Big techs lagging the broad markets this year would indeed be a surprise. But I'm making the opposite bet that tech will be the year's top-performing sector.
The VanEck Vectors
® Real Asset Allocation ETF (“RAAX”) and real assets broadly both finished the year on a positive note. RAAX returned +0.44% versus +4.97% for the Bloomberg Commodity Index and +4.82 for the Blended Real Asset Index. However, the total return for RAAX with the yearend distribution included was +6.53%, outperforming both indices during the month.[1]
The rally in real assets continued into December as investors continued to weigh the near-term risks of inflation. RAAX has been a huge beneficiary of this change in sentiment because of the ability of real assets to hedge against inflation. Regardless of where you stand on the “great inflation debate”, it seems unwise to ignore this risk and fail to position your portfolio accordingly.
January 21, 2021
Getting more than broad-based bond exposure doesn’t mean investors have to deep dive into the debt market. They can start with three ETFs from Invesco that are seeing heavy average daily volume.
Invesco Senior Loan ETF (BKLN): seeks to track the investment results of the S&P/LSTA U.S. Leveraged Loan 100 Index. The Adviser and the fund’s sub-adviser define senior loans to include loans referred to as leveraged loans, bank loans and/or floating rate loans. Banks and other lending institutions generally issue senior loans to corporations, partnerships or other entities (“borrowers”). Senior loans are typically used for business recapitalizations, acquisitions, leveraged buyouts, and re-financings. BKLN’s loan portfolio will include the purchase of loans from banks or other financial institutions through assignments or participations.
January 21, 2021
As income-minded exchange traded fund investors look for ways to generate additional cash in their portfolios, it is equally important to think about managing the risk in doing so.
In the recent webcast, Tactical High Yield Solutions for Today’s Yield-Starved Environment, Matthew Bartolini, Head of SPDR Americas Research, State Street Global Advisors, outlined how the markets performed over the past year, with riskier assets finishing 2020 around record highs as additional fiscal stimulus and progress on vaccine development and distribution further buoyed risk sentiment. He pointed out that most major asset classes regained their losses over the bear market and finished the year near record highs, with U.S. and emerging market equities outperforming in global markets.