Nvidia Earnings Meets Jackson Hole: 2 ETF Trades for an AI Boom Facing Higher Rates
Facing an AI boom and higher rates? Explore top ETF trades across semiconductors and floating-rate bonds following Nvidia earnings.
Economy · News reference
A stronger-than-expected August jobs report revived Fed rate-hike bets. Here’s why rate-sensitive ETFs could quietly emerge as surprise winners.
Reference Details
Poisar stores the source's headline, summary and market tags for reference. Reporting and full article text remain with the original publisher.
Keep reading
Facing an AI boom and higher rates? Explore top ETF trades across semiconductors and floating-rate bonds following Nvidia earnings.
ETF investors poured $3.2 billion into ETFs, led by U.S. equities and Treasuries, while gold ETFs GLD and IAU saw roughly $440 million in combined outflows.
First Trust Large Cap Value AlphaDEX ETF (FTA) is a passively managed ETF with $1.43 billion in assets offering exposure to large cap value stocks. With a 0.58% expense ratio, it is relatively expensive compared to alternatives. The ETF has performed well with 20.51% gains year-to-date and 26.5% over the past year, but carries a 'Hold' rating. Cheaper alternatives like Vanguard Morningstar Value ETF (VTV) and Schwab U.S. Dividend Equity ETF (SCHD) offer similar exposure with significantly lower expense ratios.
The article provides an in-depth analysis of the Invesco Large Cap Value ETF (PWV), a smart beta ETF launched in 2005 with $1.86 billion in assets. PWV tracks the Dynamic Large Cap Value Intellidex Index with a 0.55% expense ratio and 1.62% dividend yield. The fund has delivered 23.94% returns year-to-date and 28.7% over the past year, with a beta of 0.71 indicating medium risk. Top holdings include Bank of America, JPMorgan Chase, and AbbVie, with heavy exposure to Financials (33.3%). The article also compares PWV to alternatives like SCHD and VTV, which offer lower expense ratios.
LVHD is a smart beta ETF launched in 2015 that tracks the QS Low Volatility High Dividend Index, offering exposure to profitable U.S. companies with high dividend yields and lower volatility. With $622.94 million in assets, a 0.27% expense ratio, and a 3.37% dividend yield, it has returned 12.79% year-to-date and 11.47% over the past year. However, cheaper alternatives like SCHD and VTV offer lower expense ratios and significantly larger asset bases.
Gainers Symbol Name Price Change ($) Change (%) Volume (NYSE:XLK) State Street Technology Select Sector SPDR ETF 186.41 0.44 0.23 61.4K Losers Symbol Name Price Change ($) Change