The RIC Report

Gridlock speeds up the tax clock

Authored By
Analyst Name Research Investment Committee
Analyst Region BofAS
Analyst Name Jared Woodard
Analyst Email jared.woodard@bofa.com
Analyst Designation Investment & ETF Strategist
Analyst Region BofAS
Analyst Phone +1 646 855 2600
Analyst Name John Glascock
Analyst Email john.glascock@bofa.com
Analyst Designation Investment & ETF Strategist
Analyst Region BofAS
Analyst Phone +1 646 855 3402
Analyst Name Phoebe Block
Analyst Email phoebe.block@bofa.com
Analyst Designation Investment & ETF Strategist
Analyst Region BofAS
Analyst Phone +1 646 241 5941
Report Details
15 October 2024 Corrected Investment Strategy Global

The RIC Report

Gridlock speeds up the tax clock

Authored By
Analyst Name Research Investment Committee
Analyst Region BofAS
Analyst Name Jared Woodard
Analyst Email jared.woodard@bofa.com
Analyst Designation Investment & ETF Strategist
Analyst Region BofAS
Analyst Phone +1 646 855 2600
Analyst Name John Glascock
Analyst Email john.glascock@bofa.com
Analyst Designation Investment & ETF Strategist
Analyst Region BofAS
Analyst Phone +1 646 855 3402
Analyst Name Phoebe Block
Analyst Email phoebe.block@bofa.com
Analyst Designation Investment & ETF Strategist
Analyst Region BofAS
Analyst Phone +1 646 241 5941
Report Details
15 October 2024 Corrected Investment Strategy Global
Glossary
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Trading ideas and investment strategies discussed herein may give rise to significant risk and are not suitable for all investors. Investors should have experience in relevant markets and the financial resources to absorb any losses arising from applying these ideas or strategies.

BofA Securities does and seeks to do business with issuers covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

 

 

Key takeaways
  • "Gridlock is good" may be less true today: expiration of the Tax Cuts & Jobs Act could be the largest tax hike in history.
  • A tax expert answers 7 key questions about what's next. His view: taxes are unlikely to fall by much and planning is vital.
  • We highlight always-useful tax-aware strategies: use ETFs; equities > bonds; Prudent Yield > benchmarks; buybacks > dividends

The RIC Report

The fragile future of the Tax Cuts and Jobs Act

Investors and firms like certainty. That's why they often don't mind electoral gridlock. But "gridlock is good" may not be true this year, if it means the expiration of tax relief from the 2017 Tax Cuts and Jobs Act (TCJA). In this report, we survey possible tax changes and what they mean for portfolios.

Gridlock is good, unless it means higher taxes

TCJA expiration may mark the largest tax increase in history, worth $4.6tn. In some estimates, the top fifth of households could pay 2-6% more of their income in taxes; they account for almost 40% of US consumption. In our interview, David Kirk, a US Private National Tax partner from Ernst &Young explains what investors can do.

Key insights on the future of tax policy

1. Tax rates are unlikely to fall by much and the value of expert guidance has never been higher. There's a shortage of accountants and attorneys. 2. Higher capital gains rates are unlikely but watch out for an increase in the net investment income tax; 3. State & local tax (SALT) deduction caps will likely remain, but caps could be raised; 4. For planned future expenses, consider accelerating asset sales to lock in known tax rates.

Four trades for a tax-efficient portfolio

Tax-aware investment themes are always worth considering: 1. ETFs have saved $250bn in taxes since 1993; 2. In the long run, equities are more efficient than fixed income; 3. In bonds, our Prudent Yield theme offers 5.7% tax-adjusted yield vs. 3.5% for the US benchmark; 4. In stocks, efficient buybacks outperformed dividends by 2-3ppt/year.

This report is an overview; consult with a financial advisor or tax professional for advice.

