Stocks have made some nice gains from the October 2022 lows and remain within spitting distance of the recent peak in August last year. In fact, the S&P 500 index is up about +20% from the October lows, prompting some to sugge
U.S. stocks pared gains on Friday, with the S&P 500 fighting to stay firmer as a Tesla rally failed to galvanize the broader market on the eve of the Federal Reserve's policy meeting and inflation data next week.
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 689,082 contracts have traded so far, representing approximately 68.9 million underlying shares. That amounts to about 115.9%
The S&P 500 and Nasdaq hit fresh 2023 highs on Friday before paring some gains, as a jump in Tesla and technology stocks outweighed jitters around the Federal Reserve's policy outcome and inflation data next week.
Apple and Amazon.com must face a consumer antitrust lawsuit in U.S. court accusing them of conspiring to artificially inflate the price of iPhones and iPads sold on Amazon's platform, a federal judge in Seattle ruled on Thursday.
The Invesco Dow Jones Industrial Average Dividend ETF is seeing unusually high volume in afternoon trading Friday, with over 245,000 shares traded versus three month average volume of about 39,000. Shares of DJD were off about 0.2% on the day.
The unveiling of a new “mixed-reality” headset from Apple Inc. (AAPL) is more than just a news blurb — it could be a make-or-break moment for the iconic tech company.
Netflix NFLX is expanding its international content portfolio with the launch of the Swedish drama thriller, A Day and a Half, set to be released on Sep 1.The movie is directed by Fares Fares (of Westworld and Chernobyl fame), who
The S&P 500 and Nasdaq hit fresh 2023 highs on Friday as Tesla shares jumped following a tie-up with General Motors, while investors awaited inflation data and U.S. monetary policy decision due next week.
There's a buzz on Wall Street and in the tech world surrounding Apple (NASDAQ: AAPL) right now after its Worldwide Developers Conference (WWDC) on June 5.
Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum an
We don't yet live in a cashless society, but digital methods of payments and the broader fintech industry have been on the rise, and that trend is likely to continue for a while. According to some estimates, the fintech industry will be worth $1.5 trillion by 2030, up from $245 b
U.S. stock index futures slipped on Friday, a day after the benchmark S&P 500 marked a 20% rally from lows, while inflation data and U.S. monetary policy decision due next week kept investors on their toes.
If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Invesco FTSE RAFI US 1000 ETF (PRF), a passively managed exchange traded fund launched on 12/19/2005.
Even after falling 10% so far in 2023, shares of the cell tower owner American Tower (NYSE: AMT) have essentially performed as well as the S&P 500 index over the past 10 years. The stock would have turned a $10,000 investment in 2013 into $29,000 with dividends reinvested. Th
Technology stocks rebounded strongly in 2023, delivering solid returns on a year-to-date basis. Taking advantage of this price appreciation, corporate insiders sold shares of (
NASDAQ:NVDA
), Apple (
NASDAQ:AAPL
), Microsoft (
NASDAQ:MSFT
), and Meta (
NASDAQ:META
), according to our
Insiders Trading Activity tool.
Before we move ahead, it is important to highlight that insider selling of stocks does not always indicate a bad sign. However, keeping a tab on insiders’ activities can help retail investors make informed investment decisions.
Coming back to tech stocks, the recent rally has already raised concerns about the valuation and the possibility of a downturn or a correction, especially amid a weak macro backdrop. Several top investment firms, including Morgan Stanley, have
warned of a sharp pullback in shares of technology companies.
Whether tech stocks could witness a correction remains a wait-and-see story. However, retail investors should take caution due to recent insider selling, notable price appreciation, and warnings from market pundits.
Against this backdrop, let’s look at what TipRanks’ Insider Trading Activity tool indicates about these stocks.
What is the Prediction for Nvidia Stock?
Nvidia stock has gained about 164% year-to-date on the back of solid demand for its
AI (Artificial Intelligence)-led chips. Our data shows that four insiders made five Sell transactions in NVDA stock. Meanwhile, three insiders sold shares of Nvidia in June.
Harvey Jones, director at Nvidia, recently sold shares worth 28.43M. Overall, corporate Insiders sold NVDA shares worth $70.7M in the last three months. Further, the stock has a negative signal from insiders.
