Too much of a good thing can apply to equities exposure, and with exchange traded funds (ETFs) like the Invesco S&P 500® Equal Weight ETF ( RSP B+ ), holdings get equal billing to help balance portfolios. As Invesco’s website puts it, RSP prevents investors from “putting your eggs in one basket.” It can be easy to fall into the trap of allocating too heavily into one or more stocks to extract maximum gains, such as big tech heavy-hitters like Apple or Amazon.
JPMorgan Asset Management plans to convert four mutual fund portfolios into ETFs in early 2022. The firm cited the continued convergence of mutual funds and ETFs as well as the benefits of intraday liquidity, transparency, and potential tax benefits of ETFs in explaining its plans to seek fund board approval for the change.
When investors think about retirement plans, many focus on putting away cash and then investing it wisely to grow their nest egg. But there’s a critical piece of retirement income planning that’s often overlooked: a strategy to withdraw those carefully tended savings.
How can investors prioritize both growth and income? This FlexShares strategy is a great place to start. “We believe companies may prioritize stability over profitability by re-routing their supply chains, moving production inside their home countries, and building healthier balance sheets,” a FlexShares Fund Focus said. “After the stimulus-induced surge, global growth may settle at low levels.”
Despite the Covid-19 variant Delta circulating throughout major U.S. cities at a rapid pace, analysts still expect economic recovery to continue to expand through the rest of the year, according to the Wall Street Journal . But anything could happen—leaving some investors looking to hedge their exposure to tail risks using instruments such as the Simplify Nasdaq 100 PLUS Convexity ETF (QQC) .
nflation is still here, but there are some indications that the reflation trade is encountering headwinds. Those factors and more could propel disruptive growth strategies back into the spotlight. Consider the following. Over the past month, the ARK Innovation ETF (NYSEArca: ARKK) , the benchmark for disruptive growth exchange traded funds, is higher by 9%.
Almost every investment niche—from small-cap stocks to emerging markets or oil—can be fulfilled by a vast range of exchange-traded funds ( ETFs ). So how do you choose when you’re faced with many alternatives within the same fund categories?
Emles Advisors has launched an actively managed ETF that seeks to deliver hedge fund-like returns through a long/short equity strategy. Long/short equity strategies seek positive returns in all market environments. The Emles Alpha Opportunities ETF (EOPS US) has listed on Cboe BZX Exchange and is managed by Nathan Miller, former long/short equity manager at NGM Asset Management, Citadel Investment Group, and RBC Capital.
Timing investment factors is difficult, but that doesn’t mean the growth-to-value rotation is getting less attention. While growth may currently be lagging, the future outlook is far less certain. Advisors can cover both bases while positioning for the expansion phase in the economic cycle with WisdomTree’s series of growth model portfolios .
Growth and value are perhaps the most obvious rivals in the factor universe. The two are the most paired in factor conversations, so it stands to reason that if one is performing well, market participants are likely to take unfavorable views of the other.
By Michael Cronan, President ETFinsight.net might sound like a funny concept since many finance people think of ETFs as a cautious Investor tool. Just taking passive (beta) exposure across a broad, diverse group of stocks like the S&P 500 or MSCI World Index may provide some diversification and, over time, likely provide long-term positive returns if history is an indicator of future behavior.
An equal-weight strategy can help ease volatility, especially when it comes to small caps and assets like the Invesco S&P SmallCap 600 Equal Weight ETF (EWSC) . During the early stages of the economic re-opening, small cap equities have been shining stars.
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.
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.
