Earlier this month, Goldman Sachs said corporate buybacks are, at the moment, the only source of demand for U.S. stocks.
That is not a bullish statement, but S&P 500 companies remain enthused by their own shares. In the fourth quarter, measured as November through January, share repurchases rose 5.2 percent to $136.6 billion on a year-over-year basis, according to FactSet. The research firm notes that last year, there were 70 activist-driven buyback campaigns, the highest total in a decade.
A Look At PKW
Investors looking to participate in the buyback binge have some exchange-traded funds to choose from, including the PowerShares BuyBack Achievers Fund (ETF) (NYSE: PKW). The $1.68 billion PKW is largest dedicated buyback ETF. Last year, the ETF fell 4.3 percent while the S&P 500 posted a modest increase, marking just the third time since 2009 that the buyback fund ...
/www.benzinga.com/trading-ideas/long-ideas/16/04/7849140/the-benefits-of-a-buyback-etf alt=The Benefits Of A Buyback ETF>Full story available on Benzinga.com
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