As U.S. markets tumbled again on signs of inflationary pressures, investors worried about continued volatility can consider a targeted ETF strategy. Investors are refocused on the recent spike in inflation and whether or not rising consumer prices will stick around.
With mid caps soaring this year, volatility reduction may not be top of mind for many investors. Yet those those looking for engagement with an asset class with reduced turbulence can consider the Invesco S&P MidCap Low Volatility ETF (NYSEArca: XMLV) .
At the factor level, two prominent themes are in place through less than five months into 2021. First, it’s clear value stocks are regaining long lost market leadership. Second, dividend growth is on pace for an impressive year, bringing relief to investors in a low-yield climate.
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.
Finbold recent highlighted the 10 biggest ETFs in the world , four of which fall under the iShares brand umbrella. “Exchange-traded funds (ETFs) are registering increased global interest, and the growth is evident based on the total value of their assets under management,” the Finbold article noted. “Data acquired by Finbold indicates that the value of assets under management (AUM) by the ten largest ETFs has surged 47.56% between March 2020 and April 2021, from $1.14 trillion to $1.69 trillion.
Until the last several months of 2020, value stocks had languished. The situation is finally improving, bringing with it better things for certain actively managed ETFs like the Fidelity Blue Chip Value ETF (FBCV) .
Getting pure value in today’s market environment has been the prevailing trend with ETFs like the Invesco S&P 500 Pure Value ETF (RPV) rising over 20% as the second quarter of 2021 gets underway. RPV seeks to track the investment results (before fees and expenses) of the S&P 500® Pure Value Index.
SVB Financial Group (NasdaqGS: SIVB) first quarter earnings beat and positive guidance helped lift bank sector-related ETFs on Friday. Among the best performing non-leveraged ETFs of Friday, the iShares U.S. Regional Banks ETF (NYSEArca: IAT) advanced 3.9% and Invesco KBW Bank ETF (NASDAQ: KBWB) increased 2.9%.
Bank stocks and ETFs have been soaring on Wednesday thanks to increases in banking profits that beat analyst expectations. JPMorgan Chase & Co. reported an almost 5 times increase in quarterly profits thanks to surging markets and an economic recovery that enabled the bank to mobilize $5.2 billion in funds that it had set aside to cover bad loans.
Shape-shifting to the ebbs and flows of the market can help ETFs investors snag the best from today’s investing factors. One such fund is the VanEck Vectors Morningstar Wide Moat ETF (MOAT) . MOAT seeks to replicate as closely as possible the price and yield performance of the Morningstar® Wide Moat Focus Index.
The first quarter ended last week and, among other things, that means another earnings season will soon kick off. That also means that, per usual, financial services stocks will get the ball rolling, putting the Invesco KBW Bank ETF (NASDAQ: KBWB) in focus.