocks. New Constructs’ stock ratings are regularly featured as among the best by Barron’s.
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The Portfolio Management Rating of a fund is based on the aggregated ratings of the securities it holds as well as its overall Asset Allocation. When analyzing equity funds, we use New Constructs’ stock ratings, which are regularly featured as among the best by Barron’s over the past three years.
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As one financial scandal follows another, it seems the good guys are having a tougher time catching the bad guys. Recent revelations about MF Global’s ponzi scheme are another reminder of how our regulatory and oversight systems seem to let whales pass through their net.
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Tagged:
accounting earnings,
accounting loopholes,
AIG,
American International Group,
Annaly Capital Management,
AT&T,
Avalon Bay,
AVB,
BAC,
Bank of America,
C,
Capital One Financial,
Chevron,
Citigroup,
CME,
CME Group,
COF,
ConocoPhillips,
COP,
CVX,
Devon Energy,
DVN,
economci earnings,
El Paso Corp,
EP,
EQR,
Equity Residential,
Exxon MObil,
GE,
General Electric,
JP Morgan,
JPM,
NLY,
Pioneer Natural Resources,
PXD,
T,
VNO,
Vornado Realty,
Well Fargo,
WFC,
XOM
Two of the three stocks added to our large/mid cap Most Dangerous stocks list for November are from the energy sector. Those stocks are Energy XXI (Bermuda) Ltd. (EXXI) and Superior Energy Services (SPN) – both get my very dangerous rating as do all of the Most Dangerous stocks.
All of the energy sector ETFs get a dangerous rating, which means you should sell them.
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Tagged:
Chevron,
CVX,
Diamond Offshore Drilling,
DIG,
Direxion Daily Energy Bull 3X Shares,
DO,
Energy Select Sector SPDR,
Energy XXI (Bermuda) Ltd.,
ERX,
EXXI,
Exxon MObil,
FEG,
First Trust Energy AlphaDEX Fund,
Focus Morningstar Energy Index ETF,
FXN,
IEO,
IEZ,
iShares Dow Jones U.S. Energy Sector Fund,
iShares Dow Jones U.S. Oil & Gas Exploration & Production Index Fund,
iShares Dow Jones U.S. Oil Equipment & Services Index Fund,
IYE,
PowerShares Dynamic Energy E&P,
PowerShares Dynamic Oil Services,
PowerShares S&P SmallCap Energy Portfolio,
predictive ETF rating,
ProShares Ultra Oil & Gas,
PSCE,
PXE,
PXJ,
Rydex S&P Equal Weight Energy ETF,
RYE,
SPDR S&P Oil & Gas Equip & Service,
SPDR S&P Oil & Gas Explor & Product,
SPN,
Superior Energy Services,
Vanguard Energy ETF,
VDE,
XES,
XLE,
XOM,
XOP
Here is a free copy of our report on AAPL for Ask Matt readers.
AAPL gets our “Very Attractive” rating because its economic earnings are positive and rising, it has one of the highest returns on invested capital (ROIC) in the world. At the same time, it’s stock price reflects very low expectations for future earnings growth.
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New Constructs rated MF Global (MF) a Dangerous stock long before it blew up.
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High dividend yields are NOT enough to warrant investing in the utilities sector.
Too many investors put their hard-earned money in utility stocks with the assumption that relatively high-yielding dividends from stable business make a good investment.
The real question that investors in any equity security must ask is: does my expected return from a stock justify the risk of investing in it?
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Tagged:
dividend,
DPL,
DPL Inc.,
First Trust Utilities AlphaDEX Fund,
Focus Morningstar Utilities Index ETF,
free cash flow,
FUI,
FXU,
IDU,
iShares Dow Jones U.S. Utilities Index Fund,
New Constructs,
New Constructs predicitve ETF ratings,
PEG,
PowerShares Dynamic Utilities,
PowerShares S&P SmallCap Utilities Portfolio,
ProShares Ultra Utilities,
PSCU,
Public Service Enterprise Group,
PUI,
Rydex S&P Equal Weight Utilities ETF,
RYU,
UPW,
Utilities Select Sector SPDR,
utility sector,
Vanguard Utilities ETF,
VPU,
XLU
As an adult, Halloween tends not to be that scary for me usually.
But after last week’s stock market rally in the face of the deteriorating situation in Europe and the rest of the world, I am afraid…for the stock market and am reminded of fall/winter 1999.
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David is a Wall Street veteran and corporate finance expert.