Finding the best ETFs is an increasingly difficult task in a world with so many to choose from.
You Cannot Trust ETF Labels
There are at least 27 different Information Technology ETFs and at least 186 ETFs across all sectors. Do investors need that many choices? How different can the ETFs be?
Those 27 Information Technology ETFs are very different. With anywhere from 24 to 415 holdings, many of these Information Technology ETFs have drastically different portfolios, creating drastically different investment implications.
The same is true for the ETFs in any other sector as each offers a very different mix of good and bad stocks. Some sectors have lots of good stocks and offer quality funds. The opposite is true for some sectors, while others lie in between these extremes with a fair mix of good and bad stocks. For example, the Health Care sector, per my 3Q Sector Rankings
Free cash flow in the North American energy sector is about to soar, and that trend should continue for the next 5-10 years - even with declining oil and gas prices - says US brokerage firm Raymond James (RJ).
For investors, it could (should?) mean higher multiples as energy producers turn into more sustainable cash flow machines.
The heart of RJ's argument is that the massive overspending by producers on new land plays is almost over, and production costs have stabilized. At the same time, oil and gas production per well is increasing - sometimes dramatically.
Stable costs and higher production. The result? A new era of positive, free cash flow that should last several years.
Some supporting evidence comes from a second research report - also issued on July 14 - by the #2 Canadian brokerage firm, BMO Nesbitt Burns. In a 26 page summary introduction report to their