ETF 101

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After a multi-year rally, the equities market is trading at elevated valuations. Consequently, investors seeking exposure to stocks may want to consider a smart-beta, multi-factor exchange traded strategy to limit risks and potentially enhance returns. “High Valuations and limited multiple expansion may hinder broad market returns,” Steve Deroian, Head of ETF Strategy at John Hancock […]

Many have utilized sector plays to better control their portfolio exposure to varying market conditions. With exchange traded funds, investors can utilize smart-beta or multi-factor strategies to better diversify their sector exposure and potentially enhance returns. In the upcoming webcast, A Smart (Beta) Approach to Sector ETFs, Joel Schneider, Senior Portfolio Manager & Vice President […]

While the markets may be worried about the effects of a Federal Reserve interest rate, there are still a number of factors that can still support the gold market and bullion-related exchange traded funds. On a recent webcast, A Golden 2016: Where Does Gold Go from Here?, Imaru Casanova, Senior Analyst at VanEck, argued that […]

Gold exchange traded funds have been among the best performing assets of the year as volatility pushed investors toward safer assets and global central banks implemented aggressive monetary policies to support growth and fight deflationary pressures. On an upcoming webcast this Tuesday, A Golden 2016: Where Does Gold Go from Here?, Imaru Casanova, Senior Analyst at […]

Investors largely target markets they know, and for U.S. investors, most focus on domestic stocks. However, you may be missing out by avoiding international stocks and exchange traded funds. “Looking beyond our borders to international equities can have benefits for U.S.-based investors,” according to a Deutsche Asset Management white paper. By excluding international exposure, investors […]

The new breed of smart-beta exchange traded funds are still passive in nature, like their traditional beta-indexed counterparts, but they are also based on a strict set of rules or factors that help differentiate them from the rest. On the upcoming webcast this Thursday, Key Questions for Factor Investors, Robert Bush, ETF Strategist at Deutsche […]

Income-minded investors have turned to preferred stock exchange traded funds in their ongoing search for yield in a low-rate environment, and among the number of options available, the VanEck Vectors Preferred Securities ex Financials ETF (NYSEArca: PFXF) has stood out among the competition. PFXF has outperformed its peers, rising 12.5% year-to-date, and produced an attractive […]

As traders go in and out of markets during shifting environments, it is important to understand some key trading practices to best execute exchange traded fund orders. For instance, traders who are trying to efficiently execute ETF trades should understand why premium/discounts occur, evaluate an ETF’s bid-ask price, wait a while after the market opens […]

Investors who want to bolster their income portfolios and generate a little extra yield should consider emerging market bond exchange traded funds. Some, though, may be loath to diversify into emerging market debt, associating the developing economies with higher risks. However, these markets also offer bonds with relatively low credit risks. “While some investors view […]

The CBOE Volatility Index plunged Friday and is still hovering around its lowest levels of the year. More skittish investors, though, may interpret this as a sign of growing complacency in the markets and turn to VIX-related exchange traded funds to hedge their positions. For instance, the iPath S&P 500 VIX Short Term Futures ETN […]

Investments and exchange traded funds based on environmental, social and governance, or ESG, principles have been attracting attention. But what exactly is ESG investing about? ESG investing has been around for years, with large institutional investors dominating the early stages of ESG investment growth as they possessed the requisite expertise and governance protection of well-resourced […]

Smart beta exchange traded funds have gained a lot traction in the investment community. The alternative index-based strategies were initially based on a single theme or factor, but now, investors can track multiple-factor investments in a single ETF to gain greater diversification benefits and smooth out their ride. In the beginning, smart beta ETFs that […]

Many advisors and investors have utilized sector exchange traded funds to gain exposure to targeted areas of the market. However, maintaining the right mix of these various sectors is equally important. “Given the importance of a stock portfolio’s sector mix to its outcome, monitoring a portfolio’s sector mix may be one of the most important […]

Dividend growth has been a popular strategy that many investors have adopted as a way to boost portfolio returns, but many dividend funds rely on hindsight and are backward looking. Alternatively, investors may consider a forward-looking dividend exchange traded fund strategy that tries to target companies more likely to raise dividends while diminishing exposure to […]

Investors who are just beginning to fill out their investments may gravitate toward name brand stocks that they are familiar with, but a sector exchange traded fund may be a better option to diversify a portfolio. “Investing in sectors can provide diversification benefits that, compared with single-stock ownership, may reduce portfolio volatility,” Fidelity Investments strategists, […]

