Practical insights on ETFs, bonds and global markets for long-term investors – curated from fund managers, index providers and market analysts, with a link to every original source.
TopicsETF ListFixed IncomeEquityEconomic and Industrial AnalysisPortfolio PlanningDividendMulti Asset
Small caps have been strong performers in 2021 as well as energy and value—wrap all three in one fund and you get a dynamic ETF in the Invesco Dynamic Energy Exploration & Production ETF (PXE) . Looking specifically at the Russell 2000 for small cap strength, the index is up 11% for the year.
The first half rally in small caps doesn’t appear to be running out of steam, which could mean more strength in the second half with exchange-traded funds (ETFs) like the Invesco S&P SmallCap 600 Revenue ETF (RWJ) . RWJ, which is up over 40% so far in 2021, seeks to track the investment results of the S&P SmallCap 600 Revenue-Weighted Index.
How can investors prioritize both growth and income? This FlexShares strategy is a great place to start. “We believe companies may prioritize stability over profitability by re-routing their supply chains, moving production inside their home countries, and building healthier balance sheets,” a FlexShares Fund Focus said. “After the stimulus-induced surge, global growth may settle at low levels.”
Despite the Covid-19 variant Delta circulating throughout major U.S. cities at a rapid pace, analysts still expect economic recovery to continue to expand through the rest of the year, according to the Wall Street Journal . But anything could happen—leaving some investors looking to hedge their exposure to tail risks using instruments such as the Simplify Nasdaq 100 PLUS Convexity ETF (QQC) .
On Tuesday, the Biden administration implemented new cybersecurity requirements for U.S. pipeline operators, according to the Wall Street Journal . The measures are to help protect against increasing incidents of ransomware and disruptive hacking, such as with the Colonial Pipeline attack that shut the major fuel supplier down for a week in May.
International markets and related exchange traded funds maintained their momentum Friday, with European stocks closing at an all-time high, as a strong earnings season and the European Central Bank’s supportive monetary policy outlook helped offset concerns over the more infectious Covid-19 Delta variant. “The Monday selloff seems like a moment of brief panic, and … was enough, it appears, to reset sentiment and activity and prompt a resurgence of bullish momentum.
Investors are focusing on the second quarter earnings season, with some marquee names from domestic sectors yet to report. However, market participants may not want to overlook what could be a stellar batch of earnings in Europe.
The WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) is higher by 11.08% year-to-date, an admirable showing among developed market single-country exchange traded funds. More upside could be on the way for Japanese equities and DXJ as activist investors increasingly augur for change at companies in the world’s third-largest economy.
The Invesco Taxable Municipal Bond Fund (NYSEArca: BAB) once featured “Build America bonds” in its name, hence the ticker “BAB.” While the exchange traded fund’s name changed, it remains one of the premier avenues for accessing a broad portfolio of taxable municipal bonds, and with some market observers seeing signs of life in the often overlooked Build America Bond arena, BAB may warrant consideration from income-oriented investors.
Treasury yields have been falling to new lows as of late, but ETF investors can still capture the moves with the Vanguard Total Bond Market Index Fund ETF Shares (BND) . Another rise in Covid-19 cases has been spooking investors, leading to heavy sell-offs in stocks. “U.S. Treasury yields continued to slide on Monday, with the 10-year benchmark rate falling to its lowest level in five months,” CNBC reported .
The VanEck Vectors Fallen Angel High Yield Bond ETF (NASDAQ: ANGL) is a fixed income exchange traded fund with some momentum. There’s a steady appetite for high-yield corporate debt and some market observers are speculating a host of energy-sector fallen angels could regain investment-grade status due to improving balance sheets and fundamentals in that sector.
Amplify ETFs has launched a new exchange-traded fund providing exposure to multiple investment themes by targeting the companies most widely owned by US-listed thematic ETFs. Christian Magoon, CEO of Amplify ETFs. The Amplify Thematic All-Stars ETF (MVPS US) has been listed on NYSE Arca and comes with an expense ratio of 0.49%.
On Tuesday, newcomer Viridi Funds launched its first ETF, the Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF (RIGZ) , which offers investors exposure to cryptocurrency that is environmentally sustainable. The fund is listed on the New York Stock Exchange.