Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
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Mid-Cap Growth -- The Single Best-Performing Corner of
the Market Over the Past Five Years |
Published: November 19,
2007
As an asset
class, it's easy to understand the appeal of mid-cap stocks. These
companies, which generally sport market caps ranging from $2 billion to
as much as $10 billion, are typically faster-growing than the market's
giants. At the same time, they are also more established than smaller
firms and thus provide more stable and predictable earnings visibility.
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Vanguard
Mid-Cap ETF (VO)
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Assets:
$1.3 Billion
Expense Ratio: 0.13%
Avg. P/E: 17
3-Yr. Annual Return: +12.8%
ETF Composite Score: 33 ("A-") |
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Top Five
Holdings:
1.) NVIDIA
Corp.
2.) Hilton
Hotels Corp.
3.) Ameriprise
Financial, Inc.
4.) Smith International, Inc.
5.) T.
Rowe Price Group, Inc.
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In
short, mid-caps can offer greater upside potential than large-caps and
less volatility than small-caps. According to Morningstar, mid-cap
growth has been the single best performing corner of the domestic market
over the past five years -- raking in average annual returns in excess
of +19%.
Considering the cyclicality of the markets and the relative valuation
against other asset classes, now may not be the best time to overweight
this particular group. However, long-term investors looking to build a
well-balanced portfolio would be wise to include some exposure to
mid-cap stocks.
And when it comes to selecting an actual building block to represent
this group, I think Vanguard Mid-Cap ETF (AMEX: VO, $75.93) is a great
option.
Tracking the MSCI U.S. Mid-Cap 450 Index, the fund should appeal to
one-stop shoppers. The portfolio straddles the border between growth and
value and covers a diversified swath of more than 400 stocks -- and its
top ten holdings only represent a miniscule 5.8% of assets. Shareholders
will have a stake in companies like graphics chip maker Nvidia (Nasdaq:
NVDA), money manager T. Rowe Price (Nasdaq: TROW) and offshore oil &
gas driller Noble (NYSE: NE).
Overall, the portfolio carries an average earnings growth rate north of
+20% and is heavily weighted towards the financial, consumer
discretionary, and information technology sectors. And, of course, the
hallmark of any Vanguard fund is a low expense ratio -- VO charges a
razor-thin 0.13% of assets.
As you might expect, that built-in advantage gives the fund a
considerable head-start against competitors. And over the past three
years, VO has delivered average annual gains of +12.8% -- outpacing the
S&P 500, as well as 99% of its rivals in the mid-cap blend category.
With all this in mind, I will be monitoring the fund closely as a
possible addition to my "Buy-and-Hold" Portfolio. This model
portfolio is available exclusively to paid subscribers of my premium
exchange-traded funds (ETF) newsletter -- The
ETF Authority.
Good investing!
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Nathan Slaughter
Editor
The ETF Authority, Half-Priced Stocks
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| To receive
in-depth guidance on today's leading exchange-traded funds (ETFs), plus
a proprietary ranking system designed to uncover today's most
profitable funds, please subscribe to
Nathan Slaughter's premium ETF investing newsletter -- The
ETF Authority |
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Investing Doesn't Get Any Easier Than This |
Stock picker Amy
Calistri's strategy is as simple as investing gets -- just one idea
a month designed to make money in today's market. Invest this way
and you don't have to worry about oil prices, automaker bailouts, or
what the Fed is up to -- because every "bad" economic development
actually helps some investment or another.Your investing life can
get a lot simpler -- starting today.
Go here to learn about Amy's simple investing strategy.
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