By Roman Chuyan, CFA In this article, I review the recent rise in yields and in inflation expectations, and what it might mean to bond and equity investors. Treasury yields have jumped sharply so far in 2021 on concerns about rising inflation.
Category: Investment
A Small Cap Performer with Call Options? Meet the RYLD ETF
It’s one thing to get exposure to the small cap rally, but an added benefit is getting exposure to the way these funds have been actually moving. ETF investors can get exposure to both via the Russell 2000 Covered Call ETF (RYLD) .
How Will This New Cybersecurity ETF Respond to the Microsoft Hack?
Over the weekend, news broke that tens of thousands of Microsoft customers were victims of a cyber attack with ties to China. The latest large-scale hack could bring opportunity for investors with the newly minted WisdomTree Cybersecurity Fund (NASDAQ: WCBR) .
Japan Exposure Is Powering This International Low Vol Strategy
While a strong case is being made for European equities thanks to the cyclical value resurgence, Japanese stocks are another reason for investors to
VanEck launches Australia’s first clean energy ETFetf
VanEck has introduced Australia’s first ETF targeting firms aligned with the clean energy investment theme. Arian Neiron, Managing Director and Head of Asia Pacific at VanEck. The VanEck Vectors Global Clean Energy ETF (CLNE AU) has listed on the Australian Securities Exchange and comes with an expense ratio of 0.65%.
Cyclical Opportunity Arrives with European Equity ETFs
The cyclical value resurgence is highlighting opportunities with British and European equities, a scenario that investors can participate in with reduced volatility with the FlexShares Developed Markets ex-US Quality Low Volatility Index Fund (NYSE: QLVD).
As EM Spreads Narrow, the High-Yield HYGV ETF Gains
An emerging credit spread scenario could highlight opportunity with funds like the FlexShares High Yield Value-Scored Bond Index Fund ( HYGV ). HYGV’s index reflects the performance of a broad universe of U.S.-dollar denominated high yield corporate bonds that seeks a higher total return than the overall high yield corporate bond market, as represented by the Northern Trust High Yield US Corporate Bond IndexSM.
Junk Bond ETFs Enjoy a Sudden Jump in Investor Interest
Speculative-grade junk bond ETFs are enjoying huge inflows as fixed income investors seek out riskier assets to generate significant yield. On Wednesday alone, the iShares iBoxx $ High Yield Corp Bond ETF (NYSEArca: HYG) attracted $1.3 billion in net inflows, marking its second-biggest single-day inflow ever, Bloomberg reports.
A Model Portfolio for Today’s Back-Breaking Bond Market
To say it’s getting difficult to navigate today’s fixed income market is something of an understatement. However, advisors can build an effective plan of attack with the WisdomTree Fixed Income Model Portfolio. “This model portfolio is focused on a diversified stream of income.
Is the Stock Market Disconnected From the Economy?
Is the stock market disconnected from the economy? Perhaps, but less so lately. Also, looking under the hood of performance trends over the past year reveals a more nuanced relationship. Before getting to the many unique characteristics of the COVID-19 cycle, an important reminder to investors is that stocks tend to lead the economy.
Why It Appears Value ETFs Are Outperforming
Exchange traded funds that track the value style are outperforming, with value beating growth stocks by the widest margin in two decades, as investors bet on a broader economic rebound.
What’s Hotter than the Banking Sector? Not Much
While stocks and index ETFs are rebounding across the board on Tuesday, the banking sector has made notable gains, even as stocks slid on Monday. While spiking Treasury yields sent the Nasdaq Composite tumbling over the past month, the banking sector has continued to outperform.
What’s Hotter than the Banking Sector? Not Much
While stocks and index ETFs are rebounding across the board on Tuesday, the banking sector has made notable gains, even as stocks slid on Monday.
This Inflation-Fighting Industry ETF Might Surprise You
In recent weeks, concerns have escalated that real inflation is rising. Typically, investors do not think of sector and industry exchange traded funds as inflation-fighting tools. They may want to reconsider with the Invesco Aerospace & Defense ETF ( PPA B+ ). PPA seeks to track the investment results (before fees and expenses) of the SPADE® Defense Index.