An Emerging Markets Bond ETF for the Weak Dollar World April 12, 2021
Treasury yields are still elevated and the dollar is still weak. However, both assets recently rallied, indicating there’s room to the downside.
That could be to the benefit of emerging markets bonds and the
EMLC seeks to replicate the price and yield performance of the J.P. Morgan GBI-EM Global Core Index. The index is comprised of bonds issued by emerging market governments and denominated in the local currency of the issuer. While the asset class is currently struggling, there’s still a case for emerging markets debt denominated in local currencies.
Lower Fees Are Driving Investors from Mutual Funds to ETFs April 12, 2021
Proponents of exchange traded funds (ETFs) frequently cite their rock-bottom fees. According to a Kiplinger article, various studies substantiate this claim.
“Numerous studies show that over the long term, managed mutual funds cannot beat an index fund, such as an ETF,” the article noted. “For example, according to the SPIVA scorecard, 75% of large cap funds ‘underperformed’ the S&P 500 over five years through Dec. 31, 2020. Almost 70% underperformed over three years, and 60% over one year. And this is just the tip of the iceberg, with most other managed mutual funds both domestic and international underperforming their applicable index.”
Emerging Markets Are Tough to Approach. This Model Portfolio Helps April 12, 2021
Emerging markets stocks are tempting, but the asset class is often tricky to navigate. Financial advisors can ease that burden with model portfolios.
“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.
This model portfolio’s depth is appealing to advisors and clients because it the often confusing asset class more approachable.
The ARKG ETF: Genomics Exposure with a Twist
The
ARK Genomic Revolution Multi-Sector Fund (CBOE: ARKG) is obviously positioned as a genomics fund, but as an actively managed exchange traded fund, it can venture into other growth areas in the healthcare sector.
That includes telemedicine, as highlighted by the fund’s significant exposure to Teledoc (NYSE: TDOC).
ARKG includes companies that merge healthcare with technology to capitalize on the revolution in genomic sequencing. These companies try to better understand how biological information is collected, processed, and applied by reducing guesswork and enhancing precision, restructuring health care, agriculture, and pharmaceuticals in the process.
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