With jolts of volatility throughout the first half of the year, investors need to consider smart strategies to adapt to changing conditions in a late business cycle.
In the upcoming webcast, Q4 Market Outlook: Where to Find Smarter Investment Strategies, Rusty Vanneman, President/Chief Investment Officer, CLS Investments; John Davi, Founder and Chief Investment Officer, Astoria Portfolio Advisors; and Matthew Bartolini, Head of SPDR Americas Research, State Street Global Advisors, will provide a Q4 market outlook and look to factor-based or alternative indexing methodologies as smarter investment strategies.
In a period of heightened volatility and uncertainty, investors may consider quality or steadier U.S. market exposure to better stabilize an investment portfolio. For example, something like the SPDR S&P Dividend ETF (NYSEArca: SDY) can help investors target U.S. companies with a track record of steady dividend growth. SDY holds firms that have a minimum dividend increase streak of 20 years for inclusion.
A Yield-Weighting Method
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 quality companies.
Investors can also look to quality or companies that exhibit strong fundamentals overgrowth through something like the SPDR MSCI USA StrategicFactorsSM ETF (NYSEArca: QUS). 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 market strategies for the quarter ahead can register for the Thursday, September 5 webcast here.