 Exhibit 1: Expiration vs. extension of the Tax Cuts & Jobs Act (TCJA) could be worth $7.6tn

US federal tax receipts from individuals, $bn

Exhibit 1: For an accessible version Merrill clients call 800-637-7455; Merrill Edge Self-Directed clients call 877-653-4732

Source: BofA Research Investment Committee, Penn Wharton Budget model, CBO estimates.

BofA GLOBAL RESEARCH

 

 

The RIC Report

   The RIC Outlook

The 2024 election could cause substantial changes in tax policy. In this report, we survey each party's tax proposals and what that could mean for households and investors.

The Tax Cuts & Jobs Act (TCJA), signed on Jan 1, 2018, was the largest US tax overhaul since 1986. Household income rates fell for most brackets and the standard deduction, child tax credit, and estate exemptions all doubled. 

Why the TCJA matters for markets

Many provisions are set to expire in 2025 (Exhibit 5). If TCJA extensions aren't passed, individual tax rates would revert 1-4% higher to pre-2018 levels, the small business tax deduction would end, and the individual standard deduction would fall.

This could represent the largest tax hike in history (Exhibit 1). The aggregate tax burden on US households would rise by $2tn in the next five years and $4.6 trillion over the next decade (Exhibit 2).

  • Some simple math: US GDP is about $29tn per year. A $4.6tn tax hike over ten years equals $460bn/year, or 1.5% of GDP. GDP growth today is only about 2-3%.

 

  Exhibit 2:  TCJA expiration would be the largest tax rise in history

Projected change in receipts, sum of first 5 years, chained 2012 USD ($bn)

Exhibit 2: For an accessible version Merrill clients call 800-637-7455; Merrill Edge Self-Directed clients call 877-653-4732

Source: BofA Research Investment Committee, Bloomberg, Tempalski 2013, CBO, Penn Wharton

ATRA = American Taxpayer Relief Act (2012); TEFRA = Tax Equity and Fiscal Responsibility Act (1982); TCJA = Tax Cuts and Jobs Act ; Omnibus = Omnibus Budget Reconciliation Act (1993)

BofA GLOBAL RESEARCH

 

 In the event of divided government, the future of tax policy depends on party compromise. BofA economists think that some TCJA provisions could be extended, at least temporarily, but expect little else would be done (see The Great Debates).

Investment implications for changing tax regimes

In this report, we aim to highlight investor implications for changing tax regimes based on published platforms from each political party. Our goal is to raise awareness about potential tax issues and how to invest accordingly. There are many variables that impact asset prices, and this report only looks at issues from a personal tax perspective.

This report should not be viewed as a tax guide or a view on which tax policies will eventually be adopted.

 Navigating the next tax regime

 To help us navigate the potential path of taxes after the 2024 US election, we solicited help from David Kirk, a US Private National Tax Partner at EY. Below are some key insights from our conversation, with excerpts edited for clarity.

  1. Who were the major beneficiaries of TCJA tax changes?

Main takeaway: there is a misconception is that all high-income households benefited from TCJA. But region, occupation, and source of income meant tax changes were felt differently.

Top earners saw the individual income tax rate fall from 39.6% to 37%, but caps on state and local tax (SALT) deductions and non-deductible investment expenses may have offset lower federal rates for some people.

  • Major beneficiaries: small business owners who use the 20% Qualified Business Income (QBI) 199(a) deduction to lower their tax rate further from 37% to 29.6% likely benefitted the most.

The lifetime exemption for estate and gift taxes was also meaningful. For example, a married couple could bequeath $25mn today with no tax liability. But waiting until 2026, when the TCJA estate tax provision is set to expire, could mean a $5mn tax liability.

  •  Minor beneficiaries: employees with high W-2 income paid lower federal taxes but, depending on region, saw lower SALT caps offset the benefit from lower rates.
  • Non-beneficiaries: TCJA was largely neutral for investors with no ordinary income who pay long-term capital gains, since capital gains rates didn't change.
  1. Based on current candidate proposals, how could tax policy change?

