Low volatility isn’t flashy, but it is still a beloved investment factor. How funds like the
QLV follows the Northern Trust US Quality Low Volatility Index. The ETF’s benchmark employs a quality screen to provide exposure to high-quality companies with lower absolute risk, thereby limiting potential future volatility. The quality screen analyzes a broad universe of equities based on key indicators such as profitability, management efficiency, and cash flow, and then excludes the bottom 20% of stocks with the lowest quality score. The index is then subject to the regional, sector, and risk-factor constraints, in order to manage unintended style factor exposures, significant sector concentration, and high turnover.
ETF Trends' CEO, Tom Lydon, takes a look at the markets after last week's hit on Nasdaq and what this means with interest rates increasing on Fox Business' "Mornings with Maria."
Feeling Aggressive? This Leveraged Oil ETF May Be for You
The start of the week’s trading session saw major U.S. indexes rally with oil prices following the move higher. Taking a look under the hood of ERX, there are some familiar names in big oil, such as Exxon Mobil Corporation and Chevron Corporation, which help explain its over 90% year-to-date gain.
“Oil rallied toward $70 a barrel after OPEC+ chose not to relax supply curbs even as the global economy pulls out of its pandemic-driven slump, confounding widespread expectations the group would loosen the taps,” wrote Saket Sundria in World Oil. “The surprise decision spurred a wave of crude price forecast upgrades by major banks. The producer alliance agreed to hold output steady in April, while Saudi Arabia said that it will maintain its 1 million barrel-a-day voluntary production cut.”
As Investors Pile Into Thematic ETFs, Here Are 3 Global X Funds to Consider March 9, 2021
Money continues to pour into the thematic ETF space. Global X has several noteworthy funds in the mix of it all.
“Funds focused on specific market niches raked in piles of cash in the first two months of the year, a trend that’s poised to rapidly accelerate, according to a new survey,” a Bloomberg article noted. “A whopping 80% of global ETF investors plan on increasing their exposure to so-called thematic ETFs this year, Brown Brothers Harriman & Co. found in their annual report released Monday.”
3 Global X ETFs Worth Looking At
Dismayed by Huge P/E Ratios? Look to This Model Portfolio March 9, 2021
It’s long been said that U.S. equities are expensive and that valuations are more attractive in international stocks, including emerging markets fare.
Advisors can tap into that theme with model portfolios, including the Emerging Markets Multi-Factor Portfolio.
“This model portfolio is designed for investors with a long-term horizon looking for exposure to a broad universe of Emerging Market equities primarily using factor focused ETFs. The selected ETFs provide certain factor tilts that have the potential to generate excess return relative to comparable cap-weighted benchmarks over longer-term holding periods. The strategies may use both WisdomTree and non-WisdomTree ETF,” according to WisdomTree.