KBW Announces Index Rebalancing for Third-Quarter 2019

This quarter, there are constituent changes within three of our indexes, including the KBW Nasdaq Financial Technology Index (Index Ticker: KFTX), …

NEW YORK, Sept. 13, 2019 (GLOBE NEWSWIRE) — Keefe, Bruyette & Woods, Inc., a full‐service, boutique investment bank and broker‐dealer that specializes in the financial services sector and a wholly owned subsidiary of Stifel Financial Corp. (SF), announces the upcoming index rebalancing for the third quarter of 2019.

This quarter, there are constituent changes within three of our indexes, including the KBW Nasdaq Financial Technology Index (Index Ticker: KFTX), the KBW Nasdaq Financial Sector Dividend Yield Index (Index Ticker: KDX), and the KBW Nasdaq Bank Index (Index Ticker: BKX).

These changes will be effective prior to the opening of business on Monday, September 23, 2019.

As part of this rebalancing, below are the component level changes across various indices:

KBW Nasdaq Financial Technology Index (Index Ticker: KFTX, ETF Ticker: FTEK.LN)
Add (1): RealPage, Inc. (RP)
Delete (1): Total System Services, Inc. (TSS)
KBW Nasdaq Financial Sector Dividend Yield Index (Index Ticker: KDX, ETF Ticker: KBWD)
Delete (1): Oritani Financial Corp. (ORIT)
KBW Nasdaq Bank Index (Index Ticker: BKX; ETF Ticker: KBWB)
Add (1): CIT Group Inc. (CIT)
Delete (1): SunTrust Banks, Inc. (STI)

Several of the KBW Nasdaq indices have tradable exchange‐traded funds licensed: KBW Nasdaq Bank Index (Index Ticker: BKXSM, ETF Ticker: KBWBSM); KBW Nasdaq Capital Markets Index (Index Ticker: KSXSM); KBW Nasdaq Insurance Index (Index Ticker: KIXSM); KBW Nasdaq Regional Banking Index (Index Ticker: KRXSM, ETF Ticker: KBWRSM); KBW Nasdaq Financial Sector Dividend Yield Index (Index Ticker: KDXSM, ETF Ticker: KBWDSM); KBW Nasdaq Premium Yield Equity REIT Index (Index Ticker: KYXSM, ETF Ticker: KBWYSM); KBW Nasdaq Property and Casualty Insurance Index (Index Ticker: KPXSM, ETF Ticker: KBWPSM); KBW Nasdaq Global Bank Index (Index Ticker: GBKXSM); KBW Nasdaq Financial Technology Index (Index Ticker: KFTXSM, ETF Ticker: FTEK.LNSM).

Not all of the listed securities may be suitable for retail investors; in addition, not all of the listed securities may be available to U.S. investors. European investors interested in FTEK LN can contact Invesco athttps://etf.invesco.com/gb/private/en/product/invesco-kbw-nasdaq-fintech-ucits-etf-acc/trading-information. U.S. investors cannot buy or hold FTEK LN. An investor cannot invest directly in an index.

About KBW

KBW (Keefe, Bruyette & Woods, Inc., operating in the U.S., and Stifel Nicolaus Europe Limited, also trading as Keefe, Bruyette & Woods Europe, operating in Europe) is a Stifel company. Over the years, KBW has established itself as a leading independent authority in the banking, insurance, brokerage, asset management, mortgage banking and specialty finance sectors. Founded in 1962, the firm maintains industry‐leading positions in the areas of research, corporate finance, mergers and acquisitions as well as sales and trading in equities securities of financial services companies.

Media Contact

Neil Shapiro, (212) 271-3447

shapiron@stifel.com

Related Posts:

  • No Related Posts

US Stock ETFs Wobble as Traders Look to Rate Cuts Ahead

U.S. markets and stock ETFs ended flat after Monday as traders vacillated on the likely outcome in the direction of monetary policy from the Federal …

U.S. markets and stock ETFs ended flat after Monday as traders vacillated on the likely outcome in the direction of monetary policy from the Federal Reserve’s meeting later this month.

On Monday, the SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) closed up 0.19% and the SPDR S&P 500 ETF (NYSEArca: SPY) closed 0.05% higher.

Analysts saw little driving market direction as equities wavered toward mid-Monday, the Wall Street Journal reports.

“It definitely continues to feel that central banks have the market’s back,” R.J. Grant, director of equity trading at KBW, told the WSJ. “It’s more of a positive feedback loop right now.”

