Each week ETFtrends.com publishes news, commentary and strategist stories surrounding the world of exchange traded funds (ETFs).
Here’s a look at the Top 10 ETF Strategist Stories of the Week for May 9-13, 2016:
Click the headline to read more – enjoy!
1) Sector Watch: Tactical Investment Opportunities Around Q1 Earnings Season
A key component of successful goals-based investing is to think opportunistically. Tactical investment strategies designed to capture upside returns and minimize downside risk are integral to investors’ ability to grow, protect and spend their wealth in pursuit of their unique goals. Read more >>
2) Some Things Never Change in Investing…or Do They?
A popular debate in the asset management industry is “passive” vs. “active” investing. Index-based investment vehicles have gathered a significant amount of assets over the last decade, to the detriment of active investing, perpetuating this debate even further. Read more >>
3) Asset Allocations: Looking To Real Estate Investment Trusts
In our latest adjustment to the asset allocation portfolios, we added to the Real Estate Investment Trust (REIT) positions in three of the four models. One of the reasons we remain friendly to this asset class has been the steady increase in rental income. Read more>>
4) Why Volatility Can Be a Drag for Investors
Read the fine print of the disclosures of a leveraged exchange traded fund (ETF) and you’ll probably come across something like the following: “This leveraged ETF seeks a return that is +200% or -200% of the return of its benchmark index for a single day. The ETF should not be expected to provide double or negative twice times the return of the benchmark’s cumulative return for periods greater than a day.” Read more >>
5) Experiencing Economic Vertigo: How to Stomach Market Indigestion
Vertigo is a condition that makes people feel like objects around them are spinning when they are not, and it generally leaves people feeling dizzy. Recently it hit me that trying to analyze U.S. economic data was giving me vertigo, since the only consistency in the data seems to be pure inconsistency. For instance, yesterday I was parsing a few data points that registered on the Bloomberg. Here’s a smattering of what gave me market indigestion. Read more >>
6) RMI Applications: Tail Risk Hedging
In our preceding article RMI Applications: Sector Rotation Using ETFs, we outlined one practical application of Risk-Managed Investing (RMI) — specifically, a momentum-based sector rotation strategy designed to mitigate the downside risk of protracted equity bear market declines. While this strategy may additionally provide some protection against sudden market crashes, it is not expressly designed to do so. For that element of protection, we believe a complementary RMI approach is prudent. Read more >>
7) Collaboration — the New Model for High-Net-Worth Investors?
If you’re seeking to grow your high-net-worth client base, I’d like to propose a new framework for the portfolio construction process: co-creation or collaborative portfolio construction. Read more >>
8) Market Head-Fake or Greenlight? Neither
After its March meeting, the Fed announced that it would slow the likely pace of short-term interest rate hikes considerably. This announcement eased our chief concern for the global economy. Read more >>
9) The Bayesian View to Multi-Factor ETF Investing
Multi-factor investing is an increasingly hot topic in the world of ETFs, and a number of ETF sponsors have launched multi-factor ETFs recently to expand on this trend. Read more>>
10) 3 High Octane Value Trades for a Bear Market
In investment markets, there are always opportunities. What constitutes a timely tactical opportunity is in the eye of the beholder and can vary widely depending on an investor’s view. Our eye continues to view conditions through the lens of a global cyclical bear market. Read more >>