This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Key Strategies for ETF Growth Investors

NEW YORK (Fabian Capital Management) -- Growth investors have benefited from the resiliency of stocks for quite some time now. The SPDR S&P 500 ETF (SPY) has traded above its 200-day moving average for 16 straight months and nearly every modest dip is bought with gusto.

However, many investors are starting to notice swirling currents beneath the surface that threaten to change the path to profits moving forward.

In 2013 the hot tickets were small-cap stocks, biotechnology companies and solar names, which all produced market-beating returns. However, the market leadership has changed dramatically in just the first three months of 2014. We are starting to see a confirmed shift to defensive areas of the market that have altered sector momentum and may perhaps even lead to more volatility.

Fortunately, there are a number of key strategies you can employ that will allow you to get out ahead of this near-term volatility and thrive as a result.

1. Value beating growth

Last year investors all focused on growth stocks that were posting fantastic gains despite valuations becoming stretched. However, the shift in strength this year has led to considerable outperformance in value stocks. The chart below shows how the iShares S&P 500 Value ETF (IVE) has begun to pick up momentum versus its counterpart in the iShares S&P 500 Growth ETF (IVW).

This move is characteristic of a shift to stalwart dividend paying companies such as utilities, telecommunications, and even large-cap technology firms with cash-rich balance sheets. My favorite exchange-traded fund to play this value opportunity is through the First Trust Nasdaq Technology Dividend ETF (TDIV). This ETF is chocked full of technology and telecommunication stocks with large cash positions, mature business models, and established dividend histories.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%
YHOO $44.45 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs