However, the growing complacency may expose investors to increased risks in an aging bull market where some of their largest company exposures are also those that have strengthened the most and now look pricey during the ongoing rally.
Consequently, Dzanis pointed to factor-based ETFs with a disciplined rules-based approach to accessing the markets.
For example, the FlexShares Morningstar U.S. Market Factor Tilt Index Fund (NYSEArca: TILT) tries to provides enhanced exposure to U.S. equities by tilting the portfolio toward long-term growth potential of small-cap and value stocks. Additionally, for international exposure, investors can look to the FlexShares Morningstar Developed Markets Ex-US Factor Tilt Index Fund (NYSEArca: TLTD) and the FlexShares Morningstar Emerging Markets Factor Tilt Index Fund (NYSEArca: TLTE).
Furthermore, dividend ETF investors who are seeking stability, along with exposure to the growing U.S. markets, can look to the FlexShares Quality Dividend Index Fund (NYSEArca: QDF), FlexShares Quality Dividend Dynamic Index Fund (NYSEArca: QDYN) and the FlexShares Quality Dividend Defensive Index Fund (NYSEArca: QDEF). The suite includes a group of smart-beta ETFs that focus on both quality and dividends.
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