FundX Strategist Jason Browne’s Take on Five Funds & ETFs

July 5, 2018

Is this a good time to own dividend funds? What about emerging markets or bond funds? 

On the MoneyLife Show with Chuck Jaffe, FundX Chief Investment Strategist Jason Browne answered listener questions about five stock and bond funds and ETFs.

You’ll find out which fund is in the market’s sweet spot and which fund Jason would absolutely avoid at this point.

Get FundX Jason Browne’s Take on Five Funds & ETFs

1. iShares Select Dividend (DVY)

“As interest rates go up, funds that are focused on high dividend payers face a major headwind and they’re really doing very poorly. I’d say sell and keep your eyes open for when it might do well in the future, but I wouldn’t want to be there now and I’m glad we don’t own it today.”

2. iShares Russell 1000 Growth (IWF)

“This is a fund that we own and consider a core position. This is tilted toward growth stocks and growth has been the sweet spot of the market. We own it and we continue to buy it.”

3. Vanguard FTSE Emerging Markets ETF (VWO)

“We love this ETF when we buy emerging markets. Unfortunately, emerging markets haven’t been in favor so I’d say sell for now and keep it on your radar for some time in the future.”

4. Fidelity Floating Rate High Income (FFHRX)

“This particular space has been kind of a safe haven for a rising-rate environment. Because as the Fed raise rates, the loans inside this portfolio see rate increases, and so funds like this have been doing well and should continue to do well,” Jason said.

“We own this in our Flexible Income portfolio. The one caveat to keep in mind is that no trend lasts forever. If we do reach a point where higher interest rates start to cause difficulties for some of the companies that are issuing this debt, you could see a rise in defaults and that would hurt the fund. For now, it’s a buy.”

5. Vanguard Total Bond Market Index Fund (VBMFX)

“I think it’s critical that people have fixed income in their portfolio to buffer downturns in the market and help them generate income, but this is absolutely the place that I’d avoid currently. This is a sell.”

Listen to Jason’s full interview here

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