{"id":3926,"date":"2026-05-26T10:04:18","date_gmt":"2026-05-26T10:04:18","guid":{"rendered":"http:\/\/blog.valuengine.com\/?p=3926"},"modified":"2026-05-27T02:06:15","modified_gmt":"2026-05-27T02:06:15","slug":"may-25-2026-reflections-time-to-lighten-up-exposures","status":"publish","type":"post","link":"http:\/\/blog.valuengine.com\/index.php\/may-25-2026-reflections-time-to-lighten-up-exposures\/","title":{"rendered":"May 26 2026 Reflections: Time to Lighten Up Exposures?"},"content":{"rendered":"

The current economic doldrums have most investors concerned about a potential market downturn. The bottom line concern many economists and consultants have expressed lately is stagflation, the dreaded combination of flat economic growth with inflation that gets higher and higher indefinitely. We may be approaching a time where that concern becomes so widely held that it gets reflected by the market.\u00a0 That worry is only compounded by the fact that we are now in the six-month period of the calendar year, typically marked by under-performance relative to the full year.\u00a0 The six months from October 1 through April 30 between 1926 and 2025 has averaged about 500 basis points more, reflecting a difference of about 7.3% to 2.3%, than the May \u2013 October period.\u00a0 This does not mean that investors should sell their S&P 500 stocks in May.\u00a0 In terms of frequency, the S&P 500 Index posts positive returns for the May-October period about two-thirds of the time but also under-performs the year\u2019s S&P 500 return almost as frequently.\u00a0 Such trends are not repeated every year but certainly do nothing to dispel fears that the new economic realities for the USA will translate into a six-month-or more market downturn.<\/span><\/p>\n

Trade ValuEngine supported portfolio strategies,<\/span> www.ValuEngineCapital.com<\/span><\/a><\/p>\n

During high inflation and economic stagnation, earnings growth rates tend to decline as sales rise less quickly than costs for most companies.\u00a0 Typically, the stock market struggles to tread water in the first six-to-12 months of such a period and often, albeit not always, decline into market correction territory or worse.\u00a0 When stagflation is anticipated, active asset managers tend to sell stocks in growth-oriented and economically sensitive sectors such as Consumer Discretionary, Industrial and Technology. The stocks to own typically include stocks in sectors such as Energy, Materials, REITs, Financials, Consumer Staples, Healthcare and Utilities. “Old economy” and “value” stocks often outperform because they hold real assets and can pass increased costs to consumers. The goal is to invest in sectors that thrive on higher prices, such as commodity producers.\u00a0\u00a0<\/span><\/p>\n

From a quantitative perspective, such managers typically focus on avoiding or lightening positions in stocks with high valuations, especially high P\/E ratios, high betas, and\/or pay zero dividends as these are dependent on strong economic growth to justify high valuations.\u00a0 That said, the stocks of companies with declining economic growth are also high on the list of companies to be sold off.\u00a0 Therefore, VE ratings based on anticipated stock price growth are still relevant but with more of an emphasis of risk control than in a normal state environment.\u00a0\u00a0<\/span><\/p>\n

Current ValuEngine reports on all covered 5000+ stocks and ETFs can be viewed<\/span> HERE<\/span><\/a><\/p>\n

We start with a screen taking these factors in common and selecting stocks rated 4 (Buy) and 5 (Strong Buy).\u00a0 Using our valuation model, we eliminate all stocks in the most overvalued 50% in the valuation spectrum.\u00a0 We also eliminate stocks with a P\/E ratio higher than 25. Then, we eliminate the stocks too sensitive to the market as measured by beta.\u00a0 In this case, we chose 1.25 as the cutoff, the theoretical level at which a stock is 25% more sensitive to economic changes than the S&P 500. \u00a0 For stability, we added one more requirement. The stock must pay a dividend and have a market capitalization of at least $5 billion.\u00a0\u00a0<\/span><\/p>\n