The markets originally believed that the Fed could continue to cut interest rates later this month after last week’s weaker-than-expected August jobs report. The expectations of a looser monetary policy helped drive most of the risk-on market gains this year.

Fed to “act as appropriate”

Federal Reserve Chairman Jerome Powell late last week also stated that the central bank would “act as appropriate” to maintain an expanding economy, a phrase that many translated as a sign of additional interest rate cuts.

However, there is no full consensus on how much the Fed could cut rates, which may leave stocks exposed to potential risks if the central bank fails to meet more aggressive expectations.

“We’ve seen a strong move lower on this expectation on stimulus measures, and now the market’s doing a wait and see,” David Cheetham, chief market analyst for online foreign-exchange brokerage XTB, told the WSJ.

Related: ETFs to Help Investors Get Defensive

Further supporting recent market gains, the U.S. and China are moving forward with trade negotiations, with the U.S. Treasury Secretary Steven Mnuchin projecting a positive year ahead for the U.S. economy.

“Investors are hopeful that both sides will get close to agreeing on a cosmetic deal or maybe a truce,” Peter Cardillo, chief market economist at Spartan Capital Securities, told Reuters.

For more information on the markets, visit our current affairs category.

Related Posts:

  • No Related Posts

Silicon Valley Capital Partners Buys iShares Edge MSCI Min Volatility USA ETF, Qualcomm Inc …

Silicon Valley Capital Partners Buys iShares Edge MSCI Min Volatility USA ETF, Qualcomm Inc, NVIDIA Corp, Sells Bloom Energy Corp, iShares Core …

Investment company Silicon Valley Capital Partners (Current Portfolio) buys iShares Edge MSCI Min Volatility USA ETF, Qualcomm Inc, NVIDIA Corp, American Tower Corp, Boeing Co, sells Bloom Energy Corp, iShares Core S&P Mid-Cap ETF, Destination Maternity Corp during the 3-months ended 2019Q2, according to the most recent filings of the investment company, Silicon Valley Capital Partners. As of 2019Q2, Silicon Valley Capital Partners owns 33 stocks with a total value of $230 million. These are the details of the buys and sells.

For the details of Silicon Valley Capital Partners’s stock buys and sells,go to https://www.gurufocus.com/guru/silicon+valley+capital+partners/current-portfolio/portfolioportfolio

These are the top 5 holdings of Silicon Valley Capital Partners

  1. SPDR S&P 500 ETF Trust (SPY) – 335,863 shares, 42.78% of the total portfolio. Shares reduced by 1.9%
  2. PowerShares QQQ Trust Ser 1 (QQQ) – 224,450 shares, 18.22% of the total portfolio. Shares added by 11.07%
  3. iShares S&P 500 Growth ETF (IVW) – 164,300 shares, 12.80% of the total portfolio. Shares added by 0.25%
  4. iShares Edge MSCI Min Volatility USA ETF (USMV) – 240,204 shares, 6.45% of the total portfolio. Shares added by 21.86%
  5. Vanguard Growth ETF (VUG) – 67,436 shares, 4.79% of the total portfolio. Shares added by 4.64%

New Purchase: Qualcomm Inc (QCOM)

Silicon Valley Capital Partners initiated holding in Qualcomm Inc. The purchase prices were between $55.9 and $89.29, with an estimated average price of $73.23. The stock is now traded at around $71.26. The impact to a portfolio due to this purchase was 0.48%. The holding were 14,551 shares as of .

New Purchase: NVIDIA Corp (NVDA)

Silicon Valley Capital Partners initiated holding in NVIDIA Corp. The purchase prices were between $133.78 and $192.1, with an estimated average price of $165.75. The stock is now traded at around $158.26. The impact to a portfolio due to this purchase was 0.18%. The holding were 2,514 shares as of .

New Purchase: American Tower Corp (AMT)

Silicon Valley Capital Partners initiated holding in American Tower Corp. The purchase prices were between $189.85 and $217.52, with an estimated average price of $200.93. The stock is now traded at around $221.02. The impact to a portfolio due to this purchase was 0.09%. The holding were 1,062 shares as of .

New Purchase: Sutter Gold Mining Inc (SGMNF)

Silicon Valley Capital Partners initiated holding in Sutter Gold Mining Inc. The purchase prices were between $0.01 and $0.01, with an estimated average price of $0.01. The stock is now traded at around $0.01. The impact to a portfolio due to this purchase was less than 0.01%. The holding were 10,000 shares as of .

