Gun related stocks
Posted: Fri Sep 18, 2020 7:27 pm
There has been discussion here about buying guy stocks. Though the sentiment of this article is opposite, you can see that if you want to own gun stocks you need to own them directly as they have negligible representation in mutual funds.
Vinny
Clients Want Out of Gun-Related Stocks? Here’s Some Advice
https://www.thinkadvisor.com/2019/08/09 ... me-advice/
For example, mutual funds that hold the largest number of shares in these companies have very little exposure. In the iShares Core S&P Small-Cap ETF (IJR), RGR is only 0.3%, which translates into the fund holding 6% of the company’s outstanding stock, Hale explains.
“To get to that [0.3% position] the fund is so large it has to buy that much of a small-cap stock,” Hale said.
To illustrate any material performance impact, Hale said that the Vanguard Small-Cap Index fund, over a three-year annualized return through July 2019, gained 11.01%. The losses over the period for both AOBC and RGR reduced the funds performance by 0.01% on an annualized basis.
Funds that do hold these stocks, albeit in small amounts, include American Funds iS Growth 1, American Funds Smallcap World, DFA US Small Cap Value, iShares Core S&P Small-Cap ETF, iShares Russell 2000 ETF, Vanguard Total Stock Market Index Fund, and Vanguard Small-Cap Index Fund.
Vinny
Clients Want Out of Gun-Related Stocks? Here’s Some Advice
https://www.thinkadvisor.com/2019/08/09 ... me-advice/
For example, mutual funds that hold the largest number of shares in these companies have very little exposure. In the iShares Core S&P Small-Cap ETF (IJR), RGR is only 0.3%, which translates into the fund holding 6% of the company’s outstanding stock, Hale explains.
“To get to that [0.3% position] the fund is so large it has to buy that much of a small-cap stock,” Hale said.
To illustrate any material performance impact, Hale said that the Vanguard Small-Cap Index fund, over a three-year annualized return through July 2019, gained 11.01%. The losses over the period for both AOBC and RGR reduced the funds performance by 0.01% on an annualized basis.
Funds that do hold these stocks, albeit in small amounts, include American Funds iS Growth 1, American Funds Smallcap World, DFA US Small Cap Value, iShares Core S&P Small-Cap ETF, iShares Russell 2000 ETF, Vanguard Total Stock Market Index Fund, and Vanguard Small-Cap Index Fund.