One of the bigger concerns in the world of exchange-traded fund is the overall growth of the industry over the last decade. As these vehicles swell in popularity, so too does the number of funds that are launched every year and the amount of money that investors entrust to this diversified vehicle.
Some market watchers fear that ETFs themselves are becoming inherently risky for two reasons:
In this month’s video, I look at the overall trends in global stock markets with particular emphasis on the U.S. dollar impact. Chart review includes analysis of U.S. stocks, international stocks, interest rates, oil prices, and volatility. Observations of risk and reward are noted throughout, with an emphasis on trend following and sensible portfolio management strategies. Recorded on July 26, 2017.
If there is one asset class that conservative investors love to own, it’s dividend stocks. These high payout companies differentiate themselves from their growth-oriented peers by electing to return earnings to shareholders in the form of quarterly income. This presents an attractive way for retirees and other income-focused investors to participate in the equity markets as well as boost the aggregate yield of their portfolio.
Dividend stocks are unique in that their business models are generally well-established with healthy cash flow or capital financing capabilities. In some instances, these attributes can also lend themselves to lower volatility than a basket of high growth stocks focused on cash burn and product or services innovation.
It’s become difficult to distinguish the efficacy of various index weighting strategies that pervade the ETF universe. Some work best during specific market cycles or are designed to take advantage of distinguishable trends. Others are tailor-made for the long-term with the broad diversification, reasonable costs, and sensible philosophy that investors can identify with.
It’s these latter characteristics that best describe the revenue-weighted index methodology that is delivered by a select group of Oppenheimer funds. The Oppenheimer Large Cap Revenue ETF (RWL) is a fund that was born during the nascent months of the great financial crisis and has risen from those dark times with an impressive track record.
In this month’s video, I look at the technical trends developing in stocks and bonds. Chart review includes analysis of large-cap, small cap, international, Treasury bonds, and gold prices. Observations of risk and reward are noted throughout with an emphasis on moving averages as a source of support or resistance. Recorded on April 11, 2017.