The screen yielded the stocks of 26 companies as shown below.<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Ticker<\/span><\/td>\n Company Name<\/span><\/td>\nIndustry Name<\/span><\/td>\nVE Rating<\/span><\/td>\nValuation Rank<\/span><\/td>\nForward P\/E Ratio<\/span><\/td>\nDiv Yld<\/span><\/td>\nCountry<\/span><\/td>\n<\/tr>\n
MUFG<\/span><\/td>\nMITSUBISHI-UFJ<\/span><\/td>\nBANKS FOREIGN<\/span><\/td>\n5<\/span><\/td>\n62<\/span><\/td>\n10.9<\/span><\/td>\n2.1%<\/span><\/td>\nJPN<\/span><\/td>\n<\/tr>\n
SCGLY<\/span><\/td>\nSOCIETE GENL FR<\/span><\/td>\nBANKS FOREIGN<\/span><\/td>\n5<\/span><\/td>\n60<\/span><\/td>\n8.3<\/span><\/td>\n2.0%<\/span><\/td>\nFRA<\/span><\/td>\n<\/tr>\n
EBKDY<\/span><\/td>\nERSTE GROUP BNK<\/span><\/td>\nBANKS FOREIGN<\/span><\/td>\n5<\/span><\/td>\n60<\/span><\/td>\n9.2<\/span><\/td>\n0.5%<\/span><\/td>\nAUT<\/span><\/td>\n<\/tr>\n
MFG<\/span><\/td>\nMIZUHO FINL-ADR<\/span><\/td>\nBANKS FOREIGN<\/span><\/td>\n5<\/span><\/td>\n58<\/span><\/td>\n11.8<\/span><\/td>\n1.6%<\/span><\/td>\nJPN<\/span><\/td>\n<\/tr>\n
BCS<\/span><\/td>\nBARCLAY PLC-ADR<\/span><\/td>\nBANKS FOREIGN<\/span><\/td>\n5<\/span><\/td>\n56<\/span><\/td>\n8.1<\/span><\/td>\n2.6%<\/span><\/td>\nGBR<\/span><\/td>\n<\/tr>\n
BBVA<\/span><\/td>\nBANCO BILBAO VZ<\/span><\/td>\nBANKS FOREIGN<\/span><\/td>\n5<\/span><\/td>\n52<\/span><\/td>\n8.9<\/span><\/td>\n5.2%<\/span><\/td>\nESP<\/span><\/td>\n<\/tr>\n
LYG<\/span><\/td>\nLLOYDS BANK GRP<\/span><\/td>\nBANKS FOREIGN<\/span><\/td>\n4<\/span><\/td>\n69<\/span><\/td>\n8.5<\/span><\/td>\n5.0%<\/span><\/td>\nGBR<\/span><\/td>\n<\/tr>\n
DB<\/span><\/td>\nDEUTSCHE BK AG<\/span><\/td>\nBANKS FOREIGN<\/span><\/td>\n4<\/span><\/td>\n67<\/span><\/td>\n7.9<\/span><\/td>\n0.7%<\/span><\/td>\nDEU<\/span><\/td>\n<\/tr>\n
NWG<\/span><\/td>\nNATWEST GROUP<\/span><\/td>\nBANKS FOREIGN<\/span><\/td>\n4<\/span><\/td>\n66<\/span><\/td>\n7.5<\/span><\/td>\n7.9%<\/span><\/td>\nGBR<\/span><\/td>\n<\/tr>\n
BK<\/span><\/td>\nBANK OF NY MELL<\/span><\/td>\nBANKS MAJOR REGIONAL<\/span><\/td>\n5<\/span><\/td>\n53<\/span><\/td>\n15.0<\/span><\/td>\n1.6%<\/span><\/td>\nUSA<\/span><\/td>\n<\/tr>\n
UMBF<\/span><\/td>\nUMB FINL CORP<\/span><\/td>\nBANKS MIDWEST<\/span><\/td>\n4<\/span><\/td>\n55<\/span><\/td>\n10.1<\/span><\/td>\n1.3%<\/span><\/td>\nUSA<\/span><\/td>\n<\/tr>\n
FHN<\/span><\/td>\nFIRST HRZN CORP<\/span><\/td>\nBANKS SOUTHWEST<\/span><\/td>\n4<\/span><\/td>\n62<\/span><\/td>\n10.9<\/span><\/td>\n2.8%<\/span><\/td>\nUSA<\/span><\/td>\n<\/tr>\n
