The Momentum Factor Still Has Legs. But Stay Selective February 11, 2021
The momentum factor remains compelling, but investors should be selective when embracing it. One way to do so is through the
MTUM seeks to track the investment results of the MSCI USA Momentum Index, which consists of stocks exhibiting relatively higher momentum characteristics than the traditional market capitalization-weighted parent index, the MSCI USA Index, which includes U.S. large- and mid-capitalization stocks.
Momentum tends to be negatively correlated to factors like size and value since momentum identifies securities that are trending upwards. These stocks tend to reflect successful companies with positive trends that become bigger and bigger. Consequently, investors can also enjoy the diversification benefits of adding momentum strategies to small cap and value-heavy portfolios.
Snag Short or Long Muni Exposure with 2 BulletShares ETFs February 11, 2021
Fixed income investors have turned to municipal debt in order to extract an added dose of yield. ETF provider Invesco gives investors short or long exposure to munis with funds like the
“Yield-hungry investors have been piling into riskier assets, and not only speculative stocks like GameStop,” a Wall Street Journal report said. “For an example of how negative real interest rates are distorting prices, behold the municipal bond market.”
“Last month investors snapped up $560 million in bonds issued by junk-rated Chicago Public Schools (CPS),” the report added. “The district’s 10-year bonds were priced at 1.94% and the 20-year at 2.24% a mere 117 to 105 basis points above the AAA muni benchmark yields.”
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Natixis Investment Managers today received approval from the Securities Exchange Commission (SEC) for the use of custom baskets in actively managed semi-transparent exchange-traded funds (ETFs) that follow the New York Stock Exchange (NYSE)’s Proxy Portfolio Methodology approach. Previously, Natixis active semi-transparent ETFs were required to disclose proxy portfolios that closely track the fund’s actual intraday portfolio performance on a daily basis. This new approval from the SEC enables Natixis to create custom baskets that contain securities not included, or securities in different weights than are in the fund’s Proxy Portfolio when creating or redeeming shares. The use of custom baskets for active semi-transparent ETFs has the potential to reduce trading costs, increase efficiency, and improve secondary markets for the shares.
Financial Times & Wilshire announce collaboration to create innovative indices Wednesday, February 10, 2021 Opalesque Industry Update - The Financial Times, the trusted global financial media brand and a pioneer in digital journalism, and Wilshire, a global investment, technology and advisory company today announce a far-reaching collaboration to develop new, innovative and more relevant indices, metrics, data sets and analytics to serve and inform investors worldwide.
The new services will provide investors with tools and content to understand the evolution of new themes in business and investment, from Environmental, Social & Governance (ESG) to new digital financial instruments.
The two organisations, working with a range of leading market innovators and experts, will create dedicated services and features on FT.com combining data, tools, analytics and indices from Wilshire and its partners. The venture will provide investors with unique commentary, insights and data