Stocks were looking to add to yesterday’s gains this morning after the Federal Reserve soothed markets by not making any changes to monetary policy and keeping stimulus in place, according to their statement released yesterday afternoon.
Following the meeting, the Fed said, “If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted.” The central bank gave no timeline on when the tapering of asset purchases will begin.
Stocks linked to the economic recovery led the way up in early trading this morning as the major indices tried to take back some of September’s losses.
Factors such as value and quality are coming back into focus. “We think value is going to return to favor,” said CFRA’s Todd Rosenbluth. “We think we’re going to see a rotation again back towards value-oriented investments.” Our recommendation for today is a lower-risk option for our readers who prefer a set-it-and-forget-it style of investing.
The iShares Russell 1000 Value ETF (IWD) offers exposure to large-cap companies that show vital signs of value. Large-caps as they can add benefits to any well-balanced portfolio, including rock solid stability and dividends. Companies within this segment are considered some of the safest companies to invest in and tend to be in stable industries.
IWD is linked to the Russell 100 Value Index, consisting of roughly 650 holdings and tilted heavily towards financials, energy, and health care. IWD is a staple in many savvy investors’ portfolios, thanks to the fund’s level of diversification and low price. The fund has a relatively low expense ratio of 0.19% and a dividend yield of 1.57%.
The fund has gained more than 17%. Over the past month, IWD share price has slipped nearly 2.5%, offering a more attractive entry for those who are looking to invest in names like Walt Disney (DIS), JPMorgan Chase (JPM), and Cisco Systems (CSCO), which are among the fund’s top holdings.
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