iSectors® CEO Comments on Dividend-Paying ETFs in Wall Street Journal Article
Posted on: 08/16/2013
On Monday, August 12, 2013, Vern Sumnicht, CEO of iSectors and his namesake investment advisory firm, was quoted in the Wall St. Journal.
Vern commented on his views of the current investing landscape and where he is positioning new money for his advisory client portfolios.
“Large-cap domestic stock funds with a focus on strong dividend payers are also a good bet,” says Vern Sumnicht, chief executive at Sumnicht & Associates in Appleton, Wisc., with 300 million in assets. Despite more choppy waters, he sees few signals of long-term retrenchment by stocks.
In fact, he is shifting client assets from funds that focus on alternative strategies into more plain vanilla portfolios such as the SPDR S&P 500 Dividend ETF and the First Trust Value Line Dividend ETF.
“We see this as a good time to move back into the heart of the market, rather than playing defense by hiring managers who use hedging techniques” Mr. Sumnicht says.
Both of the dividend ETFs Vern mentions in the article are core positions within iSectors Domestic Equity Allocation, a strategic portfolio of diversified domestic equity ETFs. The iSectors Domestic Equity Allocation is currently overweight dividend-focused ETFs. It is iSectors belief that money will continue to flow into U.S. equities, especially the highest quality companies that have a record of continuously increasing dividend payments. In addition, from our perspective, we see the Fed continuing to be accommodative, and the easy-money policies will continue to drive investor demand to put money to use in equities.
iSectors Domestic Equity Allocation’s management fee is only 10 bps.
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