Nonetheless, Wall Street analysts are bullish about
NVDA stock. It has received 32 Buy and four Hold recommendations for a Strong Buy consensus rating. Meanwhile, analysts’ average price target of $449.92 implies 16.83% upside potential.
Is AAPL a Good Stock to Buy Right Now?
Like NVDA, insiders sold AAPL stock in the last three months. Per the
Insider Trading Activity tool, six insiders sold AAPL stock in 12 transactions in May 2023. Additionally, it is worth mentioning that three insiders have conducted sell transactions thus far in June.
Overall, insiders sold AAPL shares worth $709K in the past three months, with
Chris Kondo, its Senior Director of Corporate Accounting, selling shares of an estimated value of $708.98K last month.
While
Apple stock has a negative signal from insiders, it commands a Moderate Buy consensus rating based on 23 Buy, six Hold, and one Sell recommendations. Analysts’ average price target of $186.53 implies 3.3% upside potential from current levels.
Is Microsoft a Buy, Sell, or Hold?
Insiders sold MSFT shares worth $15.6M in the last quarter.
Three insiders sold MSFT stock in seven transactions in May 2023. Further, two insiders have made three sell transactions so far in June. MSFT has a negative call from our Insider Trading Activity tool.
While insiders reduced their exposure to
MSFT stock, Wall Street analysts maintain their bullish view. It has received 30 Buy, four Hold, and one Sell recommendations for a Strong Buy consensus rating. Further, these analysts’ average price target of $344.30 implies 5.6% upside potential.
What is the Price Target for Meta?
Meta Platforms stock, which has gained about 120% year-to-date, also has a negative signal from insiders. Per the
Insider Trading Activity tool, six insiders sold META stock in 12 transactions in May 2023. Meanwhile, its CTO,
Andrew Bosworth, sold META stock worth 71.94K.
Overall, insiders sold META shares worth $8.9M in the past three months.
While
META stock has a negative signal from insiders, it has a Strong Buy consensus rating based on 38 Buy and five Hold. Analysts’ average price target of $287.32 implies 8.6% upside potential from current levels.
Disclosure
Unity Software (NYSE: U) got some of its mojo back this month thanks to the announcement of Apple's (NASDAQ: AAPL) latest product -- the Vision Pro. Apple says is a "revolutionary spatial computer that seamlessly blends digital content with the physical world, while allowing user
For nearly six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been running circles around Wall Street. Through June 4, 2023, the Oracle of Omaha had overseen a 4,064,706% return in his company's Class A shares (BRK.A) since taking the reins.
U.S. stocks have defied fears of a recession, a banking crisis and soaring Treasury yields to rise 20% from their October lows - one definition of a bull market.
If you feel like everything has become increasingly political in the United States in recent years, you probably aren’t alone. Now, even investing is, in some ways, becoming political. Many consumers expect brands to have a stance on polarizing issues, and an increasing number of ETFs have been launched in recent years with the intent of allowing people to invest in companies that they believe are aligned with their political viewpoints (i.e., Republican or Democratic).
Whether this is a good or bad idea, or good or bad for the country, is a topic I will leave for the reader to decide. For now, let’s take a look at two such ETFs, each representing an opposing side of the aisle -- the
Point Bridge GOP Stock Tracker ETF (
BATS:MAGA)
and the
Democratic Large Cap Core ETF (
NASDAQ:DEMZ)
.
Two Sides of the Same Coin
These ETFs ostensibly exist to enable investors to invest based on their political viewpoints, but what does that mean in practice?
Point Bridge Capital says that it “allows you to invest in companies that align with your Republican political beliefs.” It does this by investing in up to 150 S&P 500 (
SPX
) companies “whose employees and political action committees (PACs) are highly supportive of Republican candidates.” The holdings are equally weighted so that smaller S&P 500 companies are not crowded out by the largest companies.
What does this look like on the ground? MAGA owns 150 stocks, none of which have more than a 1% weighting, so this is actually a very diversified fund. Its top 10 holdings make up a minuscule 8.4% of assets. Below, you’ll find an overview of
MAGA’s top 10 holdings using TipRanks’ holdings tool.
Holdings come from across a wide array of industries. For example, the nominal top holding is pharmaceutical giant Eli Lilly (
NYSE:LLY
), while homebuilder Pultegroup (
NYSE:PHM
), cruise line operator Carnival Corporation (
NYSE:CCL
), car auction company Copart (
NASDAQ:CPRT
), and alcoholic beverage maker Molson Coors Brewing (
NYSE:TAP
) round out the rest of the top five. In part, because it is equal-weighted, one interesting thing about MAGA is that it has a low weighting towards technology stocks compared to the S&P 500 and many broad-market ETFs.
