Catastrophic events in Japan left the world in shock, and brought an economic powerhouse to a temporary standstill seems to have had little impact on US equities as the immediate drama dies down. North Africa and the Middle East still have the possibility of exploding.
Despite everything, US growth appears to be still on track. Labor markets and last quarter's GDP 3.1% shows the economy is moving in the right direction despite consumer sentiment being on the low side which is to be expected with current events.
US ASSETS CLASS RETURNS
In US Equities, Large Cap Value is towards the bottom of the table as investors are looking for more risk with higher returns. However, in the light of current events and evidence of risk, large cap (safe) and value (higher return) may be an interesting compromise. Over the past five years US LARGE CAP GROWTH (ETF) has the highest 5 year returns and US MID CAP VALUE (ETF) the highest one year return.
|
Description |
Symbol |
1 Yr |
3 Yr |
5 Yr |
1 Yr Sharpe |
|
SPDR Dow Jones Industrial Aver |
12.09% |
0.73% |
3.17% |
72.34% |
|
|
Vanguard Dividend Appreciation |
11.54% |
3.01% |
NA |
69.21% |
|
|
Vanguard Value ETF |
11.43% |
-0.38% |
1.43% |
62.67% |
|
|
iShares Dow Jones Select Divid |
11.23% |
-1.78% |
-1.82% |
73.78% |
|
|
iShares Russell 1000 Value Ind |
11.04% |
-1.14% |
0.29% |
59.07% |
|
|
iShares S&P 500 Value Index |
10.73% |
-1.73% |
-0.29% |
55.86% |
|
|
SPDR S&P Dividend |
8.88% |
3.44% |
2.12% |
54.49% |
This chart shows the top large cap value ETFs based on volume and return. Without sufficient volume, any ETF can suffer low liquidity or high trading friction.
The best performers in the US Large cap value stocks are:
1. SPDR Dow Jones Industrial Aver (DIA)
2. Vanguard Dividend Appreciation (VIG)
DIA is star performer in terms of return the 1 year returns are 12.09 % with an average volume of 7.8 million. The 5 year yields are also the highest at 3.17% giving us added confidence.
VIG is the second best perfomer with the return of 11.54% in year although the VIG is a new ETF being in market for less than 5 years the overall performance is very good the three year yields are 3%.
The large cap value ETF are those whose values are above that $10 billion, the size of these ETF's give them the favourable advantage in the event of volatile period as these fund related investments are less riskier due to the change in terms of environmental factor.
Currently they are out of favour with those who are looking for return but in these days of increasing risk awareness, perhaps they will come back into fashion.
Disclosure:
MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.
Symbols:DIA,DVY,IVE,IWD,SDY,VIG,VTV,SPY,VTI,
Symbols: DIA, DVY, IVE, IWD, SDY, VIG, VTV, SPY, VTI
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