Harry Domash's Winning Investing



Little Known Screener Finds Hot ETFs

Are you looking for outperforming exchange-traded-funds (ETFs)?

Check out Invesco Dynamic Software Portfolio ETF (PSJ). It has returned (share price appreciation plus dividends) 29% over the past 12 months compared to 8% for the overall market, at least as gauged by the S&P 500.

Stocks Driving ETF Outperformance?

Maybe, rather than buying the Invesco ETF, you’re more interested in which stocks drove that outperformance. No problem. Its top five holdings were Cadence Design Systems (CDNS), VMware (VMW), Cerner (CERN), Activision Blizzard (ATVI) and Atlassian (TEAM).

Four More Hot ETFs

Here are the next four top performing ETFs holding mainly U.S.-based stocks based on 12-month returns. Invesco Russell MidCap Pure Growth (PXMG), up 24% over 12 months, Fidelity MSCI Telecommunications Services (FCOM), up 21%, SPDR Software & Services (XSW), up 21% and SPDR S&P Semiconductor (XSD), up 20%.

Seeking Alpha's Almost Secret ETF Screener

I used Seeking Alpha’s little-known ETF Screener to find these ETFs. If you spend much time online, you’re probably already familiar with Seeking Alpha’s main thing, which is publishing dozens of stock analysis articles daily, some written by highly-qualified stock analysts and others penned by people just like you and me.

But, you may not be aware of Seeking Alpha’s many other features, including the ETF Screener.  Find it by hovering over the Analysis dropdown menu on Seeking Alpha’s main menu (seekingalpha.com) and then selecting ETF Screener.

Using the ETF Screener

The Screener offer seven different dropdown menus to construct your own screen or you could select one of five available preset screens.

To find the ETFs described above, I specified “U.S. Equities” for Asset Class and “Performance: 12-month greater then 10%.” I also checked the boxes labeled “Exclude Leveraged’ and “Exclude Inverse” to preclude listing those specialty ETF types. 

After running a screen you can click on parameter names such as Performance, Yield, and Risk to sort the list of passing ETFs based on those factors. Clicking on an ETF ticker brings up another page offering data specific to that ETF.

Clicking on Strategy displays a surprisingly understandable description of the fund’s portfolio selection strategy. Selecting Holdings on the ETF’s menu lists its top 10 holdings. That was where I found the top five holdings for Invesco Dynamic Software that I described above.

If China Trade Talks Go Wrong

At this writing, nobody knows what’s going to happen with the U.S/China trade talks. If they end badly, the tech-heavy ETFs mentioned above will probably underperform. In that case, you might want to consider high-dividend paying ETFs.

No problem. Keep the 12-Month Performance filter set at “greater than 10%,” but also use the screener’s Yield dropdown menu to select “yield greater than 4%.”

Three ETFs for a Weak Market

The screener listed three ETFs meeting those requirements: First Trust North American Energy Infrastructure (EMLP), which pays a 4.0% dividend yield (annual dividend percent of share price) and returned 13% over the last 12 months, Legg Mason Low Volatility High Dividend (LVHD), which pays a 4.4% yield and returned 12% over 12 months, and VanEck Vectors BDC Income (BIZD), which pays a 9.4% yield and also returned 12%.

As always, past performance doesn’t predict the future. Nevertheless, Seeking Alpha’s ETF Screener could be a good resource for pinpointing ETFs research candidates.

published 5/15/19

Questions or comments about this site: click here

Winning Investing

199 Quail Run Road  Aptos, CA 95003

(Aptos is 'the beach' for Silicon Valley)

(800) 276-7721    (831) 685-1932   

 Popular Dividend Detective Links
Free Cash Flow: Best & Worst Monthly Dividend Stocks
 Preferred Stocks Best Closed-End Funds

About Harry Domash

Click here to read a recent interview.