Is there anything an exchange traded fund (ETF) investor can do in a down market such as this besides grin and bear it?
Investment strategies such as stock picking and bond investing are all in the red, so why not a fundamentally weighted indexed ETF?
Ron DeLegge for ETF Guide says fundamentally weighted ETFs try to beat the performance of a traditional index by selecting and weighting stocks according to various financial metrics such as earnings, dividends or book value. A traditional index such as the S&P 500 uses a market-cap weighted approach.
DeLegge points out that, so far, the performance has revealed a mixed bag: large-cap fundamental indexes are underperforming, while small- and mid-caps are slightly outperforming. Among sector funds, the performance also remains mixed.