Despite the recent pullback, many investors still maintain a bullish market outlook. Nevertheless, ETF investors and financial advisors should monitor the pulse of the market in case of any sudden shifts.
“I think we’re in the late stage of a bull market,” Luciano Siracusano, Chief Investment Strategist at WisdomTree Asset Management, said at the Inside ETFs 2018 conference. “I think you need to be careful. I wouldn’t be 100% beta all the time, going forward.”
Specifically, Siracusano argued that investors should look to large-cap quality if they are sticking around in the U.S. markets.
For instance, ETF investors can look to something like the WisdomTree U.S. Quality Shareholder Yield Fund (NYSEArca: QSY) or the WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ: DGRW) as a way to hone in on quality names. QSY tracks those with a high total shareholder yield and favorable quality attributes while DGRW screens for large-cap dividend growing companies with a quality and growth factor.
Investors may also find opportunities in overseas markets, especially as international stocks trade at much more attractive valuations relative to the lofty prices in U.S. markets, especially those in the emerging markets.