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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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).
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.
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.
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? 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.
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.
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.
While stocks and index ETFs are rebounding across the board on Tuesday, the banking sector has made notable gains, even as stocks…
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.
As investors look overseas for opportunities, Norway is a strong country to consider. One way to snag targeted country-level exposure is the Global X MSCI Norway ETF ( NORW C+ ), which is up 8% for the year. Per a Borneo Bulletin article , “Norway’s economy contracted 2.5 per cent in 2020, a historic setback but a limited one compared to many other countries, official data showed yesterday.
As advisors well know, interest rates are at historic lows, and while Treasury yields recently climbed, the present is still a very much low rate environment. In this climate, investors have a tendency to stretch for yield, eschewing quality in the process.
While markets roiled over the past week, exchange traded fund investors have been shifting into the emerging markets. Among most in-demand ETFs of the past week, the Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO) attracted $1.3 billion in net inflows and the iShares Core MSCI Emerging Markets ETF (NYSEArca: IEMG) saw $1.0 billion in new creations, according to ETFdb data.
Brazil country-specific exchange traded funds rebounded Monday as traders anticipate the central bank to take aggressive interest rate hikes. The iShares MSCI Brazil Capped ETF ( EWZ B+ ) increased 1.3% on Monday, testing its long-term support at the 200-day simple moving average.