On Thursday, July 24, 2014, the S&P 500 index reached an all-time record high of 1,991.39. ECRI's Weekly Leading Index, WLI, rose to just 0.3 points below its 6.3-year high of 136.3. SPY, the exchange traded fund for the S&P 500, also set a record high on July 24 and today is just 1% below that high.
(click to enlarge)
Chart 1 Showing S&P500 from 1997 through July 28, 2014
S&P500 Chart Scan
The latest all-time high for the S&P 500 put it over 26% above its 2007 high. The stock market bears who claimed we were in a "Secular Bear Market that began in March 2000" scared many out of the stock market. Those of us who stayed in the markets and added to positions during the downturns are also well above past highs.
Table 1 showing Recent S&P500 Data
In my February 2011 article "
Editor's note: Originally published on May 20, 2014
Q: The Vanguard S&P 500 (VFV) currently has a dividend yield of 1.44%, but the U.S.-listed version of the same ETF has a yield of 2.01%. How can these two funds have such different yields when their underlying holdings are exactly the same? – Lindsay
The U.S. and international equity ETFs from Vanguard Canada do not hold their stocks directly: they get their exposure by holding a U.S.-listed ETF. The Vanguard S&P 500 (VFV), for example, simply holds the Vanguard S&P 500 (NYSEARCA:VOO), which trades on the New York Stock Exchange.
Since the underlying holdings of VFV and VOO are identical, you might expect the two funds to have the same dividend yield. Yet if you visit their respective websites you’ll find the published yields actually vary by 57 basis points. What gives?
More than one way to do the math