Main takeaway: compromise will likely be required in every election outcome. And, with tax rates already near 100-year lows, rates are unlikely to fall further (Exhibit 3).

In a gridlock or divided government scenario where an extension isn't passed, the CBO estimates a $4.6tn tax increase over ten years, or approximately $460bn/year.

  • Who's hardest hit if tax rates rise? The major beneficiaries (e.g., high income small business owners) who leverage the QBI deduction. Their tax rates could rise 33%, from 29.6% back to 39.6%.
  • Where does the tax revenue come from?  Although high-income households do have a lower propensity to spend, Mr. Kirk noted that higher taxes would probably prompt small business owners to respond with some combination of lower wages, lower capex, and slower hiring (Exhibit 4).

Changes in tax policies are not straightforward in a sweep scenario, either. Margins in Congress are expected to be narrow, which would require intra-party compromise.

  Exhibit 3:  Tax rates are unlikely to fall much further

Corporate & personal income taxes since 1909 (top tax bracket)

Exhibit 3: For an accessible version Merrill clients call 800-637-7455; Merrill Edge Self-Directed clients call 877-653-4732

Source: BofA Research Investment Committee, World Tax Database, Office of Tax Policy Research, IRS

BofA GLOBAL RESEARCH

 

 

  Exhibit 4:  Highest 20% of earners account for 39% of consumption

% of total US expenditure, highest and lowest quintiles

Exhibit 4: For an accessible version Merrill clients call 800-637-7455; Merrill Edge Self-Directed clients call 877-653-4732

Source: BofA Research Investment Committee, Haver

BofA GLOBAL RESEARCH

 

  1. Where do you see areas of potential policy overlap?

Main takeaway: there will likely be concessions around the deficit and policies meant to mollify certain constituencies. Exhibit 5 shows the key proposals from each party.

Preserving provisions like larger standard deductions and child tax credits would not be important for households paying the most taxes but could be extended as part of a compromise package. Democrats have also said they don't want to raise taxes on people making less than $400k per year, a possible area of compromise with GOP leaders.

Provisions like the 199A QBI small business deduction might not be extended at current levels but could have a lower cap with more stringent income limits.

 

  Exhibit 5:  Key provisions of the Tax Cuts & Jobs Act and proposed changes from each political party

Summary of potential tax changes based on party platforms

For an accessible version Merrill clients call 800-637-7455; Merrill Edge Self-Directed clients call 877-653-4732

   

TCJA current (extension)

TCJA expiry

Democrat proposals

Republican proposals

Standard deduction

2018 standard deduction doubled

Standard deduction halved vs today

Permanent extension for taxpayers earning < $400,000

Permanent extension, regardless of income

Individual tax rates

The TCJA lowered individual tax rates

Individual tax rates will revert to pre-TCJA levels.

Continue TCJA rates for taxpayers earning < $400,000

TCJA bracket sizes & tax rates made permanent

25% minimum income tax on high-net-worth taxpayers, including unrealized gains

SALT

Deduct up to $10,000 in state and local income

Deduct all eligible state and local income

Repeal or increase the SALT cap

Possibly raise the SALT cap

Estate and gift tax

Doubled estate and gift tax exclusion

Estate and gift tax exclusion amount will halve

Property transfer by gift / death are a capital gain realization event

Full repeal of the estate tax

Limit generation-skipping tax-exempt trusts

 

QBI

Pass-through entities get 20% QBI deduction

Taxed on individual income tax, no deduction

Will most likely be extended

Capital gains

 

 

Capital gains tax increase from 23.8% to 28-33% for households >$1mn

 

 

 

Tax carried interests as ordinary income

 

Retirement

 

 

Limit retirement account contributions for those with high income and large account balances

 

Corporate taxes

 

 

Raise corporate tax rate to 28% from 21%

Decrease corporate rate to 20%, potentially 15%

Tariffs

 

 

 

10% across the-board tariff, potentially more for some countries

Source: BofA Research Investment Committee, Thomson Reuters, Brookings Institute, Tax Policy Center

BofA GLOBAL RESEARCH

 

  1. What about other provisions? Do you expect any changes to capital gains?

Main takeaway: changes to the capital gains look relatively unlikely. On the other hand, the 3.8% net investment income surtax could be expanded.

