Written by David Fabian, March 14th, 2017
The world of exchange-traded funds is filled with heavy weight indexes geared towards a variety of stock selection criteria. The venerable SPDR S&P 500 ETF (SPY) is the largest and most heavily traded of the top ten funds by asset size. SPY is known for its meaningful diversification, tremendous liquidity, and low costs. It’s the benchmark by which nearly every stock-focused strategy is ultimately compared against.
Having a benchmark is important because it allows investors the opportunity to compare similar investment styles to determine if a fund is meeting their expectations. It can easily identify consistent trends that are worthy of greater interest or evasion. One such outlier among the largest U.S. stock ETFs is the pattern of outperformance demonstrated by the PowerShares QQQ (QQQ) over the last decade.
Written by David Fabian, September 09th, 2016
Whenever I am asked about which ETFs have the most exposure to a specific stock, I turn to my friends at ETFDB.com. Their free stock exposure tool is an excellent way to quickly assess the weight of any given company within the ETF universe. You can check it out here. Read more
Written by David Fabian, July 13th, 2016
The biggest and most heavily-traded ETFs are often the ones that investors default to for stock exposure. The most obvious benefits are liquidity, low-cost, and flexibility to be either long or short the market in size.
For traders, the clear favorites are the SPDR S&P 500 ETF (SPY) and PowerShares QQQ (QQQ). Both of these funds provide broad-based exposure to a wide range of stocks in a single investment vehicle. They are also two of the most heavily traded ETFs in the market on a daily basis. This makes them exceptional tools as either core holdings or tactical trading vehicles. Read more
Written by David Fabian, February 05th, 2016
State Street has had a tremendous advantage in the exchange-traded fund world by being the first issuer of dedicated sector funds. Their highly successful SPDR sector series debuted in 1998 and has spent nearly two decades building a world-class reputation. Everyone from professional to novice investors respect SPDR ETFs for their liquidity, transparency, low-costs, and tax efficiency. Read more
Written by David Fabian, January 08th, 2016
The rocky start to 2016 in the major indices has many ETF investors on edge. Some may be looking at the volatility as a buying opportunity, while others are likely heading for the stability of cash or other safe haven assets. No matter what your short-term outlook is, taking note of the price action in leadership sectors can help provide enhanced perspective on the market. Read more