CIB<\/span><\/td>\nGRUPO CIBEST SA<\/span><\/td>\nDIVERSIFIED OPERATIONS<\/span><\/td>\n5<\/span><\/td>\n54<\/span><\/td>\n7.1<\/span><\/td>\n7.6%<\/span><\/td>\nCOL<\/span><\/td>\n<\/tr>\n
TEL<\/span><\/td>\nTE CONNECT-LTD<\/span><\/td>\nELEC MISC COMPONENTS<\/span><\/td>\n4<\/span><\/td>\n56<\/span><\/td>\n18.2<\/span><\/td>\n1.5%<\/span><\/td>\nIRL<\/span><\/td>\n<\/tr>\n
PNC<\/span><\/td>\nPNC FINL SVC CP<\/span><\/td>\nFINANCE INVESTMENT BANKS<\/span><\/td>\n4<\/span><\/td>\n63<\/span><\/td>\n10.9<\/span><\/td>\n3.2%<\/span><\/td>\nUSA<\/span><\/td>\n<\/tr>\n
PFG<\/span><\/td>\nPRINCIPAL FINL<\/span><\/td>\nINSURANCE MULTI LINE<\/span><\/td>\n4<\/span><\/td>\n52<\/span><\/td>\n10.5<\/span><\/td>\n3.3%<\/span><\/td>\nUSA<\/span><\/td>\n<\/tr>\n
FERG<\/span><\/td>\nFERGUSON PLC<\/span><\/td>\nMACHINERY GEN INDUSTRIAL<\/span><\/td>\n4<\/span><\/td>\n52<\/span><\/td>\n20.4<\/span><\/td>\n1.5%<\/span><\/td>\nUSA<\/span><\/td>\n<\/tr>\n
AEM<\/span><\/td>\nAGNICO EAGLE<\/span><\/td>\nMINING-GOLD<\/span><\/td>\n5<\/span><\/td>\n72<\/span><\/td>\n15.2<\/span><\/td>\n0.9%<\/span><\/td>\nCAN<\/span><\/td>\n<\/tr>\n
KGC<\/span><\/td>\nKINROSS GOLD<\/span><\/td>\nMINING-GOLD<\/span><\/td>\n5<\/span><\/td>\n72<\/span><\/td>\n11.3<\/span><\/td>\n0.5%<\/span><\/td>\nCAN<\/span><\/td>\n<\/tr>\n
AGI<\/span><\/td>\nALAMOS GOLD INC<\/span><\/td>\nMINING-GOLD<\/span><\/td>\n5<\/span><\/td>\n72<\/span><\/td>\n14.3<\/span><\/td>\n0.4%<\/span><\/td>\nCAN<\/span><\/td>\n<\/tr>\n
NEM<\/span><\/td>\nNEWMONT CORP<\/span><\/td>\nMINING-GOLD<\/span><\/td>\n5<\/span><\/td>\n61<\/span><\/td>\n13.0<\/span><\/td>\n0.9%<\/span><\/td>\nUSA<\/span><\/td>\n<\/tr>\n
B<\/span><\/td>\nBARRICK MINING<\/span><\/td>\nMINING-GOLD<\/span><\/td>\n5<\/span><\/td>\n54<\/span><\/td>\n12.4<\/span><\/td>\n1.5%<\/span><\/td>\nCAN<\/span><\/td>\n<\/tr>\n
SM<\/span><\/td>\nSM ENERGY CO<\/span><\/td>\nOIL & GAS U S EXPLO & PROD<\/span><\/td>\n4<\/span><\/td>\n64<\/span><\/td>\n4.1<\/span><\/td>\n2.8%<\/span><\/td>\nUSA<\/span><\/td>\n<\/tr>\n
MPC<\/span><\/td>\nMARATHON PETROL<\/span><\/td>\nOIL REFINING & MARKETING<\/span><\/td>\n5<\/span><\/td>\n83<\/span><\/td>\n9.0<\/span><\/td>\n1.6%<\/span><\/td>\nUSA<\/span><\/td>\n<\/tr>\n
PSX<\/span><\/td>\nPHILLIPS 66<\/span><\/td>\nOIL REFINING & MARKETING<\/span><\/td>\n4<\/span><\/td>\n66<\/span><\/td>\n9.6<\/span><\/td>\n2.9%<\/span><\/td>\nUSA<\/span><\/td>\n<\/tr>\n
TIMB<\/span><\/td>\nTIM SA-ADR<\/span><\/td>\nWIRELESS NON-US<\/span><\/td>\n4<\/span><\/td>\n58<\/span><\/td>\n12.1<\/span><\/td>\n4.7%<\/span><\/td>\nBRA<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Free Trial: Research on over 5,000 stocks and 700 ETFs<\/span> HERE<\/span><\/a><\/p>\n

