ETF 101

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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 […]

Traditional emerging market investors may be overexposed to regional risks. Instead, traders may consider an alternative to cap-weighted index strategies, such as a smart-beta exchange traded fund that takes a more balanced macro approach the the developing countries. On the upcoming webcast, Define Your Emerging Market Smart Beta Strategy, Mike LaBella, Portfolio Manager at QS […]

The utilities sector remains the best performing area of the S&P 500. However, a rising rate environment could cause utilities to underperform. While investors may have enjoyed the ride by overweighting the sector, exchange traded fund investors should also take the time to look under the hood of some of their investment plays lest they […]

After a volatile start to the year, precious metals exchange traded fund advisors will have to consider factors beyond market risks. On the recent webcast, June Update: Central Bank Separation Anxiety, James Butterfill, Head of Research and Investment Strategy at ETF Securities, pointed out that world growth has stabilized, the likelihood of a global recession […]

I do the “ETF of the Week” for MarketWatch every week on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments among exchange traded funds. This week, I looked at the Guggenheim S&P 500 Equal Weight Consumer Staples ETF (NYSEArca: RHS). RHS is a defensive play for the summer doldrums. Click here to […]

With the Federal Reserve largely expected to begin hiking interest rates sometime this year, fixed-income assets could weaken, but bond exchange traded fund investors have some alternative options to help maintain yield generation and hedge against the negative effects of rate risks. Bond-related ETFs are exposed to rate risks because of their effective duration exposure. […]

The markets still face a number of headwinds. Consequently, investors should consider specific hurdles and look toward asset allocation opportunities. On the recent webcast, Tactical ETF Strategy in an Easy Mutual Fund Package, Deborah Frame, President and Chief Investment Officer of Frame Global Asset Management, pointed to a stagnation outlook, with waning strength in the […]

As we weigh market risks ahead, investors can look to some exchange traded fund strategies to capture opportunities that can help hedge against potential hurdles while participating in any upside. On the upcoming webcast, Tactical ETF Strategy in an Easy Mutual Fund Package, Deborah Frame, President and Chief Investment Officer of Frame Global Asset Management, […]

The European Central Bank is expanding its quantitative easing program to include corporate debt as a way to stimulate its economy. As demand for Eurozone debt rises, investors can look to international corporate bond exchange traded funds to capitalize on the momentum. The accommodative measures, bond purchasing programs and and even negative interest rate policies […]

After a tumultuous start this year, U.S. dollar exchange traded funds just registered one of their best monthly gains since 2015, and the greenback may have more room to run. The U.S. Dollar Index (DXY), which tracks USD moves against a basket of major currencies, dipped 5.5% to 93.08 on April 25, but the benchmark […]

I do the “ETF of the Week” for MarketWatch every week on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments among exchange traded funds. This week, I looked at the Deutsche X-trackers MSCI Eurozone Hedged Equity ETF (NYSEArca: DBEZ). As global markets strengthen, investors should consider currency risks, especially with the U.S. dollar […]

Fixed-income exchange traded fund investors have largely been worried about a rising rate environment as the Federal Reserve plans rate hikes later this year. However, people should not neglect the negative effects of higher inflation. “One of the greatest risk to retirees’ portfolios is inflation,” Marie Dzanis, Head of Distribution for FlexShares and Northern Trust, […]

In an year of uncertainty, the consumer staples sector has acted as a defensive play for more conservative investors, with an equal-weight consumer staples exchange traded fund standing out from the rest. The defensive consumer staples sector has been one of the year’s best performing areas of the S&P 500, with the S&P 500 Consumer […]