Rapidly evolving markets are easy to understand in theory. Anticipating these changes in practice is where the real work begins. How can financial advisors best position themselves for the unpredictable timing and strength of a Coronavirus recovery in the year ahead?
In the upcoming webcast, Barbell Cyclical and Secular Change: Balancing Opportunities and Risks, Richard Bernstein, CEO/CIO, Richard Bernstein Advisors; and Michael Arone, Chief Investment Strategist, SPDR, State Street Global Advisors, will outline ways to position your portfolios for both cyclical and secular change.
“A strong flexible portfolio begins with the core. It provides a stable foundation to pursue specific investment goals—from managing risk and generating income to growing capital through diversification,” according to a State Street Global Advisors note.
“But core investing shouldn’t be costly. Instead, investors should have confidence that they aren’t overpaying for returns in the largest part of their portfolio.”
State Street Global Advisors has come out with a suite of diversified, low-cost ETFs, including:
- SPDR Portfolio S&P 1500 Composite Stock Market ETF (NYSEArca: SPTM), which tracks the S&P Composite 1500 Index and has a 0.03% expense ratio
- SPDR Portfolio S&P 500 ETF (NYSEArca: SPLG), which tracks the S&P 500 Index and has a 0.03% expense ratio
- SPDR Portfolio S&P 400 Mid Cap ETF (NYSEArca: SPMD), which tracks the S&P MidCap 400 Index and has a 0.05% expense ratio
- SPDR Portfolio S&P 600 Small Cap ETF (NYSEArca: SPSM), which tracks the S&P SmallCap 600 Index and has a 0.05% expense ratio
“It’s simple: high costs erode returns. So the largest part of your portfolio should never be the most expensive. Every little basis point counts,” according to State Street.
“SPDR Portfolio ETFs are diversified and tax-efficient stock and bond index funds, available from as little as 3 bps. Covering US equity, international equity and fixed income asset classes, they are designed to help investors allocate for the long-term. They have a median cost 93% lower than the median US-listed mutual fund.”
Financial advisors who are interested in learning about portfolio positioning can register for the Wednesday, February 17 webcast here.