{"id":110637,"date":"2024-10-05T10:14:00","date_gmt":"2024-10-05T03:14:00","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=110637"},"modified":"2024-10-05T10:14:00","modified_gmt":"2024-10-05T03:14:00","slug":"us-dividend-etfs-bask-in-investor-attention-after-jumbo-fed-rate-cut","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=110637","title":{"rendered":"US dividend ETFs bask in investor attention after jumbo Fed rate cut"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p>By Suzanne McGee<\/p>\n<p>(Reuters) &#8211; U.S. exchange-traded funds (ETFs) that invest in dividend-paying stocks have enjoyed a rush of inflows since the Federal Reserve kicked off its rate cutting cycle last month, though a jump in U.S. Treasury yields could slow the deluge of investor funds.<\/p>\n<p>The group of 135 U.S. dividend ETFs tracked by Morningstar pulled in $3.05 billion in September, the same month the Fed cut interest rates by 50 basis points, its first reduction since 2020. That compares to average monthly inflows of $424 million in the first eight months of 2024.<\/p>\n<p>Their newfound popularity has been driven by investors seeking income-generating products ahead of declines in yields that are expected to occur as the Fed continues cutting interest rates.<\/p>\n<p>&#8220;The pivot in monetary policy translates into cash looking for new homes, and dividend-yielding stocks will be one of the beneficiaries,&#8221; said Nick Kalivas, head of factor and equity ETF strategy at Invesco.<\/p>\n<p>Whether the trend continues remains to be seen: benchmark 10-year Treasury yields have shifted higher in recent weeks and hit two-month highs on Friday, after a blowout U.S. employment number pointed to a resilient economy that likely does not need the Fed to deliver more large cuts this year.<\/p>\n<p>Still, Josh Strange, founder and president of Good Life Financial Advisors of NOVA, said the revival of interest in dividend stocks is a reaction to rising valuations in sectors such as tech as well as in broader markets, in addition to shifts in monetary policy.<\/p>\n<p>At 21.5 times future 12-month earnings estimates, the S&amp;P 500&#8217;s valuation is near its highest level in three years and is well above its long-term average of 15.7, according to LSEG Datastream.<\/p>\n<p>&#8220;The S&amp;P 500 has become increasingly concentrated in just a few names, and the momentum has all concentrated around AI, making these stocks look frothy,&#8221; Strange said.<\/p>\n<p>Yields offered by dividend ETFs vary by strategy, but can range from just under 2% to as much as 3.6%. By comparison, benchmark 10-year Treasuries yield fell to around 3.6% in September.<\/p>\n<p>Energy and financial stocks often appear in dividend ETFs, including Chevron Corp., JP Morgan Chase and Exxon Mobil. But they also feature pharmaceutical companies like Proctor &amp; Gamble, utilities such as Verizon (VZ.N&gt; or Southern Co. and retailers like Home Depot.<\/p>\n<p>&#8220;If you seek out high dividend payouts, you&#8217;re making a tradeoff: you also want to own companies that will grow and be capable of increasing those payouts,&#8221; said Sean O&#8217;Hara, president of Pacer ETFs, discussing the outlook for dividend ETFs and related products in the latest edition of Inside ETFs.<\/p>\n<p><button class=\"link caas-button readmore-button-finance collapse-button readmore-button-class\" data-ylk=\"elm:readmore;slk:Story continues\"><span class=\"readmoreButtonText\">Story continues<\/span><\/button><\/p>\n<p>To lessen the risk of owning companies with deteriorating fundamentals, Pacer builds ETF portfolios based on companies&#8217; free cash flows, such as the $24.8 billion Pacer US Cash Cows ETF, launched in 2016. It has attracted $7.1 billion in inflows in the last 12 months.<\/p>\n<p>(Reporting by Suzanne McGee; Editing by Ira Iosebashvili and Deepa Babington)<\/p>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/finance.yahoo.com\/news\/us-dividend-etfs-bask-investor-222121399.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Suzanne McGee (Reuters) &#8211; U.S. exchange-traded funds (ETFs) that invest in dividend-paying stocks have enjoyed a rush of inflows since the Federal Reserve kicked off its rate cutting cycle &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=110637\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-110637","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/110637","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=110637"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/110637\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=110637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=110637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=110637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}