"I want a glorious 2026 for my portfolio, and I've put in thousands of hours of research in recent years to try to pinpoint some top stocks I want to own for the long-term. That said, in terms of finding opportunities that may work in 2026 and for many years into the future, I think it's important to continue to remain diversified and look at top exchange traded funds (ETFs) tracking specific trends that should provide upside over the near-, medium- and long-term."
"I have two overarching theses I think are likely to play out in 2026. First, I think interest rates are likely to come down, and probably in a more significant fashion than many investors are pricing in. Secondly, I'm much more bearish about the overall growth rate of many high-flying tech stocks in the AI sector and elsewhere, making the valuation discrepancy between top-quality dividend stocks and growth stocks really stand out."
Three ETFs are targeted for potential 2026 outperformance, including Schwab U.S. Dividend Equity ETF (SCHD). A macro thesis expects interest rates to decline and slower growth among high-valuation tech names, increasing relative appeal of dividend-paying quality companies. SCHD tracks the Dow Jones U.S. Dividend 100 Index and emphasizes companies with a decade of consecutive dividend increases plus metrics like return on equity, dividend sustainability, and cash-flow-to-debt ratios. SCHD offers a 3.7% yield and a 0.06% expense ratio. The strategy prioritizes diversification across trends and favors income and quality metrics to balance valuation disparities versus growth stocks.
Read at 24/7 Wall St.
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