The most striking characteristic of this list is that stocks of companies primarily listed in the USA account for just 10 of the 26 qualifiers.\u00a0 Stocks with primary listings in foreign countries account for less than 10% of the ValuEngine universe of coverage, so the prevalence of foreign stocks in the results is of interest.\u00a0 The list is dominated by finance companies including 9 foreign banks; of these, NatWest (<\/span>NWG<\/b>) had the lowest P\/E ratio and the highest dividend yield, an impressive 7.9%. There are 5 USA-listed financial services firms. The highest rated of these is Bank of New York Mellon (<\/span>BNY<\/b>) while the highest dividend yield is provided by insurer Principal Financial (<\/span>PFG<\/b>). \u00a0 Together, the financial sector comprises more than 50% of the list.\u00a0<\/span><\/p>\n

The list of qualifiers also includes five metals and mining companies, four of which are Canadian: Agnico Eagle (<\/span>AEM<\/b>); Kinross Gold (<\/span>KGC); <\/b>Alamos Gold (<\/span>AGI<\/b>); and Barrick Mining (<\/span>B<\/b>); with the final one being US listed Newmont Gold (<\/span>NEM<\/b>).\u00a0 Energy, as expected, provides a major portion of this list.\u00a0 Marathon Petroleum (<\/span>MPC<\/b>) exemplifies this with an undervaluation in the 83rd percentile along with a forward P\/E Ratio of just 9.\u00a0\u00a0<\/span><\/p>\n

Although this list is keeping within with the sectors we indicated were desirable in a period of expected inflation and economic stagnation, not all of those sectors had any stocks rated at least a 4 (Buy) that passed these screens.\u00a0 These sectors include Consumer Staples, Health Care, and Utilities. To provide diversification opportunities, here are the stocks rated 3 that passed these screens that also have the highest forecast 12-month returns even though that forecast is for a bit less than 1%.<\/span><\/p>\n\n\n\n\n\n\n
Ticker<\/span><\/td>\n Company Name<\/span><\/td>\nSector Name<\/span><\/td>\nVE Rating<\/span><\/td>\nValuation Rank<\/span><\/td>\nForward P\/E Ratio<\/span><\/td>\nDiv. Yield\u00a0<\/span><\/td>\n<\/tr>\n
SCI<\/span><\/td>\nSERVICE CORP INTL.<\/span><\/td>\nConsumer Staples<\/span><\/td>\n3<\/span><\/td>\n52<\/span><\/td>\n18.05<\/span><\/td>\n1.9%<\/span><\/td>\n<\/tr>\n
TMO<\/span><\/td>\nTHERMO FISHER<\/span><\/td>\nHealth Care<\/span><\/td>\n3<\/span><\/td>\n74<\/span><\/td>\n17.13<\/span><\/td>\n0.4%<\/span><\/td>\n<\/tr>\n
OGS<\/span><\/td>\nONE GAS INC<\/span><\/td>\nUtilities<\/span><\/td>\n3<\/span><\/td>\n53<\/span><\/td>\n16.64<\/span><\/td>\n3.3%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

