Displaying items by tag: Trump

As concerns mount that President Trump’s trade policies could slow the U.S. economy, investors are shifting to value funds, which are seen as more resilient in downturns. Lipper data shows U.S. growth ETFs saw $3.6 billion in outflows this month, while value ETFs gained $1.8 billion in inflows. 

Value funds, focused on sectors like banks and utilities, offer stability through cash-rich and undervalued companies, making them appealing amid rising volatility. Tech-heavy growth stocks, including the “Magnificent Seven,” have led the recent selloff as fears of overvaluation and slower economic growth take hold. 

Value stocks currently trade at a 41% discount to growth stocks, a wider gap than the 10-year average, drawing attention to funds like the AAM S&P 500 High Dividend Value ETF and Acquirers Small and Micro Deep Value ETF. 

Finsum: Small and mid-cap value stocks may now offer better opportunities, especially as investors question the safety of tech giants.

Despite recent political pushback, institutional support for ESG (environmental, social, and governance) investing remains strong, with many large investors continuing to prioritize sustainability. 

This is good news for ESG-focused ETFs like the Invesco ESG Nasdaq 100 ETF (QQMG) and the ESG Nasdaq Next Gen 100 ETF (QQJG), which could see more adoption as political resistance fades. A 2025 BNP Paribas survey found that 87% of institutional investors have not altered their ESG goals, and 84% expect sustainability progress to continue or accelerate through 2030. 

Furthermore, 85% of respondents said they now integrate sustainability criteria into their investment processes. However, challenges persist, including concerns about ESG data reliability, greenwashing, and balancing short-term performance with long-term sustainability. 

Finsum: ETFs that aim to address those concerns by tracking transparent, sustainability-aligned indexes with performance in line with their non-ESG benchmarks.

With markets shaky despite record highs, investors are turning to commodity ETFs as a hedge against inflation and uncertainty driven by Trump-era tariffs and policy risks. Commodity prices tend to rise with inflation, making them attractive during volatile periods, and ETFs offer simplified access to hard assets like gold, oil, and copper without the complexity of futures trading. 

The Invesco PDBC fund leads the space with $4.7 billion in assets and diversified exposure, notably in energy and metals, all while avoiding cumbersome K-1 tax forms. Meanwhile, the actively managed First Trust FTGC ETF charges higher fees but provides exposure to a wider range of commodities, including agriculture and precious metals. 

For those focused on specific assets, the iShares Gold Trust (IAU) offers low-cost access to gold, while the CPER fund targets copper futures, riding recent price momentum in industrial metals. 

Finsum:  ETFs provide accessible, diversified, and tax-friendly ways for investors to gain exposure to commodities within traditional brokerage accounts.

U.S. stocks ended mostly flat after the Federal Reserve held interest rates steady and signaled slower future cuts, while geopolitical tensions between Israel and Iran pushed oil prices higher. 

Fed Chair Jerome Powell emphasized that future rate decisions will remain data-dependent and warned of rising consumer prices this summer due to Trump’s new tariffs. Despite earlier gains, markets lost momentum following the Fed’s cautious tone; the Dow slipped 0.10%, the S&P 500 dipped 0.03%, and the Nasdaq edged up 0.13%. 

Meanwhile, Brent and WTI crude rose slightly amid fears of broader Middle East conflict and supply disruptions. U.S. Treasury yields, initially lower on safe-haven demand, rebounded after Powell’s comments on inflation. 

Finsum: Economic data added to uncertainty, with retail sales declining sharply in May and jobless claims suggesting weakening labor market momentum.

Treasury yields declined on Tuesday as investors grew more confident that an immediate escalation in the U.S.-E.U. trade conflict might be avoided. The 30-year yield fell to 4.984% and the 10-year to 4.475%, coinciding with a rise in stock futures. 

This drop in yields suggests renewed investor demand for government bonds, signaling reduced risk sentiment and a preference for safety. The shift followed President Trump’s decision to delay imposing new tariffs on the European Union, pending further negotiations. 

While E.U. officials expressed optimism about a potential deal, recent trade tensions have already rattled markets, leading to weak demand for U.S. Treasurys in last week’s auction. 

Finsum: Compounding concerns is a major Republican policy proposal moving through Congress that lacks full funding, raising additional doubts about America’s fiscal outlook.