Many investors may own Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) in their portfolios but may have a difficult time choosing which stock is a better buy right now. These are both dominant businesses in their respective industries with great growth prospects, so either stock w
Apple (NASDAQ: AAPL) hasn't had the easiest 2023, with its stock falling 12% since the start of August. Three consecutive quarters of revenue declines have concerned investors as the company continues to fight against macroeconomic headwinds.
The "Swift Effect" will be in full force when the Super Bowl champion Kansas City Chiefs travel to New York on Sunday, as a connection between pop music phenomenon Taylor Swift and NFL tight end Travis Kelce has sent fans into a frenzy.
(RTTNews) - Microsoft Corp. was in talks with Apple Inc. around 2020 for a possible sale of its Bing search engine, Bloomberg reported citing people with knowledge of the matter.
Apple staff met with Chinese officials in recent months to discuss concerns over new rules that will restrict the U.S. tech giant from offering many foreign apps currently available on its app store in the country, the Wall Street Journal reported on Friday.
U.S. stock index futures rose on Friday as Treasury yields eased from multi-year highs and powered gains in megacap stocks, while investors awaited a crucial inflation metric to assess the outlook for the Federal Reserve's monetary policy.
To say that PayPal Holdings (NASDAQ: PYPL) stock has disappointed investors the past two years would be a major understatement. At recent prices, shares of the leader in electronic payments are more than 80% below their all-time high. And they trade at a dirt cheap trailing price
Wall Street accommodates a variety of investment styles. Buying and holding time-tested dividend stocks over long periods just happens to be one of the more successful strategies.
Apple staff met with Chinese officials in recent months to discuss concerns over new rules that will restrict the U.S. tech giant from offering many foreign apps currently available on its iPhone app store in the country, the Wall Street Journal reported on Friday.
When it comes to making money on Wall Street, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett is, arguably, in a class of his own. In the 58 years that the Oracle of Omaha has led Berkshire Hathaway, his company's Class A shares have enjoyed a nearly 20% annualiz
As the final stretch of the year approaches, there's relief in markets that the sharpest global monetary tightening cycle in decades is finally nearing an end.
Fintel reports that on September 28, 2023, Evercore ISI Group reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Analyst Price Forecast Suggests 19.92% Upside
The
Schwab U.S. Large-Cap ETF (
NYSEARCA:SCHX)
stands out as an attractive investment opportunity for its minimal fees, diversified portfolio of large-cap,
blue-chip U.S. stocks, and the solid returns it has generated over the years. Therefore, let’s take a look at this $32.8 billion large-cap fund from Charles Schwab (
NYSE:SCHW
).
What is the SCHX ETF’s Strategy?
Charles Schwab explains that SCHX’s “goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Total Stock Market Index.” Doing this gives investors “simple access to the 750 largest U.S. companies as ranked by full market capitalization.”
SCHX's Holdings
One thing that I really like about the Schwab U.S. Large-Cap ETF is that it offers investors real diversification. One way that SCHX does this is by holding positions in 755 stocks. However, many funds own a lot of stocks but are less diversified than this would imply because their top holdings account for a large portion of the fund, often greater than 50% or even higher.
That isn’t the case at all with SCHX, which offers true diversification in that its top 10 holdings account for just 28.4% of the fund. By holding an extra 250 or so stocks, SCHX also offers a bit more diversification than the typical S&P 500 (
SPX
) fund.
Below, you’ll find an overview of
SCHX’s top 10 holdings using TipRanks’ holdings tool.
As its name implies, SCHX’s top 10 holdings consist of blue chip, large-cap U.S. stocks like Apple (
NASDAQ:AAPL
), Microsoft (
NASDAQ:MSFT
), Amazon (
NASDAQ:AMZN
), Nvidia (
NASDAQ:NVDA
) and Alphabet (
NASDAQ:GOOG
) (
NASDAQ:GOOGL
). While SCHX is not a tech ETF, its top holdings currently skew heavily toward technology because these are the largest stocks in the market right now.
But once you get outside of these top holdings, SCHX owns plenty of non-tech names, and its holdings run the gamut of the U.S. economy. In fact, breaking it down by sector, technology accounts for just 28% of SCHX's holdings.
Healthcare is the fund's second-largest sector with a weighting of 13.3%, and the sector is well-represented through the likes of UnitedHealth (
NYSE:UNH
), Eli Lilly (
NYSE:LLY
) and Johnson & Johnson (
NYSE:JNJ
). Financials come in third with a 12.7% weighting and include stocks like Berkshire Hathaway (
NYSE:BRK.B
), JPMorgan Chase (
NYSE:JPM
), Visa (
NYSE:V
), and Mastercard (
NYSE:MA
).
This well-rounded group of holdings enables investors to harness the power of a large portion of the U.S. economy in their portfolios using one ETF.
Is SCHX Stock a Buy, According to Analysts?
