Nassim Talb wrote the book “Antifragile,” which deep dove into opacity, luck, uncertainty, probability, human error, risk, and decision-making. When it comes to today’s market landscape, investors can utilize the principles espoused in the book to make investment decisions in this world of uncertainty amid the coronavirus outbreak.
One of the ways to navigate the current market is to look for investment opportunities that are robust moving forward. What exactly does that mean?
“Robust means the business survives the crisis, while antifragile means it benefits,” wrote Vitaliy Katsenelson in MarketWatch. “This doesn’t mean these businesses won’t be impacted by the crisis. In fact, we are counting on the fact that some of these companies will be impacted. That is what will create the opportunity to buy them because most investors will be focusing on the next six months while we’re focusing on the next six years.”
“For instance, there are certain companies in the travel industry that we’d love to buy (not airlines) whose business will be disrupted by the coronavirus” Katsenelson added. “We expect their stocks to be kissing dirt, but as long as these businesses survive the virus (we are only interested in the ones that have an excellent chance of doing so), they’ll provide incredible opportunities when COVID-19 is behind us and our lives return to normal. (Which will happen.)”
When searching for value-oriented funds, here are a few ETFs to check out:
- JPMorgan U.S. Quality Factor ETF (NYSEArca: JQUA): seeks investment results that closely correspond to the performance of the JP Morgan US Quality Factor Index. The fund will invest at least 80% of its assets in securities included in the underlying index. “Assets” means net assets, plus the amount of borrowing for investment purposes. The underlying index is comprised of U.S. equity securities selected to represent quality factor characteristics.
- Invesco S&P 500 Quality ETF (NYSEArca: SPHQ): seeks to track the investment results of the S&P 500 Quality Index. In selecting constituent securities for the underlying index, the index provider calculates the quality score of each security in the S&P 500 Index, then selects the 100 stocks with the highest quality score for inclusion in the underlying index.
- WisdomTree U.S. SmallCap Quality Dividend Growth Fund (NasdaqGM: DGRS): seeks to track the price and yield performance of the WisdomTree U.S. SmallCap Quality Dividend Growth Index. The index is a fundamentally weighted index that consists of the small-capitalization segment of dividend-paying U.S. common stocks with growth characteristics.
For more market trends, visit ETF Trends.