Tag Archives: etf-hub

4 Healthcare ETFs To Buy As Johnson & Johnson Beats Estimates

Original Post With the Q2 earnings season kicking off, Johnson & Johnson (NYSE: JNJ ) is the first to have reported earnings in the healthcare space. The world’s biggest maker of healthcare products continued its long streak of earnings beat despite currency headwinds and revenues that came in above our estimates. Further, the company lifted its full year outlook, reflecting confidence in its future growth. Johnson & Johnson Q2 Results in Focus Earnings per share came in at $1.71, a couple of cents above the Zacks Consensus Estimate but 3.9% below the year-ago earnings. Revenues slid 8.8% year over year to $17.8 billion but edged past the Zacks Consensus Estimate of $17.7 billion. Healthy sales of new drugs including Zytiga, Invokana, Imbruvica, and Xarelto and strength of old drugs such as Stelara, Concerta, Simponi and Invega Sustenna offset a steep decline in sales of the hepatitis C medicine – Olysio – which has lost its competitive position in the U.S. to its rivals Gilead (NASDAQ: GILD ) and AbbVie (NYSE: ABBV ). In spite of the fact that a strong U.S. dollar would remain a major drag on international revenue growth, the company raised its earnings per share guidance to $6.10-$6.20 from $6.04-$6.19. The new midpoint is above the current Zacks Consensus Estimate of $6.14. Market Impact Despite the earnings beat and encouraging guidance, shares of JNJ dropped as much as 1.7% on the day but recovered slightly to close at down 0.5%. This could be an attractive entry point for value investors given that Johnson & Johnson has a solid Value Style Score of ‘B’. Further, the stock has a favorable Zacks Rank #3 (Hold) and a solid industry Rank in the top 30% at the time of writing. ETFs to Buy That being said, investors could pile up some of the top ranked healthcare ETFs having the largest allocation to this behemoth for higher returns. We have detailed four of them below. All of them have a Zacks ETF Rank of 2 or ‘Buy’ rating, suggesting that they will outperform the market in the coming months. Health Care Select Sector SPDR ETF (NYSEARCA: XLV ) The most popular healthcare ETF, XLV follows the S&P Health Care Select Sector Index. This fund manages about $15.4 billion in its asset base and trades in heavy volume of more than 9.2 million shares. Expense ratio came in at 0.15% annually. In total, the fund holds 56 securities in its basket with JNJ taking the top spot at 9.51% of the assets. Pharma accounts for 42.9% share from a sector look while biotech, healthcare providers and services, and equipment and supplies make up for a double-digit exposure each. The fund has gained about 11.7% in the year to date time frame. iShares U.S. Healthcare ETF (NYSEARCA: IYH ) This fund provides exposure to 106 securities by tracking the Dow Jones U.S. Health Care Index. Here again, Johnson & Johnson dominates the fund’s return at 9.11% of total assets. In terms of industrial exposure, pharma takes the top spot at 41%, followed by biotech (23.2%), healthcare providers & services (16.3%) and healthcare equipment & supplies (15.2%). The product has amassed nearly $2.6 billion in its asset base while it charges 44 bps in annual fees. It trades in good volume of more than 23,000 shares a day and is up 13.8% this year. iShares U.S. Pharmaceuticals ETF (NYSEARCA: IHE ) This ETF targets the pharma corner of the broad healthcare space and tracks the Dow Jones U.S. Select Pharmaceuticals Index. Holding 39 stocks in its basket, Johnson & Johnson occupies the top position at 9.11%. Pharma takes the largest share at 85.7% while biotech takes the remainder. The product has managed nearly $1.2 billion in its asset base while volume is relatively light at under 56,000 shares a day on average. The fund charges 444 bps in fees per year from investors and has surged 20.9% so far this year. Vanguard Health Care ETF (NYSEARCA: VHT ) This ETF tracks the MSCI US Investable Market Health Care 25/50 Index and holds 349 stocks in its basket. Out of these, Johnson & Johnson takes the top spot with a 7.9% allocation. Pharma takes the largest share at 36.8% while biotech and healthcare equipment round off the top three spots. VHT is also one of the popular and liquid ETFs with AUM of $6.2 billion and average daily volume of over 297,000 shares. It charges 12 bps in annual fees and expenses. The product has added 13.6% in the year to date time frame.

