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
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Real value comes from holding on to your stocks for years -- decades is best -- and watching as their businesses grow and appreciate. It'...
-
In this article we discuss the 5 Best Dividend Stocks to Buy According to Billionaire Ken Fisher. 5.) British American Tobacco p.l.c. (NYSE:...
-
Investing for retirement requires a different approach from merely betting on growth or value stocks. The strategy for fixed-income is to bu...
-
On Monday, AT&T (NYSE:T) confirmed that it will spin off its WarnerMedia entertainment unit and merge it with Discovery. While this will...
-
High dividend stocks included on our list had a number of criteria to meet — all stocks satisfied a minimum dividend yield requirement, have...
-
Earlier generations have favored dividend investing because generally higher yields were on offer then. Today, though, some investors have b...
-
One of our favorite areas to find blue-chip dividend stocks is in the utility sector. Companies in this space provide electricity, gas and w...
-
It’s safe to say that one of the biggest concerns that economists and investors have on their minds at this time is inflation. Regardless of...
-
One factor that can make a big difference is competitive advantage and leadership in a given industry. In general, larger companies with glo...
-
Business Development Companies, known as BDCs, offer the retail investor exposure to privately-held firms, which often are funded by venture...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.