By contrast, the following states have the highest ratio of people migrating in: North Carolina, Oregon, South Carolina and Nevada. Surprisingly, Washington, D.C., reports Forbes, currently is the most popular destination for relocation. The area attracts highly educated professionals to high-tech and government-sponsored jobs.
All of the above makes, in my view, the case for investing in highly diversified products, such as low-cost ETFs, where any price adjustments resulting from the impact of migratory patterns should be de minimis, potentially avoiding over concentrations to those states where the impact might be the greatest.
*Source: United Van Lines 2012 Migration Study. Migration rate represents United Van Lines’ customers moving from one state to another during the course of the year.
James Colby is a portfolio manager and senior municipal strategist at Market Vectors ETFs.