Contrary to what many prestidigitators had predicted, the U.S. has not yet fallen into recession. But that doesn’t mean investors think the economy is out of the woods just yet. In fact, most Wall Street investors think this is merely a bear market rally, according to a survey from CNBC.
Per the survey, 61% think this year’s market gains are just a bear market bounce. When asked about the chances of a recession, 41% of respondents expect a downturn in mid-2024. Meanwhile, 23% said a recession will hit the U.S. later than 12 months from now. Only 14% don’t expect a decline.
See more: “It’s Time to Prepare Client Portfolios for Higher Volatility”
A Disciplined Approach to U.S. Equities
So, for investors bearish on the future of the stock market but still want to take a disciplined approach to their equity portfolio, the Hartford Disciplined US Equity ETF (HDUS) may be worth considering.
Launched in November, HDUS is a U.S. large-cap, style-pure fund that seeks to deliver enhanced relative total returns while minimizing uncompensated active risks.
The ETF leverages a rules-based process that seeks to target balanced and consistent exposure over time across value, momentum, quality, and dividend yield while simultaneously controlling for total active risk and volatility level.
“Advisors recently told VettaFi their highest priority for clients over the next six months is to protect against market volatility,” said Todd Rosenbluth, head of research at VettaFi. “While there are some strong, established products for them to consider, most are focused on one factor.”
He added that HDUS “provides exposure to multiple factors with risk reduction in mind.”
And investors are indeed considering the Hartford fund. Data from VettaFi shows that HDUS has pulled in more than $86 million in inflows year to date as of Sept. 26.
The fund carries an expense ratio of 0.19%.
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Investing involves risk, including the possible loss of principal.
This article was prepared as part of Hartford Funds paid sponsorship with VettaFi. Hartford Funds is not affiliated with VettaFi and was not involved in drafting this article. The opinions and forecasts expressed are solely those of VettaFi. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, a recommendation for any product or as investment advice.