This dividend-paying ETF is beating the stock market this year — and its manager expects the ‘euphoria’ recently seen in stocks won’t last

Hi! In this week’s ETF Wrap, you’ll get a look at how Austin Graff, a former PIMCO portfolio manager, is beating the stock market with the TrueShares Low Volatility Equity Income ETF.

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   A small exchange-traded fund focused on high-quality, dividend-paying stocks is beating the pummeled stock market this year even after its recent bounce which is seen as a rally marked by “euphoria” that will likely ease, according to its portfolio manager, Austin Graff.</p> <p>TrueShares Low Volatility Equity Income ETF 
    DIVZ,
   which has $62.5 million in assets, has a total return of 3.1% this year through Thursday, according to FactSet data. That beats the SPDR S&amp;P 500 ETF Trust 
    SPY,
   which has lost almost 11% over the same period on a total return basis, FactSet data show. </p> <p>“Right now, we’re more weighted towards value,” said Graff, portfolio manager for TrueMark Investments’s TrueShares Low Volatility Equity Income ETF, in a phone interview. Graff, who is a former PIMCO portfolio manager, said the actively managed ETF is concentrated and holds both value and growth stocks.</p> <p>The U.S. stock market has surged in recent weeks, with the Nasdaq Composite 
    COMP
   exiting bear market territory on Wednesday, according to Dow Jones Market Data. Growth stocks have been pummeled this year but are outperforming value so far in the third quarter, as investors see signs of easing inflation potentially leading to a less aggressive Federal Reserve. </p> <p>Graff isn’t planning any big portfolio shifts at the moment.</p> <p>“There’s been a lot of rhetoric around peak inflation,” with the assumption that “it’s going to decline as rapidly as it went up,” he said. The “knee-jerk reaction” has been for equities to climb higher as interest rates went down, said Graff, pointing to the yield on the 10-year Treasury note.</p> <p>The 10-year yield has dropped from its peak this year of 3.482% on...</p>..

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