Active Management and Resurgent Emerging Markets April 12, 2021
Emerging markets have long held promise and potential, but the returns offered by equities don’t always match economic growth, frustrating investors along the way.
However, analysts have been upwardly revising earnings estimates on emerging-market companies faster than for those in developed countries. These factors could be signs that investors may want to deploy active management when allocating to developing economies.
“American investors are intrigued by emerging-markets stocks,” writes John Rekenthaler for Morningstar. “The reason for it is their economic prospects. The Asian Tigers of Hong Kong, Singapore, South Korea, and Taiwan have enjoyed remarkable development, to the point where many no longer consider those nations to be emerging. Attention has now turned to their successors: Brazil, Russia, India, China, and South Africa.”
April 5, 2021
Value stocks were among the first quarter’s best-performing assets, and that fact alone could prompt advisors to consider some new strategies.
Enter the
Focused Large Cap Value ETF (FLV). The Focused Large Cap Value ETF tries to achieve long-term returns through an investment process that seeks to identify value and minimize volatility. The fund is one of the actively managed non-transparent ETFs launched by American Century earlier this year.
FLV is one of the original active non-transparent exchange traded funds (ANTs) launched by American Century last year.
Adding to the allure of FLV right now is its value purity, and expectations that the recent rotation into value stocks could be long-lasting. RPV’s big exposure to resurgent financial services names also bolsters the case for the fund.
March 17, 2021
When it comes to inflation-fighting fixed income instruments, investors often turn to Treasury Inflation Protected Securities (TIPS). Yet senior loans may also do the trick, with higher levels of income to boot. Enter the
SRLN invests in senior loans given to businesses operating in North America and outside of North America. The portfolio may invest in senior loans through the loans directly via the primary or secondary market or via participation in senior loans, which are contractual relationships with an existing lender in a loan facility where the loan portfolio purchases the right to receive principal and interest payments.
Pros Love to Short SPACs. With This ETF, You Can Too March 16, 2021
Special purpose acquisition companies (SPACs) continue to rack up attention in the media. Short sellers are increasingly shorting SPACs themselves and the companies that emerge from deals with blank-check firms.
Investors may soon be able to tap into that trend with a new exchange traded fund courtesy of Tuttle Tactical Management.
“Tuttle is preparing to launch an ETF that bets against ‘de-SPAC’ stocks of companies that have merged with a SPAC like electric-truck manufacturer Nikola Corp. and baked-goods maker Hostess Brands Inc. and a separate fund that invests in the stocks,” reports the
Why to Go Active in the Preferred Stock ETF Space March 15, 2021
Interest rates are likely to remain low in 2021, meaning investors need to be selective with income-generating asset classes. The
PREF can act as a portfolio diversification tool and reducer of correlations. Another advantage of PREF’s active management is that the manager’s can look for value in an asset class that has been expensive for much of this year.
“Although stocks and bonds have been negatively correlated over the past 20 years, Bank of America noted that this is a recent phenomenon and one that may change in the near term,” reports