Don't Sell in May, Buy These Top-Ranked ETFs Instead

Zacks2022-05-06

Wall Street has seen a wobbly start to May 2022 much in line with the old adage, “sell in May and go away,” after a brutal April and the worst start to a year since 1939. The S&P 500 and the Dow Jones...

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The S&P 500 and the Dow Jones...</p>\n\n<a href=\"https://finance.yahoo.com/news/dont-sell-may-buy-top-120012136.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Don't Sell in May, Buy These Top-Ranked ETFs Instead</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDon't Sell in May, Buy These Top-Ranked ETFs Instead\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-05-06 20:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/dont-sell-may-buy-top-120012136.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Wall Street has seen a wobbly start to May 2022 much in line with the old adage, “sell in May and go away,” after a brutal April and the worst start to a year since 1939. The S&P 500 and the Dow Jones...</p>\n\n<a href=\"https://finance.yahoo.com/news/dont-sell-may-buy-top-120012136.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SPXU","symbol_name":"三倍做空标普500ETF","start_time":0,"source_url":"https://finance.yahoo.com/news/dont-sell-may-buy-top-120012136.html","article_id":"2233354266","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/JC2sfJ7Q4.h.rtDv55Cs2w--~B/aD0yMzUxO3c9MzAwMDthcHBpZD15dGFjaHlvbg--/https://s.yimg.com/uu/api/res/1.2/Ih859QOfCTvQXsQ0G1XkYg--~B/aD0yMzUxO3c9MzAwMDthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/zacks.com/babe25e06595923d7ebb8f0e689f76a7"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2233354266","pubTimestamp":1651838412,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Wall Street has seen a wobbly start to May 2022 much in line with the old adage, “sell in May and go","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"161125":"标普500","513500":"标普500ETF","SPXU":"三倍做空标普500ETF","OEX":"标普100",".SPX":"S&P 500 Index","BK4539":"次新股","UPRO":"三倍做多标普500ETF","SPY":"标普500ETF","KBE":"银行指数ETF-SPDR KBW","BK4534":"瑞士信贷持仓","SPYD":"SPDR Portfolio S&P 500 High Dividend ETF","COMP":"Compass, Inc.","OEF":"标普100指数ETF-iShares","SPYV":"SPDR Portfolio S&P 500 Value ETF","BK4559":"巴菲特持仓","XLY":"消费品指数ETF-SPDR可选消费品","BK4550":"红杉资本持仓","SSO":"两倍做多标普500ETF","IVV":"标普500指数ETF","BK4079":"房地产服务","SDS":"两倍做空标普500ETF","BK4581":"高盛持仓","SH":"标普500反向ETF","BK4504":"桥水持仓"},"translate_title":"不要在5月卖出，转而购买这些排名靠前的ETF","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"161125":0.6,"513500":0.6,"XLY":1,"SPYV":1,"SPYD":1,"KBE":1,"SPY":0.9,"COMP":0.9,"IVV":0.6,"UPRO":0.6,"SSO":0.6,"SPXU":0.6,"SH":0.6,"SDS":0.6,"OEX":0.6,"OEF":0.6,".SPX":0.6,"ESmain":0.6},"content_text":"Wall Street has seen a wobbly start to May 2022 much in line with the old adage, “sell in May and go away,” after a brutal April and the worst start to a year since 1939. The S&P 500 and the Dow Jones are striving hard to make an ascent in May, and the Nasdaq is finding it difficuly too.\nIn April, the S&P 500, the Dow Jones, the Nasdaq Composite and the Russell 2000 declined 9.11%, 5.3%, 13.5% and 10.9%, respectively. FAANG stocks plus Microsoft lost $1.4 trillion in market value during April, per a MarketWatch article. \nSuper-hot inflation, the resultant super-hawkish Fed cues, the Russia-Ukraine war and the resultant upheaval in the investment world, sky-high commodity prices, the worst COVID-19 outbreak in China and the Asian country’s strict zero-covid policy, and the consequent supply chain woes have been bothering the investment world. Global growth worries are rife now.\nShould You Go by the “Sell in May” Saying?\nProbably not. Things are totally different this year, with the world experiencing one of the worst crises. So, walking along the regular path won’t make you profitable this time. Let's delve a little deeper.  \nThe proverb is ingrained in the S&P 500’s awful historical run for the May-to-October period. May has been a subdued month with average gains of 0.09% since 1950. Per EquityClock, the S&P 500 has added about 0.4% on average in May and the frequency of gains is 70%. But the saying hasn’t held well in recent times. \nPer an article published on CNN.com, the proverb proved itself wrong in the past few years, with the May-October period turning pretty profitable.\nSince 2011, we had only one year (i.e. 2011) when the stock market crashed (down 7.1%) during the May-October period, followed by meager gains in 2012 (up 2.2%), 2015 (up 0.8%) and 2018 (up 3.4%), per a Motley Fool article.\nThis year, the market has seen enough slump. The speculation of faster Fed rate hikes is baked in the current Wall Street valuation. China has hinted at promoting growth through stimulus measures and as well as by easing the crackdown in tech companies.\nAgainst this backdrop, we highlight a few Pacer Swan SOS Fund of Funds ETF|ETFs that could shower gains on investors in an otherwise defamed May. Since a hawkish Fed caused a rally in long-term rates, ETFs that give shelter against rising rates should rise.\nTop-Ranked ETFs in Focus\nSPDR Portfolio S&P 500 Value ETF SPYV – Zacks Rank #1 (Strong Buy)\nAnemic growth in developed economies, the QE scenario and muted bond yields have kept value investing subdued in the past decade and boosted growth stocks. But the scenario is changing now. Since the growth sector relies on easy borrowing for superior growth and its value depends heavily on future earnings, a rise in long-term yields cuts the present value of companies’ future earnings.\nAnd this is where value investing rises. Value stocks perform better in a rising rate environment. Moreover, during the peak of the pandemic, value stocks were hit hard. With economic reopening gaining traction, now is the time for them to flourish on beaten-down valuation (read: Why Value ETFs May Outdo Growth for the Rest of 2022).\nSPDR Portfolio S&P 500 High Dividend ETF SPYD – Zacks Rank #1\nThe underlying S&P 500 High Dividend Index is designed to measure the performance of the top 80 dividend-paying securities listed on the S&P 500 Index, based on dividend yield. The fund charges 7 bps in fees and yields 3.62% annually.\nThis high dividend yield makes them good picks as the yield beats the current benchmark Treasury yields. Even if the fund ends up seeing capital losses by chance, high dividend will go a long way to make up for the losses.\nConsumer Discretionary Select Sector SPDR ETF XLY – Zacks Rank #2 (Buy)\nThough the American economy shrank an annualized 1.4% sequentially in Q1 of 2022, one thing sure from the GDP scorecard is that consumer demand is strong. The personal savings rate — personal savings as a percentage of disposable personal income — was 6.6% in the first quarter compared with 7.7% in the fourth quarter. It shows that consumers are shelling out more than the previous periods. The increase in personal consumption expenditure reflected increases.\nConsumer companies are hiking prices; for example, Unilever hiked prices by more than 8% as cost pressures mount to offset higher supply chain and energy costs, more than outweighing a dip in sales volumes. This ensures a rally in consumer stocks and ETFs in the coming days.\nSPDR S&P Bank ETF KBE – Zacks Rank #2\nBanks are in the sweetest spot as decent household savings rule out the fear pf delinquencies or default on loans. In any case, banking is an undervalued sector currently. Earnings have been upbeat in the sector. A prospective rising rate environment is another plus for the banking stocks. KBE is thus a good bet.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. \nClick to get this free report\n \n\nSPDR S&P Bank ETF (KBE): ETF Research Reports\n \n\nConsumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports\n \n\nSPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports\n \n\nSPDR Portfolio S&P 500 Value ETF (SPYV): ETF Research Reports\n \n\nTo read this article on Zacks.com click here.\n \n\nZacks Investment Research","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2233354266"}