For immediate release
Chicago, IL – March 23, 2022 – Zacks.com announces the list of ETFs featured in the Analyst Blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. ETFs and stocks recently featured in the blog include: iShares US Dividend And Buyback ETF DIVB, Invesco Buyback Achievers Portfolio PKW, Technology Select Sector SPDR ETF XLK, Financial Select Sector SPDR ETF XLF, Consumer Discretionary Select Sector SPDR ETF XLY, Apple AAPL, Meta FB, Alphabet GOOGL, Bank of America BAC and Microsoft MSFT.
Here are the highlights from Tuesday’s analyst blog:
ETFs to see record redemptions from the S&P 500 in the fourth quarter
US corporate buyout announcements hit a record high in the fourth quarter of 2021. There were stock buybacks worth $270.1 billionup 15.1% from record spending of $234.6 billion in Q3 2021 and 106.8% from $130.6 billion in Q4 2020, according to data from the S&P Dow Jones Indices.
As many as 325 companies announced share buybacks of at least $5 million during the quarter, compared to 309 in Q3 2021 and 244 in Q4 2020. Apple led the way with its $23.4 billion buyback. dollars, up 14.3% from $20.4 billion in Q3. of 2021. Other companies that followed Apple were Meta, Alphabet, Bank of America and Microsoft.
In short, technology (with approximately $74.9 million and representing 27.7% of the total S&P 500 buyback) and financials (with $51.5 million in buyback and representing approximately 19.1% of the total) took the top two spots in the buyout. Communication Services (approximately $43.3 million and 16.0%), Consumer Discretionary ($30.9 million and 11.4%) and Health Care (approximately $21.8 million and 8 .1%) took the next three places.
Not only redemptions, but dividend payouts have also been strong. S&P 500 dividends in the fourth quarter of 2021 rose 3% to a record $133.9 billion from $130.0 billion in the third quarter of 2021 and were 10.1% higher than 121.6 billion recorded in the fourth quarter of 2020. For 2021, dividends reached a record $511.2 billion, up 5.8% year-over-year. Total shareholder return on redemptions and dividends reached a record $404.0 billion in the fourth quarter of 2021, up 10.8% sequentially and 60.2% year-on-year other.
Focus on ETFs
Against this backdrop, investors can keep an eye out for the following buyout ETFs.
iShares US Dividend And Buyback ETF
The underlying Morningstar US Dividend and Buyback Index is comprised of US stocks with a history of dividend payments and/or share buybacks. The fund charges 25 basis points in fees.
Invesco Buyout Achievers Portfolio
The product seeks to track companies that have implemented a net reduction of 5% or more in outstanding shares over the past 12 months. The fund charges 64 basis points in fees.
Technology Select Sector SPDR ETF
The underlying Technology Select Sector Index includes companies from the following sectors: computers and peripherals; Software; diversified telecommunication services; communications equipment; semiconductor and semi-conductor equipment; Internet software and services; IT services; wireless telecommunications services; electronic equipment and instruments; and office electronics. The Zacks Rank #1 (Strong Buy) fund charges 10 basis points in fees.
SPDR Selected Financial Sector ETFs
The underlying Financial Select Sector Index aims to provide an effective representation of the financial sector of the S&P 500 Index. This Zacks Rank #1 ETF XLF charges 10 basis points in fees.
SPDR Consumer Discretionary ETFs
The underlying Consumer Discretionary Select Sector Index aims to provide an effective representation of the Consumer Discretionary sector of the S&P 500 Index. This Zacks Rank #2 ETF XLY charges 10 basis points in fees.
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Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. To visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.
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Bank of America Corporation (BAC): Free Stock Analysis Report
Apple Inc. (AAPL): Free Inventory Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Meta Platforms, Inc. (FB): Free Stock Analysis Report
Selected Financial Sector SPDR ETFs (XLF): ETF Research Reports
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Alphabet Inc. (GOOGL): Free Stock Analysis Report
SPDR Consumer Discretionary ETFs (XLY): ETF Research Reports
Invesco BuyBack Achievers ETF (PKW): ETF Research Reports
iShares US Dividend and Buyback ETF (DIVB): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