Turning to Wall Street, SCHX earns a Moderate Buy consensus rating based on 606 Buys, 138 Holds, and 11 Sell ratings assigned in the past three months. The
average SCHX stock price target of $61.05 implies 20.4% upside potential.
Get Smart
While Wall Street analysts are bullish on SCHX, so is TipRank’s Smart Score system. The
Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. A score of 8 or above is equivalent to an Outperform rating. SCHX features an Outperform-equivalent ETF Smart Score of 8.
Long-Term Performance
In addition to its strong portfolio of diversified holdings, favorable consensus rating from analysts, and Outperform-equivalent Smart Score, SCHX also has a solid track record of long-term performance.
Over the past three years, SCHX has had an annualized return of 9.9% (as of the end of August). Over the past five years, SCHX’s annualized return stands at 10.8%, and over the past 10 years, it comes in at an even better 12.6%.
These results are roughly on par with those of the broader market over time, albeit trailing them by a narrow margin. The
SPDR S&P 500 ETF (
NYSEARCA:SPY)
, a good representation of the S&P 500 index, has returned 10.4% over the past three years, 11.0% over the past five years, and 12.7% over the past 10 years. While SPY narrowly beats SCHX over these time frames, the difference is relatively marginal (amounting to a 0.1% difference annualized over 10 years), and both ETFs have generated great returns for their investors.
Below, you'll find
a comparison of SCHX and SPY using TipRanks' ETF comparison tool, which allows investors to compare up to 20 ETFs at a time based on a wide variety of customizable factors.
Tiny Expense Ratio
SCHX is notable for its minuscule expense ratio of just 0.03%, which is just about as low as you will find in today’s market. This ultra-low expense ratio means that an investor putting $10,000 into SCHX would pay just $3 in fees during their first year of investing in the fund.
The effect of these savings really adds up over time. Assuming the fund returns 5% a year going forward and the expense ratio remains 0.03%, after three years, this same investor would pay just $10 in fees. After five years, this investor would pay just $17 in fees, and over the course of a decade, this investor would pay just a paltry $39 in fees. Investing in low-cost funds like SCHX is key for preserving the principal value of your portfolio over time.
Dividend Payout
It should also be noted that
SCHX is a dividend payer. While SCHX's dividend yield of 1.5% isn't enough to put it on the radar of income investors, it still adds to total returns over time. Furthermore, SCHX has been paying its holders a dividend for 13 consecutive years, and there is plenty of room for this dividend payout to grow over time as the companies it owns grow their earnings and increase their own payouts over the years.
Investor Takeaway
Ultimately, SCHX is an attractive option for investors to consider adding to their investment portfolios. The fund has produced double-digit annualized returns over the past decade. Additionally, it features a negligible expense ratio, and it gives investors plenty of diversification, both in terms of the large number of stocks that it holds and its low concentration towards its top 10 holdings.
Lastly, SCHX also enjoys a favorable outlook from analysts and an outperform-equivalent Smart Score from TipRanks. Altogether, there are plenty of reasons to like this ETF.
Disclosure
Looking for a long-term winner in the tech sector? Look no further than The
iShares U.S. Technology ETF (
NYSEARCA:IYW)
. Not only has this $10.7 billion tech ETF from BlackRock's (
NYSE:BLK
) iShares posted double-digit annualized returns for years, but as of the end of the most recent month, it sported an annualized return of over 20% over the past decade. Therefore, let’s take a closer look at this powerhouse tech ETF.
What is the IYW ETF’s Strategy?
IYW seeks to give investors “targeted access to domestic technology stocks” by investing in U.S.-based information technology, electronics, and computer software and hardware companies.
IYW's Long-Term Track Record
As discussed above, IYW has put up phenomenal results over the years. As of the end of August, IYW returned 12.2% on an annualized basis over the past three years. Looking further out, the fund’s five-year return is an even more impressive 18.6% on an annualized basis. Going all the way out to 10 years, IYW has generated a stellar 20.2% return on an annualized basis.
Looking at things cumulatively, IYW’s 10-year return was an incredible 544.2%, meaning that an investor who put $10,000 into the fund 10 years ago would have a stake worth $64,420 as of the end of August.
These results soundly beat those of the broader market over the same time frame. For example, the
Vanguard S&P 500 ETF (
NYSEARCA:VOO)
has returned 10.5% annualized over the last three years, 11.1% annualized over the past five years, and 12.8% over the past decade.
At the same time, IYW’s results are roughly on par with those of some of the market’s biggest and most well-known tech ETFs, the
Technology Select Sector SPDR ETF (
NYSEARCA:XLK)
and the
Invesco QQQ Trust (
NASDAQ:QQQ)
. XLK’s annualized returns over the past three, five, and 10 years stand at 13.4%, 19.7%, and 20.5%, respectively, just a hair above IYW’s over each time frame.
Meanwhile, IYW has slightly outperformed QQQ over each of the same time frames. QQQ’s annualized returns over the past three, five, and 10 years come in at 9.3%, 16.0%, and 18.6%, respectively.