For those not familiar with the firms, Service Corporation International (<\/span>SCI<\/b>) provides funeral and cemetery services while Thermo Fisher (<\/span>TMO<\/b>) makes scientific instruments and ONE Gas, Inc. (<\/span>OGS<\/b>) is a 100% regulated natural gas distribution utility serving Texas, Oklahoma and Kansas.\u00a0\u00a0<\/span><\/p>\n

Since individual stocks, even those with low betas, have more price volatility as a group than ETFs due to portfolio diversification, many may prefer that safety as a place to divert some growth-index-bench marked assets.\u00a0 Therefore, we used VettaFI\u2019s ETF database (etfdb.com) to perform a screen of ETFs covered by ValuEngine that have a Beta of 1.00 or less and also pay at least a 2% dividend and have a Price\/Earnings Ratio of less than 20.\u00a0 We also screened out ETFs with less than half a billion dollars under management.\u00a0 11 ETFs met these criteria.\u00a0 For easy comparison, at the bottom of the table we provide the equivalent statistical data for index ETFs representing three popular US market segments.\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Ticker<\/span><\/td>\nName<\/span><\/td>\nVE Rating<\/span><\/td>\n1 Mo Rtn<\/span><\/td>\nYTD Price Change<\/span><\/td>\n1 Year Return<\/span><\/td>\n3 Year Return<\/span><\/td>\nExp. Ratio<\/span><\/td>\nDiv. Yield %<\/span><\/td>\nP\/E Ratio<\/span><\/td>\nBeta<\/span><\/td>\n<\/tr>\n
DIVB<\/span><\/td>\niShares Core Dividend ETF<\/span><\/td>\n3<\/span><\/td>\n4.49%<\/span><\/td>\n11.09%<\/span><\/td>\n22.22%<\/span><\/td>\n20.23%<\/span><\/td>\n0.05%<\/span><\/td>\n2.3%<\/span><\/td>\n19.2<\/span><\/td>\n0.85<\/span><\/td>\n<\/tr>\n
FDRR<\/span><\/td>\nFidelity Dividend ETF for Rising Rates<\/span><\/td>\n3<\/span><\/td>\n1.88%<\/span><\/td>\n6.15%<\/span><\/td>\n27.01%<\/span><\/td>\n19.95%<\/span><\/td>\n0.15%<\/span><\/td>\n2.2%<\/span><\/td>\n18.9<\/span><\/td>\n0.87<\/span><\/td>\n<\/tr>\n
FDVV<\/span><\/td>\nFidelity High Dividend ETF<\/span><\/td>\n3<\/span><\/td>\n0.35%<\/span><\/td>\n5.59%<\/span><\/td>\n20.41%<\/span><\/td>\n19.64%<\/span><\/td>\n0.15%<\/span><\/td>\n2.8%<\/span><\/td>\n18.2<\/span><\/td>\n0.86<\/span><\/td>\n<\/tr>\n
ONEY<\/span><\/td>\nState Street SPDR Russell 1000 Yield Focus ETF<\/span><\/td>\n2<\/span><\/td>\n0.55%<\/span><\/td>\n10.61%<\/span><\/td>\n17.95%<\/span><\/td>\n14.44%<\/span><\/td>\n0.20%<\/span><\/td>\n2.9%<\/span><\/td>\n13.7<\/span><\/td>\n0.84<\/span><\/td>\n<\/tr>\n
