Vanguard's Patent About to Expire: What's Next for Active ETFs?
Justin Kuepper
|
Vanguard's patent on adding an ETF share class to mutual funds will expire...
According to the analyst: “Palo Alto is our top pick for 2015. While shares are up 116% YTD (vs. +12% S&P500), we believe momentum can continue in 2015, driven in part by a shift in security spending toward vendors with comprehensive portfolios. Additionally, we believe the company’s highly differentiated products will enable win rates to remain above 85%, with ramping contributions from Wildfire and Traps. We believe the current valuation underappreciates the sustainability of these advantages and therefore raise our price target to $150 (prev $130) as we roll out to CY16 estimates.”
Regardless of the stock’s run up, investors should realize that its shares are quite pricey, trading at three-times the company’s price-to-earnings growth (PEG). A reasonable PEG would be around 2:1. We understand stocks in their early growth phase can sometimes surpass the most optimistic forecasts, but investors should be aware of a company’s current valuation whenever deploying capital.
Symbol | Mutual Fund | Stake |
---|---|---|
FCNTX | Fidelity® Contrafund® | 1.37% |
VTSMX | Vanguard Total Stock Mkt Idx | 1.34% |
NAESX | Vanguard Small Cap | 1.28% |
Shares of PANW are up 120% YTD.
Receive email updates about best performers, news, CE accredited webcasts and more.
Justin Kuepper
|
Vanguard's patent on adding an ETF share class to mutual funds will expire...
Kristan Wojnar, RCC™
|
Let’s dive into the business building ideas of social media planning, cultivating new...
Justin Kuepper
|
While there are many value-focused ETFs, active funds have the flexibility to pinpoint...
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...
According to the analyst: “Palo Alto is our top pick for 2015. While shares are up 116% YTD (vs. +12% S&P500), we believe momentum can continue in 2015, driven in part by a shift in security spending toward vendors with comprehensive portfolios. Additionally, we believe the company’s highly differentiated products will enable win rates to remain above 85%, with ramping contributions from Wildfire and Traps. We believe the current valuation underappreciates the sustainability of these advantages and therefore raise our price target to $150 (prev $130) as we roll out to CY16 estimates.”
Regardless of the stock’s run up, investors should realize that its shares are quite pricey, trading at three-times the company’s price-to-earnings growth (PEG). A reasonable PEG would be around 2:1. We understand stocks in their early growth phase can sometimes surpass the most optimistic forecasts, but investors should be aware of a company’s current valuation whenever deploying capital.
Symbol | Mutual Fund | Stake |
---|---|---|
FCNTX | Fidelity® Contrafund® | 1.37% |
VTSMX | Vanguard Total Stock Mkt Idx | 1.34% |
NAESX | Vanguard Small Cap | 1.28% |
Shares of PANW are up 120% YTD.
Receive email updates about best performers, news, CE accredited webcasts and more.
Justin Kuepper
|
Vanguard's patent on adding an ETF share class to mutual funds will expire...
Kristan Wojnar, RCC™
|
Let’s dive into the business building ideas of social media planning, cultivating new...
Justin Kuepper
|
While there are many value-focused ETFs, active funds have the flexibility to pinpoint...
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...