Categories
ETFs and Funds

World’s First: 2 New Bitcoin ETFs Go Live

Please note that I am not commenting on the merits of bitcoin as an investment. To be honest, I’m on the fence. There are very smart people on either side of the argument. Bitcoin is a highly speculative and risky investment that comes with lots of volatility and a real risk of losing some or all of your investment.

February 18th and 19th. Mark those days in your diary, because that’s when the world’s first bitcoin ETFs were launched.

This has been years in the making, as regulatory hurdles seemed insurmountable. Yet, Purpose Investments and Evolve ETFs (both Canadian firms, by the way) are listing bitcoin ETFs one day apart on the Toronto Stock Exchange (TSX).

Until now, investors could only buy bitcoin through a bitcoin exchange, which is cumbersome, or via a closed end fund. While the buy process is simplified using a closed end fund (because it is listed on a stock exchange), the product structure allows the fund’s share price to drift significantly from the value of its underlying assets – in this case, bitcoin.

The ETF structure should address these issues and the performance of the ETFs should more closely track the performance of the underlying asset.

According to an article on Bloomberg:

“There’s sizable untapped interest for a Bitcoin investment that has the benefits of an ETF,” said Todd Rosenbluth, CFRA Research’s director of ETF research. “Unlike pre-existing products, an ETF is unlikely to trade a significant premium- to-net-asset-value. While most ETFs come to market globally with an educational hurdle to overcome, many investors are familiar with what is inside BTCC.”

The U.S. currently has several active filings for Bitcoin ETFs including ones from VanEck Associates Corp. and Bitwise Asset Management, but the price swings notorious in cryptocurrencies and allegations of industry manipulation remain hurdles to regulator approval.

Source: Bloomberg

The Purpose Investments ETF, which listed on the TSX February 18th, gained immediate attention from investors. Basic product details are as follows:

Product brochure

Product fact sheet

Prospectus

Som Seif, CEO of Purpose Investments discusses his company’s new ETF in the following interview with NASDAQ.

The Evolve ETFs bitcoin fund will be listed on the TSX on February 19th:

Product brochure

Product fact sheet

Prospectus

Categories
ETFs and Funds

31 Dividend Payers that Raised in December

In my view, a dividend raise is a signal that management is confident in their business prospects – a larger dividend raise, even more so. The following is a list of large cap companies that raised their dividends in December:

(Note: Best viewed on desktop.)

CompanyAnnouncement DateAmountPrevious AmountIncrease AmountYieldEx-DatePayable Date
DRI
Darden Restaurants
12/18/2020$0.37$0.3023.33%1.25%2/1/2021
LW
Lamb Weston
12/17/2020$0.24$0.232.17%1.20%2/4/20213/5/2021
AMGN
Amgen
12/16/2020$1.76$1.6010.00%3.08%2/11/20213/8/2021
BEN
Franklin Resources
12/15/2020$0.28$0.273.70%4.55%12/30/20201/15/2021
LLY
Eli Lilly and
12/14/2020$0.85$0.7414.86%2.15%2/11/20213/10/2021
WLTW
Willis Towers Watson Public
12/14/2020$0.71$0.684.41%1.40%12/30/20201/15/2021
PFE
Pfizer
12/11/2020$0.39$0.382.63%3.74%1/28/20213/5/2021
CERN
Cerner
12/11/2020$0.22$0.1822.22%1.19%12/24/20201/12/2021
ABT
Abbott Laboratories
12/11/2020$0.45$0.3625.00%1.71%1/14/20212/16/2021
BMY
Bristol-Myers Squibb
12/10/2020$0.49$0.458.89%3.26%12/31/20202/1/2021
EIX
Edison International
12/10/2020$0.66$0.643.92%4.21%12/30/20201/31/2021
CNP
CenterPoint Energy
12/10/2020$0.16$0.156.67%2.94%2/17/20213/11/2021
CARR
Carrier Global
12/9/2020$0.12$0.0850.00%1.28%12/22/20202/10/2021
WPC
W. P. Carey
12/9/2020$1.05$1.040.19%6.03%12/30/20201/15/2021
CPB
Campbell Soup
12/9/2020$0.37$0.355.71%3.07%1/7/20212/1/2021
ZTS
Zoetis
12/9/2020$0.25$0.2025.00%0.63%1/19/20213/1/2021
FBHS
Fortune Brands Home & Security
12/8/2020$0.26$0.248.33%1.25%2/25/20213/17/2021
MA
Mastercard
12/8/2020$0.44$0.4010.00%0.52%1/7/20212/9/2021
ERIE
Erie Indemnity
12/8/2020$1.04$0.977.25%1.86%1/4/20211/20/2021
O
Realty Income
12/8/2020$0.23$0.230.21%4.70%12/31/20201/15/2021
TJX
The TJX Companies
12/8/2020$0.26$0.2313.04%1.59%2/10/20213/4/2021
MAA
Mid-America Apartment Communities
12/8/2020$1.03$1.002.50%3.31%1/14/20211/29/2021
ARE
Alexandria Real Estate Equities
12/8/2020$1.09$1.062.83%2.60%12/30/20201/15/2021
GGG
Graco
12/7/2020$0.19$0.187.14%1.10%1/15/20212/3/2021
RJF
Raymond James
12/7/2020$0.39$0.375.41%1.70%1/4/20211/19/2021
AES
The AES
12/7/2020$0.15$0.145.02%2.88%1/28/20212/12/2021
AMT
American Tower
12/3/2020$1.21$1.146.14%2.14%12/24/20202/2/2021
WEC
WEC Energy Group
12/3/2020$0.68$0.637.11%2.87%2/11/20213/1/2021
NUE
Nucor
12/3/2020$0.41$0.400.62%2.96%12/30/20202/11/2021
FMC
FMC
12/2/2020$0.48$0.449.09%1.62%12/30/20201/21/2021
SYK
Stryker
12/2/2020$0.63$0.589.57%1.08%12/30/20201/29/2021
Source: Market Beat. While efforts were made to ensure accuracy, we cannot guarantee data is correct.

