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, and Charles McNally Chief Portfolio Strategist at RiskX Investments, will analyze market risks and look to opportunities that advisors can adopt.
For instance, the Rx MAR Tactical Moderate Growth Fund (MGZIX) and Rx MAR Tactical Growth Fund (MGMIX) utilize macro-driven, tactical ETF-based asset allocation strategies to mitigate downside risk.
Due to their vast scope and easy accessibility, ETFs have found their way into many investment portfolios, including mutual funds.
“Open-end funds are such a huge distribution channel for ETFs,” Adam Patti, CEO of IndexIQ, told InvestmentNews. “They make it so much easier to get exposure to areas that were once much more difficult to get.”
For example, SPDR S&P 500 ETF (NYSEArca: SPY) has more than 1,200 open-end mutual funds as shareholders, according to Morningstar data. SPY, which has $183.5 billion in assets under management and an average daily volume of 126.7 million shares, has been a go-to ETF investment for large institutional-sized investors as a liquid vehicle to go in and out of the equities.
ETFs are also favorite picks of asset-allocation funds. For instance, the Rx MAR Tactical Moderate Growth Fund’s only includes ETFs, with a 30.5% iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT), 14.8% SPDR S&P MidCap 400 ETF (NYSEArca: MDY) and 14.7% iShares Core S&P Small-Cap ETF (NYSEArca: IJR), among others.
“By combining traditional risk-adjusted and tactical risk-managed strategies in a series of sub-advised mutual funds, financial advisors can build portfolios that have the potential to remain diversified as markets move,” according to RiskX Investments.
Financial advisors who are interested in learning more about ETF investment strategies can register for the Tuesday, June 7 webcast here.
CORRECTION: Updated mutual fund names.