In the first half of 2026, smart beta strategies showed mixed results, with momentum and low-volatility funds lagging, while dividend growth funds struggled due to rising yields. However, funds emphasizing companies with strong free cash flow and high returns on capital—such as Pacer US Cash Cows 100 ETF (COWZ), iShares MSCI USA Quality Factor ETF (QUAL), and VanEck Morningstar Wide Moat ETF (MOAT)—performed well. These funds benefit from a macro environment of high borrowing costs and stable Federal Reserve rates, favoring businesses that self-fund growth. COWZ focuses on high free cash flow yield companies, QUAL targets quality firms with stable earnings and low leverage, and MOAT invests in attractively valued companies with durable competitive advantages. Each fund suits different investor preferences, from yield-focused to growth and value-oriented strategies, highlighting the resilience of cash flow and quality in a challenging market.
Qualcomm's stock experienced a sharp drop after NVIDIA's AI chip launch and Microsoft easing hardware exclusivity, but fundamentals remain strong with record automotive revenue and steady IoT growth. The company aims for a $300.25 price target within...
This week, investors are focused on the May U.S. nonfarm payrolls report expected to show 93,000 jobs added and steady unemployment at 4.3%. Key earnings from Broadcom, CrowdStrike, and others will provide insights into AI infrastructure spending. Ma...
