Special purpose acquisition companies (SPACs) were a hot topic for investors in 2020 and continue to be a big story in 2021. While SPACs have lost some of the initial buzz surrounding them, some of the larger names going public via this method are attracting interest from mutual funds and ETFs.
This appears to be the year of reflation . Massive fiscal stimulus from the government combined with the Federal Reserve’s (Fed) loose monetary policies have resulted in an ample, if not excessive, monetary supply. Inflation expectations, measured by 5- and 10-year breakeven rates, have risen to the highest level since 2014.
Retirees and investors close to retirement often favor low beta, high dividend sectors when it comes to equity allocations. Real estate usually checks this boxes, with the added advantage of supposedly lower correlations to the broader equity market.
Two of the major concerns investors have today are inflation and interest rates. With short-term rates so close to zero, many income-focused investors have found it challenging to generate enough income to meet their investment goals
The Fundamental Income Net Lease Corporate Real Estate ETF was one of the sponsors for the Benzinga Global Small-Cap Conference that took place on December 8-9, 2020. The information contained in this article in no way represents investment advice or opinion on the part of Benzinga or its writers and is intended for informational purposes only.
Some commodities market observers are discussing the potential arrival of another supercycle, and while it’s not official yet, investors can prepare for the event with products like the Sprott Physical Platinum and Palladium Trust (NYSEArca: SPPP ). SPPP provides “a secure, convenient and exchange-traded investment alternative for investors who want to hold physical platinum and palladium
Silver exchange traded funds and trusts such as the the Sprott Physical Silver Trust (NYSEArca: PSLV) are growing, as more market participants turn to the metal as a store of value. PSLV is a closed-end fund that lets investors redeem large blocks of shares in exchange for delivery of silver bullion.
Exchange traded fund investors seeking to diversify a traditional portfolio mix should consider the outlook for commodities and the fundamentals underlying the need for a longer-term, strategic allocation. In the recent webcast, Commodity Investing: Past, Present, and Future , Stan Kiang, Director of Strategic Accounts, Aberdeen Standard Investments, highlighted the benefits of commodities as an uncorrelated asset to traditional stock and bond exposures.
Look for growing gold strength in the iShares Core MSCI Emerging Markets ETF ( IEMG A ) and the iShares Gold Trust ( IAU A ). “Economic recovery in emerging markets will support consumer demand for gold in 2021, according to a report by the World Gold Council ( WGC ). Global gold production may also rise after a decline in 2020,” a TASS article said.
Gold ETFs certainly held their shine in 2020, as did other precious metals like silver. 2021 though may be the year of copper and the Global X Copper Miners ETF ( COPX B ), which is already up 13% year-to-date.
Covid-19 has changed the real estate investment trust ( REIT ) landscape, particularly commercial property and office buildings. One REIT to consider focuses on mortgages rather than physical property: the iShares Mortgage Real Estate Capped ETF ( REM B ) , which is up 25% the last three months. “Mortgage real estate investment trusts (REITs) may sound intimidating, but their operating model is actually pretty simple,” a Motley Fool article noted. “These businesses borrow money at short-term lending rates and acquire assets that have a higher long-term yield.
Corn and soybean futures rocketed higher on Tuesday amid a decline in crop yields, sending agricultural ETFs higher as well. Agricultural ETFs gained amid revisions from the U.S. Department of Agriculture’s January World Agricultural Supply and Demand Estimates, or WASDE, that hammered projected ending stocks for both commodities, reflecting limits to last year’s U.S. production estimates and a more nebulous outlook for South American crops.
Tactical Allocation Channel Gold prices are still up about 19% within the past year, but have stumbled to start the new year. As Treasury yields start to move higher, keep an eye on a pair of ETFs: the VanEck Vectors Gold Miners ETF ( GDX B+ ) and the VanEck Vectors Junior Gold Miners ETF ( GDXJ B ). GDX seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE® Arca Gold Miners Index®.