Innovative exchange traded fund investors should focus on the critical importance of having a long-term investment time horizon and should not fear short-term losses or volatility. In the recent webcast, Volatility is Not a Bad Word When You Have a Long-Term Time Horizon, ARK Invest’s Renato Leggi, client portfolio manager, argues that innovation platforms including [...] Read more at ETFtrends.com.
The latest stock market volatility witnessed the tech sector get a fresh round of sell-offs during the month of January. The worst may or may not be over. Either way, there are ETFs to cover both scenarios. Inflation fears caused a dismal January for most equities. The tech sector in particular saw a heavy month [...] Read more at ETFtrends.com.
With inflation data weighing heavy on the capital markets, an active management strategy to help navigate the fickle bond markets while getting yield is a must. This is where getting expert management is of great benefit to investors who don’t want the added responsibility of managing their own investments. An ETF like the actively managed [...] Read more at ETFtrends.com.
When investors embrace small-cap stocks and the related exchange traded funds, the common expectation is that they will be rewarded with higher returns because smaller stocks are more volatile than large-cap equivalents. While the long-term track record of smaller stocks is impressive, investors need to be mindful of a fund’s underlying index when opting for [...] Read more at ETFtrends.com.
After ranking as the best-performing sector in the S&P 500 last year, energy is up to its old tricks again to start 2022, and that’s a good thing for investors because the S&P 500 Energy Index is up 24.14% year-to-date. With that in mind, it’s safe to say that the energy sector has momentum. Speaking [...] Read more at ETFtrends.com.
China will certainly loom large for investors considering emerging markets exposure this year, but simply because that’s the world’s second-largest economy doesn’t mean market participants have to embrace it when they allocate to developing economies. Last year, Indian equities and exchange traded funds, such as the VanEck Vectors India Growth Leaders ETF (GLIN), proved to [...] Read more at ETFtrends.com.
People who have maxed out their 401(k) contributions can now put an extra $1,000 into their defined contribution plans this year, thanks to new contribution limits the IRS announced. According to the agency, the 2022 contribution limit for 401(k) plans has increased to $20,500, up from $19,500 in 2021. This applies not only to 401(k) plans, but [...] Read more at ETFtrends.com.
Large language models like Generative Pre-trained Transformer 3 (or GPT-3) have boosted the branch of artificial intelligence called natural language processing (NLP). But while the applications for NLP algorithms are myriad, they operate on text data, which makes them complex and expensive and often limits their usefulness. For example, GPT-3 contains 175 billion parameters, costs roughly $12 [...] Read more at ETFtrends.com.
January 2022 won’t go down as one of the best first months of the year for stocks. It was actually one of the worst, but dividend stocks and exchange traded funds proved their mettle. Take the case of the WisdomTree U.S. LargeCap Dividend Fund (NYSEArca: DLN). One of the more venerable dividend ETFs in the [...] Read more at ETFtrends.com.
Carbon emission capture projects in the U.S. have a rocky history littered, literally, with abandoned machinery and technologies that became rapidly outdated or failed in their initial goals. Now, the U.S. is looking to give a boost to the industry through a $12.1 billion influx of funding via the infrastructure bill signed into law last [...] Read more at ETFtrends.com.
About 40% of European Union-listed fund assets under management, or 4 trillion euros, are marketed as sustainable. According to Morningstar data, investment funds labeled as sustainable under the EU’s new Sustainable Finance Disclosure Regulation managed 4.05 trillion euros in assets under management, or $4.63 trillion, as of the end-2021, Reuters reports. In comparison, sustainable fund [...] Read more at ETFtrends.com.
Equities: ▶ U.S. Equities: Despite the drop in equity prices during January, the S&P 500 Index of predominately large-cap growth stocks remains highly overvalued by our measure. The Federal Reserve Board recently announced that it will add further monetary stimulus until at least March by leaving its Fed Funds Rate near zero and by continuing to [...] Read more at ETFtrends.com.
It’s no secret that the Federal Reserve is cruising toward multiple interest rate increases this year in an effort to damp inflation, but that doesn’t mean that dividend stocks and exchange traded funds will languish. Actually, some market observers believe that dividend stocks could prove resilient as rates rise, and that could be constructive for [...] Read more at ETFtrends.com.
With inflation continuing to rise in concert with yields, the fixed income environment gets even more challenging. However, there are ways for investors to get yield, such as through mortgage-backed securities (MBS). Mortgage-backed securities represent a pool of mortgages where investors can earn a return based on the interest the mortgages offer. As opposed to [...] Read more at ETFtrends.com.
Dividend ETFs have seen a surge in popularity over the last year and a half due to the current economic environment. With 149 products currently available to U.S. investors, dividend ETFs have $323 billion in combined assets under management as of February 4, according to FactSet data. Historically, dividend ETFs have resonated most with long-term, [...] Read more at ETFtrends.com.
Bitcoin’s long drop may be subsiding, as the digital currency rallied past $42,000 off stronger-than-anticipated jobs data and adoption from two credit unions. The digital currency’s woes had come at a time when the market in general was reeling. In an email to CoinDesk, Marcus Sotiriou, an analyst at Global Block, said, “Despite U.S. jobs [...] Read more at ETFtrends.com.
Apple CEO Tim Cook recently reiterated the tech giant’s commitment to “becoming carbon neutral across [its] supply chain and products by 2030.” In a press release announcing the company’s first-quarter earnings on January 27, Cook said: “We are doing all we can to help build a better world — making progress toward our goal of becoming carbon [...] Read more at ETFtrends.com.
Prince, Aretha Franklin, and Chadwick Boseman are all well-known Black Americans who died without wills. Today, 70% of Black Americans also don’t have wills in place, reports CNBC. This can cause a loss of land, assets, and so much more for Black individuals and communities, and is causing the greatest detriment to wealth transfer in history, [...] Read more at ETFtrends.com.
A more hawkish Fed has led to a number of reactions in markets and caused a number of ripples to trickle into unexpected places. One such possible inadvertent impact of Fed tightening could actually lead to outperformance within the Chinese internet sector, as discussed in a recent video by Dr. Xiaolin Chen, head of international [...] Read more at ETFtrends.com.
With January being active small-cap value managers’ best month since April 2007 and several industry insiders forecasting a comeback for value, investors may be looking to give small-cap value a closer look. The actively managed Avantis U.S. Small Cap Value ETF (AVUV) seeks long-term capital appreciation. AVUV invests primarily in a diverse group of U.S. small-cap [...] Read more at ETFtrends.com.