{"id":60217,"date":"2024-06-17T08:30:47","date_gmt":"2024-06-17T07:30:47","guid":{"rendered":"https:\/\/www.etfworld.com\/nl\/?p=60217"},"modified":"2024-06-17T09:43:09","modified_gmt":"2024-06-17T08:43:09","slug":"etfworld-co-uk-investing-in-buyback-companies","status":"publish","type":"post","link":"https:\/\/www.etfworld.com\/nl\/etfworld-co-uk-investing-in-buyback-companies\/","title":{"rendered":"ETFWorld.co.uk : Investing in buyback companies"},"content":{"rendered":"\r\n
ETFWorld.co.uk<\/strong> : One of the most widely used practices (particularly in the US stock market) to support the price of securities is the buyback<\/strong>, i.e. the operation whereby a company decides to buy back a certain amount of its own shares.<\/h5>\r\n\r\n\r\n\r\n

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There are basically three reasons for this operation: 1) to support the share price<\/strong>. The company, with this operation, wants to send a signal of confidence to the market, signalling that the stock is probably undervalued; 2) to provide itself with a reserve of securities to be used for eventual acquisitions and\/or share exchanges<\/strong>; 3) to remunerate employees and managers through the allocation of shares<\/strong>.<\/p>\r\n

With the buyback, therefore, the company reduces the number of shares on the market and thereby tends to increase the value\/price of the remaining shares, with the shareholders receiving a larger dividend in this way (since the company’s profit is shared with a smaller number of shareholders).<\/p>\r\n

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The Nasdaq BuyBack Index, after breaking through the solid graphic barrier in the 23,850-24,000 point area, made a quick bullish move and rose to a peak of 27,656 points. <\/strong><\/p>\r\n

The primary trend is positive even if the strong overbought recorded by the most reactive oscillators may prevent a further extension and trigger a physiological pause for consolidation.<\/p>\r\n

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Only a descent below 25,850 points is dangerous, even if a possible correction will find a first support at 25,250 and a second support in the 24,700-24,500 point area.<\/p>\r\n

The following ETFs can be used to invest in the stocks of the companies making this move:<\/strong><\/p>\r\n

Amundi S&P500 Buyback, ISIN LU1681048127<\/strong>. It is an ETF with assets under management of \u20ac86m, which provides for the synthetic replication (via a swap) of the underlying (represented by the S&P 500 Buyback index) and which adopts an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.15% per annum.<\/p>\r\n

Invesco Global Buyback, ISIN IE00BLSNMW37<\/strong>. This ETF has \u20ac48m in assets under management and provides for full physical replication of the underlying (represented by the Nasdaq Global Buyback Achievers index). The ETF adopts a distribution policy (with dividends being distributed quarterly to shareholders). The total expense ratio (TER) is 0.39% per annum.<\/p>\r\n

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Disclaimer<\/strong><\/p>\r\n\r\n\r\n\r\n

The contents of these notes and the opinions expressed should in no way be regarded as an invitation to invest. The analyses do not constitute a solicitation to buy or sell any financial instrument.The purpose of these notes is financial analysis and investment research. Where recommendations are made, they are of a general nature, are addressed to an indistinct audience and lack the element of personalisation. Although the result of extensive analysis, the information contained in these notes may contain errors. Under no circumstances can the authors be held liable for any choices made by readers on the basis of such erroneous information.erroneous information. Anyone deciding to carry out any financial transaction on the basis of the information contained in the site does so assuming full responsibility.<\/em><\/p>\r\n","protected":false},"excerpt":{"rendered":"

ETFWorld.co.uk : One of the most widely used practices (particularly in the US stock market) to support the price of securities is the buyback, i.e. the operation whereby a company decides to buy back a certain amount of its own shares.<\/p>\n","protected":false},"author":4,"featured_media":60132,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"telegram_tosend":false,"telegram_tosend_message":"","telegram_tosend_target":0,"footnotes":"","_wpscp_schedule_draft_date":"","_wpscp_schedule_republish_date":"","_wpscppro_advance_schedule":false,"_wpscppro_advance_schedule_date":"","_wpscppro_dont_share_socialmedia":null,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"default","_twitter_share_type":"default","_linkedin_share_type":"default","_pinterest_share_type":"default","_linkedin_share_type_page":"default","_instagram_share_type":"default","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":null,"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[464],"tags":[205,538,97,119],"class_list":["post-60217","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technical-analysis-and-etfs","tag-amundi","tag-buyback","tag-etf","tag-invesco"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/posts\/60217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/comments?post=60217"}],"version-history":[{"count":3,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/posts\/60217\/revisions"}],"predecessor-version":[{"id":60224,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/posts\/60217\/revisions\/60224"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/media\/60132"}],"wp:attachment":[{"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/media?parent=60217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/categories?post=60217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/tags?post=60217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}