1.Min
Volatility ETF USMV Second in Flows to S&P….
Barrons
The iShares Edge MSCI Min Vol U.S.A. ETF
(ticker: USMV) has attracted nearly $9.5 billion this year, second only to the
broader and much better known Vanguard
S&P 500(VOO). The iShares ETF has swelled 42% in the past eight months
to $32 billion
The average stock in the iShares ETF trades for 24 times
trailing 12-month earnings, versus 19 for the S&P 500; the ETF overall
trades at a 17% premium to its MSCI benchmark. A recent study from Leuthold
Group found that low volatility stocks, relative to their higher volatility
peers, are 99% more expensive than they have been over time, going back to
1990.
2 Big Volatility ETFs Have Very Different Approaches By Stephen Gandel
1.Stock dividends offer more yield than 30-year Treasury
bond for first time since 2009
Published: Aug 28, 2019 1:41 p.m. ET Occurred only once before in last 40-plus years: Bespoke
By William Watts
Here’s another consequence of the rally in government bonds
that’s sent yields crashing around the globe — U.S. stocks now offer more yield
than the 30-year U.S. Treasury bond.
As the
chart below, going back to 1977, from Bespoke Investment Group highlights, the
Tuesday move marked the first time since the financial crisis that the dividend
yield on S&P 500 index companies SPX, +0.57% has
topped the yield on the long bond TMUBMUSD30Y, -1.14%.
“The only other time in the last 40+ years where we have seen a
similar inversion was for a few months in late 2008 through March 2009 (the low
point of the Financial Crisis),“ Bespoke analysts wrote. “In July 2016 right
after the Brexit vote, the S&P 500 dividend yield came within 0.01% of the 30-year’s
yield, but it couldn’t quite make it higher.”
All in all, the higher dividend yield should make stocks more
attractive.
Bespoke said it was “pretty amazing” to see how many stocks in
the S&P 500 now yield more than the 5-, 10- and 30-year Treasurys. As of
Tuesday, 333 stocks were yielding more than the 5-year at 1.38%; 313 more than
the 10-year at 1.48%; and 256 more than the 30-year at 1.97%.
But for now, falling yields for Treasurys seems to be a negative
for stocks as the yield on the 10-year note falls further below the 2-year
yield, after slipping below the yield on the 3-month bill earlier this year.
Investors appear to be piling into government bonds, pushing
yields down, in part out of fears of a global economic slowdown and the
potential for recession as worries over an intensifying U.S.-China trade war
mount. An inverted yield curve in particular is seen as a warning signal for a
potential U.S. recession, albeit with a lag. Meanwhile, the yield on the
30-year bond has fallen to an all-time low below 2%, while the yield on the
10-year note ended Tuesday at its lowest since 2016, and is within hailing
distance of its all-time low below 1.4%.
The
S&P 500 and the Dow Jones Industrial Average DJIA, +0.83% have
both pulled back more than 3% in August.
1.NFL Games Make Up 60% of the Top 100 Most Watched Telecasts in
a Typical Year.
In the U.S., the NFL rules sports—and television. Its games make
up 60% of the top 100 most-watched telecasts in a typical year, and over 70% in
years when there are no Olympic Games.
Football Season Is Here and It’s a
Key Moment for the Future of TV