5 Mid-Cap Growth Mutual Funds For High Return

Mid-cap funds are an ideal investment options for investors looking for high return potential that comes with lower risk than small-cap funds. Mid-cap funds are not very susceptible to volatility in broader markets, making it an ideal bet given that macroeconomic conditions have generally offered a roller-coaster ride in recent years. Meanwhile, when capital appreciation over the long term takes precedence over dividend payouts, growth funds become a natural choice for investors. These funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms whose value is projected to rise over the long term. However, a relatively higher tolerance to risk and the willingness to park funds for the longer term are necessary when investing in these securities. This is because they may experience relatively more fluctuations than other fund classes. Below we will share with you 5 buy ranked mid-cap growth mutual funds. Each has earned either a Zacks Mutual Fund Rank #1 (Strong Buy) or a Zacks Mutual Fund Rank #2 (Buy) as we expect these mutual funds to outperform their peers in the future. Janus Enterprise S (MUTF: JGRTX ) seeks capital appreciation over the long run. JGRTX invests a minimum of half of its assets in common stocks of companies having market capitalizations similar to those listed in the Russell Midcap Growth Index. JGRTX invests in companies that are believed to have above-average growth prospects. JGRTX may invest in companies located outside the US including those from emerging nations. The Janus Enterprise S fund has returned 6.8% over the year-to-date frame. Brian Demain is the fund manager and has managed JGRTX since 2007. Neuberger Berman Mid Cap Growth A (MUTF: NMGAX ) invests a large chunk of its assets in companies having market cap size identical to those included in the Russell Midcap Index. NMGAX maintain a diversified portfolio by investing in common stocks of companies across a wide range of sectors and industries. NMGAX may focus on specific sectors that are expected to gain from market or economic trends. The Neuberger Berman Mid Cap Growth A fund has returned 12.3% over the year-to-date frame. As of May 2015, NMGAX held 104 issues with 1.71% of its assets invested in O’Reilly Automotive Inc. TIAA-CREF Mid-Cap Growth Premier (MUTF: TRGPX ) seeks total return through long-term growth of capital. TRGPX invests a major portion of its assets in equity securities of companies having market capitalizations within the range of the Russell Midcap Growth Index. TRGPX primarily emphasizes on acquiring securities of domestic companies with favorable growth potentials. The TIAA-CREF Mid-Cap Growth Premier fund has returned 7% over the year-to-date frame. TRGPX has an expense ratio of 0.62% as compared to category average of 1.30%. Dreyfus Mid-Cap Growth F (MUTF: FRSPX ) invests a lion’s share of its assets in growth companies having market capitalizations within the universe of the Russell Midcap Growth Index. FRSPX may invest a maximum of 30% of its assets in securities of non-US companies. FRSPX may invest up to 25% of its assets in a particular foreign country. The Dreyfus Mid-Cap Growth F fund has returned 5.5% over the year-to-date frame. As of May 2015, FRSPX held 59 issues with 2.79% of its assets invested in Imax Corp. PRIMECAP Odyssey Aggressive Growth (MUTF: POAGX ) seeks capital growth over the long run. POAGX invests in common stocks of domestic companies having an impressive growth prospect. Though POAGX invests in companies irrespective of market capitalizations, POAGX invests a notable portion of its assets in mid and small cap firms. The PRIMECAP Odyssey Aggressive Growth fund has returned 7.7% over the year-to-date frame. POAGX has an expense ratio of 0.62% as compared to category average of 1.30%. Original Post

A Europe ETF For Coping With Greek Drama

Summary Greece has been a major cause for concern in the Eurozone. Recent financial drama has contributed to increased volatility. Investors who are still interested in Europe exposure, but are wary of heightened volatility, can utilize a relatively new low-vol ETF option. Greece’s status as a member of the Eurozone is solidified, at least for now and at least until more financial problems crop up there. Eurozone leaders agreed to a third bailout package for Greece, helping the country once again stave off financial disaster and potential departure from the Eurozone Last week, the volatile Greek government submitted reform proposals to Eurozone officials in an effort to secure further bailout aid. Eurozone officials reviewed the package this weekend, potentially setting Greek stocks up for more early-week volatility next week. Without a third bailout, Greece likely defaults on its obligations and departs from the Eurozone. While the Greek crisis has tried investors’ patience when it comes to Europe, select exchange-traded funds offer investors the opportunity to remain long European equities while minimizing Greece exposure and volatility. A weakening euro is likely to play a prime role in the direction of European stocks in the coming months. “The 17% drop in the value of the euro relative to the US dollar since June 30, 2014, coupled with the tremendous run-up in European equities earlier this year, begs the question: Where do Eurozone equities go from here? Historically, the year-over-year change in the EUR/USD exchange rate has led the direction of the Euro Stoxx 50 Index by approximately one year. Therefore, euro weakness in the past portends continued upside for Eurozone equities, in my view,” according to a recent note from Invesco PowerShares . The PowerShares Europe Currency Hedged Low Volatility Portfolio (NYSEARCA: FXEU ) is one avenue to consider for investors looking to profit from a falling euro while minimizing European equity market volatility . FXEU tracks members of the S&P Eurozone BMI Index to form the S&P Eurozone Low Volatility USD Hedged Index that displayed the lowest volatility over the trailing 12 months. FXEU, which debuted in May, combines the red-hot themes of currency hedging and low volatility in one ETF. Investors have warmed to the concept as FXEU has hauled in $39.3 million in assets in barely more than two months on the market. “Given the potential upside of equity exposure to the Eurozone (for reasons outlined above), the risk associated with the rise in valuation levels and the ongoing uncertainty associated with a potential Greek exit from the Eurozone (or “Grexit”), I believe a volatility-managed solution may be a sensible approach for investors to gain exposure to this critical region. In addition, I believe the divergent monetary policy between the European Central Bank and the Federal Reserve highlights the downside risk to the value of the euro and emphasizes the need for investors to consider a currency hedge to mitigate the foreign exchange risk. A currency-hedged low volatility approach provides investors the opportunity to participate in the upside in the face of stretching valuations and exchange rate risk, as well as a downside risk mitigation smart beta strategy,” adds PowerShares. Not surprisingly, FXEU’s volatility-reducing efforts include eschewing Greek stocks. As of the end of the second quarter, the ETF’s underlying index allocated a combined 54.9% of its weight to Germany and France, the Eurozone’s two largest economies. Outside of a 12.3% weight to Spain, the index’s PIIGS exposure is light and does not include Greece or Portugal. PowerShares Europe Currency Hedged Low Volatility Portfolio (click to enlarge) Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More…) I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.