Investors become myopic during bubbles. They believe the universe of attractive investment opportunities is small and growth can be found only in a few select sectors. As we’ve repeatedly highlighted, it is exactly that narrow-mindedness that presents opportunities because investors ignore the broad range of potential investments outside the bubble. Today’s bubbles are following that [...] Read more at ETFtrends.com.
Advisors are finding it increasingly difficult to rely on their traditional fixed income portfolios to fill the dual role of generating income and providing real portfolio diversification. Focusing only on U.S. Treasuries and corporates means that advisors are missing a huge part of the bond market — the $12 trillion market for securitized assets. In [...] Read more at ETFtrends.com.
U.S. markets and stock exchange traded funds were clawing back late on Friday after reeling in early morning trading on a pessimistic holiday outlook from e-commerce giant Amazon and iPhone maker Apple. The Invesco S&P 500 Equal Weight ETF (RSP), which follows the S&P 500 Equal Weight Index (EWI), dipped 0.1% on Friday. Meanwhile, the [...] Read more at ETFtrends.com.
Exchange traded funds now offer exposure to some compelling themes that investors need to watch. In the recent webcast, Evolution and Revolution? The Role of Thematic ETFs in Today’s Portfolio, Scott Helfstein, executive director of thematic investing at ProShares, explained that we are in midst of the next evolution of the ETF universe, or what [...] Read more at ETFtrends.com.
“1993 is remembered for the first equity ETF, 2002 for the first bond ETF, and 2004 for the first gold ETF. 2021 will be remembered for the first cryptocurrency-linked ETF”. – ProShares CEO Michael Sapir It finally happened… sort of. The first bitcoin-linked ETFs have arrived, with the ProShares Bitcoin Strategy ETF (BITO) and Valkyrie Bitcoin Strategy ETF [...] Read more at ETFtrends.com.
By Rod Smyth, Chairman of the Board of Directors SUMMARY Interest rates are at historic lows… In our view, this presents tough choices, which are best handled by an active manager than a passive index. Few Good Choices in Fixed Income Make Active Management Imperative, in Our View When playing cards, you have the excitement [...] Read more at ETFtrends.com.
By Michael Venuto Over the past few days, several “Bitcoin Strategy ETFs” have listed in the US and have garnered a record number of assets. Today, we seek to determine whether this is a trick or a treat. The answer depends on what kind of investor you are; for traders, ETF Issuers, Futures Exchanges, hedge [...] Read more at ETFtrends.com.
Even while the effects of the ongoing pandemic are slowly dissipating, the risk of default is always apparent when investing in corporate debt issues, which can be addressed with a pair of FlexShares ETFs. Focusing on quality debt is available in the convenience of an ETF wrapper with funds like the FlexShares Credit-Scored US Long [...] Read more at ETFtrends.com.
Bitcoin and ethereum may soak up the majority of the digital currency spotlight, but it’s been alt coins that have been helping to drive institutional investor interest in crypto. OKCoin, a San Francisco-based cryptocurrency exchange, noted that trading volume has risen within the past year by institutional players entering the crypto space. Institutional money has [...] Read more at ETFtrends.com.
With the pandemic pushing for more work-from-home initiatives by employers, commercial real estate may have fallen out of favor, but it could be making a comeback. According to a Wall Street Journal article, a renewed appetite for commercial real estate may be developing. “Investors purchased a record amount of commercial real estate in the third [...] Read more at ETFtrends.com.
Investors often hear about the efficacy of taking long-term approaches. However, there are also plenty of examples where investors are compelled to take short-term views. That’s increasingly prominent today when fear of missing out (FOMO) is pervasive, but investors should be mindful of what assets they apply short-term thinking to. While equal-weight exchange traded funds, [...] Read more at ETFtrends.com.
With inflation commanding an increasingly prominent part of everyday investing conversations, assets with reputations for beating rising consumer prices (or, at the very least, for proving durable in that scenario) are receiving more attention. Historically, those assets include hard assets, such as gold, real estate, and Treasury inflation protection securities (TIPS). However, investors should not [...] Read more at ETFtrends.com.
The S&P 500 Health Care Index is up almost 16% year-to-date. That’s a solid showing to be sure, but biotechnology stocks and exchange traded funds are still waiting on their moments. With reasons growing to be bullish on the broader healthcare sector, ETFs such as the ALPS Medical Breakthroughs ETF (SBIO) could be ready for some [...] Read more at ETFtrends.com.
The regulatory crackdown on cryptocurrency mining and subsequent exodus of miners from China has led to the U.S. becoming the top country for bitcoin mining, reports the Wall Street Journal. Before the crackdowns, China had been number one for bitcoin mining, generating over half the world’s supply of new tokens, with the U.S. only accounting [...] Read more at ETFtrends.com.
The iShares MSCI ACWI Low Carbon Target ETF is seeing unusually high volume in afternoon trading Friday, with over 216,000 shares traded versus three month average volume of about 30,000. Shares of CRBN were down about 0.5% on the day.
In trading on Friday, the First Trust Nasdaq Cybersecurity ETF is outperforming other ETFs, up about 1.1% on the day. Components of that ETF showing particular strength include shares of A10 Networks, up about 29.2% and shares of Vmware, up about 23.5% on the day.
Through three quarters of 2021, it’s clear that market participants remain enthusiastic about exchange traded funds, and there’s no sign of that changing. While third-quarter ETF inflows were a tad slower than what was seen to start 2021, the pace of asset-gathering in the July through September period was still prolific as investors flocked to [...] Read more at ETFtrends.com.
Growth beginning to make a comeback and forthcoming volatility in the markets could be handled by using an ETF that addresses both with a collar strategy. Investors looking to use the tricks of the trade to the fullest can utilize a collar strategy as part of their own risk management measures. Inflation fears have been [...] Read more at ETFtrends.com.
On Wednesday, both the International Renewable Energy Agency (IREA) and the International Energy Agency (IEA) highlighted the need to drastically increase the number and scale of clean energy projects and policies to help alleviate price hikes and volatility within the energy sector. The Climate Summit convenes every five years, with countries pledging greater emissions curbing [...] Read more at ETFtrends.com.
October isn’t just spooky season, it’s also tax efficiency season. With rate increases a distinct possibility as the Biden administration kicks the tires on capital gains, advisors need to consider the tax efficiency of their clients’ portfolios. In a T. Rowe Price white paper, Portfolio Construction Specialist Terry Davis and Portfolio Construction Analyst John Gray [...] Read more at ETFtrends.com.