Aggregate bond Index and one reason the fund has held up better than the Agg over the past 12 months. The ETF's duration is lower than the duration of the Bloomberg U.S. The actively managed Fidelity Total Bond ETF ( FBND, $47.51) sports a duration – a measure of interest-rate sensitivity – of 6.1 years, which implies a 6.1% drop in the fund's net asset value if rates rise by one percentage point over the course of one year. Kip ETF 20 classification: Core bond fundīecause bond prices fall when interest rates rise, it's no surprise that bond funds have had a tough go lately.The fund has lost 39.3% over the past 12 months. Also, super-high gas and oil prices may revive consumer interest in alternative energy sources.įor those with a long investment time horizon and steely nerves, it's a good time to get in. Governments around the world are creating policies to boost the use of renewable energy, and 'that's a favorable backdrop for any sector,' says Invesco's Bloom. Don't lose perspective: Though the ride may be rough, renewables are the future. That's why we like the Invesco WilderHill Clean Energy ETF ( PBW, $50.44), which tracks an index of companies focused on solar and wind power, advanced energy storage, cleaner fuels and biofuels, and innovative power delivery and energy conversion.īut for more than a year now, clean-energy stocks have been out of favor as rising oil prices have turned investors' attention back to traditional energy stocks. It will take multiple sources of clean energy to get to a net-zero economy, when carbon emissions are balanced by absorption. The current yield, then, isn't indicative of what an investor should expect year in and year out. * PBDC pays out a variable annual distribution. Over the past three years, this fund has delivered an 18.4% return, which beat 85% of its peers. That means instead of primarily using futures contracts to get exposure to a basket of commodities (including zinc, crude oil, gold, corn and aluminum, among others), the fund uses other financial derivatives that make it simpler for investors at tax time. It's the biggest, most liquid commodities ETF available.Īs its name suggests, the fund avoids the troublesome K-1 form, a tax form the IRS issues annually for an investment in a partnership. Take advantage of any pauses to ease a small portion of your portfolio into the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF ( PDBC, $17.53) over time. Kip ETF 20 classification: Strategic stock fundĬommodity prices may take a breather after running hot in recent months, but they are expected to pick up again in 2023.Healthcare company Novo Nordisk ( NVO) and materials firms BHP Group ( BHP) and Anglo American were top holdings at last report. Although this ETF has lagged the MSCI EAFE Index over the past 12 months, its three- and five-year returns beat the pants off the benchmark. Holdings are weighted by payout – the bigger the dividend, the bigger the stock's share of the fund's assets. And the promise of muted stock market returns in the future means dividends will matter even more. Its focus on high-quality companies with dependable profits will help in a recession. And the war in Ukraine has weighed on European markets, where 44% of this ETF's assets are invested.īut the fund has a few things going for it in the near term. Growth-oriented stocks are out of favor, which has been a drag on the WisdomTree Global ex-US Quality Dividend Growth Fund's ( DNL, $32.60) performance since the start of the year.

Kip ETF 20 classification: Dividend stock fund.(The ETF holds six energy stocks, which make up 3.8% of the portfolio the S&P 500 includes 21 energy stocks, which account for 4.6% of the index.) But over the past three years, MSCI USA ESG Select's 11.6% annualized return beat the S&P 500, which has a three-year annualized return of 10.3%. Over the past 12 months, the fund has lagged the S&P 500, in part because traditional energy companies have flourished and the fund holds only a handful. The portfolio doesn't own businesses involved in firearms or other weapons, fossil fuel extraction, thermal coal power, alcohol or tobacco. The 171 stocks in the iShares MSCI USA ESG Select ETF ( SUSA, $85.94), on average, fetch triple-A sustainability ratings, the highest score available from index provider and ESG-rating firm MSCI. Kip ETF 20 classification: Core stock fundĬompanies that score well on environmental, social and corporate governance (ESG) measures let you align your values with your investments, but they may also outperform the broad market over time, according to fans of ESG investing strategies.

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