Added: iShares Edge MSCI Min Volatility USA ETF (USMV)

Silicon Valley Capital Partners added to a holding in iShares Edge MSCI Min Volatility USA ETF by 21.86%. The purchase prices were between $58.77 and $62.47, with an estimated average price of $60.01. The stock is now traded at around $63.42. The impact to a portfolio due to this purchase was 1.16%. The holding were 240,204 shares as of .

Added: Boeing Co (BA)

Silicon Valley Capital Partners added to a holding in Boeing Co by 51.03%. The purchase prices were between $337.37 and $395.86, with an estimated average price of $364.73. The stock is now traded at around $336.35. The impact to a portfolio due to this purchase was 0.05%. The holding were 1,024 shares as of .

Sold Out: Bloom Energy Corp (BE)

Silicon Valley Capital Partners sold out a holding in Bloom Energy Corp. The sale prices were between $10.1 and $15.26, with an estimated average price of $12.26.

Sold Out: iShares Core S&P Mid-Cap ETF (IJH)

Silicon Valley Capital Partners sold out a holding in iShares Core S&P Mid-Cap ETF. The sale prices were between $180.31 and $197.09, with an estimated average price of $190.89.

Sold Out: Destination Maternity Corp (DEST)

Silicon Valley Capital Partners sold out a holding in Destination Maternity Corp. The sale prices were between $0.78 and $2.52, with an estimated average price of $1.82.

Here is the complete portfolio of Silicon Valley Capital Partners. Also check out:

1. Silicon Valley Capital Partners’s Undervalued Stocks

2. Silicon Valley Capital Partners’s Top Growth Companies, and

3. Silicon Valley Capital Partners’s High Yield stocks

4. Stocks that Silicon Valley Capital Partners keeps buying

Related Posts:

  • No Related Posts

Centaur Total Return Fund Semi-Annual 2019 Shareholder Letter

The equity sleeve is tilted towards Value and defensive securities to provide capital preservation and an above-market yield. We invested the equity …

Dear Fund Investors,

The six-month period running from November 1, 2018 through April 30, 2019 was a transitional period for the Centaur Total Return Fund (the “Fund”) as DCM Advisors, LLC took over the interim management of the Fund on November 16, 2018. During the transition, the Fund had a cash and cash-equivalent security balance of almost 70% as the previous manager had liquidated a majority of the equity positions.

For the six-month period ending April 30, 2019, the Fund produced a positive return of 1.97%. The S&P 500 produced a return of 9.76% over the same period. The performance differential can be attributed to (a) the substantial cash position of the Fund during the unique transition period and (b) the high volatility in the equity and bond markets during the transition period when the Fund held high cash balances.

Following the transition period, the Fund was positioned as a balanced fund with a combination of defensive equities and fixed income, initially set at 60% equities and 40% fixed income. The equity sleeve is tilted towards Value and defensive securities to provide capital preservation and an above-market yield. We invested the equity portion of the Fund in a diversified portfolio of primarily dividend-paying blue-chip stocks with attractive valuations, and sustainable, high profitability. We also focus on stocks where earnings are supported by cash flows, and where earnings and price momentum are positive.

The fixed income portion of the Fund was invested in cash and short-duration bonds for a majority of the first quarter ending on January 31, 2019. The spread between two-year maturity and ten-year maturity notes was in the 12.5 to 20 basis point range. Given the uncertainties of investing we opted for the defensiveness of the short notes. We then built a corporate bond portfolio with maturities from 2020 to 2025. The fixed income portion of the benchmark is mainly in long-duration bonds.

Toward the end of March 2019, we rebalanced the fixed income holdings to increase the yield. We swapped many individual bond positions for fixed income Exchange Traded Funds (“ETF”) to provide more yield and broader credit diversification. Each ETF consists of an extensive underlying portfolio of securities that can mirror its overall respective market activity. We invested in both investment grade and high yield ETFs, again to provide us with what we feel is higher investment income and broader credit holdings. We feel this gives us liquidity, broad credit diversification, and an attractive yield component to the Fund.

