January 2022 might be a good time to review your financial goals and start investing regularly. Long-term investors know that time is always with them.
Here’s the reason: Suppose you’re 30 years old, have $ 10,000 in savings, and plan to retire at age 65. You decide to invest that $ 10,000 in a fund now and make $ 3,000 in additional contributions each year at the beginning of the year.
You have 35 years to invest. And the annual return is 7%, compounded once a year. After 35 years, the total amount saved will be over $ 550,000.
Saving $ 3,000 a year means you can set aside less than $ 9 a day. And if you increase the amount of annual fees from $ 3,000 to $ 4,000, the total amount saved will be closer to $ 700,000. In other words, time and interest would work together to help an individual save for retirement.
Today’s article shows two exchange rate funds (ETFs) that could be of interest to investors who are not looking to follow the market in the short term, but have long-term goals.
1. ETF Invesco NASDAQ Next Gen 100
- Current price: $ 31.79
- Period over 52 weeks: $ 29.91 – $ 36.24
- Dividend yield: 0.26%
- Cost ratio: 0.15% per year
Most of our readers know that the index contains 100 of the top non-financial companies listed on. on the basis of their market value (caps). Those who want to track the performance of the index usually buy the Invesco QQQ Trust (NASDAQ :), one of the best-selling ETFs in the United States. Over the past year, QQQ has achieved a 27% return.
In turn, our first fund, Invesco NASDAQ Next Gen 100 ETF (NASDAQ :), invests in the 101st to 200th largest names in NASDAQ. They could therefore be considered the next generation of non-financial corporations listed on a stock exchange. The fund started trading in October 2020.
QQQJ’s Top 10 holdings account for nearly 18% of its net assets of $ 1.21 billion. In terms of sub-sectors, we find information technology (36.18%), healthcare (21.47%), communication services (13.70%), consumer services (12.44%) and industrial products (10.64%).
Old Dominion Freight Line (NASDAQ :), which specializes in freight forwarding, Trade Desk (NASDAQ :), which operates an online advertising platform, AstraZeneca (LON 🙂 (NASDAQ :); MongoDB Document Database Company (NASDAQ :); and Zebra Technologies (NASDAQ :), well known for their bar code scanners, are the top names on the list.
Over the past 12 months, the ETF has risen by 6.7% and reached a historic high in November 2021. However, many names in the fund have been under pressure and QQQJ has lost by 9, 5%. The forward P / E and P / B ratios are 32.42x and 5.63x.
We like this fund because it invests in medium-sized growth companies in various industries. Interested readers might consider buying the dips.
2. ETF ProShares S&P MidCap 400 Dividend Aristocrats
- Current price: $ 73.39
- 52 week car: $ 61.77 – $ 75.67
- Dividend yield: 2.48%
- Cost ratio: 0.4% per year
Many investors rely on dividend-paying stocks to build a passive income stream. The ProShares S&P MidCap 400 Dividend Aristocrats (NYSE 🙂 fund focuses on medium-sized companies where dividends have been rising for more than ten years. Analysts point out that companies that pay steady dividends tend to have strong fundamentals and high revenue growth.
REGL, which has 53 positions, monitors the S&P MidCap 400 Dividend Aristocrats Index. The fund started trading in February 2015.
Financial companies have the highest level with 28.07%. Next come manufacturers (21.08%), utilities (20.19%), materials (11.03%) and basic consumer goods (8.82%). The top ten names represent about 22% of the fund’s net assets, amounting to 1.05 billion dollars.
Nu Skin Enterprises (NYSE :), which develops personal care and wellness products; Renaissancere Holdings (NYSE :), which provides insurance and reinsurance products; The ONE Gas Utilities Group (NYSE: and Essential Utilities (NYSE :)) and the coating, sealant and building materials manufacturer RPM International (NYSE 🙂 are among the top names in the ETF.
Over the past 52 weeks, REGL has achieved 18.6% performance and reached a record in May 2021. The P / E and P / B ratios are 17.26x and 2.11x. A possible dip towards the $ 72 level would improve the safety margin for investors who buy and hold.