ETF Trends publisher Tom Lydon spoke with Mike Arone, State Street Global Advisors Managing Director & Chief Investment Strategist, at Inside ETFs conference that ran Jan. 22-25, 2017.
Arone spoke about SSGA’s three big themes for advisors: income at a reasonable risk, begin to position portfolios for a more reflationary environment and protecting portfolios from volatility in 2017.
Finding the Right Investing Tools for Uncertain Times
For investors, the biggest risks often are those that are unforeseeable. But in uncertain times like these, there are specific strategies that can either help investors navigate to higher returns or protect their portfolios from potential landmines. A popular strategy to boost performance is to embrace multi-factor index funds that are designed to beat, rather than simply match, an index’s returns. One defensive tactic, for example, is to employ hedging strategies.
Still another strategy is to focus on investing in companies that have proven their mettle over the long haul. To that point, “One big theme to watch in 2017 is companies that are growing their dividends,” says Steve Cohen, managing director at ProShares.