Start building wealth today!

Categories
ETFs and Funds

5 Actions to Take Before Even Considering Investing

For many, investing sounds like a way to get rich fast. People see insane returns of FAANG stocks and bitcoin and think that’s the ticket to wealth.

For some, it is.

For those who have truly built wealth, there are many things that come before investing.

First of all, most people shouldn’t expect to earn triple-digit – or even double-digit – returns into perpetuity. Depending on how far you go back, the average return for the S&P 500 is roughly 10%. Bond returns, even less. So a well diversified investor holding a balanced portfolio might reasonably expect a 6-8% return over the long run.

For someone with $10,000 to invest, that equates to a $600-800 annual return. Hell, even if that person could accomplish 100% returns he’d only gain $10,000 in year one. Nice, but not enough to become rich unless by some miracle that feat can be repeated numerous times.

Nobody gets rich giving all their money away.

Investing is something you do with accumulated wealth. It’s a way to get your money working for you and to maintain your purchasing power. But before you can do that you must first build wealth through simple, deliberate actions.

Action 1: Spend Less Than You Earn

Seems simple. But many don’t live by this rule and rely on their credit cards to cover regular expenses.

Nobody gets rich giving all their money away. It’s so simple I feel stupid for saying it, but here we are. To accumulate wealth you first need to spend less than you earn.

Action 2: Pay Off Credit Card Debt

If you have a credit card balance you’re likely paying around 20% interest. You’ll never beat that return in the market with any consistency. So do yourself a favor and pay off that credit card debt before investing.

Action 3: Aggressively Save

Simply spending more than you earn isn’t enough. Think about it this way: every dollar you save is a dollar less you have to earn in the future. The more you can save now, the closer you will get to financial independence.

While saving 10% of your paycheck might seem daunting, it’s a standard rule of thumb. However, I suggest saving as aggressively as possible. 10% should be the bare minimum.

Action 4: Don’t Leave Free Money On The Table

Many employers have share purchase or retirement savings matching plans. I’ve known so many people who have lost this free money out of sheer laziness. People walk away from a 20, 30, 50% match – equivalent to a 20, 30, 50% instant return – yet spend their energy trying to invest in the next Tesla.

Moreover, these employee savings plans, once set up, are usually a decision-free way to build wealth since the contributions are taken off your paycheck before you even realize the money even existed.

Action 5: Earn More Money

The average age of Robinhood user is 31, and the average account size is $1000-5000. Such small account sizes suggest these people don’t have alot of wealth.

These young people are wasting their time chasing stocks when they’d get a much higher ROI investing in themselves. At age 31, most people are near the bottom of the corporate ladder. Instead of putting $1000 into Air BnB stock, spend that money on a Python course, Canadian Securities Course or CFA designation.

A little self-improvement at such a young age will pay off multiple times over a lifetime.