This New ETF Looks To Take Advantage Of The Stock Buyback Trend

Companies, it seems, have had an insatiable appetite for buying back their own shares lately. It's a strategy that is a bit of a double-edged sword. It's great for shareholders as a reduced share count boosts earnings per share and almost always pops the share price. It also works out better for taxes because it's essentially a tax-free transaction (as opposed to dividends which would be taxable). On the other hand, it could be an indication that the company doesn't necessarily have any higher returning projects to invest in and instead are choosing to return the excess capital to shareholders.

 

Big names like Boeing (NYSE:BA), Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) have been big purchasers of their own stock lately and it's estimated that 80% or more of S&P 500 companies have bought back their own shares recently. Given the effects that it has on stock prices, it's not surprising that an ETF is attempting to jump on the trend in an attempt to deliver oversized returns.

Click the button below to read the rest of this original article on Seeking Alpha.

ETF Research

We cover ETFs across all sectors, regions and markets. We analyze the portfolios themselves as well as the macro environments that affect them.

Mutual Fund Research

We do mutual fund research too! Although not covered quite as in-depth as the ETF world, we've still profiled many of the big names!

Investing Strategy

Everything from retirement planning to 401(k) investing to options trading strategies and everything in between!

Next Steps...

Got a question? A comment? A fund you want to see profiled? Let us know!

Subscribe to receive the ETF Focus Weekly newsletter absolutely FREE!

* indicates required




Be the first to comment

Leave a Reply

Your email address will not be published.


*