When it comes to ETFs, investors may want to go with the flow. Billions of dollars exchange hands across asset classes and investors should consider where the money is going to gauge potential opportunities or pitfalls within the markets.
On the upcoming webcast, ETF Flash Flows: Where Are the Markets Today?, Matthew Bartolini, Head of SPDR Americas Research for State Street Global Advisors, will look at ETF Flash Flows to monitor global investment themes popping up in a changing market environment and discuss various investment strategies to consider today.
In a prolonged bull market environment, investors witnessed short but very violent bursts of volatility that could upend an investment portfolio. While the economy continues to grow and investors still look to opportunities in the equity markets, we can still consider stock ETF strategies that can mitigate some of the potential risks ahead.
For instance, investors can look to quality or companies that exhibit strong fundamentals over growth. ETF investors can look to options such as the SPDR S&P Dividend ETF (NYSEArca: SDY) and SPDR MSCI USA StrategicFactorsSM ETF (NYSEArca: QUS).
The SPDR S&P Dividend ETF holds firms that have a minimum dividend increase streak of 20 years for inclusion. Moreover, SDY follows a yield-weighting methodology that allocates a larger weight toward those with higher yields, so the portfolio leans toward more mid-sized companies.
The SPDR MSCI Quality Mix USA ETF tracks the equally-weighted MSCI USA Quality Mix A-Series Index, which is a combination of the MSCI USA Value Weighted, MSCI USA Minimum Volatility and MSCI USA Quality Indexes. Quality companies with high profit margins and healthy balance sheets at a reasonable price may provide more resilience and cushion some downside risks. Additionally, blending differentiated factor exposures may create a more balanced profile to navigate rocky conditions.
Financial advisors who are interested in learning more about major global investment themes can register for the Wednesday, March 6 webcast here.