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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Five Vanguard bond funds have enjoyed significant 2021 inflows. The five funds give fixed income investors a smorgasbord of options, including exposure to aggregate bonds, international fare, and the short side of the yield curve
In the recent webcast, Factor Fundamentals for Your Portfolio , Michael Hunstad, Head of Quantitative Strategies, Northern Trust Asset Management; and Michael Natale, Head of Intermediary Distribution, Northern Trust Asset Management, outlined the various equity factors that can be used to adjust to different macroeconomic conditions.
Economically sensitive market segments are taking the lead on the first trading day of May. Economic growth is picking up in most developed countries, and the strong corporate earnings season and positive outlook have also added to the broad market optimism, the Wall Street Journal reports.
Multiple investment factors are off to solid starts in 2021, providing ballast for assets like the FlexShares Quality Dividend Dynamic Index Fund (NYSEArca: QDYN) . However, advisors and investors considering factor-based strategies should remember that factors, just like individual stocks, go through ups and downs.
Rising interest rates are a big story line in U.S. markets this year and that’s providing fuel for the financial services sector. Bank stocks have momentum, and investors can tap into that theme with momentum-based strategies, including the Invesco DWA Financial Momentum Portfolio (PFI) .
Finding value makes for a strong long-term investment, which could be why the VanEck Vectors Morningstar Wide Moat ETF (MOAT) has been seeing strong fund flows the past month. Fundamental analysis involves finding value among companies that have a competitive advantage in their respective marketplace.
Momentum investing and regional banks appear to be joined at the hip. To continue playing this strength in the second quarter of 2021, investors can look at the iShares U.S. Regional Banks ETF (IAT) . IAT seeks to track the investment results of the Dow Jones U.S. Select Regional Banks Index.
An investing spike in special purpose acquisition companies (SPACs) is spilling over into high yield. One asset to consider is the actively managed Global X Emerging Markets Bond ETF (EMBD) . “The wave of cash raised by special-purpose acquisition companies is rolling into the junk debt market, aiding distressed companies and rewarding investors who own their bonds and loans,” a Wall Street Journal article said. “SPACs, also known as blank-check companies, have issued roughly $100 billion of stock this year, a record, to buy private companies and take them public.
ETF investors who were hesitant to look overseas during the height of the pandemic can now do so with the iShares Core MSCI EAFE ETF (IEFA) . “The global economy will recover this year from its coronavirus slump at a pace not seen since the 1970s as strong momentum builds in most major economies, according to Reuters polls of over 500 economists,” a Reuters report said.
The explosion of environmental, social, and governance ( ESG ) investing has become a worldwide phenomenon. This is spurring a rise in green bonds, with the next catalyst coming from a synergy between two parts of the globe, the European Union (EU) and China. “Green investments have gone mainstream as portfolios divest themselves of fossil fuels to add green bonds and environmental, social and governance ( ESG ) investments instead,” a South China Morning Post article said.
As we examine the current market risks, exchange traded fund investors could consider a hedged market strategy to stay fully invested with less downside risk. In the recent webcast, Don’t Lose Sleep! Hedged Equity for a Restful Portfolio , Jamie Atkinson, Managing Director – Head of Global Sales, Swan Global Investments, underscored the dual dilemma in today’s’ market environment.
Fixed income specialist Tabula Investment Management has made changes to the Tabula European Performance Credit UCITS ETF (TCEP LN) , a passive fund offering European credit exposure through the corporate credit default swap (CDS) market.
WisdomTree has expanded its range of digital asset investment products in Europe with the launch of a directly backed ether ETP. Jason Guthrie, Head of Capital Markets and Digital Assets in Europe, WisdomTree. The WisdomTree Ethereum ETP has listed in euros on Deutsche Börse Xetra (WETH GY) and in euros and US dollars on SIX Swiss Exchange (ETHW SW).