RDIV<\/span><\/td>\nInvesco S&P Ultra Dividend Revenue ETF<\/span><\/td>\n2<\/span><\/td>\n2.43%<\/span><\/td>\n10.34%<\/span><\/td>\n23.12%<\/span><\/td>\n18.98%<\/span><\/td>\n0.39%<\/span><\/td>\n3.7%<\/span><\/td>\n14.0<\/span><\/td>\n0.77<\/span><\/td>\n<\/tr>\n
VFVA<\/span><\/td>\nVanguard U.S. Value Factor ETF<\/span><\/td>\n2<\/span><\/td>\n-1.50%<\/span><\/td>\n6.80%<\/span><\/td>\n23.61%<\/span><\/td>\n16.86%<\/span><\/td>\n0.13%<\/span><\/td>\n2.0%<\/span><\/td>\n13.7<\/span><\/td>\n0.94<\/span><\/td>\n<\/tr>\n
KRE<\/span><\/td>\nState Street SPDR S&P Regional Banking ETF<\/span><\/td>\n2<\/span><\/td>\n-3.99%<\/span><\/td>\n4.84%<\/span><\/td>\n17.41%<\/span><\/td>\n22.70%<\/span><\/td>\n0.35%<\/span><\/td>\n2.3%<\/span><\/td>\n11.2<\/span><\/td>\n0.86<\/span><\/td>\n<\/tr>\n
KBE<\/span><\/td>\nState Street SPDR S&P Bank ETF<\/span><\/td>\n2<\/span><\/td>\n-4.00%<\/span><\/td>\n2.72%<\/span><\/td>\n15.58%<\/span><\/td>\n24.41%<\/span><\/td>\n0.35%<\/span><\/td>\n2.4%<\/span><\/td>\n10.9<\/span><\/td>\n0.92<\/span><\/td>\n<\/tr>\n
FXO<\/span><\/td>\nFirst Trust Financials AlphaDEX Fund<\/span><\/td>\n2<\/span><\/td>\n-2.63%<\/span><\/td>\n-2.09%<\/span><\/td>\n9.23%<\/span><\/td>\n20.42%<\/span><\/td>\n0.60%<\/span><\/td>\n2.2%<\/span><\/td>\n11.0<\/span><\/td>\n0.97<\/span><\/td>\n<\/tr>\n
SDY<\/span><\/td>\nState Street SPDR S&P Dividend ETF<\/span><\/td>\n1<\/span><\/td>\n-0.87%<\/span><\/td>\n6.82%<\/span><\/td>\n10.96%<\/span><\/td>\n9.55%<\/span><\/td>\n0.35%<\/span><\/td>\n2.5%<\/span><\/td>\n17.5<\/span><\/td>\n0.71<\/span><\/td>\n<\/tr>\n
XMLV<\/span><\/td>\nInvesco S&P MidCap Low Volatility ETF<\/span><\/td>\n1<\/span><\/td>\n-2.05%<\/span><\/td>\n4.89%<\/span><\/td>\n6.45%<\/span><\/td>\n11.17%<\/span><\/td>\n0.25%<\/span><\/td>\n2.8%<\/span><\/td>\n17.1<\/span><\/td>\n0.71<\/span><\/td>\n<\/tr>\n
SPY<\/b><\/td>\nState Street SPDR S&P 500 ETF<\/b><\/td>\n4<\/b><\/td>\n3.32%<\/b><\/td>\n7.89%<\/b><\/td>\n24.76%<\/b><\/td>\n22.06%<\/b><\/td>\n0.09%<\/b><\/td>\n1.0%<\/b><\/td>\n22.3<\/b><\/td>\n1.00<\/b><\/td>\n<\/tr>\n
DIA<\/b><\/td>\nState Street SPDR Dow Jones Industrial Average ETF Trust<\/b><\/td>\n3<\/b><\/td>\n0.01%<\/b><\/td>\n3.28%<\/b><\/td>\n17.17%<\/b><\/td>\n15.66%<\/b><\/td>\n0.16%<\/b><\/td>\n1.4%<\/b><\/td>\n20.4<\/b><\/td>\n0.87<\/b><\/td>\n<\/tr>\n
MDY<\/b><\/td>\nState Street SPDR S&P MIDCAP 400 ETF Trust<\/b><\/td>\n3<\/b><\/td>\n-2.00%<\/b><\/td>\n8.36%<\/b><\/td>\n17.28%<\/b><\/td>\n14.32%<\/b><\/td>\n0.24%<\/b><\/td>\n1.1%<\/b><\/td>\n17.2<\/b><\/td>\n1.02<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

