With interest rates low, many investors are shifting their allocations every more towards equities at all-time highs. But are you really considering the long-term impacts of this approach?
In the upcoming webcast, Long Term but Tactical Aware: A Better Approach to Your 60/40 Allocation, Matthew Bartolini, Head of SPDR® Americas Research, State Street Global Advisors; Jeffrey Megar, Managing Director, Julex Capital; and Naomi DePina, Vice President of ETF Sales, GTS Trading & Execution Services, will discuss how being tactical with asset allocation can help investors better adapt to shifting markets and sudden risks.
For example, State Street Global Advisors offers a suite of widely observed S&P 500 sector ETFs, including:
- Communication Services Select Sector SPDR Fund (NYSEArca: XLC)
- Consumer Discretionary Select Sector SPDR Fund (NYSEArca: XLY)
- Consumer Staples Select Sector SPDR Fund (NYSEArca: XLP)
- Energy Select Sector SPDR Fund (NYSEArca: XLE)
- Financial Select Sector SPDR Fund (NYSEArca: XLF)
- Health Care Select Sector SPDR Fund (NYSEArca: XLV)
- Industrial Select Sector SPDR Fund (NYSEArca: XLI)
- Materials Select Sector SPDR Fund (NYSEArca: XLB)
- Real Estate Select Sector SPDR Fund (NYSEArca: XLRE)
- Technology Select Sector SPDR Fund (NYSEArca: XLK)
- Utilities Select Sector SPDR Fund (NYSEArca: XLU)
Incorporating sector-based investment strategies can help investors align and adjust their investment portfolios based on macroeconomic or thematic trends, such as the increased adoption of clean energy and declining interest rates, shifts in stock fundamentals, or technical indicators, such as momentum.
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 shortens 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 subadvisers SRLN, is backed by one of the world’s largest senior loan asset managers.
Bond ETFs such as the SPDR Portfolio Mortgage-Backed Bond ETF (SPMB), SPDR Portfolio Short Term Corporate Bond ETF (NYSEArca: SPSB), SPDR Portfolio High Yield Bond ETF (SPHY), and SPDR Barclays Convertible Securities ETF (NYSEArca: CWB) could also help investors pursue total return through alternative fixed-income options.
Financial advisors who are interested in learning more about asset allocation strategies can register for the Tuesday, October 19 webcast here.