Another reason the current environment is conducive to quality stocks is the evolution of the economic cycle, With most economists forecasting slower GDP growth next year, it’s becoming clear that the recovery phase of the coronavirus recession is ending.
Multiple investment factors are off to solid starts in 2021, providing ballast for assets like the FlexShares Quality Dividend Dynamic Index Fund (NYSEArca: QDYN) . However, advisors and investors considering factor-based strategies should remember that factors, just like individual stocks, go through ups and downs.
Whether it’s momentum, volatility, size, quality, or value, there is no one-size-fits-all solution when it comes to factor investing. This is where multi-factor funds can assist, and one place to start is the strongest 2021 performers
With an energy rally underway thanks to strong oil prices and a keen interest in renewable sources, ETF investors can get a factor-based strategy in the sector using the John Hancock Multifactor Energy ETF ( JHME ), which is up 20% year-to-date.
The MSCI Emerging Markets Index is up nearly 9% to start 2021, and with that strong performance come questions from clients about revisiting developing economies. Advisors can meet that demand with model portfolios, including the Emerging Markets Multi-Factor Portfolio. “This model portfolio is designed for investors with a long-term horizon looking for exposure to a broad universe of Emerging Market equities primarily using factor focused ETFs.
Interest rates are low and there’s not much to write home about regarding municipal bonds and Treasuries. Fortunately, dividend stocks are coming back into style. Advisors can leverage that trend with the WisdomTree Global Dividend Model Portfolio
Multi-factor investing is suitable across a variety of market environments and is looking to prove itself again in 2021. Advisors can access a variety of multi-factor strategies under a single umbrella with the WisdomTree Multi-Factor Model Portfolio.
With dividends firming up and equities taking off, it may be wise to consider a small hedge with the Hedged Dividend Income ETF (NYSEArca: DIVA) , an ETF that can help reduce dividend equity risk. DIVA tracks the INDXX Hedged Dividend Income Index, which is designed to deliver a strong current yield capital appreciation potential with a risk profile similar to a corporate bond index, according to AGFIQ .
It’s been a tricky year for dividend stocks the world over, but that situation is improving, bringing opportunity with exchange traded funds like the Principal
It’s one of the rare bipartisan issues, and while Democrats and Republicans have different motivations, both parties have big tech in their cross-hairs. The same
As income-minded investors look for ways to bolster returns in a low rate environment, various exchange traded funds can rise to the challenge. For example,
You can’t predict, [but] you can prepare. – Howard Marks Value stocks have come into vogue of late. As pointed out in The Lead-Lag Report,
When a coronavirus vaccine is finally ready for widespread distribution, developing economies won’t be left out of the fray. That’s good news for exchange traded
Many investors are flocking to dividend stocks and ETFs due to the low interest rate environment, detrimental to bonds and savings accounts. Now, there are
