ETFs that track ESG principles help investors track socially responsible investments, but some question if the fund providers are doing enough to limit.
February 18, 2021
As investors look to the markets ahead, it is important to considers ways to prepare for both cyclical and secular changes.
In the recent webcast,
Barbell Cyclical and Secular Change: Balancing Opportunities and Risks, Michael Arone, Chief Investment Strategist, SPDR, State Street Global Advisors, highlighted the shift in factor trends that took place in the fourth quarter of 2020, with cyclical size and value factors taking charge.
“Size and Value rallied hard off the vaccine news, while Quality held up better than Momentum, given the potential for an uneven recovery,” Arone said.
Nevertheless, the momentum factor continues to shine in 2020 and remains the best performing single factor so far this year. This just goes to show that individual factor plays may not last forever. Investors may be better served with a diversified multi-factor ETF strategy that provides a balanced approach to diversification.
Investing in the EuroStoxx Index: Your guide for 2021 February 17, 2021 15:00 UTC Reading time: 12 minutes
Did you know that there is a stock index in which the largest companies in the Eurozone are listed? We’re talking about the EuroStoxx index (EuroStoxx 50), an index that serves as a thermometer of European economic health, widely used as an underlying asset in trading to operate through derivative products, such as Contracts for Difference (CFDs).
Table of Contents
Investing in the EuroStoxx 50 - What is this index?
What is the EuroStoxx 50 (EuStx50)? Is Euro Stoxx 50 a good investment? First, let s answer what this index is. The EuroStoxx 50 is the European benchmark stock index that groups together the 50 largest companies in the Eurozone that are listed in euros.
Ranking The Historical Returns of Asset Classes
By Karl Steiner
In January of 2019 and 2020, I published year-in-review posts on the returns performance of various asset classes. But I have to say, I found those posts distinctly unsatisfying. For example, in 2020, U.S. large-cap growth stocks were the best performer of any asset class with a remarkable total annual return of 40%. The next best performers, were U.S. small-cap growth stocks (35%), mid-cap growth stocks (34%), U.S. micro-cap stocks (25.5%), gold (25%), and the total U.S. stock market (21%).
But is this information useful? Because mindful investors are long-term investors, I certainly wouldn’t replace my moderately diversified all-stock portfolio with concentrated bets on U.S. growth stocks or gold because of last year’s results. On the contrary, mindful investors know that the relative performance of asset classes will almost always ebb and flow over time. And history has shown that chasing the