  • Net investment income (NII): the current 3.8% NII tax, which was part of the Affordable Care Act, could be expanded as a 'pay-for'. This could be another area of natural compromise. Not much would change for investors with majority investment income who are already paying it. But transactions, such as the sale of a closely held business, could be newly required to pay.
  • Capital gains: Vice President Harris has suggested a 28% capital gains tax, while also raising the NII to 5%, which could bring the top capital gains rate to 33%. But Mr. Kirk notes she was not specific on whether the 28% was inclusive of NII or not.
  1. Do you envision any changes to state & local tax (SALT) deductions?

Main takeaway: little to no change-it's too expensive to uncap the SALT deductions entirely. The cap could be raised from $10k to somewhere between $25-50k.

Higher SALT deductions could help high-income W-2 employees, but things become more complicated as earnings rise and as business interests are considered. IRS notice 2020-75 (the "workaround notice") allows passthrough entities to pay state income taxes at the business level but get state tax credits that offset state income tax liability at the owner level. This benefits small business owners but not W-2 employees and could be an area of scrutiny.

  1. What are some general ideas for tax mitigation strategies?

Main takeaway: consulting an expert for your unique situation is the best course of action.

  • Tax-deferred accounts: if an investor has most of their money in IRAs or other tax-deferred vehicles, they'll probably just have to weather the storm and hope for the best. It's difficult to transfer money from these accounts in a tax-efficient way.
  • Tax-advantaged charitable gifts: an investor could make gifts and donations now to avoid higher taxes later. But large gifts must be considered in relation to how they would affect current lifestyle choices.
  • Spousal lifetime access trusts (SLATs): The TCJA doubled the estate tax exemption. If the provision expires, the exemption in 2026 will be about $14.3mn for married couples, compared to $28.6mn if the provision is extended.

One option to mitigate the liability could be to establish a SLAT where an investor can put assets (e.g., cash, marketable securities, real estate, etc.) into a trust and report it on their gift tax return. The SLAT gets assets out of the estate and uses their lifetime exemption, but spouses still have access to the funds if needed down the road. SLATs get complicated if the couple divorces. SLATs and other strategies require help from a qualified tax and/or legal professional.

  1.  How much time do investors have to make changes in portfolios?

 Main takeaway: investors may have a sense by the summer of 2025 which changes, if any, are likely to happen. If you were already planning to sell assets in 2026-2027, it could be better to do so in 2025 at lower known rates.

  • Summer is key: regardless of election outcome, if we get to June 2025 and little progress on a compromise has been made, expect some "unnatural" tax planning as investors scramble to salvage existing exemptions.
  • Consult an expert before the crunch: tax complexity is likely to rise. For example, adding income cliffs to tax provisions (i.e., $400k AGI cutoffs) will make planning more complex in an already-complicated TCJA environment. Many people haven't done anything with their estate plan to use their increased exemption-there could be a big squeeze in demand for planning at a time when the supply of accountants and attorneys is already constrained (Exhibit 6).

 

  Exhibit 6:  Number of accountants has fallen to 5-year lows

Total number of accountants and auditors in the US (mn)

Exhibit 6: For an accessible version Merrill clients call 800-637-7455; Merrill Edge Self-Directed clients call 877-653-4732

Source: BofA Research Investment Committee, BLS, Bloomberg

BofA GLOBAL RESEARCH

 

 

  •  For planned spending & asset sales, consider starting now: an investor already planning to sell assets in the next few years to fund a major expense may consider locking in lower known rates in 2025.
A simple framework for investors if taxes rise

Exhibit 7 illustrates the potential breakeven points for investors considering selling assets ahead of higher capital gains rates.

