Displaying items by tag: etf

Um, you might want to duck for cover.   Why? Well, because of the explosive growth experienced by the ETF industry, according to zacks.com.

 Against the backdrop of a burgeoning stock market, it’s gathering mucho assets. The fact that investors sunk about $200.6 billion in new assets into U.S.-listed ETFs in the first half of the year, didn’t exactly hurt.  

Pacing the field was U.S. fixed income ETFs with inflows of $86.7 billion, according to etf.com. Nipping at its heels was $52.9 billion in U.S. equity ETFs and $48.5 billion in international equity ETFs.

Meantime, almost assuredly considerably more on the money than many weather prognosticators, the macro outlook for core fixed income is thumbs up, according to sageadvisory.com. Over approaching quarters, attractive yield carry is tag teaming with peaking rates skews returns to the upside. Fed timing aside, market and dot plots each have rates much lower over the oncoming year or two. What’s more, yield carry looks as good as it has in 15 years.

Rules. Rules. Okay, right; not on your top 10 list. Understood. But since the, well, ETF rule, hit the scene in 2019, ETFs have, as they say, come a long way, according to etfdb.com.

In fact, those that have proved their mettle are paying dividends by being particularly attractive to investors. Okay, but how do they pull that off? The three year milestone’s one way. During that period, a strategy to put together assets, establish a track record and strut their worth can blossom. Investors – with fixed income engaging a return – could mull the addition of a core fixed income ETF on the verge of hitting its own three year mark.

This year, escalating inflation and interest rates – not to mention the burgeoning risk of a recession – have done a number on the way in which exchange traded funds are performing, according to the globeandmail.com.

“We’re likely going to see a dichotomy of looking for safety while seeking income,” says Danielle LeClair, director of manager research at Morningstar Canada in Toronto.

JPMorgan Asset Management recently announced the upcoming launch of three new fixed-income BetaBuilders ETFs. The funds, which will launch in February, will provide exposure to the aggregate, investment-grade corporate, and high-yield corporate bond markets. All three will be converted from three existing actively managed ETFs. The JPMorgan BetaBuilders US Aggregate Bond ETF (BBAG) will be created from the $1.2 billion JPMorgan US Aggregate Bond ETF (JAGG). The fund, which will come with an expense ratio of 0.03%, will track the Bloomberg US Aggregate Bond Index and invest in Treasury, government-related, corporate, and securitized fixed-rate bonds from issuers worldwide. The JPMorgan BetaBuilders USD Investment Grade Corporate Bond ETF (BBCB) will be converted from the $40 million JPMorgan Corporate Bond Research Enhanced ETF (JIGB). BBCB will track the Bloomberg US Corporate Bond Index, consisting of investment-grade bonds from corporate issuers worldwide. The ETF has an expense ratio of 0.09%. The final ETF, the JPMorgan BetaBuilders USD High Yield Corporate Bond ETF (BBHY), will be created from the $400m JPMorgan High Yield Research Enhanced ETF (JPHY). BBHY will track the ICE BofA US High Yield Total Return Index, covering sub-investment-grade, corporate bonds issued in the US market. The fund has a slightly higher expense ratio of 0.15%

Finsum:JPMorgan adds to its suite of BetaBuilders ETFs with the upcoming launch of aggregate, investment-grade corporate, and high-yield corporate bond ETFs.

Perhaps you’ve heard: inflation seems to have an insatiable appetite and the short term outlook in fixed income are being dominated by interest rates spikes by the central bank, according to ssga.com.

Ah, but there is a life preserver: longer term, structural factors are having more than a little sway in how  investors implement and oversee fixed income allocations.

'Did someone say life preserver’, grumbled the Skip from Gilligan’s Island?

‘Fraid so, dude.

And you want to know the punch that ETFs are packing in in the evolving landscape of fixed income? Well, consider ssga’s new global study, which surveyed 700 institutional investors and investment decision makers.

One key finding: there was a growth from assets under management from $574 billion in 2017 to $1.28 trillion in 2021, according to data recorded by the New York Stock Exchange. What’s more, the number of funds also accelerated like no one’s business over the same period – from 278 to almost 500.

As for non core sectors? The role of ETFs in asset allocation is propelling, according to its survey this year.

According to the report, 62% of investors who are ratcheting up their exposure to high yield corporate credit over the next 12 months indicated the chances are high they’ll leverage ETFs to do it. Ditto for 53% in terms of emerging market debt, according to pionline.com.

"Our 2022 survey shows that the role of ETFs in asset allocation is expanding to non-core sectors," said the report, "The Role of ETFs in a New Fixed Income Landscape." 

The idea of new companies with capitating ideas and a high ceiling for growth wet your whistle? Small cap ETFs might be just your ticket, according to benzinga.com.

Opposed to large cap companies, the likelihood of exponential gains among small cap stocks is greater. On top of that, many smaller cap companies aren’t yet in the wheelhouse of institutional investors, the site continued. Plucking down cash on only a firm or two probably isn’t a sage move since smaller firms experience a certain rate of hitting the skids

Make way for small cap ETFs.

Best Small Cap ETFs:

The Best Overall: iShares Russell 2000 ETF

The Best for Active Traders: iShares Core S&P Small Cap ETF

The Best International Fund: Vanguard FTSE All-World ex-U.S. Small Cap ETF

The Best Growth Fund: SPDR S&P 600 Small Cap Growth ETF

The Best Value Fund: Vanguard Small Cap Value ETF

The Best Fund for Income: WisdomTree U.S. Small Cap Dividend ETF

According to thestreet.com, the Schwab U.S. Small Cap ETF is the top small cap ETF to add to your portfolio. While it tracks the Dow Jones U.S. Small-Cap Total Stock Market Index, it's not the S&P 600 Small Cap index or the Russell 2000. However, when it comes to exposure, it’s essentially the same.