Evidence is Beating Advertising

I mentioned earlier that the internet itself disrupted bad active management, rendering it no longer a viable business model. The flows data year-to-date bear this out quite visibly, according to Bloomberg’s Eric Balchunas: With fresh HF data in, here’s latest ytd flows: ETFs: $104b Index Funds: $77b Hedge Funds: -$22b Active MFs: -$76b https://t.co/Sa3rOAyXm1 —…

on the correlation between dividend growth and sector performance

Over at Convergex, Chief Market Strategist Nick Colas looks at S&P 500 sector performance as a function of dividend growth. It makes intuitive sense that a sector growing dividends faster than the SPX will also be an outperformer, given the fact that increasing earnings power is probably behind the rise in payouts to begin with….