As 2021 winds to a close, many advisors are mulling over how best to position their clients for the year ahead. How should they strike the balance in 2022 between hedging potential risks and capitalizing on new opportunities?
In the upcoming webcast, An Advisor’s Roadmap To Risk In 2022, David Albrycht, CIO and senior portfolio manager, Newfleet Asset Management, and Joe Terranova, chief market strategist and senior managing director, Virtus Investment Partners, will discuss their market outlook for 2022.
To help investors navigate the markets for the year ahead, fixed income investors can look to something like the Virtus Newfleet ABS/MBS ETF (NYSE: VABS), which can complement a traditional fixed income portfolio. The ABS (auto loans, equipment leases, credit card receivables, student loans, etc.) and MBS (pools of mortgages, both residential and commercial, agency and non-agency) sectors provide a wider investment opportunity set and much-needed diversification relative to traditional fixed income. With an emphasis on the out-of-index, niche areas of the securitized credit markets, Newfleet’s securitized credit specialists employ their hallmark relative value approach, exploiting inefficiencies by continuously evaluating the market, sectors, and securities.
The Virtus Newfleet Dynamic Credit ETF (NYSEArca: BLHY) can provide a high level of current income and capital appreciation by combining two converging credit sectors, high-yield corporate bonds and floating bank loans. By actively managing the portfolio, Newfleet is able to allocate between both asset classes at any ratio within the fund. Additionally, should market conditions merit a temporary exit from credit, the fund can allocate as much as 100% to U.S. Treasuries.
Lastly, the broad Newfleet Multi-Sector Unconstrained Bond ETF (NYSEArca: NFLT) helps target the right areas of the global bond market at the opportune times, implementing active sector rotation and disciplined risk management to achieve long-term excess returns. The unconstrained investment style does not require a manager to adhere to a specific benchmark. Instead, unconstrained strategies allow a manager to focus on returns across many asset classes and sectors, and the styles typically have a more long-term horizon. Moreover, a portfolio manager may use derivatives and other alternative asset classes to hedge market exposure.
The ETF will analyze value assessment of sectors to determine underweights and overweights, along with interest rate outlook and sector allocation targets. Next, the team will look at fundamentals and assess credit risks, company management, issue structure, and technical conditions. Lastly, the managers will select high-conviction picks across 14 sectors, without restrictions on speculative-grade or non-U.S. securities.
Financial advisors who are interested in learning more about the markets ahead for 2022 can register for the Thursday, January 13 webcast here.