At the end of the day, these are all great ETFs, and IYW is right there in the mix with them. Below, you’ll find
a comparison of IYW, QQQ, and XLK using TipRanks’ ETF comparison tool, which gives investors the ability to compare ETFs on a variety of customizable factors.
IYW's Holdings
With 137 holdings, IYW offers decent diversification. However, the fund is also fairly concentrated in that its top 10 holdings account for 63.2% of assets. Below, you’ll find an overview of
IYW’s top 10 holdings using TipRanks’ holdings tool.
As you can see, the fund’s largest two holdings, Apple (
NASDAQ:AAPL
) and Microsoft (
NASDAQ:MSFT
), combine to make up over one-third of the fund’s assets. The two classes of Alphabet (
NASDAQ:GOOG
) (
NASDAQ:GOOGL
) shares also combine to make up over 10% of the fund.
What I like about IYW’s overall group of holdings is that it gives investors a nice mix of exposure to all aspects of the technology sector. About 40.9% of IYW’s holdings fall under the software and services subsector, and 21.8% are classified as semiconductors and semiconductor equipment. Another 20.9% are classified as tech hardware and equipment, while media and entertainment accounts for a 14.9% weighting.
This allows investors to tap into the full range of what the tech sector has to offer, whether it’s semiconductor giants like Nvidia (
NASDAQ:NVDA
) and Broadcom (
NASDAQ:AVGO
), enterprise software providers like Oracle (
NYSE:ORCL
) and Salesforce (
NYSE:CRM
), or multifaceted tech behemoths like Alphabet and Meta Platforms (
NASDAQ:META
).
Collectively, IYW’s top holdings are the owners of some strong Smart Scores. The
Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. A score of 8 or above is equivalent to an Outperform rating. Seven of IYW’s top 10 holdings feature Smart Scores of 8 or above, led by Nvidia and Broadcom, which have 'Perfect 10' Smart Scores. IYW itself has an Outperform-equivalent ETF Smart Score of 8.
Is IYW Stock a Buy, According to Analysts?
Turning to Wall Street, IYW earns a Moderate Buy consensus rating based on 109 Buys, 27 Holds, and one Sell rating assigned in the past three months. The
average IYW stock price target of $126.63 implies 20.9% upside potential.
Expense Ratio
Outside of the high concentration in its top holdings, the only real negative of IYW is its expense ratio. While its expense ratio of 0.40% is reasonable, it’s also higher than those of comparable ETFs like the aforementioned QQQ and XLK, which charge 0.20% and 0.10%, respectively.
An investor allocating $10,000 into IYW would pay $40 in fees and expenses during their first year of investing versus $20 for an investor putting the same amount into QQQ or $10 for a $10,000 investment in XLK.
While these are all reasonable amounts, IYW is the most expensive of the group. The difference in fees would also compound over time. Assuming that each fund returns 5% per year going forward and that each maintains its current expense ratio, the IYW investor would pay $505 in fees over the course of 10 years, versus $128 for the XLK investor and $255 for the QQQ investor.
When a fund is returning 20% or more on an annualized basis, this might not be a major consideration, but it’s still something that investors should be aware of.
Investor Takeaway
Ultimately, IYW is another top tech ETF that has proven itself as a long-term winner. The fund has achieved excellent annualized returns of over 20% over the past 10 years, creating significant long-term wealth for its investors in that time.
Also, the ETF gives investors broad exposure to all facets of the U.S. technology sector while having an Outperform-equivalent ETF Smart Score of 8 and a Moderate Buy rating from analysts. The only real downside is its expense ratio, which while reasonable, is higher than those of its larger competitors. Nonetheless, IYW's long-term performance and proven track record make it a solid choice for investors to consider adding to their portfolios.
Disclosure
The cable industry has lost about 25 million subscribers over the last five years and cord-cutting seems to be accelerating. The bundle that drove record profits for media companies is evaporating before our eyes. But that doesn't mean media is going anywhere and with streaming p
Apple and other
smartphone makers turned down revenue-sharing agreements that
would have helped Microsoft's Bing search engine and instead
kept Google as the default search engine, a Microsoft
executive testified on Thursday.
A $16 billion JP Morgan fund, expected to reset its options positions on Friday, is drawing traders' attention as a potential source of additional volatility at the end of the worst month for U.S. stocks this year.
The markets are bouncing between positive and negative territory early in September's penultimate trading day. Barring a massive move today or Friday, the S&P 500 will finish the month significantly lower than it started.
A Microsoft executive testified on Thursday that Apple and other smartphone makers turned down revenue sharing agreements that would have helped his company's Bing search engine - keeping Google in its dominant position on those devices as the default search engine.
Reportedly, in a bid to bring advancements to Chromebooks, Alphabet’s GOOGL Google is rolling out ChromeOS 117.Notably, ChromeOS includes Material You and other usability improvements.The Material You redesign in Quick Settings fe