While the U.S. isn’t heading toward a recession, growth will likely remain muted over the near term. Consequently, investors may turn to exchange traded fund strategies that target high-quality names, such as the group of consistent dividend growers. On the recent webcast, Dividend Growers: High Quality Companies for a Low Growth Environment, Sam Stovall, Managing […]

Investors may be missing out on potential opportunities by focusing too much on the United States. Instead, one can utilize exchange traded funds to gain exposure to international markets and diversify an investment portfolio. On the recent webcast, It’s a Big World – The Case for International Investing, Robert Bush, ETF Strategist at Deutsche Asset […]

Exchange traded funds are easy-to-use investment tools that help investors track various market segments, but how are ETFs fairly priced? ETFs hold a basket of securities, including stocks, bonds and/or cash, so an ETF’s share price is affected by the total value of its underlying components, which may fluctuate throughout the day. Consequently, ETF investors […]

When looking to overseas markets, people have to consider the various risks associated with each sector and country. Alternatively, investors can look to a broad exchange traded fund strategy that focuses on high quality international names with sustainable advantages. On the recent webcast, ETF Strategy to Access Morningstar’s Top International Picks, Dan Lefkovitz, Content Strategist […]

Americans’ shifting preferences and desire to spend on experiences, including dining out, could support the consumer services and restaurant industries, along with sector-related exchange traded funds. On the upcoming webcast, How Your Portfolio Could Bite Into Consumer Spending, Samuel Masucci, Founder and CEO of ETF Managers Group, and Michael Cronan, President of BITE ETF, will […]

With the Japanese yen weakening and speculation Prime Minister Shinzo will augment his administration’s stimulus measures, investors interested in the Japanese equities market should consider a currency-hedged exchange traded fund strategy. The Japanese yen experienced one of its worst weeks since 1999 as the U.S. dollar appreciated to about ¥105.6 from ¥100.5 over the past […]

With the value and dividend styles back in play this year, a dividend “aristocrats” exchange traded fund strategy has been among the better performers, providing exposure to companies with a history of sustainable yields. The ProShares S&P 500 Aristocrats ETF (NYSEArca: NOBL) has increased 14.4% year-to-date, compared to the S&P 500 Index’s 7.1 gain. The […]

The S&P 500 and Dow Jones Industrial Average have hit new highs, but observers remain skeptical over how much more room there is left to run in the so-called most hated bull market, with some pointing to a flat or low-return environment ahead. Consequently, if investors aren’t going to see a repeat of the breakneck performance […]

Investors who want equity exposure but are wary of potential downturns in a volatile market ahead may consider a recently launched smart-beta exchange traded fund strategy that employs behavioral momentum factors to help capture upside while limiting downside risks. The Aptus Behavioral Momentum ETF (BATS: BEMO) tries to reflect the performance of the Aptus Behavioral […]

The recent fallout in response to the United Kingdom’s referendum vote on breaking ties with the European Union revealed the potential pitfalls international stock exchange traded fund investors face as traditional market capitalization-weighted country and sector exposure may leave investors open to unnecessary risks. “The Brexit shows the benefits of sector and country ETF diversification,” […]

Smart-beta exchange traded funds (ETFs) have evolved as the industry matures. Before, investors had ETFs with a single twist that provided a themed approach to investment styles. Now, index providers and ETF sponsors implement a multi-factor approach to potentially enhance investment returns and diminish overall volatility. In the beginning, investors relied on market cap-weighted indices to […]

More exchange traded fund investors are looking to smart beta or alternative index-based strategies to fill out their investments, and focusing on which targeted factors within the indexing methodology matters when appropriately balancing a portfolio. On a recent webcast, Smart Beta Factors: How Many and What is Ideal?, Joel Schneider, Senior Portfolio Manager and Vice […]

Investors can look to smart-beta, alternative index-based exchange traded funds to for a diversified solution to enhance returns and balance an investment portfolio. On an upcoming webcast this Tuesday, Smart Beta Factors: How Many and What is Ideal?, Joel Schneider, Senior Portfolio Manager and Vice President of Dimensional Fund Advisors, and Phil Fontana, Head of Product […]

Smart- or strategic-beta exchange traded funds that track alternative or customized indices have been a popular way to gain diversified exposure to the equities market. However, the recent surge is making some of these smart-beta strategies pricey. Rob Arnott, founder of Research Affiliates and father of fundamental indexing, warns of a potential bubble or possible […]

Investors have looked to emerging market exchange traded funds to access potential growth opportunities in a low return environment and diversify an investment portfolio. On the recent webcast, Define Your Emerging Market Smart Beta Strategy, Mike LaBella, Portfolio Manager at QS Investors, pointed out that the developing economies are projected to expand 4.1% this year […]