As the year comes to an end, financial advisors and investors can take away plenty of insights in the final “In the Know” quarterly series of 2019.

ETF Trends, J.P. Morgan Asset Management, and the New York Stock Exchange have explained and commented on many areas of the markets, providing analysis concerning the growth of fixed income, possible recession plans, the strength of the U.S. dollar, various factors, and more.

With ETF Trends CEO Tom Lydon joined by Josh Rogers from J.P. Morgan Asset Management, Sam Azzarello from J.P. Morgan Asset Management, and Douglas Yones, Head of ETFs at the New York Stock Exchange, there was plenty to cover in Q4.Advertisement

Market themes and opportunities


Sam Azzarello addressed the possibility of a recession, with information concerning how investors are worried about a global slowdown as well. There was also discussion over the strength of the dollar.

“The dollar has become very, very political,” Azzarello  said. “That being said, and we were talking about this earlier, the US is still the strongest house on the block.”

Azzarello also spoke to what investors should keep in mind for portfolios, noting the need for advisors to be sure and keep risk off the table. She placed further emphasis on various sectors, including fixed income, credit quality, and value as well, explaining signs of potential shifts heading into 2020.

Innovation in ETF strategies and client implications

Lydon’s discussion with Josh Rogers put a focus on the factor space, specifically noting how the value factor has been a popular 2019 play, with the rise of momentum and low volatility factors.

“What’s pretty interesting about that is usually we see that that’s somewhat of a sign for Min Vol to maybe have a slight turn, and we’ve seen that more recently,” Rogers said.

Rogers also explained how quality could be the even better play right now, with additional thoughts concerning how things have shifted with the Fed, and what to take away from the status of fixed income and alternatives.

He brings up the JPMorgan Managed Futures Strategy ETF (JPMF) as a managed future strategy, with the benefits of a low-correlated asset class.

Top trends in the ETF industry and trading efficiencies

Doug Yones was able to speak about the considerable amount of flows experience in 2019, helping to examine the incredible growth of the ETF industry.

Fixed income is brought up once again, as it has been beating out equities for the first time, with $102 billion of the $180 billion generated in net cast flow year-to-date.

“More and more of the industry ecosystem participants by side, they’re all using ETFs for fixed income exposure,” Yones said. “Historically we didn’t see it, but now it’s everyone from the big institutions and insurance companies that are really looking at ‘how do I place my fixed income exposure and do I use ETFs instead of individual bonds, instead of funds?’”

There’s also talk of what’s coming up in 2020, specifically for semi-transparent ETFs, which has been an active and thriving market.

Each of these segments expanded on all of these various topics, with Lydon and his market experts providing plenty of useful knowledge.

To watch the entire latest “In the Know” show, click here.