Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you’d like to add some highly rated stocks to your portfolio, the Guggenheim Raymond James Inc. (NYSE:RJF) SB-1 Equity ETF could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously. It focuses on companies rated as “strong buys” by analysts at Raymond James Financial, Inc. (NYSE:RJF)
ETFs often sport lower expense ratios than their mutual fund cousins. The Guggenheim ETF’s expense ratio — its annual fee — is 0.75%, which is on the steep side for an ETF but still cheaper than a typical stock mutual fund. The fund is fairly small, so if you’re thinking of buying, beware of possibly large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.
This ETF has performed reasonably, outpacing the S&P 500 over the past three and five years. As with most investments, of course, we can’t expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.
Why “strong buy” stocks?
Stocks deemed strong buys merit some consideration because savvy financial professionals have apparently found some appealing factors in them — though, of course, they’re not always right. (Indeed, my colleague Dan Dzombak has pointed out a blind spot they typically have.)