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.
There is always a “wall of worry” for financial markets to climb. Today, investors rightly worry about how trillions in monetary and fiscal stimulus will impact inflation, interest rates, economic growth, company earnings, and equity valuations.
Foreign investors actively participate in U.S. equity markets, but like their American counterparts, the international investors tend to be partial to large caps. That means they’re missing out on opportunities with smaller stocks, including mid caps.
ETF investors seeking to enhance their portfolio mix can consider a smart beta strategy based on a TOBAM methodology that challenges conventional diversification wisdom. In the recent webcast, 99 Problems, but Concentration Isn’t One: A New Approach to Diversification , Mark Hackett, Chief of Investment Research, Nationwide, outlined the current market environment we are in after a tough coronavirus induced pullback and subsequent rally in equities.
In an ultra-low yield environment, income investors often need to go beyond bonds and common stocks. Asset classes to embrace include preferred stocks, accessible via exchange traded funds like the Global X U.S. Preferred ETF (Cboe: PFFD) .
Timing individual investment factors is difficult, but some advisors and clients still try to do it. There are easier ways of deploying factor-based strategies. Consider the U.S. Multi-Factor Model Portfolio, which is part of WisdomTree’s Modern Alpha series of model portfolios. “This model portfolio is designed for investors with a long-term horizon looking for exposure to a broad universe of U.S. equities primarily using factor focused ETFs.
I am often asked by investors why we do not have formal tactical views on growth vs. value like we do on large caps vs. small caps. The reason can be summed up by noting that there is a difference between the factors or characteristics of growth vs. value and the index constituents of growth vs. value.
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.
The recent spike in yields and growing inflation concerns have weighed on equity markets. This new environment could be ripe for value and small cap ETFs. Gargi Chaudhuri, Head of US iShares Markets & Investments Strategy, argued that the recent developments are a result of a new normalization.
Inflation fears showered the markets with sell-offs last week, but some analysts aren’t fretting. Investors still spooked by the possibility of rising inflation can turn to the VanEck Vectors Investment Grade Floating Rate ETF ( FLTR B- ). “Mad Money” host Jim Cramer saw the recent sell-offs as a general overreaction: “The bond market sees the economy getting ready to reopen … and it figures the last thing we need is more stimulus,” said Cramer.
Teenagers can be a handful, but your U.S. mid-cap equity allocation doesn’t have to be. On February 23, WisdomTree celebrated the 14th birthday of its U.S. core equity ETF family, and the WisdomTree U.S. MidCap Fund (EZM) got to blow out the candle.
When allocating to dividend-paying instruments, a company’s ability to pay actually its dividends is of the utmost concern. The WisdomTree Global Dividend Model Portfolio is a collection of exchange traded funds emphasizing dividend growth and sustainability.
By Rob Glownia, CFA, CFP, Senior Portfolio Manager, Co-Head of Investment Committee Global Equity CIO, Adam Grossman & Global Fixed Income Co-CIO, Kevin Nicholson Since November, we’ve participated in many calls with financial advisors and their clients to talk about the implications of the election and how to think about markets in 2021.
Traditional retirement techniques don’t cut it for all investors. The Nationwide Risk-Managed Income ETF (NYSEArca: NUSI) offers a modern approach to bolstering retirement income. NUSI can act as a complement to traditional equity and fixed income allocations or as the ideal protective hedge for investors with heavy exposure to technology and growth stocks because the fund is a “rules-based options trading strategy that seeks to produce high income using the Nasdaq-100 Index,” according to Nationwide.
