Archive | Actively Managed ETFs

3 Ways An ETF Investor Can Approach The Increasingly Erratic Stock Market

If an economic data point came in much weaker than expected last year, the U.S. Federal Reserve’s monetary stimulus offered reason enough to buy stocks. Bad news served as good news. At the same time, when a data point exceeded expectations, the resilience of the American economy also inspired equity purchases. Good news served as [...] Continue Reading...


Alternative ETFs: Can You Increase Your Risk-Adjusted Performance?

Is anyone bothered by the bizarre relationship between a sub-par economy and ever-rising stock prices? In brief, dismal hiring coupled with negligible wage growth encourage the Federal Reserve to continue suppressing interest rates with its emergency bond buying program. Corporations use the ultra-low rates to refinance debt, repurchase stock shares, cut costs and enhance profit [...] Continue Reading...


Which ETFs Are Benefiting From U.S. Dollar Woes?

The U.S. dollar has certainly lost value since the Federal Reserve began printing greenbacks to purchase U.S. bonds. On the other hand, most of the damage occurred at the onset of the Fed’s quantitative easing program(s). Since the “euro” came under extreme pressure during the sovereign debt crisis of 2011, and since Japan’s campaign to [...] Continue Reading...


“Sell on May 31″ Educates ETF Investors

Permanently bullish commentators have dismissed the monstrous sell-off on the final day in May as a profit taking exercise. They maintain that rising bond yields as well as momentum in non-defensive stock segments confirm underlying strength in the U.S. economy. Unfortunately, those who ignore the true nature of the interconnected global economy — one that [...] Continue Reading...


“Tapering Talk” Is Cheap… Buy Rate-Sensitive ETFs On Significant Dips

Jason Geopfert of SentimenTrader.com recently explained that a three-month view of the S&P 500’s upside persistence (closing near a daily high) has reached an extreme seen in 4 other instances over the last decade. On each of those occasions, the market hammered risk assets with a significant pullback. In the last 30 years, the only [...] Continue Reading...


3 Reasons to Embrace This Particular Active ETF

Long-time readers and listeners know that I am an active manager of passive “Index ETFs.” I favor exchange-traded index vehicles because the diversification comes with low expenses, exceptional tax-efficiency and intra-day liquidity. The media have regularly inquired why I rarely endorse the use of “Active ETFs.”  For one thing, these funds involve more frequent trading, [...] Continue Reading...


Step Away From The Foreign Currency ETFs

Media outlets continue pressing the notion that new cash is entering the stock market from the sidelines. And for the most part, this may be an accurate depiction. Anecdotally, many of my risk-averse money management clients have asked me to move them up from “ultra-conservative” to “moderately conservative.” Similarly, a number of traditional “moderates” are [...] Continue Reading...


The Return of the “Yen Carry Trade” Benefits The Currency Harvest ETF

Japanese stocks have been perennial underachievers. So when I suggested on December 20 that investors might benefit from WisdomTree Japan Hedged Equity (DXJ), I was asking certain readers to challenge conventional wisdom. (See “A Foreign Stock ETF For A Rapidly Declining Currency.”) My thought process on the matter was relatively straight-forward. The incoming prime minister [...] Continue Reading...


The Death of Bond ETFs? Change Your Fixed Income Lenses

The S&P 500 is above 1500. CBOE S&P 500 Volatility (VIX) is sitting near 15-year lows. And 88% of iShares S&P 100 (OEF) component stocks are above respective 200-day moving averages. Normally, you might hear more discussion about complacency and/or an imminent sell-off. Instead, you’re hearing more about the “Great Rotation” out of bonds and [...] Continue Reading...


How ETF Investors May Profit From Currency Devaluation

ETF enthusiasts can make profitable investing decisions based upon government/central bank currency manipulation. For example, a little more than a month ago, I wrote “A Foreign Stock ETF for a Rapidly Declining Currency.” In the article, I discussed Shinzo Abe’s determination to devalue the yen substantially through aggressive monetary intervention so that Japan’s exports would be [...] Continue Reading...


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