Rising inflation took a large bucket of volatility and dumped it all over the major stock market indexes, especially the tech sector. Bitcoin can’t be tagged as a low-volatility asset, but the leading cryptocurrency has been fluctuating less than tech stocks lately. It’s interesting to note that over time, bitcoin’s volatility has actually been less. [...] Read more at ETFtrends.com.
Rising interest rates could translate into a stronger greenback, which typically spells doom for emerging markets (EM). That’s why it’s helpful to get some built-in volatility protection with ETFs like the Invesco S&P Emerging Markets Low Volatility ETF (EELV). The EM market, in particular, comes with its own set of nuances that a prospective investor [...] Read more at ETFtrends.com.
One of the ways fixed income investors can get more yield is by accepting more risk. This makes emerging markets (EM) bonds an attractive option, and they could be a value option given the current market landscape. The pandemic certainly did its job in souring the taste of EM bonds for fixed income investors. Certain [...] Read more at ETFtrends.com.
Fixed income investors like dividends, but they like dividends that can stand the test of time even more. This is where the T. Rowe Price Dividend Growth ETF (TDVG) shines. By utilizing an active management style, TDVG managers can seek out stocks that aren’t all about yield and yield alone. Staying power is what the fund [...] Read more at ETFtrends.com.
Equity market volatility isn’t off the charts. Not yet, anyway, but it’s perked up enough in the first quarter that some market participants are evaluating strategies aimed at mitigating that turbulence. In the world of exchange traded funds, there are a variety of related options, including some surprises such as the VanEck Vectors Morningstar Wide [...] Read more at ETFtrends.com.
Cryptocurrencies are fairly synonymous with volatility from an investment standpoint for a variety of reasons, but thinning markets may mean spot exposure will only be more susceptible to rapid, extreme price changes, reports CoinDesk. Crypto markets have been a lot quieter of late after their massive recent drop, with many cryptocurrencies leveling out once more, albeit [...] Read more at ETFtrends.com.
A general trend of investors moving out of high valuation growth stocks and into dividend-paying value stocks continues within markets as advisors and investors position their portfolios for a rising rate environment. One fund to consider when looking for a value play is the KFA Small Cap Quality Dividend Index ETF (KSCD), which has taken [...] Read more at ETFtrends.com.
Climate change and a growing global population are combining to put water scarcity issues front and center for governments and investors. Among exchange traded funds, there are multiple ways to access that theme, including the Invesco Global Water Portfolio (NASDAQ: PIO). PIO, which tracks the Nasdaq OMX Global Water Index, is increasingly relevant as water [...] Read more at ETFtrends.com.
Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itsel
Earlier this month, the European Commission made a recommendation that nuclear power should count as green energy. The EU uses an investment classification system called the EU Taxonomy, where it attempts to set common language and clear definitions around what counts as “sustainable.” Three types of investments are considered green: those that substantially contribute to [...] Read more at ETFtrends.com.
Last week, MSCI released its Pro-forma for the quarterly index review (QIR), with some surprising additions and the continued growth of China within emerging markets, writes Brendan Ahern, CIO for KraneShares, in a recent blog post on China Last Night. The updates mean that ETF managers and passive fund managers will be rebalancing their funds [...] Read more at ETFtrends.com.
Exchange traded fund investors have been shying away from U.S. stocks, favoring international equities instead as domestic markets tumble. In 2021, U.S. equity funds made up about 55% of the $1.07 trillion that flowed into equity ETFs, and the preference for U.S. stocks rose to 69% in December, the Financial Times reports. However, in January, [...] Read more at ETFtrends.com.
Dry weather conditions in West Africa have helped the cocoa exchange traded note enjoy a sweet February. The Path Bloomberg Cocoa TR Sub-Index ETN (NYSEArca: NIB) has advanced 11.1% since the late January lows. The November through March months are typically the dry season in the Ivory Coast, the world’s largest exporter of cocoa beans, [...] Read more at ETFtrends.com.
Roughly 85% of the global population lives in emerging markets such as Brazil, South Korea, and India. When you combine these numbers with the rise in internet connectivity and e-commerce, it creates a compelling investment thesis. Speaking with Arianne Alcorta on ETFguide TV, EMQQ founder & CIO Kevin Carter explains why emerging and frontier markets [...] Read more at ETFtrends.com.
It’s American Heart Month, which is about raising awareness of the importance of vascular health. For “ETF Edge,” CNBC’s Frank Holland gets into healthy heart investing via the IndexIQ Healthy Hearts ETF (HART), which donates a portion of fees to support the American Heart Association’s fight against heart disease. Delving further into this discussion, New York Life Investments’ [...] Read more at ETFtrends.com.
The semiconductor shortage is giving traders options to play the volatility whether they want to go long or short with the Direxion Daily Semiconductor Bull 3X ETF (SOXL) and the Direxion Daily Semiconductor Bear 3X Shares (SOXS), which is up about 40% year-to-date. Both funds seek 300% of the daily performance of the PHLX Semiconductor Sector Index. [...] Read more at ETFtrends.com.
Exchange traded funds that track the environmental, social, and governance theme could also hold crude oil companies and so-called sin stocks like gambling hotels and cigarette producers. It is up to the investor to take the time and look under the hood of their investments to better know what they are getting themselves into. While [...] Read more at ETFtrends.com.
With rate hikes forthcoming, the search for more yield can start with a pair of dividend-focused ETF options from Global X: the Global X SuperDividend U.S. ETF (DIV) and the Global X SuperDividend ETF (SDIV). Even with yields rising, you’ll be hard-pressed to find Treasury notes giving fixed income investors beyond 3%. Interest rates are still [...] Read more at ETFtrends.com.
An interest-rate hedged exchange traded fund play has been surging as investors try to get ahead of a Federal Reserve interest rate hike. Among the better-performing non-leveraged ETFs of Monday, the Simplify Interest Rate Hedge ETF (PFIX) rose 2.3%. PFIX has increased 16.3% year-to-date. The rate hedging strategy climbed again on Monday as the markets [...] Read more at ETFtrends.com.