The U.S. equity market was very volatile over the six-month period, with a sharp sell-off over the October-December 2018 period, followed be a sharp rebound from the end of December through the end of April 2019. The market dropped almost 16.5% from November 7, 2018 through December 24, 2018. Market volatility increased as the markets absorbed the fact that the U.S. economy and earnings growth would slow down in 2019 as the effects of the 2018 tax cuts faded. In addition, the threat of trade tariffs against China, and the possible disruption of the global supply chains roiled equity markets. Further, economic data from China and Europe was weaker than expected. Weaker economic data and increased market volatility led the Federal Reserve to adopt a neutral stance following three rate hikes in 2018. This contributed to a huge rally in the equity and fixed income markets.

From the low of December 24, 2018 to the end of April 2019, equities rallied 25%, one of the sharpest rallies in a four-month period. Value and high dividend securities have lagged the market during this rally. The S&P 500 index was up 25.3% through the end of April 2019. The S&P Value index lagged the S&P index by -2.4%.The equity sleeve of the portfolio has lagged the broad market due to its defensive and dividend-oriented style. We expect the Fund to catch up with the category over time as the current risk-on rally fades, and Value and dividend yield comes back into favor.

The 10-year U.S. Treasury note prices rallied strongly when yields fell from 3.1% on October 31, 2018 to 2.6% at the end of January 2019. This rally was linked to signs of weaker global growth data, and the dovish stand adopted by the Federal Reserve over the course of the quarter. The fixed income portion of the benchmark rallied almost 3.0% (as reflected in the Barclays U.S. Aggregate Index) while cash and short-duration bonds in the Fund did not fully participate in this rally due to their short duration. At the end of the first quarter the bond positions were spread over technology, finance, energy, consumer products and durables.

Current positioning

The top five equity holdings as of April 30, 2019 were PennyMac Mortgage Investment Trust, CSX Corporation, Popular, Inc., Mastercard Inc. Class A, and ConocoPhillips. The portfolio is diversified across sectors, with overweights relative to the S&P 500 index in Information Technology, Materials, Energy and Real Estate. The portfolio is underweight in Health Care, Consumer Staples, and Communication Services.

The equity sleeve of the Fund has a trailing PE ratio of 14.5x compared with 20.3x for the S&P index. The price-to-book ratio for the portfolio is 2.4x compared with 3.5x for the benchmark. However, the forecast 3-5 year EPS growth rate is 11.6% which is only marginally lower than that of the benchmark at 11.8%.

In April 2019, Morningstar moved the Fund from the Moderate Target Risk Allocation category to the Moderately Conservative Target Risk Allocation category. This category has a benchmark that is roughly 40% in equities and 60% in fixed income.

In the middle of April, we made an asset allocation shift and rebalanced the Fund to a “50%/50%” equity/fixed income split. With equity valuations that were extended, and profit expectations that were likely to be further reduced, especially for the fourth quarter of 2019, we felt it was prudent to reduce equities.

The Fund’s portfolio held 58 securities at the end of April 2019, including 46 equity securities or ETFs, and 12 fixed income securities or ETFs. The Fund has a current gross yield of 3.9% across its equity and fixed income positions. The equity sleeve has a gross dividend yield of 3.4% which is roughly 80% higher than that of the S&P Index (which has a gross yield of 1.9%). On the fixed income side, our duration is closer to that of the category benchmark.

In summary, we believe that the Fund is appropriately positioned to perform well relative to its category over the coming quarters.

Respectfully submitted,

Vijay Chopra and Gregory Serbe

Co-Portfolio Managers, Centaur Total Return Fund

This article first appeared on GuruFocus.

Related Posts:

  • No Related Posts

The Vanguard Health Care Fund Buys Pfizer, Humana

The largest guru shareholder of the company is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 2.30% of outstanding shares, followed …

The Vanguard Health Care Fund (Trades, Portfolio) bought shares of the following stocks during the second quarter.

The fund established a new position in Pfizer Inc. (NYSE:PFE), buying 22.29 million shares. The trade had an impact of 2.22% on the portfolio.

afa42fbd622d4c98cc4b138f7170b2da.pngafa42fbd622d4c98cc4b138f7170b2da.png

The pharmaceutical company has a market cap of $212.67 billion and an enterprise value of $246.56 billion.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of 18.97% and return on assets of 7.79% are outperforming 51% of companies in the Drug Manufacturers industry. Its financial strength is rated 5 out of 10. The equity-asset ratio of 0.38 is below the industry median of 0.63.

Another notable guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 0.37% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.22%.

Vanguard bought 3.74 million shares of Alcon Inc. (NYSE:ALC). The trade had an impact of 0.53% on the portfolio.

f5290d2da37651d737f54c18f67e91b1.pngf5290d2da37651d737f54c18f67e91b1.png

The company has a market cap of $28.02 billion and an enterprise value of $31.73 billion.

