What You May Have Missed This Week...

In addition to the regular posts here on Substack, I also publish ETF research and notes over on my blog, ETF Focus.

In case you wanted to catch up on the latest research above and beyond what you’re reading here, this is a quick list of some of the most recent articles from the blog!

The Best (and Worst) Dividend ETFs of 2023 in My Opinion

Dividend investing offers an intriguing balance of income and growth potential, but wading through the plethora of dividend ETF options can be nothing short of overwhelming.

Adding to the confusion, the names of these ETFs often obfuscate more than they illuminate, promising high-yield or quality dividends without delving into the nitty-gritty of how these outcomes are achieved.

Personally, I don't believe in taking an ETF's name—or its glossy marketing materials—at face value. For me, truly understanding an ETF's potential means diving deep into its methodology.

Best Global Dividend ETFs

Most investors focus on the big U.S. dividend ETFs, such as the Schwab U.S. Dividend Equity ETF (SCHD), for their portfolios, but international dividend payers shouldn't be ignored. Yes, they're lagging the U.S. markets again in 2023, but U.S. market leadership is in roughly year 15 of its cycle. International stocks are long overdue for a period of extended leadership and it makes sense to have at least some exposure to them in your portfolio. ETFs targeting global dividend leaders often add a modest allocation overseas while still maintaining a domestic focus. These can be great options for expanding your dividend universe.

After The Grayscale/SEC Ruling, Bitcoin Futures ETFs Still Have Value

Yesterday, the ruling from the U.S. Circuit Court of Appeals in the District of Columbia threw out the SEC’s rejection of Grayscale’s application to convert the Grayscale Bitcoin Trust (GBTC) into an ETF. The decision concluded that the SEC acted unevenly in approving bitcoin futures ETFs while, at the same time, rejecting spot bitcoin ETFs. It’s a decision that market watchers have been eyeing for months and one that marks a big leap forward for the eventual approval of a spot bitcoin ETF.

I Reviewed How Reddit's 2023 ETF Performance Predictions Panned Out

Seven months ago, Reddit user u/futureflipking posed this question to the hivemind/think tank of subreddit r/ETFs:

"What ETFs do you think will be top performers in 2023?"

Continuing with the details, u/futureflipking clarified:

"What ETFs do you think will do the best this year? It does not have to be a sector and could include ETFs such as total stock market."

Intrigued by this community-driven forecast, I decided to keep tabs on the most upvoted predictions to see how they fared over the year. Let’s just say, some surprises were in store. Here's what I discovered and what lessons we can all learn from these wannabe prophets.

Buy This, Not That: Better ETF Alternatives To SPY, QQQ, EFA, EEM, AGG

The ETF marketplace is very top-heavy. The big three issuers - Vanguard, BlackRock and State Street - combine for more than $5.5 trillion of ETF assets under management. That's roughly 75% of all U.S. listed ETF assets in the entire industry. Even the 10 largest ETFs out of a universe of more than 3,000 different funds account for nearly 30% of all ETF money invested. In a lot of cases, investing your money in any of these ETFs is a perfectly fine and defensible choice for your portfolio. They're all cheap, liquid and diversified, which make for great cornerstones in your portfolio.

That doesn't mean you can't improve upon them.

The Ultimate Guide To Building An Emergency Savings Fund

Here's the good news! If you're one of those folks who needs to set some money aside just in case, the savings environment has improved quite a bit! Not only are there plenty of easily accessible, no fee, ultra-low minimum accounts to choose from, you can actually make money on your savings! Choose the right vehicle and you can easily get a 5% yield on your money! Even if you're saving little by little to slowly build up your account, it's still extra money in your pocket!

This Factor ETF Has Actually Managed to Beat The S&P 500 - Here's Why I Wouldn't Buy It

In investing, the search for strategies that can outperform standard benchmarks is relentless. Enter factor ETFs, or exchange-traded funds that don't just passively track broad markets.

Instead, they follow a more intricate rules-based index or utilize their own selection criteria to emphasize exposure to specific investment factors. At its core, a factor represents certain characteristics of stocks that can explain the differences in returns over time.

Unmasking JEPI: Is The Beloved Dividend ETF Hiding Potential Pitfalls For Investors?

Perhaps the most popular ETF in the world right now is the JPMorgan Equity Premium Income ETF (JEPI). This year, it's taken in more than $11 billion in net new money (the 5th largest amount of 2023) and has grown into a $29 billion behemoth. Not bad for an ETF that just two years ago had a total of $3 billion to its name!

Perhaps the biggest reason why the fund has taken off is its dividend yield. As recently as earlier this year, JEPI was posting a distribution yield of more than 12%.

Two Covered Call ETFs I Like Better Than QYLD

Investing in exchange-traded funds (ETFs) that utilize a covered call strategy can be an appealing choice for many investors. The allure lies in their potential to generate additional income through the premiums earned by selling call options, offering a steady income stream on top of dividends. A classic example of such an ETF is the Global X NASDAQ 100 Covered Call ETF (QYLD), but despite its popularity and widespread recognition, QYLD is not the only player in this field. Nor is it necessarily the best option for every investor.