Take, for example, an asset worth $100,000 with 0 basis expected to grow at 6% per year on average. In this hypothetical scenario, an investor has two choices: sell today with capital gains at 23.8% or hold and sell at some point in the future when capital gains are 33%.

If an investor waits to sell, they'd have to hold the asset for at least eight years to counteract the drag from higher capital gains. Assets with higher expected rates of return can be sold sooner.

 

  Exhibit 7:  When taxes rise, longer holding periods are required

Spread between selling at lower tax rates and re-investing or holding an asset and selling when rates are higher under different return scenarios

Exhibit 7: For an accessible version Merrill clients call 800-637-7455; Merrill Edge Self-Directed clients call 877-653-4732

Source: BofA Research Investment Committee. Note: hypothetical example when "lower tax rates" = 23.8% and "higher tax rates" = 33%.

BofA GLOBAL RESEARCH

 

 

 

 Five ways to boost tax efficiency

We see long-term value in simple, tax-aware investing advice. In the March RIC Report, we highlighted five examples for investors looking to make portfolios more tax efficient (for full details, see The RIC Report: Tax-efficient upgrades hiding in plain sight).

Any information relating to the tax status of financial instruments discussed herein is not intended to provide tax advice or to be used by anyone to provide tax advice. For more information see the appendix.

  1. Own tax-efficient wrappers: ETFs > mutual funds

For the same investment, taxable events mean mutual funds cost investors 1.3% per year vs. just 0.4% for ETFs. An investor who bought $100,000 of an S&P 500 ETF in October 2013 and held through today would have accumulated $359,000, compared to just $316,000 if the investment was in an S&P 500 mutual fund (Exhibit 8). We estimate that ETFs have helped save investors $250bn in taxes since 1993. See our primer Exchange Traded Funds: Primer: the relentless hunt for diversification for more. 

  1. Maximize the power of compounding: stocks > bonds

>90% of fixed income total returns comes from coupon payments which can be taxable at the highest rates. Most equity payouts are qualified dividend income (QDI), with a max rate of 20%. Paying taxes on distributions every year blunts the magic of compounding Each year, Treasury gains lose 2.4% to taxes vs. 0.6% from stocks (Exhibit 9). Equities have outperformed bonds and cash by 6.7-8.5% a year, net of taxes, for nearly 50 years.

  Exhibit 8:  ETF savings stack up over the long run

Hypothetical example: $100,000 invested in S&P 500 funds

Exhibit 8: For an accessible version Merrill clients call 800-637-7455; Merrill Edge Self-Directed clients call 877-653-4732

Source: BofA Research Investment Committee, Investment Company Institute, Moussawi et al. (2022), Bloomberg; ETF = SPY US Equity, mutual fund = SWPPX US Equity, relative to SPTR index. See appendix for tax disclosures.

BofA GLOBAL RESEARCH

 

 

  Exhibit 9:  Stock payouts are more tax efficient than bond coupons

Total return gross & net of taxes for different assets; # in parenthesis = annual tax drag

Exhibit 9: For an accessible version Merrill clients call 800-637-7455; Merrill Edge Self-Directed clients call 877-653-4732

Source: BofA Research Investment Committee, Bloomberg, ICE Data Services, LLC. *We assume a 37% tax rate for US Treasuries & cash; 20% for S&P 500. Note: US Treasuries=G8O2; Cash=G0O1. See appendix for tax disclosures.

BofA GLOBAL RESEARCH

 

  1. Prioritize tax-advantaged yield: Prudent Yield > US Aggregate Bond Index

Fixed income investors have tax efficient options-our Prudent Yield strategy offers 5.7% tax-adjusted yield vs 3.5% for US Aggregate Bond benchmark.

