The technology focus for this ETF drove it to substantial outperformance over most trailing periods. The emphasis on technology has been absolutely exceptional for returns over the last year. Investors have become increasingly enamored with the technology sector. This emphasis is driving up PE ratios for technology companies. Investors will be thrilled by the massive capital gains.
The First Trust Dow Jones Internet Index Fund (FDN) has destroyed other technology funds for over a decade. FDN, while not being pure technology, has kept up with other technology ETFs and returned over 30% this last year. The top holdings of Amazon and Facebook have helped FDN outperform other technology ETFs. The ETF is materially too expensive today. Investors should wait for a material decline in PE ratios.
Source: Seeking Alpha
Related Articles:
- Rising Dividends = Rising Returns
- High-Yield, High-Return Investments To Increase Income While Waiting On Dividend Growth
- Illinois Tool Works Inc. (ITW) Dividend Stock Analysis
- The Most Dangerous Investment
- 9 Dividend Stocks Beating The 4% Rule
It Blows Competition Out Of Water
Posted by D4L | Monday, July 31, 2017 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
The fact is that there are many interesting high-yielding companies that have good long-term prospects. Besides, as the markets get more vol...
-
A common measure of dividend sustainability is the payout ratio, the percent of earnings that are paid out to shareholders. Unfortunately, e...
-
Part of the joy of investing is seeing your good investments continue to grow, years after your initial purchase. Aside from the financial s...
-
Good income investments often come with strong dividend yields, delivering income that's higher than an investor could find at a bank or...
-
A lot changes when you shift from working to retirement, including how you invest. Most investors switch from building a nest egg to living ...
-
Last month we wrote about the top four companies in our model portfolio in the article 4 Dividend Dominators for 2021 - Companies With More ...
-
Both of the listed stocks are often discussed on the Reddit page, and for very different reasons. The former pays a frequent special dividen...
-
Interest rates remain very low and given the ongoing economic impact from COVID-19, they will likely stay very low. This low-rate environmen...
-
When it comes to dividend stocks, investors can fall into the trap of focusing on dividend yield over all else. That can be a dangerous stra...
-
Safety and tranquility are both important aspects of investing for retirement. Yes, we want stocks with meaningful upside. We also -- howeve...

0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.