Exchange traded funds (ETFs) from Barclays that focus on Morningstar indexes are arranged into a style-box grid combining two key traits: market capitalization( small-, mid- or large-cap) and investment style (value, growth or core). Stocks are either growth or value based depending on price ratios, dividend yields, cash flow, book value and sales and earnings growth. Core companies have equal value and growth scores, with no overlapping.
iShares Morningstar Large Value (JKF) has returned the most of these ETFs over the past year, 16%, with the largest holding Exxon Mobil (XOM). iShares Morningstar Large Core (JKD) and iShares Morningstar Small Core (JKJ) came in next at 15% each. JKD’s top holding is General Electric (GE) and JKJ’s is NBTY (NTY). iShares Morningstar Mid Core (JKG) returned 10% over the last 12 months and iShares Morningstar Large Growth (JKE) returned 3%. Trang Ho of Investor’s Business Daily compares the S&P 500 rising 11% and the S&P 600 growing 10% during that same period.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.