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Only three of the 11 ETFs were rated at least 3 (Hold).\u00a0 ETFs rated 2 (Sell) or less are forecast by our model to gain less or lose more than 75% of all the ETFs we cover.\u00a0 In contrast ETFs rated at least 3 (Hold) that passed this screen combine forecast market-median performance along with the desired conservative criteria.\u00a0 The three ETFs that cleared this hurdle include:<\/span><\/p>\n

iShares Core Dividend ETF (<\/span>DIVB<\/b>) \u2013 offers a low-cost approach to broad U.S. equity exposure. It treats dividends and share buybacks as two sides of the same coin, focusing on companies that aggressively return capital to shareholders.<\/span><\/p>\n

Fidelity Dividend ETF for Rising Rates (<\/span>FDRR<\/b>) \u2013 The Fidelity Dividend ETF for Rising Rates (<\/span>FDRR<\/b>) targets dividend-paying equities designed to withstand or benefit from a rising interest rate and inflationary environment. Traditional dividend sectors like Utilities and REITs usually drop when bond yields rise; <\/span>FDRR<\/b> systematically tilts away from those sectors toward pro-cyclical areas like Financial, Industrial and Technology.<\/span><\/p>\n

Fidelity High Dividend ETF (<\/span>FDVV<\/b>) –\u00a0 seeks to provide high current income alongside long-term capital appreciation. Unlike traditional high-yield funds that trap investors in slow-growth sectors, FDVV\u2019s proprietary model captures a unique hybrid of traditional high-yielders and high-growth technology giants that pay growing dividends.<\/span><\/p>\n

Finally, we relaxed the assets under management constraint to see if any ETFs rated a 5 (Strong Buy).\u00a0 We also changed the 2% minimum dividend yield to 0.1% for stability but not necessarily needing the high income cushion.\u00a0 This screen found two 5-rated ETFs that satisfied the modified valuation, yield and beta constraints.\u00a0 We found two with very interesting methodologies.\u00a0\u00a0<\/span><\/p>\n\n\n\n\n\n
Ticker\u00a0<\/span><\/td>\nName<\/span><\/td>\n1 Month Return<\/span><\/td>\nYTD Price Change<\/span><\/td>\n1 Year Return<\/span><\/td>\n3 Year Return<\/span><\/td>\nExp. Ratio<\/span><\/td>\nDiv. Yield %<\/span><\/td>\nP\/E Ratio<\/span><\/td>\nBeta<\/span><\/td>\n<\/tr>\n
AADR<\/span><\/td>\nAdvisorShares Dorsey Wright ADR ETF<\/span><\/td>\n-4.39%<\/span><\/td>\n-2.35%<\/span><\/td>\n6.23%<\/span><\/td>\n21.92%<\/span><\/td>\n1.09%<\/span><\/td>\n0.6%<\/span><\/td>\n18.8<\/span><\/td>\n0.94<\/span><\/td>\n<\/tr>\n
ALTL<\/span><\/td>\nPacer Lunt Large Cap Alternator ETF<\/span><\/td>\n-1.87%<\/span><\/td>\n2.60%<\/span><\/td>\n28.89%<\/span><\/td>\n8.89%<\/span><\/td>\n0.60%<\/span><\/td>\n1.1%<\/span><\/td>\n19.3<\/span><\/td>\n0.78<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

A look inside these two ETFs:<\/span><\/p>\n

Pacer Lunt Large Cap Alternator ETF (<\/span>ALTL<\/b>)\u00a0 – dynamically rotates its holdings between low-volatility and high-beta U.S. large-cap stocks based on market momentum to capitalize on prevailing conditions.<\/span><\/p>\n

The AdvisorShares Dorsey Wright ADR ETF (<\/span>AADR<\/b>) is an actively managed fund that provides international equity exposure by primarily investing in American Depository Receipts (ADRs). It utilizes a systematic, technically-driven relative strength strategy to identify and invest in global stocks showing strong momentum.<\/span><\/p>\n

