As ETF investors look toward the end of the year, many should be thinking about ways to capture further growth and hedge potential risk that may pop up along the way.
In the upcoming webcast, 4th Quarter Market Review and Outlook, Edward Kerschner, Chief Portfolio Strategist, Columbia Threadneedle Investments; and Jay McAndrew, National Sales Manager, Strategic Beta, Columbia Threadneedle Investments, will provide an overview of the current market, an outlook ahead and how looking beyond the benchmark may help financial advisors diversify risks ahead.
For example, the Columbia Research Enhanced Core ETF (RECS) and the Columbia Research Enhanced Value ETF (REVS) offer investors and advisors’ cost-efficient access to the firm’s quantitative investment research strength.
“Our analysts and portfolio managers monitor risk- and return-driving factors. Then, we identify the most reliable factors and capture them in our Strategic Beta solutions to help achieve specific investor goals,” according to Columbia Threadneedle.
RECS seeks to track the company’s Beta Advantage Research Enhanced US Equity Index, and REVS tracks the newly created Beta Advantage Research Enhanced US Value Index. RECS and REVS are designed to outperform the Russell 1000 Index and Russell 1000 Value Index, respectively, through a combination of proprietary investment research with market-capitalization weighting. The idea is for the ETFs to optimize equity exposure by removing unfavorably rated stocks from the benchmark.
The purpose of this approach is to address the common concern voiced in a recent survey conducted by Columbia Threadneedle, which found 65% of financial advisors feeling frustrated about not being able to remove underperforming stocks from passive ETFs’ indices.
“It’s easy to say that our ETFs are smart. But how are they relevant? Our solutions are a careful balance of discipline and ingenuity. They follow the rules, but we make our own. That means you get the benefits of an ETF, backed by the expertise of our active managers,” according to Columbia Threadneedle.
Financial advisors who are interested in learning more about diversifying strategies for the markets ahead can register for the Thursday, October 24 webcast here.