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.
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Until late last year, the growth factor spent over a decade outperforming its value rival. That scenario prompted advisors and investors to pump tens of billions of dollars into passive growth strategies, including exchange traded funds.
Exchange traded fund investors can focus on a mid-capitalization fund strategy targeting today’s high-conviction stock picks. In the recent webcast, Don’t Dilute Your Dollars with an Index-Only Strategy , Amy Zhang, Executive Vice President, Portfolio Manager, Alger, highlighted the historical outperformance of the mid cap category, which has generated an annualized total return of 12.3% from 1990 through 2020, compared to the 11.0% for small caps and 10.7% for large caps over the same period.
Some ETFs can capture upside and some can prevent downside. The Global X Adaptive U.S. Risk Management ETF (ONOF) does both. ONOF can be especially useful given the current market environment. Inflation fears have been roiling the markets the past month
Investable Market Real Estate 25/50 Index sports a dividend yield of 3.50%, almost 110 basis points above the yield on the S&P 500. Real estate investors looking to jumpstart their yield profiles can turn to the PowerShares KBW Premium Yield Equity REIT Portfolio (NYSEArca: KBWY), which tracks the yield-weighted KBW Nasdaq Premium Yield Equity REIT Index.
The cyber attack on the Colonial Pipeline is re-emphasizing the need for greater cybersecurity, which should prop up assets like the Global X Cybersecurity ETF ( BUG ).
Inflation fears are constantly swirling in the capital markets, putting upward pressure on the U.S. dollar on the prospect of higher rates, which may help bolster the case for the Xtrackers MSCI EAFE Hedged Equity ETF (DBEF) . When the dollar rises, DBEF softens the blow for affected currencies in its underlying index, which is mainly comprised of developed countries.
Jobs, economic growth, and inflation have been the focus as the recovery progresses. Starting with the employment picture, there are a multitude of factors that influence employment reports and impact the change in the number of jobs.
Are you considering an international ETF for your portfolio? Indeed, 2019 turned out to be the second-best year on record for ETFs. In this period, exchange-traded funds inflows exceeded $326 billion. However, 2020 was a different year as the stock market started to experience challenges due to COVID-19.
It’s been a long time coming, but there’s finally some momentum for ex-U.S. developed markets, including the United Kingdom. Many of those markets offer upside potential and attractive valuations relative to U.S. equities, indicating the FlexShares Developed Markets ex-US Quality Low Volatility Index Fund (NYSE: QLVD) is an interesting consideration over the medium-term.
In times like these, investors can limit portfolio drawdowns by diversifying with fixed income exchange traded funds. While the equity markets pulled back, investors turned to safe havens, purchasing bonds and pulling yields on Treasuries down.
Fixed income investors don’t have to venture too far out onto the yield curve in order to extract yield. They can do so with short-term corporate bond funds that minimize duration risk. One prominent example is the Vanguard Short-Term Corporate Bond Index Fund ETF Shares (VCSH) .
Historically low interest rates are making for a challenging fixed income environment. VanEck offers three bond ETFs that can still thrive. The environmental, social, and governance (ESG) investing trend looks like it has the staying power.
The recent tech and cryptocurrency sell-off are sparking more fear of market volatility ahead, putting value-based ETFs in focus. Value equities can help mute the volatility with their decreased sensitivity to extreme market swings.