As advisors well know, interest rates are at historic lows, and while Treasury yields recently climbed, the present is still a very much low rate environment. In this climate, investors have a tendency to stretch for yield, eschewing quality in the process.
While markets roiled over the past week, exchange traded fund investors have been shifting into the emerging markets. Among most in-demand ETFs of the past week, the Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO) attracted $1.3 billion in net inflows and the iShares Core MSCI Emerging Markets ETF (NYSEArca: IEMG) saw $1.0 billion in new creations, according to ETFdb data.
Brazil country-specific exchange traded funds rebounded Monday as traders anticipate the central bank to take aggressive interest rate hikes. The iShares MSCI Brazil Capped ETF ( EWZ B+ ) increased 1.3% on Monday, testing its long-term support at the 200-day simple moving average.
The recent spike in yields and growing inflation concerns have weighed on equity markets. This new environment could be ripe for value and small cap ETFs. Gargi Chaudhuri, Head of US iShares Markets & Investments Strategy, argued that the recent developments are a result of a new normalization.
Inflation fears showered the markets with sell-offs last week, but some analysts aren’t fretting. Investors still spooked by the possibility of rising inflation can turn to the VanEck Vectors Investment Grade Floating Rate ETF ( FLTR B- ). “Mad Money” host Jim Cramer saw the recent sell-offs as a general overreaction: “The bond market sees the economy getting ready to reopen … and it figures the last thing we need is more stimulus,” said Cramer.
Seasoned fixed income investors know that the lower they go in terms of credit quality, the higher the risk profile they take on. The FlexShares Credit‐Scored US Corporate Bond Index Fund (NasdaqGM: SKOR) is one avenue for combating this risk, and it’s a good idea to consider in the current bond climate.
Despite a recent spike in bond yields, bond ETFs pulled in net inflows of $13 billion in the past month. While it’s sharply lower than the $79 billion cash haul for equities, we view the persistent demand as indicative of growing comfort in the asset category.
Batteries are pivotal to the electric vehicle (EV) equation. For instance, Tesla, a prime holding in the ARK Innovation ETF ( ARKK ), needs a robust battery pipeline to up production and meet demand for its EVs. Manufacturers are ramping up efforts to meet growing EV battery demand and reduce carbon emissions. “Automakers’ compliance with emission standards will drive growth in BEVs and battery capacity in the coming years
The United States and China have been locking horns when it comes to technological advances. ETF investors looking to capitalize on strength in U.S. biotech should give the VanEck Vectors® Biotech ETF ( BBH B- ) a look.
2020 is destined to become a year that will be remembered just by mentioning two digits, much like ’87, ’01, and ’08 have become synonymous with the events of each respective year. All someone will need to say is “remember ’20,” and we’ll know everything that number entails—from the pandemic to the presidency, and a lot in between.
Not everybody has the time to analyze stocks like many institutional investors. Thankfully, several funds can give investors exposure to the value factor through the convenience of an ETF wrapper. “Investing in value stocks takes hard work and lots of research.
Mid cap equities strike the perfect balance between large and small cap, but now investors can also side with growth or value using the Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) and Vanguard Mid-Cap Growth Index Fund ETF Shares (VOT) .
Last week, equities tumbled as Treasury yields surged, but rising bond yields don’t always lead to long periods of under-performance for stocks. What’s pivotal in this equation is for investors to assess why bond yields are rising in the first place, and whether the scenario boils down to one of two examples. “The answer to that question depends on the reason why interest rates are rising.
Teenagers can be a handful, but your U.S. mid-cap equity allocation doesn’t have to be. On February 23, WisdomTree celebrated the 14th birthday of its U.S. core equity ETF family, and the WisdomTree U.S. MidCap Fund (EZM) got to blow out the candle.
