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Why Dividend ETFs, REIT ETFs, And Low-Volatility ETFs Still Work

Published Wed, 16 Oct 2019 17:48:57 -0400 on Seeking Alpha

Many investors are aware that the current economic expansion is the longest in U.S. history. 10 years and six months.
Some believe that the growth does not need to end. Ever. They quip, “Economic expansions don’t die of old age.”
Others wonder if the business cycle will end soon. After all, every decade on record has experienced at least one recession.

The problem with focusing on when the next recession will occur? It assumes that asset prices decline dramatically because an economy shrinks. That has not been the case in the 21st century.
Here in the 21st century, causation has been turned on its head. Recessions did not cause stocks, bonds and real estate to get crushed; rather, asset price decimation caused the recessions that transpired.
Consider the 2001 recession. It came about due to the bursting of the tech bubble in March of 2000. Severe stock price depreciation, particularly in dot-com names, led to the layoff of millions of employees and to a painful pullback in consumer spending. Indeed, a vicious bear had been clobbering stocks for a full year prior to the 2001 recession.
What about the Great Recession (12/2007-5-2009)? The housing bubble actually burst in the first quarter of 2007, 10 months prior to the December time stamp. What’s more, it wasn’t until late in the 3rd quarter of 2008 that recessionary pressures were being acknowledged.

Voting members of the Federal Reserve understand this 21st century dynamic. Not... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
SPDR S&P DIVIDEND ETF 103.80   0.0 0.00 2.42 2.36
PROSHARES ULTRAPRO SHORT S&P 500 25.26   0.0 0.00 0.00 2.32
SPDR DOW JONES INDUSTRIAL AVERAGE ETF TRUST 272.32   0.0 0.00 5.67 2.10
PROSHARES ULTRASHORT S&P 500 28.97   0.0 0.00 0.00 1.97
SPDR S&P 500 ETF 301.29   0.0 0.00 5.42 1.82
POWERSHARES QQQ TRUST SERIES 1 193.23   0.0 0.00 1.49 0.78

SPDR S&P DIVIDEND ETF - SDY
SPDR S&P DIVIDEND ETF - SDY  


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Buy Dividends, Not Buybacks
Dividend Growth Investing Doesn't (Necessarily) Work
Performance Of Dividend ETFs During The Crash
DGRO: Here's Why This Is Our Top-Pick Among Dividend Growth ETFs
Reduce Volatility With High Yield - The Income Method
No Dividend-Strategy ETFs Are Dividend Champions, But There Is One Contender
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