Recurring Revenue Authors: Yeshim Deniz, Pat Romanski, Xenia von Wedel, Liz McMillan, Carmen Gonzalez

News Feed Item

Zacks Investment Ideas feature highlights: Market Vectors Wide Moat ETF, iShares MSCI US Quality Factor ETF and Direxion iBillionaire Index ETF

CHICAGO, Aug. 11, 2014 /PRNewswire/ -- Today, Zacks Investment Ideas feature highlights Features: Market Vectors Wide Moat ETF (AMEX:MOAT-Free Report), iShares MSCI US Quality Factor ETF (AMEX:QUAL-Free Report) and Direxion iBillionaire Index ETF (AMEX:IBLN-Free Report).

Zacks Investment Research, Inc., www.zacks.com

Invest Like Warren Buffett with These ETFs

The Oracle of Omaha is undoubtedly one of the greatest investors in history. His flagship conglomerate--Berkshire Hathaway—has grown at about 20% average annual rate and has an excellent record in beating the broader markets in most years since its incorporation in 1965.

The company posted a 41% jump in profits for the recent quarter, proving yet again that Buffett has not lost his magic touch. The investment conglomerate with more than 70 operating subsidiaries had about $55 billion in cash on its balance sheet. (Read: 3 MLP ETFs for Excellent Income & Growth)

Many investors may like to emulate Buffett's time-tested investing style in their personal portfolios. Buying Berkshire shares is always an option for investors but the conglomerate's sheer size makes it almost impossible to grow at rates seen in the past. That suggests that the stock's best days may be already behind it.

Buffett himself has warned investors that Berkshire's growth rate will slow as it becomes larger. Plus the uncomfortable question about Berkshire's future after Buffett also lingers within investors' minds. (Read: Protect your portfolio with these multi-asset income ETFs)

However common investors can certainly learn from his investment strategy and style. He likes companies with proven business models generating good returns on capital, that are expected to consistently perform well over a long period of time. Further, these companies provide some stability to the portfolio during turbulent times.

Buffet identifies those businesses that he thinks are trading below their intrinsic values. He believes that "it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price". And he does not care for short term performance of his holdings, if he believes in their long term potential. (Read: 5 Inverse ETFs for a shaky market)

Investors seeking to emulate his investing style should look at these three ETFs that hold the type of companies Buffett would like to invest in.

Market Vectors Wide Moat ETF (AMEX:MOAT-Free Report)

The term "economic moat" was popularized by Warren Buffet who said that he seeks "economic castles protected by unbreachable 'moats'." In simple words, a moat is a unique competitive advantage that allows a company to outperform others in the same industry over time.

Thanks to MOAT, investors can now own a diversified group of such potential winners. The fund has equal-weighted exposure to 20 least-expensive wide-moat companies. These are mostly large-cap companies with sustainable competitive advantage in their respective industries. Bank of New York Mellon, Amgen & Ebay are the top three holdings currently.

Launched in April 2012, the product charges 49 basis points in annual expenses. It has beaten behind the broader market with total return of 49.5% compared with 41.2% return for SPY over the last two years.

The index strategy has worked in the longer term as well. Since inception, the Moat index has recorded average annual returns of 22.4%, versus 20.4% for the S&P index.

iShares MSCI US Quality Factor ETF (AMEX:QUAL-Free Report)

QUAL tracks the MSCI USA Index, which is comprised of high quality stocks, by identifying stocks with high quality scores based on three main fundamental variables: high return on equity (ROE), stable year-over-year earnings growth and low financial leverage. It charges a low expense ratio of 15 basis points.

In general, such companies have sustainable competitive advantage over their peers. The criteria adopted by MSCI in the Quality index broadly matches Buffett's investing philosophy. The ETF is thus quite a Buffett-like fund.

The product holds 126 securities in its portfolio with Apple, Microsoft and J&J being the top three holdings. Launched in July last year, the fund has already attracted an impressive $430 million in assets so far.

The fund has outperformed the broader market since its inception. Further, the MSCI Quality index has outperformed the MSCI USA index with a 12.2% annualized return versus 11.3% for the latter.

Direxion iBillionaire Index ETF (AMEX:IBLN-Free Report)

This new ETF seeks to replicate the investing ideas of billionaire investors. The index is comprised of 30 U.S. large-cap stocks in which a select pool of billionaire investors like Warren Buffet has invested most assets. A set of criteria is used to select 10 billionaire investors from a pool of 50, based on their net worth, source of wealth and portfolio size.

Information regarding the billionaire's holdings is selected from Form 13F filings. Current top holdings include Williams Companies, Micron Technologies, Apple, Google and Halliburton.

The index follows an equal-weighted approach and thus almost eliminates company-specific risks.

The fund charges investors 65 basis points a year in fees.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.

Get the full Report on MOAT – FREE

Get the full Report on QUAL – FREE

Get the full Report on IBLN – FREE

Follow us on Twitter:  http://twitter.com/ZacksResearch

Join us on Facebook:  http://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial C...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
With privacy often voiced as the primary concern when using cloud based services, SyncriBox was designed to ensure that the software remains completely under the customer's control. Having both the source and destination files remain under the user?s control, there are no privacy or security issues. Since files are synchronized using Syncrify Server, no third party ever sees these files.
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Rodrigo Coutinho is part of OutSystems' founders' team and currently the Head of Product Design. He provides a cross-functional role where he supports Product Management in defining the positioning and direction of the Agile Platform, while at the same time promoting model-based development and new techniques to deliver applications in the cloud.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
delaPlex is a global technology and software development solutions and consulting provider, deeply committed to helping companies drive growth, revenue and marketplace value. Since 2008, delaPlex's objective has been to be a trusted advisor to its clients. By redefining the outsourcing industry's business model, the innovative delaPlex Agile Business Framework brings an unmatched alliance of industry experts, across industries and functional skillsets, to clients anywhere around the world.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...