We found these funds and their methodologies intriguing and worthy of further investigation, but they are relatively small, below 100 million dollars in assets, and come with much higher fees.\u00a0 This aspect creates doubt about how much confidence one should have in after-fee returns.<\/span><\/p>\n

Trade ValuEngine supported portfolio strategies,<\/span> www.ValuEngineCapital.com<\/span><\/a><\/p>\n

Generally speaking, we advise most people not to try to time the market, to stick to their investment plans and criteria and to ignore the fear-mongering of so-called experts.\u00a0 However, there are times when hedging one’s bets and sacrificing some potential price gains for less susceptibility to major losses makes sense.\u00a0 An environment where higher-for-longer inflation rates are expected to be combined with a stagnant economy is quite concerning.\u00a0 Therefore, we thought it was a good week to detail less aggressive strategies using stocks and\/or ETFs for core deployment to navigate such environments.\u00a0 Asset management, like life, is a series of trade offs and tough decisions. Smaller portions of investment portfolios can be moved into such safer options, it is not all or nothing.<\/span><\/p>\n


\n<\/span>Herb Blank<\/span><\/p>\n

ValuEngine Chief Quantitative Analyst<\/span><\/p>\n

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www.ValuEngine.com<\/span><\/a> (ValuEngine, Inc) is a stock valuation and forecasting service founded by Ivy League finance academics. VE utilizes the most advanced quantitative techniques and analysis available to analyze over 4,200 US stocks, 700 US ETFs, and 1,000 Canadian stocks. Fair market valuations, forecast target prices, and buy\/hold\/sell recommendations are updated DAILY.<\/span><\/p>\n

www.ValuEngineCapital.com<\/span><\/a> (ValuEngine Capital Management, LLC) is a Registered Investment Advisory firm that trades a variety of different portfolios based upon the ValuEngine.com research models. Each portfolio has a different risk\/return profile, so clients can be placed in strategies that fit their specific investment needs.<\/span><\/p>\n

BLOG.VALUENGINE.COM <\/span><\/a>for the full history of ValuEngine.com financial blog posts<\/span><\/p>\n

________________________________________________________________<\/span><\/p>\n

5,000 stocks, 600 ETFs, 16 sector groups, and 140 industries updated on <\/span>www.ValuEngine.com<\/span><\/a><\/p>\n

Full Two Week Free Trial <\/span>HERE<\/span><\/a><\/p>\n

Financial Advisory Services based on ValuEngine research and Portfolios available through <\/span>www.ValuEngineCapital.com<\/span><\/a><\/p>\n

 <\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

The current economic doldrums have most investors concerned about a potential market downturn. The bottom line concern many economists and consultants have expressed lately is stagflation, the dreaded combination of flat economic growth with inflation that gets higher and higher indefinitely. We may be approaching a time where that concern becomes so widely held that … Read more<\/a><\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[4,130,39],"tags":[2996,393,2688,2694,2689,3212,2695,2678,487,2673,360,2670,3194,2662,359,3216,2261,3119,2674,1859,3204,2863,2238,1719,3205,3206,3199,3219,3196,3215,3210,1731,2070,2699,2693,1851,726,3213,2897,1819,1833,2548,3192,903,3057,2851,2665,1779,2582,3193,2667,3203,3223,3207,147,2929,3198,3218,3052,3058,1689,2011,1510,3208,539,3201,3221,2476,2758,2351,3127,1726,3191,3197,3217,3200,3220,3202,3222,3195,3214,28,1656,1531,1659,63,3209,3211],"_links":{"self":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts\/3926"}],"collection":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/comments?post=3926"}],"version-history":[{"count":2,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts\/3926\/revisions"}],"predecessor-version":[{"id":3928,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts\/3926\/revisions\/3928"}],"wp:attachment":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/media?parent=3926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/categories?post=3926"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/tags?post=3926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}