The VanEck Durable High Dividend ETF (DURA) has been identified as the inaugural member of the CNBC Pro All Weather Stock list, a selection designed to withstand market volatility and deliver reliable dividend income. This choice comes amidst a challenging stock market landscape in 2025, where uncertainties in fiscal and monetary policies, signs of economic slowdown, and the looming potential for a volatility spike are prevalent.
DURA stands out due to its resilience in both bullish and bearish market conditions. It has demonstrated consistent positive returns over the past five years, including during the S & P 500's downturn in 2022 and its surge in the previous year. With a 12-month yield of 3.27%, the ETF offers investors a steady income stream even during market corrections or volatile periods.
The All Weather Stock List Unveiled
The first member of the CNBC Pro All Weather Stock list is an exchange-traded fund that has demonstrated remarkable resilience while offering substantial dividend income.
Despite these risks, DURA's consistent performance and high dividend yield make it a compelling choice for investors seeking stability and income in their portfolios. As the first addition to the CNBC Pro All Weather Stock list, DURA serves as a foundation for investors to conduct further research and potentially explore strategies to navigate the evolving market conditions in 2025.
Market Conditions in 2025
The year 2025 has brought about a precarious setup in the stock market, making the timing of this list particularly pertinent. The ongoing dominance of momentum stocks in the current bull market poses a challenge to dividend and value investing strategies. Furthermore, the fund's focus on high-yielding companies like Chevron and Exxon Mobil exposes it to risks associated with a potential recession or significant market downturn.
Current Market Trends
It is uncommon for the S & P 500 to achieve three consecutive years of 20% gains, signaling a potential shift in market dynamics. The fund's top holdings, such as AbbVie, Johnson & Johnson, Pfizer, and Altria, are known for their stable cash flows and resilience to market fluctuations. Additionally, DURA's track record of never experiencing a down year in its six-year history further highlights its reliability.While DURA has already outperformed the market with a 4% price return this year, it is not without risks.
Volatility Concerns
The discrepancy between the Cboe Volatility Index (VIX) and the market's actual outlook raises concerns about potential volatility spikes.
Global Economic Uncertainty
Fiscal and monetary policies, both domestically and internationally, are contributing to elevated levels of uncertainty in the macroeconomic environment.
Identifying the Top Performer
After screening numerous exchange-traded funds for stability, the VanEck Durable High Dividend ETF (DURA) emerged as the standout candidate for the All Weather Stock list.
Key Features of DURA
DURA has maintained positive returns in both bullish and bearish market conditions, showcasing its resilience and stability.
Rationale Behind Selection
The fund's consistent performance, high dividend yield, and top holdings in reliable companies were key factors in its selection for the All Weather Stock list.
Performance and Risks
While DURA has shown appreciation in price return and stable income generation, there are risks associated with its performance, especially in the context of a prolonged bull market.
Long-Term Outlook
The fund's historical annual return and exposure to certain stocks indicate potential challenges in achieving success in the long run.
Investment Strategy
Investors considering DURA should be mindful of the fund's performance in different market scenarios and its susceptibility to economic downturns.
Future Additions to the List
The All Weather Stock list serves as a foundation for investors to conduct further research and explore diverse investment strategies based on their unique perspectives.
Expanding Investment Opportunities
CNBC Pro will introduce additional stock lists to provide investors with tailored strategies and insights backed by professional screening techniques and expert analysis.
