Zacks.com ETF Strategist Eric Dutram highlights: Invest Like the 1% with These Three ETFs - Press Releases
May 18 2012 - 3:30AM
Zacks
For Immediate Release
Chicago, IL – May 18, 2012 - Stocks
and funds in this article include: iShares S&P National
Municipal Bond Fund (MUB), Vanguard Dividend
Appreciation ETF (SDY), iShares FTSE NAREIT
Mortgage REIT ETF (REM). Eric
Dutram looks at three ETFs which can help regular investors match
the portfolio techniques that are often popular among the
ultra-rich.
Invest Like the One Percent with These Three ETFs
written by Eric Dutram of Zacks Investment Research:
With income inequality issues and
economic protests dominating the headlines as of late, the
so-called ‘one percent’ have been in focus. These wealthy
individuals—in case you have been living under a rock the past few
months—consist of the richest 1% of the populace in the country and
control a disproportionate amount of the nation’s wealth.
In fact, some reports suggest that
this small group of people possesses more than 40% of all financial
assets in the country including half of all stocks, bonds, and
funds. Furthermore, they only have just 5% of the debt and are
taking home more of the national pay than any time in the past 90
years.
Yet despite these trends and the
growing backlash against these ultra-wealthy, little seems likely
to be done in order to change the status quo. The major political
parties seem unwilling and unable to compromise on any economic
issues, especially in an election year, so it looks as though these
trends will continue at least into the foreseeable future (see more
in the Zacks ETF Center).
While this certainly isn’t good
news for those in any of the protest ‘movements’ across the
country, there are definitely ways for investors to play the
scenario. After all, many of the techniques and strategies being
used by the 1% are well known and easy to employ in a personal
portfolio and could be great choices for investors seeking to make
a similar play with their assets.
This is especially true given the
vast proliferation of ETFs over the past few years and all the
strategies that these products have opened up to regular investors.
Now, mom and pop investors can use many of the techniques that were
once reserved for the ultra rich of the country that have millions
in liquid assets (One Percenters should also read the Complete
Guide to Preferred Stock ETF Investing).
Below, we have highlighted three
ETFs in order to help people invest like the one percent. These
products look to target many of the methods that ultra-high net
worth investors have been using for years in their own portfolios,
but in a way that is accessible and cheap to buy for the ’99%’ of
investors out there.
iShares S&P National
Municipal Bond Fund (MUB)
Municipal bonds are securities that
are issued by local and state governments in order to build or
finance any number of projects ranging from infrastructure
improvements to general budget uses as well. Often times, in order
to encourage investment, these securities are exempt from federal
income tax and are often free from inclusion in AMT calculations as
well.
Since regular taxable bonds are
taxed at 35% for the top bracket, this can be a huge selling point
for rich investors who are seeking to keep their tax liabilities
low while still participating in the fixed income world. Luckily
for investors looking to apply this strategy with funds, there are
a number of muni bond ETFs available.
For the rest of this ETF
article, please visit Zacks.com at:
http://www.zacks.com/stock/news/75336/invest-like-the-one-percent-with-these-three-etfs
Disclosure: Officers, directors
and/or employees of Zacks Investment Research may own or have sold
short securities and/or hold long and/or short positions in options
that are mentioned in this material. An affiliated investment
advisory firm may own or have sold short securities and/or hold
long and/or short positions in options that are mentioned in this
material.
About Zacks
Zacks.com is a property of Zacks
Investment Research, Inc., which was formed in 1978 by Leonard
Zacks. As a PhD in mathematics Len knew he could find patterns in
stock market data that would lead to superior investment results.
Amongst his many accomplishments was the formation of his
proprietary stock picking system; the Zacks Rank, which continues
to outperform the market by nearly a 3 to 1 margin. The best way to
unlock the profitable stock recommendations and market insights of
Zacks Investment Research is through our free daily email
newsletter; Profit from the Pros. In short, it's your steady
flow of Profitable ideas GUARANTEED to be worth your time! Register
for your free subscription to Profit from the Pros
http://at.zacks.com/?id=113
Follow Eric on Twitter:
http://twitter.com/ericdutram
Join Zacks on Facebook:
http://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under
common control with affiliated entities (including a broker-dealer
and an investment adviser), which may engage in transactions
involving the foregoing securities for the clients of such
affiliates.
Visit
http://www.zacks.com/performance for information about the
performance numbers displayed in this press release.
Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before
making any investments. Nothing herein should be construed as an
offer or solicitation to buy or sell any security.
Contact: Eric Dutram
Company: Zacks.com
Phone: 312-265-9462
Email: pr@zacks.com
Visit: www.Zacks.com
To read this article on Zacks.com click here.
SPDR S&P Dividend (AMEX:SDY)
Historical Stock Chart
From Jul 2024 to Aug 2024
SPDR S&P Dividend (AMEX:SDY)
Historical Stock Chart
From Aug 2023 to Aug 2024