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.
TopicsETF ListFixed IncomeEquityEconomic and Industrial AnalysisPortfolio PlanningDividendMulti Asset
Financial stocks and sector-related exchange traded funds jumped Thursday as rising bond yields helped strengthen the appeal of bank stocks. Among the better performing non-leveraged ETFs of Thursday, the SPDR S&P Bank ETF (NYSEArca: KBE) increased 3.0%, iShares U.S. Regional Banks ETF (IAT) gained 3.1%, and SPDR S&P Regional Banking ETF (NYSEArca: KRE) rose 3.2%.
Our research shows the GameStop controversy is localized in stocks. This has been a strange week. Never before has social media been used to move large chunks of the stock market and rattle parts of the thick-skinned hedge fund industry.
The use of digital payments increased during the pandemic, and data from Finaria suggest that the industry could reach over $6 trillion by the end of 2021. This could certainly benefit fintech-focused funds like the Global X FinTech ETF ( FINX ). “The global digital payments industry has seen many innovations over the past few years, including mobile wallets, P2P mobile payments, real-time payments and cryptocurrencies,” a CPA Practice Advisor article pointed out.
One of the hottest names in the investing world in 2020 was Cathie Wood, CEO of Ark Funds. The legendary fund manager had some of the best performing ETFs of the year and also saw strong inflows of money put into her actively managed funds.
In our 2021 outlook, we unveiled a visual highlighting the “K-shaped” nature of the COVID era, as seen below. In this report, we’ll share our thoughts on these divergences; including which are likely to persist, and which are already starting to converge.
In modest allocations, emerging markets assets are functional in retirement portfolios and that’s particularly true on the fixed income side. Enter the VanEck Vectors Emerging Markets Local Currency Bond ETF ( EMLC A- ). EMLC seeks to replicate the price and yield performance of the J.P. Morgan GBI -EM Global Core Index.
Entering 2021, it was widely expected that emerging markets assets would continue penning the redemption story they started late last year. That scenario could prove rewarding for active managers. The Federal Reserve’s commitment to keep rates low could keep on fueling a weaker dollar.
The Federal Reserve chose to keep rates in check yesterday. The U.S. dollar unexpectedly rose following the announcement, but it could be short-lived, warranting the case for a dollar hedging strategy through ETFs like the Xtrackers MSCI EAFE Hedged Equity ETF ( DBEF B+ ). “With the Federal Reserve holding its first monetary policy meeting of the year, it would be easy to attribute today’s U.S. dollar rally to the central bank’s comments,” writes Kathy Lien for Investing.com
After the U.S., China is home to the most robust collection of companies credibly sporting the disruptive growth and innovative labels. What Happened : Those traits are captured in a new exchange-traded fund: The KraneShares SSE STAR Market 50 Index ETF (NYSE: KSTR ). The newest addition to KraneShares famed lineup of China and emerging market ETFs, KSTR tracks the Shanghai Stock Exchange (SSE) Science and Technology Innovation Board 50 Index. “The Index is comprised of the 50 largest companies listed on the SSE Science and Technology Innovation Board (STAR Market) as determined by market capitalization and liquidity,” according to KraneShares .
As the ETF space continues to grow, cost is one way providers can differentiate themselves from the competition. One fund, the Xtrackers MSCI Emerging Markets ESG Leaders Equity ETF (EMSG) , gives investors emerging markets and environmental, social, and governance (ESG) exposure at a low 0.20% expense ratio.
The direction of the overall stock market in 2021 could be very misleading and could mask a significant shift in underlying market leadership. In other words, the stock market might do well or not, but the potential for a major shift in market leadership could present significant investment opportunities.
Getting quality and value in bond exposure is an added plus when it comes to high yield debt investing. Thankfully ETF investors can get both with the iShares Edge High Yield Defensive Bond ETF (HYDB) . HYDB seeks to track the investment results of the BlackRock High Yield Defensive Bond Index.
High-yield corporate bonds are off to solid starts in the new year. But that’s not license for investors to take on too much risk. In fact, now’s a good time to implement quality with junk bonds via the FlexShares High Yield Value-Scored Bond Index Fund (NYSEArca: HYGV ) .