On Wednesday, Global X ETFs, the New York-based provider of ETFs, announced the launch of the
Global X Adaptive U.S. Risk Management ETF (ONOF). The fund will join the firm’s Core family of ETFs and track the Adaptive Wealth Strategies U.S. Risk Management Index.
Facing a market that is seemingly climbing ever-higher, many investors may be confronted with whether to participate in equity markets or to hold cash in case of a downturn. ONOF seeks to confront this challenge with the dual goals of managing risk during adverse market conditions while maintaining broad equity market exposure under normal market conditions. ONOF will hold broad U.S. equity market exposure during positive market environments, rotating entirely into exposure to U.S. Treasury Obligations when that trend reverses.
A mining engineer holds up a tablet to a rock quarry. Credit: Morsa Images/iStock.
As the Environmental, Social and Governance (ESG) wave continues to build around the world, many are wondering what this year has in store. According to Blackrock, the world’s largest asset manager, investors plan to double their allocations to sustainable investments over the next five years, and 20% say that Covid-19 is accelerating those allocations.
The pandemic has greatly intensified the growing societal concern over rising inequality and the negative impacts of human activity on our planet. Investing towards good for the planet and society is now front and centre, and the demand for transparent disclosure on ESG performance is not letting up. Over half of institutional investors are looking for companies to disclose more details about their social or “S” factors, according to RBC Global Asset Management’s annual Responsible Investment Survey.
January 13, 2021
If there’s anything we’ve learned from 2020, it’s that market risk can strike quickly and dramatically. An effective risk-managed strategy can help a diversified investment portfolio better adapt to quick turns in the market. But how can you stay invested while mitigating risk of the unknowns?
In the upcoming webcast,
Reduce Market Downside Risk with a New Approach to Hedge Equity Portfolios, Marc Odo, Client Portfolio Manager, Swan Global Investments; and Jamie Atkinson, Managing Director, Head of Global Sales, Swan Global Investments, will outline how incorporating hedged equity into a portfolio may help your clients mitigate tail risk while seeking upside market participation.
Three numbers to start your day:
In 2020, the Federal Reserve’s Portfolio of Corporate Bonds and ETFs Rose to $14 Billion
That is according to its latest presentation to Congress. That is up from $13.6 billion at the end of November. While the Fed has stopped buying ETFs, it has kept buying individual company bonds on the secondary market, with a total face value of $5.2 billion.
The Fed has been buying bonds of companies that are rated investment grade, as well as bonds of companies that were rated investment grade before the pandemic. About 41% of the bonds are rated A or higher, while just over half are rated BBB. About 13% of the corporate bond ETFs by market value are classified as high yield.