Thematic funds have long been one of the more dubious areas of the ETF industry. In a broad sense, this genre is all about taking an investment concept with potentially long-term, cyclical implications and finding a group of stocks that fit the criteria. It’s more about investing in a story rather than identifying companies based on strict fundamentals or sector prowess.
Want to invest in the trend of weight loss, clean energy, or social media growth? There are now multiple funds to choose from in each category.
Thinking that you want your portfolio positioned according to your political, religious, or ethical beliefs? I can easily point you in the right direction with several options to choose from.
In this month’s video, I look at the overall trends in global stock markets with emphasis on the complacency and low volatility. Chart review includes analysis of U.S. stocks, international stocks, interest rates, U.S. dollar index, and volatility. Observations of risk and reward are noted throughout, with an emphasis on trend following and sensible portfolio management strategies. Recorded on September 24, 2017.
Financial stocks received a much-needed boost in the immediate aftermath of the 2016 presidential election. Now, almost a year later, these stocks are struggling to regain momentum as the prospects dim for industry-wide deregulation and expansive earnings growth.
Further aggravating the macro picture for the financial sector is the continued slide in interest rates that stifle gains in publicly traded banks, brokerages, and insurance companies. These entities have historically experienced a positively correlated relationship to domestic interest rate fluctuations in large part due to their core business and financing activities.
Classifying stocks as either growth or value is one of the oldest and most studied fundamental investment pillars. This process traditionally involves the analysis of various balance sheet statistics to determine a company’s intrinsic net worth relative to its peers and historical benchmarks.
Being that “value” is such a sought-after characteristic, it’s no surprise that over 50 exchange-traded funds are dedicated to the pursuit. The largest of which include the iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV). Read more
Most people are hardwired to look for shortcuts. The fastest way home from work. The most efficient way to mow the lawn. The chance to make our lives easier or more productive can be a positive in many work environments. It may also make you feel more accomplished in other aspects of your life as well.
However, when that same impulse is applied to the stock market, it takes a much darker turn. Read more