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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Things are looking up for bank stocks, making options like the SPDR S&P Bank ETF (NYSEArca: KBE) appealing to a broader swath of investors. Last week, JPMorgan Chase ( NYSE: JPM ) got the OK to resume stock buybacks and Moody’s Investors Service says high shareholder payouts early this year won’t strain banks’ capital positions.
The rotation from growth to value can be seen across the spectrum of equities, and not just in large caps. ETF investors can get a mid cap tilt to value with the Invesco S&P MidCap 400 Pure Value ETF (RFV) . RFV, which is up 25% year-to-date, seeks to track the investment results of the S&P MidCap 400® Pure Value Index.
Cyclical value stocks are coming back into style as rising Treasury yields plague growth fare. Investors can get in on the action with dividend compensation through the ALPS Sector Dividend Dogs ETF (SDOG) . SDOG tries to reflect the performance of the S-Network Sector Dividend Dogs Index, which applies the “Dogs of the Dow Theory” on a sector-by-sector basis using the S&P 500 with a focus on high dividend exposure .
Special purpose acquisition companies (SPACs) were a hot topic for investors in 2020 and continue to be a big story in 2021. While SPACs have lost some of the initial buzz surrounding them, some of the larger names going public via this method are attracting interest from mutual funds and ETFs.
This appears to be the year of reflation . Massive fiscal stimulus from the government combined with the Federal Reserve’s (Fed) loose monetary policies have resulted in an ample, if not excessive, monetary supply. Inflation expectations, measured by 5- and 10-year breakeven rates, have risen to the highest level since 2014.
Retirees and investors close to retirement often favor low beta, high dividend sectors when it comes to equity allocations. Real estate usually checks this boxes, with the added advantage of supposedly lower correlations to the broader equity market.
Lyxor has cross-listed its sustainability-screened US dollar high-yield corporate bond ETF on Deutsche Börse Xetra. The fund provides exposure to US dollar-denominated high-yield corporate bonds from issuers with better-than-average ESG profiles.
As inflation fears make another round through the markets, yields have jumped and dragged down Treasury bond exchange traded funds. On Thursday, the iShares 7-10 Year Treasury Bond ETF (IEF) fell 0.6% and the iShares 20+ Year Treasury Bond ETF (NasdaqGS: TLT) declined 1.0%.
Emerging markets (EMs) can be a tricky endeavor, which is where adding a factor filter over EM investments can help. But which investment factor to go with? ETF investors can get four factors in one fund via the iShares MSCI Emerging Markets Multifactor ETF (EMGF) .
By Matt Wagner , CFA, Associate, Research A bird in the hand is worth two in the bush.[1] In investing, this describes investors’ preference for dividends (the bird in the hand) relative to future price appreciation (two in the bush).
On Wednesday, the Federal Open Market Committee ( FOMC ) signaled interest rates will remain low for the foreseeable future. That means advisors and clients will continue facing challenges when it comes to generating income, but the WisdomTree Fixed Income Model Portfolio can help ease the income burden. “This model portfolio is focused on a diversified stream of income.
Benchmark Treasury yields may be on the rise, but fixed income investors don’t have to fret when funds like the VanEck Vectors Investment Grade Floating Rate ETF (FLTR) can help keep them afloat. “Fixed-income investors are in a tough spot.
When it comes to inflation-fighting fixed income instruments, investors often turn to Treasury Inflation Protected Securities ( TIPS ). Yet senior loans may also do the trick, with higher levels of income to boot. Enter the SPDR Blackstone/ GSO Senior Loan ETF ( SRLN A- ). SRLN invests in senior loans given to businesses operating in North America and outside of North America.