GuruFocus gives the company a profitability and growth rating of 2 out of 10. The return on equity of -1.48% and return on assets of -1.15% are underperforming 100% of companies in the Medical Instruments and Equipment industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.14 is below the industry median of 1.45.

The company’s largest guru shareholder is Vanguard with 0.77% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.28%.

The fund boosted its Anthem Inc. (NYSE:ANTM) holding by 17.36%. The portfolio was impacted by 0.39%.

072ce2ae3e549449b372e73761e8270f.png072ce2ae3e549449b372e73761e8270f.png

The managed care company has a market cap of $74.94 billion and an enterprise value of $69.53 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 13.85% and return on assets of 5.50% are underperforming 61% of companies in the Health Care Plans industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.21 is below the industry median of 0.51.

The company’s largest guru shareholder is Andreas Halvorsen (Trades, Portfolio) with 2.41% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.74% and First Eagle Investment (Trades, Portfolio) with 0.71%.

Vanguard increased its Mylan NV (NASDAQ:MYL) position by 20.82%. This trade impacted the portfolio by 0.33%.

df8a54043d862db6bf5ff6450c3efe2d.pngdf8a54043d862db6bf5ff6450c3efe2d.png

The pharmaceutical company has a market cap of $10 billion and an enterprise value of $23.89 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 0.29% and return on assets of 0.11% are underperforming 96% of companies in the Drug Manufacturers industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.02 is below the industry median of 1.43.

Another notable guru shareholder of the company is Richard Pzena (Trades, Portfolio) with 4.08% of outstanding shares, followed by John Paulson (Trades, Portfolio) with 2.14% and First Pacific Advisors (Trades, Portfolio) with 1.81%.

The health care-focused fund established a new position in Intuitive Surgical Inc. (NASDAQ:ISRG), buying 173,700 shares. The portfolio was impacted by 0.21%.

3a173a4b4d7a451fe593331580e902fb.png3a173a4b4d7a451fe593331580e902fb.png

The company, which makes robotic systems for minimally invasive surgery, has a market cap of $60.39 billion and an enterprise value of $57.68 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 18.27% and return on assets of 15.60% are outperforming 71% of companies in the Medical Instruments and Equipment industry. Its financial strength is rated 9 out of 10 with no debt.

The largest guru shareholder of the company is Spiros Segalas (Trades, Portfolio) with 0.74% of outstanding shares, followed by Pioneer Investments with 0.14%, Stanley Druckenmiller (Trades, Portfolio) with 0.11% and Steven Cohen (Trades, Portfolio) with 0.07%.

Vanguard increased its Humana Inc. (NYSE:HUM) position by 52.48%, impacting the portfolio by 0.20%.

f7cd6095297b6f2ea38bf7054cff14b8.pngf7cd6095297b6f2ea38bf7054cff14b8.png

The company, which provides Medicare Advantage plans in the U.S., has a market cap of $39.03 billion and an enterprise value of $30.19 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 23.33% and return on assets of 8.67% are outperforming 60% of companies in the Health Care Plans industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.81 is above the industry median of 0.58.

The largest guru shareholder of the company is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 2.30% of outstanding shares, followed by Larry Robbins (Trades, Portfolio) with 0.97% and Lee Ainslie (Trades, Portfolio) with 0.46%.

The fund bolstered its holding of Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) by 15.79%. The portfolio was impacted by 0.13%.

3b035259a8b82540b61d8f5d278c9a3e.png3b035259a8b82540b61d8f5d278c9a3e.png

The generic pharmaceuticals manufacturer has a market cap of $8.87 billion and an enterprise value of $36.72 billion.

GuruFocus gives the holding company a profitability and growth rating of 5 out of 10. The return on equity of -21.25% and return on assets of -5.24% are underperforming 100% of companies in the Drug Manufacturers industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.07 is below the industry median of 1.43.

Another notable guru shareholder of the company is Warren Buffett (Trades, Portfolio) with 3.96% of outstanding shares, followed by David Abrams (Trades, Portfolio) with 1.65% and Barrow, Hanley, Mewhinney & Strauss with 0.27%.

Disclosure: I do not own any stocks mentioned.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

About the author:

Tiziano Frateschi

You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi’s Website

Related Posts:

  • No Related Posts