Should you invest in preferred stock funds?
Is it time to buy back into Europe ETFs?
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 August 9, 2016.
Get her take on small-caps, Europe, preferred stocks and clean energy funds and ETFs:
1. Hodges Small Cap (HDPSX)
“This fund tends to do well when small-caps are in favor, but small-caps have only recently turned up. Right now another Hodges fund—Hodges Fund (HDPMX)—is doing better and is ranked as a Buy [in the August issue of NoLoad FundX].”
2. Vanguard FTSE Europe (VGK)
“We’ve had periods when we were largely international, and international funds will come back eventually, but with the strength of the dollar and the turmoil overseas, most international funds have been struggling.”
VGK is no exception: “When Europe is in favor, it’s been a core holding for us. We like this fund when Europe is doing well, but right now, it is not. It’s a Sell.”
3. PowerShares Preferred (PGX)
“Preferred stocks have been very popular because they offer significantly higher yields than stocks. We own PGX as part of our Flexible Income portfolios, and it’s a Buy.”
4. iShares S&P Global Clean Energy (ICLN)
“I love the idea of investing in clean energy, but this fund is very volatile. I’m a huge supporter of diversified ESG funds, like iShares MSCI USA ESG ETF (KLD), which is up about 7% while this targeted iShares Clean Energy fund is down 11%, so I’d say sell ICLN and find an alternative that is also a sustainable responsible fund but a bit more diversified.”