Wall Street’s Best ETFs | June 1, 2021
The markets continue to hold their own, as earnings season winds down. More than 95% of the companies in the S&P 500 have reported first-quarter earnings, with 86% reporting a positive EPS surprise and 76% a positive revenue surprise.
That’s great news, as traditionally, earnings drive stock prices.
President Biden has proposed a $2.3 trillion American Jobs Plan, including $1 trillion for core infrastructure. Senate Republicans countered with a five-year $568-billion proposal, limiting spending to fewer infrastructure categories, such as transportation, water and broadband. There’s no agreement in sight, but both sides seem intent on providing some infrastructure remedies.
We aren’t the only country scurrying to improve our infrastructure. According to Refinitiv, last year, more than 2,500 global infrastructure projects were announced. That’s up 5.5% from 2019.
Our Feature Recommendation this month is an ETF that addresses the water issues that are critical around the world. Its portfolio consists of some of the largest global companies working to make water cleaner and more accessible to populations near and far.
We’re keeping a careful eye on your portfolio, and have decided to sell Fidelity Select Industrials Portfolio (FCYIX) this month, as the fund hasn’t performed as we had hoped. We’ll be taking a very small loss.
We hope to see you on our June Platinum Club webinar on June 8 at 2pm. In the meantime, we hope you enjoy the beginning of the return to “normalcy” as we begin our path to reopening the economy.
Nancy Zambell and Kate Stalter