  1. Opt for low-friction compounding: buybacks > dividends

Buybacks are more tax efficient than dividends. Even if dividends are qualified, payouts are taxed at the end of every year where they're received. An investor who pays taxes on reinvested dividends has less money to compound every year. The S&P 500 buyback factor has led dividend factors by 200-380bps per year since 1994 and has led the broad index by 2,500% and outperformance persists net of taxes (Exhibit 11 - see Exchange Traded Funds: Banking on buybacks).

Bonus: proactively seek tax efficiency in existing holdings

Investors should audit portfolios to understand where tax costs can be lowered. Many ETFs take advantage of QDI & return of capital for tax efficient distribution.

  • MLPs (MLPX, MLPA) distributions are often treated as return of capital, making them tax-exempt in the year received.
  • US sector funds (IYK, XLU) dividends could be 100% QDI. The same is true of broad equity funds that most already own like SPY or VOO.
  • Closed end funds: muni funds (NMZ, MUA, MFM) payouts are tax-exempt and look attractive in a Fed cutting cycle. Tax-advantaged funds (AGD, ETG, GDV, HTD) are equity funds that offer 7% yields, sheltered by nearly 60% QDI on average (see Closed End Funds: Fed cuts & credit spreads say buy).

  Exhibit 10:  HY munis >the aggregate bond index by 240% net of taxes

Hypothetical growth of $1000 in US Agg gross & net of taxes vs HY munis

Exhibit 10: For an accessible version Merrill clients call 800-637-7455; Merrill Edge Self-Directed clients call 877-653-4732

Source: BofA Global Research, Bloomberg, ICE Data Services, LLC. Note: US Agg = US00; HY munis = LMEHTR. "Fully taxed" assumes US aggregate bond coupon payments are taxed at 37% top ordinary rate and HY munis coupons are not taxed. See appendix for tax disclosures.

BofA GLOBAL RESEARCH

 

 

  Exhibit 11:  Buybacks have been most tax-efficient capital return factor

Cumulative returns of different S&P 500 factors, net of taxes* (%)

Exhibit 11: For an accessible version Merrill clients call 800-637-7455; Merrill Edge Self-Directed clients call 877-653-4732

Source: BofA Global Research, Bloomberg. *We assume a 20% tax rate on dividends assessed QDI.

BofA GLOBAL RESEARCH

 

 

 

 Dynamic Prudent Yield

The BofA Dynamic Prudent Yield strategy remains fully invested. This year on average Prudent Yield sector ETFs have outperformed the US Aggregate Bond Index by +3.4% and US Treasuries by +6.1% YTD and have an average 5.7% tax adjusted yield today.

For details on the Dynamic Prudent Yield Strategy including the full Appendix see: The RIC Report: A new bond strategy for the end of 60/40. Monthly updates can be received via email immediately after publishing by subscribing to "The ETF Angle". Full ETF coverage can be found on our Full ETF coverage can be found on our ETF Research Library.

Exhibit 12: Dynamic Prudent Yield remains fully invested

Historical allocation of backtested Dynamic Prudent Yield Strategy, 2022-2024

Exhibit 12: For an accessible version Merrill clients call 800-637-7455; Merrill Edge Self-Directed clients call 877-653-4732

Source: BofA ETF Research, Bloomberg, ICE Data Services LLC. Note: weights rounded from 16.7%. This performance is backtested and does not represent the actual performance of any account or fund. Back-tested performance depicts the theoretical (not actual) performance of a particular strategy over the time period indicated. No representation is being made that any actual portfolio is likely to have achieved returns similar to those shown herein. See appendix for more details

BofA GLOBAL RESEARCH

 

 ETF Valuation

 

September median P/E rises to highest level since Dec '21

  • The median equity ETF in our coverage continues to hover around 15.5x, roughly +0.7SD above average.

 

  • India and financials composite valuations remain above the +2SD threshold. Growth, aerospace and defense, semiconductors, and large caps are also expensive relative to history.

