FundX President Janet Brown’s Take on 5 Funds & ETFs

May 5, 2016

moneylifeshow-imageIs now a good time to own dividend ETFs? Are emerging market funds back in favor?

FundX President Janet Brown answered these questions and more from investors from across the country on the “Hold it or Fold it” segment of the MoneyLife Show with Chuck Jaffe on April 26, 2016.

Get Janet’s take on five funds and ETFs – and find out which ETF Janet would avoid at all costs.

PowerShares QQQ (QQQ)

“This ETF is not for the faint of heart. It’s a little more speculative than the S&P 500. But we love to own it when it’s highly ranked, and we’ve held it for a year and a half.” Note: We held QQQ in NoLoad FundX’s model portfolios since August 2014, and during this time, it gained 13%. But it dropped in our ranks in May 2016 and was replaced.

iShares Select Dividend (DVY)

“We own it, and I would still buy it. It has a lot of utilities, but it is actually quite diversified, and it offers a yield nearly two times the 10-year Treasury right now. We consider it a core fund and continue to hold it.”

Pax Small Cap Fund (PXSCX)

“Pax does such great work from an ESG [environmental, social and governance] advocacy perspective, which is an area I’m personally passionate about. Pax Small Cap is a good fund, but there are other Pax funds that I prefer. Pax Global Environmental Markets (PGRNX) takes similar risk but it has had stronger recent returns.”

Vanguard Emerging Markets (VEMAX)

“Emerging markets have finally started to bounce after being out of favor for years, but we think it’s a little early to buy in. When it’s in favor, we typically go for the ETF version, VWO, which tracks the same index. I’d watch it for now, but I would not buy it yet.”

WisdomTree Middle East Dividend ETF (GULF)

“I’d avoid this one at all costs. I know it can be tempting to focus on niche funds like this but I’d absolutely avoid this one. It’s extremely volatile, very small, poor performing and doesn’t trade very well. I’d say, sell it if you own it and avoid it if you don’t.”

Click below to listen to Janet’s full interview:

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