An ETF That Incorporates 'Very Important Positions' to Enhance Returns

As the U.S. positions for a growing economy with some risks along the way, investors may consider a disciplined exchange traded fund strategy that incorporates high-conviction picks among investment experts.

“We expect the prevailing trends of slow but steady global economic growth and a supportive equity environment to carry over into 2017. If these trends remain intact, we recognize subtle yet important transitions in the macro landscape,” Candice Tse, Vice President of Strategic Advisory Solutions at Goldman Sachs Asset Management, said in the recent webcast, An ETF to Follow Hedge Fund Managers’ ‘Very-Important-Positions’.

Specifically, the Goldman Sachs team believes we may continue to see economic expansion in the U.S. where fiscal policy will support growth, improvements in consumer and labor markets in Europe and overall improving macroeconomic fundamentals in the emerging economies.

“We expect the seven-year global expansion to persist, driven by a sustained consumer recovery, manufacturing, evolving monetary policy, and fiscal stimulus,” Tse said.

Investors, though, should remain cautious as there are still lingering risks, like global politics and elections, pace of U.S. rate tightening, sustainability of Chinese recovery and corporate earnings.

In a changing environment with an improving growth out look but persistent risks, investors will have to identify the best ideas to gain market exposure. For instance, some may turn to cues from the hedge fund industry experts.

However, most may not have the connections nor the necessary minimum investments necessary to access these hedge fund investments.