Meanwhile, DEMZ, which is an ETF from Reflection Asset Management, invests in S&P 500 companies that have made 75% of their contributions to Democratic causes and candidates. This results in an ETF with 47 holdings, where the
top 10 holdings make up 42.2% of the fund. As you can see from the overview below, DEMZ skews more towards the tech sector than MAGA does, with a relatively large 5.4% stake in Apple (
NASDAQ:AAPL
) and top 10 positions in IBM (
NYSE:IBM
) and Nvidia (
NASDAQ:NVDA
).
Also, those who have followed the ongoing battle between Florida’s Republican governor Ron DeSantis and Disney (
NYSE:DIS
) will probably not be surprised to find that Disney is one of the ETF’s
top 10 holdings. Note that DEMZ is not an equal-weighted ETF like MAGA.
How Have These ETFs Performed?
Essentially, both ETFs use the same strategy to screen for companies that donate to political candidates or causes on opposite ends of the aisle. The process is similar, but the end result obviously ends with a different set of holdings. So, what type of results have these strategies provided for investors?
As of the end of May, MAGA had a one-year total return of -8.9% (although, keep in mind that the S&P 500 was in a bear market last year, so this result isn’t as bad as it may sound. Zooming out to a three-year time frame, MAGA has produced solid 16.6% annualized total returns for its holders. However, over a five-year time horizon, these results drop down to a 7.5% annual return.
Meanwhile, DEMZ only launched in 2020, so it doesn’t have an extensive track record, but it had a 10.5% total annualized return since inception as of the end of the most recent quarter.
Mind the Fees
These performances are solid enough (more on this later), but one thing that investors should be aware of is that
both of these ETFs have fairly high expense ratios. DEMZ has a 0.45% expense ratio, while MAGA has an ever higher 0.72% expense ratio.
Closing Thoughts
These two ETFs are opposed in terms of their political ideologies, but they employ similar approaches toward stock selection.
Both have put up fair results over the last few years, but this brings up a bigger point. While the ETFs take fairly complex, novel approaches, investors may be better off just investing in a broad-market S&P 500 or Nasdaq (
NDX
) ETF with lower fees. Remember that both of these ETFs are screening for S&P 500 stocks as a starting point, and MAGA contains nearly one-third of the S&P 500 in its portfolio.
Let’s say that you ignored the political noise and simply invested in the largest S&P 500 ETF, the
Vanguard S&P 500 ETF (
NYSEARCA:VOO)
, or the largest Nasdaq ETF, the
Invesco QQQ Trust (
NASDAQ:QQQ)
instead of MAGA or DEMZ. These ETFs have much lower expense ratios of 0.03% and 0.2%, respectively.
VOO’s expense ratio is orders of magnitude cheaper than that of MAGA or DEMZ, while QQQ’s isn’t as low but is still considerably cheaper. In year one, an investor putting $10,000 into one of these ETFs would pay just $3 in fees with VOO or $20 in QQQ versus $45 with DEMZ or $72 with MAGA. Over time, these fees can compound and make a real difference to your overall portfolio as an investor.
Beyond the fees, VOO has a solid performance track record. While it has lagged MAGA on a three-year basis with a 12.8% annualized return, it has outperformed it over a five-year timeframe with an 11% annualized return. Meanwhile, as of the end of the most recent quarter, QQQ had a three-year return of 19.8% and a five-year total annualized return of 15.7%, easily beating the competition.
Note that DEMZ has not been around for long enough to compile a three-year or five-year track record. It's also important to note that both of these ETFs are minnows in the bigger investing picture -- MAGA has $18.7 million in assets under management, while DEMZ has $23.5 million.
If, as an investor, it is truly important to you to invest in companies that donate to candidates from your side of the aisle, then these ETFs could theoretically warrant a place in your portfolio. They could also potentially be interesting as a vehicle for traders who want to use them as a way to bet on the outcomes of elections or certain legislation passing.
But beyond that, it seems like most investors would likely be better off keeping it simple via a broad-market fund like QQQ or VOO instead of making their financial futures political.
Disclosure