Headlines Making Noise: Keeping You Informed and Empowered 📝💡

Palantir Technologies Inc (NYSE: PLTR) has inked a new multi-year, multi-million dollar contract with Nebraska Medicine.

Palantir will use its Artificial Intelligence Platform (AIP) to enhance healthcare through its transformative technology.

Palantir and Nebraska Medicine began their collaboration in January 2024, with a mission to transform healthcare.

Palantir aims to help Nebraska Medicine by providing AI software for patient flow, nurse allocation, clinical supplies and revenue cycle optimization.

Michael Ash, Nebraska Medicine president and CEO, said, “The technology allows our staff to work smarter, and for more of our patients to leave the hospital as soon as they’re able. Most exciting for us – this is just the beginning of the innovations we’ll discover together and lead the way for other hospitals.”

Palantir continues to grow its commercial business line.

If you’re a premium subscriber, you know how excited I am about this company.

I have a large position and I continue to add to it when prices fall.

If you want to know more about the tech stocks I’m holding (not only a dividend investor) click below to upgrade to premium and get our bi-weekly premium content.

ETF Spotlight of the Week 💡

Welcome to another issue of The Profit Zone.

I have something special for you.

Typically, we only do deep dives into stocks/ETFs for our premium members.

But today, I’m going to be doing a deep dive on an ETF I’ve been looking at for quite some time now.

And I want to share it with you.

Introducing Invesco’s S&P 500 Low Volatility ETF (SPLV)

The reason I wanted to share SPLV is because I love the S&P 500 and I also love sleeping well at night.

SPLV combines both.

The Invesco S&P 500 Low Volatility ETF invests at least 90% of its total assets in the securities that comprise the S&P 500 index.

The index is comprised of the 100 securities from the S&P 500 with the lowest realized volatility (up and down price movements) over the past 12 months.

SPLV as well as the index are rebalanced quarterly in February, May, August and November.

Let’s get into the meat and potatoes.

This fund boasts a low Management Expense Ratio (MER) of only 0.25% which is fairly competitive in today’s markets.

As of September 16th, net assets under management totals $7.54B which is a lot smaller than some of your other household ETF names, but we’re still getting to the good part.

Over the last 3 months, SPLV has returned 10.31%.

While ETFs like Invesco’s QQQ Trust (QQQ) and SPDR S&P 500 ETF Trust (SPY) have returned -2.28% and 2.95% respectively.

Over a period of 5 years, the returns of both QQQ and SPY marginally outpace that of SPLV, but it’s interesting to evaluate recent returns when the market isn’t going through the roof.

Below you can see how SPLV has performed since 2020.

But it gets even better…

The 10-year total return CAGR for SPLV: 9.80%

The 15-year total return CAGR for SPLV: 10.83%

SPLV has beaten its category average in 50% of the years dating back to 2012.

Who said low-volatility ETFs can’t generate solid returns?

The fund is currently trading at a PE Ratio of 25.87 with a healthy dividend yield of 2.05%.

Top 10 Holdings:

1) Berkshire Hathaway - 1.47%
2) Coca-Cola - 1.34%
3) T-Mobile - 1.25%
4) Loews - 1.24%
5) Republic Services - 1.24%
6) Visa - 1.22%
7) Colgate-Palmolive - 1.19%
8) Marsh & McLennan - 1.19%
9) Procter & Gamble - 1.16%
10) Linde - 1.13%

Top 5 Sector Weightings:

1) Financial Services - 22.17%
2) Consumer Defensive - 15.30%
3) Industrials - 12.21%
4) Utilities - 12.14%
5) Healthcare - 10.37%

Who is this ETF for?

This ETF is for investors who like holding index funds but want that extra margin of safety that comes with investing in an index.

I personally buy the S&P 500 index fund VFV (U.S. equivalent is VOO).

The reason is because of my age, I can afford to take on some more volatility within my portfolio.

This ETF stood out to me because we have not felt the full impact of interest rate hikes yet, and the market is due for a large correction and/or recession.

It’s inevitable and it will happen, the question we can’t answer is: when?

If you’re more of a risk averse investor, this fund is for you.

You can gain exposure to S&P 500 companies, some of the largest on the planet, while also lowering the volatility of your portfolio.

It’s the best of both worlds.

And while you can’t expect astronomical returns from SPLV, you can expect average returns which will help you sleep better at night knowing your money is safe.

If this sounds like something you’re interested in, consider SPLV in your portfolio.

See you in the next one!

Alex (The Dividend Dominator)
Founder and CEO of Dividend Domination Inc.
Follow me on Twitter, Instagram and LinkedIn

Do you want more?

We’re just scratching the surface of this ETF spotlight.

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The reason we have won 83% of the time is because we use screeners to evaluate breakout prices, market sentiments, and hedge fund level fundamental analysis which leads to picking only high-quality stocks.

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