Technology has been in pole position for much of the current bull market with its high prospects in growth and as far as ETFs go, this trend should continue, but Venuto sees specific areas of tech where investors can look to for opportunities.
“We believe in looking for the next technology like robotics, blockchain, electric batteries and other fintech applications,” said Venuto. “The anticipated returns from traditional US indexes are quite muted, we recommend allocating to life changing themes to meet superior return expectations. ”
The rise of ETFs has not only spurred more growth in terms of capturing investor capital, but it has also brought about competition from firms as they scramble to differentiate themselves from the masses. From sector-focused, emerging markets-focused, active/passive, factor-focused ETFs, or a combination of strategies thereof, investors can have analysis paralysis when researching the right ETF to fit their needs.
“There is a lot of institutional adoption of cheap beta, which bodes well for more non-traditional and active ETFs in the coming years,” said Venuto. “There are also a lot registered investment advisors (RIAs) adopting the ETF wrapper to deliver their existing strategies in a more efficient structure. Finally, international growth and consolidation is picking up rapidly with big players like WisdomTree and JP Morgan.”
With over 2,000 ETFs and growing, TETF is poised to benefit from a space that will only require more services and support to sustain itself.
For more market strategies, visit ETF Trends.