March 5, 2021
Just a few months ago, allocating to equity strategies designed to thrive in rising rate environments wouldn’t have been a priority for many investors. However, markets shift rapidly and the
EQRR tries to reflect the performance of the Nasdaq U.S. Large-Cap Equities for Rising Rates Index, which selects 50 components from a universe of the 500 largest companies based on market capitalization listed on the U.S. exchange that have historically outperformed during periods of rising interest rates.
On a quarter-by-quarter basis, the underlying index will target the five most interest rate sensitive industry sectors out of the original universe based on the correlation of weekly sector performance to weekly percentage changes in 10-year U.S. Treasury yields over the prior three-year period. The sector with the highest correlation will have a 30% position in the index, followed by 25% for the second highest, 20% for the third highest, 15% for the fourth highest, and 1
March 5, 2021
Treasury yields are rising, but with rates still near historic lows, the case for dividend grower ETFs like the
PFM tracks the NASDAQ US Broad Dividend Achievers. That benchmark requires member firms to have dividend increase streaks of at least 10 years.
Due to its emphasis on payout growth rather than high yields, PFM is a safe idea for investors looking to revisit dividend stocks over the near-term. Additionally, the fund is highly relevant for quality-seeking investors in the current environment.
“We see not only a valuation opportunity but an income one as well. With rates hitting new lows in 2020, many companies’ stocks now offer dividend yields that are higher than their respective corporate bonds yields. Moreover, dividends offer growth potential over time whereas bond coupons are fixed,” according to BlackRock research.
What Is a Stimulus Package and How Does it Affect Investors? March 05, 2021 14:44 UTC
If you have read or watched any news recently, you will have almost definitely heard the term “stimulus package”, or “stimulus plan”, in relation to economies which have been ravaged by the coronavirus pandemic.
But do you understand exactly what this term means? More importantly, do you understand how a stimulus package can affect the financial markets and, consequently, your trading and investing? If not, you have come to the right place! In this article, we will explain what a stimulus package is and how it can affect the financial markets.
When Investing Abroad, Focus on the Fundamentals March 5, 2021
With fear of inflation and rising Treasury yields, investors are backing off equities, which could also lead to pullbacks overseas. Investors don’t have to shy away from emerging markets (EM) by re-focusing on fundamentals with funds like the
PXH seeks to track the investment results of the FTSE RAFITM Emerging Index. The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index, as well as ADRs and GDRs that represent securities in the underlying index.
The underlying index is is comprised of securities of companies located in countries that are classified as emerging markets within the country classification definition of FTSE. The underlying index includes securities of companies selected from the constituents of the FTSE Emerging Total Cap Index.
Rethinking the 60/40 Portfolio in a Changing Market Environment March 5, 2021
The Auour Regime Model is a unique approach to portfolio management that constantly measures the risk profile of the market and blends fundamental investment principles with quantitative analysis to determine which assets are best to include.
In the recent webcast,
Evolving the 60/40 Mentality: A Risk-First Portfolio Approach, Matthew Bartolini, Head of SPDR Americas Research, State Street Global Advisors, outlined the current market conditions, pointing to investor confidence that fell below the neutral reading across regions in February amid the bond market rout. Despite the recent drop, the one-year moving average continues its positive trend.