As 2021 comes to a close, investors are reflecting on their portfolio positions for the new year. They’ll need to adapt their portfolios for the end of easy money and supportive policies, while taking note of potential challenges ahead that could impede the continued broad market rally.
In the upcoming webcast, Your Top 10 Investment Ideas for 2022, Matthew Bartolini, head of SPDR Americas research, State Street Global Advisors; John Davi, CEO and CIO, Astoria Portfolio Advisors; David Clark, president and head of business development, Astoria Portfolio Advisors; and Cory Laing, head of institutional equity and ETF sales, Citadel Securities, will outline their outlook for the new year and highlight concrete investment ideas to harness broad macroeconomic trends and specific themes.
For example, elevated inflationary pressures remain a lingering theme in today’s market environment. Investors, though, can turn to ETF strategies to ride out the storm. For instance, the recently launched AXS Astoria Inflation Sensitive ETF (PPI) is an actively managed fund that seeks to invest in securities that are positioned to benefit in an inflationary environment. PPI contains 50 cyclically oriented stocks such as industrials, materials, banks, and home builders that have historically been sensitive to inflation. The fund also has exposure to physical commodities and TIPS through securities and ETFs, offering an overall blend that is unique in the ETF space.
Investors can also look for yield-generating strategies to help bolster their income. The SPDR S&P Dividend ETF (NYSEArca: SDY) 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 mid-sized companies.
Additionally, the SPDR Portfolio S&P 500 High Dividend ETF (SPYD) tracks an index that attempts to choose the top 80 dividend-yielding companies in the S&P 500.
Lastly, fixed income investors could complement existing credit positions in high-yield and investment-grade credit with alternatives like bank loans that access floating rates, move up the capital structure, and shorten duration exposure. The actively managed SPDR Blackstone/GSO Senior Loan ETF (NYSEArca: SRLN) could help investors with better exposure, as a manager is more freely able to weave in and out of the fixed income market. Blackstone/GSO, which sub-advises SRLN, is backed by one of the world’s largest senior loan asset managers.
Financial advisors who are interested in learning more about investment ideas for 2022 can register for the Monday, January 10 webcast here.