January 15, 2021
The financial services sector is on a path redemption after flailing for much of 2020 on the back of low interest rates and several other headwinds. Investors looking to capitalize on that trend can ratchet up gains with the
Up 6% to start 2021, PFI tracks the Dorsey Wright Financials Technical Leaders Index, which is rooted in Dorsey Wright’s notorious relative strength methodology.
“The Index is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 securities from the NASDAQ US Benchmark Index. Relative strength is the measurement of a security’s performance in a given universe over time as compared to the performance of all other securities in that universe,” according to Invesco.
ETF Trends CEO Tom Lydon discussed the
Financial Select Sector SPDR (XLF) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.
This ETF, one of the powerhouse SPDR products, provides exposure to an index that includes companies from the following industries: diversified financial services; insurance; commercial banks; capital markets; real estate investment trusts; thrift & mortgage finance; consumer finance; and real estate management & development. XLF contains the who’s-who of the domestic economy’s financial players, including JP Morgan, Wells Fargo, and others. This makes it an ideal play on the U.S. financials world, which has not always been stable.
January 15, 2021
Domestic equities are ready to turn in solid performances again this year. Advisors can put factor-based approaches on their side with the right model portfolios.
Take the case of the WisdomTree Core Equity Model Portfolio, which features 11 exchange traded funds spanning a wide array of U.S. equity concepts.
“This model portfolio is designed for growth-oriented investors with a long-term horizon looking to maximize long-term potential for capital growth through a globally diversified set of equity ETFs,” writes the issuer.
This model portfolio is positioned to capitalize on some important trends that emerged late last year.
“Relative to the All Country World Index (ACWI), we maintain our over-weight position in U.S. equities going into 2021. 2020 marked the eighth year of the past nine in which U.S. equities outperformed their international peers,” according to WisdomTree research. “The year was highlighted by the continued domination of big tech st
Stocks and index ETFs are dropping on Friday following President-elect Joe Biden's announcement of details relating to a nearly $2 trillion stimulus plan.
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Nancy Davis once won an award as a rising star in the hedge fund world. Now her star is rising in the exchange-traded-fund world, which is rapidly eclipsing that of hedge funds.
Davis Quadratic Interest Rate Volatility and Inflation Hedge ETF, or IVOL, recently surpassed $1 billion in assets. It s been less than two years since Davis converted her firm, Quadratic Capital Management, from a hedge fund to an ETF.
IVOL is designed to protect against volatility in interest rates and hedge against inflation, and it s benefited from a couple of major trends at once. One is investors growing appetite for ETFs, which offer lower fees and easier trading access than older strategies. Thanks in part to their lower cost to investors, many ETFs have delivered better returns.