With tactical ETF strategies, investors can lightly leverage their position to potentially enhance market exposure and returns.
“It’s been exceedingly difficult for advisors to outperform the market, so I think a lot of them are just basically saying, ‘if you can’t beat them, join them,’ and I mean in the form of buying a lot more passive ETFs,” Andy O’Rourke, Managing Director and Chief Marketing Officer for Direxion Investments, said at the Charles Schwab Impact Conference.
This has been another record year for the ETF industry as investors funneled $468.6 billion in new money into U.S.-listed ETFs, with most investors focusing on passive index-based products.
In an environment where financial advisors are trying to differentiate themselves from the competition, money managers will utilize various tactical tools to ride market waves or hedge potential pitfalls.