 

  • Only 9/51 subcategories trade at a discount to long term averages, down from 10/51 last month.

 

  • Utilities valuation continues to rise, reaching +1.2 standard deviations above average. Other yield-focused equities like dividends and buybacks are also becoming more expensive.

 

  • Despite its recent rally, China remains below its historical average valuation. Japan's valuation continues to cool from extremes earlier this year.

 

 

  Exhibit 13:  Equity ETF valuations chops around +0.5SD vs history

Median 12 month forward P/E ratio across BofA equity ETF coverage

Exhibit 13: For an accessible version Merrill clients call 800-637-7455; Merrill Edge Self-Directed clients call 877-653-4732

Source: BofA ETF Research, Factset. Note: Median calculated using12m fwd P/E ratios for all equity ETFs in our coverage.

BofA GLOBAL RESEARCH

 

 

Exhibit 14: Equity ETF valuations by category

ETF valuation ratios and composite score (lower is better)

For an accessible version Merrill clients call 800-637-7455; Merrill Edge Self-Directed clients call 877-653-4732

      

Sub-category

Composite Valuation (stdev)

12m fwd P/E

12m fwd P/B

12m fwd EV/EBITDA

12m fwd P/FCF

 

Top-rated fund

Bottom-rated fund

Link

US Equity Sector

Communication Services

-0.09

19.95

2.80

9.28

16.46

 

XLC

IYZ

Getting so defensive

Energy

0.03

12.28

1.89

6.26

12.39

 

XLE

PXI

ETFs for the cyclical extremes

Real Estate

0.58

17.82

2.78

18.68

na

 

XLRE

SCHH

Getting so defensive

Consumer Staples

0.86

19.64

4.88

13.12

22.70

 

IYK

RSPS

Getting so defensive

Consumer Discretionary

0.87

22.85

6.71

13.46

24.10

 

VCR

IYC

ETFs for the cyclical extremes

Utilities

1.22

18.48

2.12

11.89

n.a.

 

XLU

RSPU

Getting so defensive

Materials

1.63

19.92

2.77

11.20

25.91

 

FXZ

IYM

ETFs for the cyclical extremes

Health Care

1.71

18.16

4.64

15.88

20.28

 

XLV

PTH

Getting so defensive

Industrials

1.81

21.83

5.40

14.38

23.89

 

XLI

FXR

ETFs for the cyclical extremes

Information Technology

1.87

27.69

7.58

18.91

30.20

 

XLK

QTEC

ETFs for the cyclical extremes

Financials

2.12

15.64

1.98

na

na

 

XLF

FXO

ETFs for the cyclical extremes

Single Factor

International Dividend

-0.25

11.13

1.53

7.59

15.03

 

VYMI

PID

Going global: markets to rent & markets to own

Dividend

0.74

16.48

3.24

11.67

20.10

 

SCHD

LVHD

A deep dive on dividend funds

Buybacks

0.87

14.47

2.95

9.98

15.94

 

DIVB

IPKW

Banking on buybacks

Value

1.38

15.97

2.66

11.17

19.39

 

VTV

RPV

Initiating coverage of value ETFs

Quality

1.62

20.20

5.60

13.86

22.12

 

COWZ

QLC

One factor to rule them all

Growth

1.93

28.98

9.58

19.21

30.95

 

SCHG

IVW

Growth for contrarians

US Size

Small Cap Equity

0.33

21.33

1.91

10.81

23.65

 

CALF

FYX

Shopping small

Mid Cap

0.57

16.95

2.55

11.39

20.49

 

SCHM

IJH

The Sweet Middle

Large Cap Non Market Cap

1.13

17.93

3.48

12.46

21.37

 

FNDX

LRGF

The Sweet Middle

Large Cap Market Cap

1.91

22.17

4.79

15.02

25.70

 

IVV

OEF

The Sweet Middle

Thematic

Clean Energy

0.03

19.00

1.59

10.66

na

 

ICL