In this article, we discuss 5 cheap ETFs to invest in for beginners. If you want to see more stocks in this selection, click 10 Cheap ETFs to Invest in For Beginners.
5. First Trust Large Cap US Equity Select ETF (NASDAQ:RNLC)
First Trust Large Cap US Equity Select ETF (NASDAQ:RNLC) seeks investment results that correspond to the price and yield of the Nasdaq Riskalyze US Large Cap Index. The fund was established in 2017, with an expense ratio of 0.60% and net assets exceeding $20 million. The ETF has 357 holdings in its portfolio.
International Business Machines Corporation (NYSE:IBM) is the largest stock in First Trust Large Cap US Equity Select ETF (NASDAQ:RNLC)’s portfolio. With a market cap exceeding $125 billion, International Business Machines Corporation (NYSE:IBM) is a tech firm that operates through four business segments – Software, Consulting, Infrastructure, and Financing.
BofA analyst Wamsi Mohan on April 20 raised the price target on International Business Machines Corporation (NYSE:IBM) to $165 from $162 and maintained a Buy rating on the shares after the company posted “solid” quarterly results and gave a “strong” guidance for 2022. The company has made notable progress in shifting its portfolio, which is now defensive and can perform well in a tough macro environment, and he expects continued revenue growth beyond 2022, the analyst told investors.
Among the hedge funds tracked by Insider Monkey, 43 funds were bullish on International Business Machines Corporation (NYSE:IBM) at the end of Q1 2022, compared to 44 funds in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the biggest shareholder of the company, with 4.46 million shares worth about $580 million.
Here is what St. James Investment Company has to say about International Business Machines Corporation (NYSE:IBM) in its Q4 2021 investor letter:
“IBM was not the first company to build computers. The distinction belongs to Sperry-Rand’s subsidiary UNIVAC, which introduced the first commercially successful computers in the early 1950s. In this era, IBM did possess the largest research and development department of the business machines industry and quickly caught up, introducing cost-competitive computers a few years after UNIVAC. By the late 1950s, IBM held the dominant market share in computers. IBM also touted a vastly superior sales organization, which used a sales tactic called “paper machines” (the equivalent of today’s “vaporware”). If a competitor’s product was selling well in a market segment that IBM had yet to penetrate, the company would announce a competing product and start taking orders for the “paper machine” long before it was available.
One cannot overstate how powerful IBM was in the computer industry in the 1950s and 1960s. Every competitor rightly worried that if their product worked too well for too long, it was only a matter of time before an army of IBM salesforce representatives mobilized. In their easily recognizable uniforms of starched white shirts, red ties and blue suits, IBM marketers marched on their customers and offered a more expensive, but much more defensible, choice. “Nobody gets fired for buying IBM” was a common phrase. Even competitors acknowledged that the company excelled at sales. As a UNIVAC executive once complained, ‘It doesn’t do much good to build a better mousetrap if the other guy selling mousetraps has five times as many salesmen.’” (Click here to see the full text)
