Eq: Total Market

When it comes to September, stocks have a track record of not exactly rocking – much less rolling. For the 30 year period, average returns chime in at -0.34% and -0.26% for the 15-year period, according to forbes.com. The five year period: -0.92%.

And it just keeps getting better with the month in a category of its own as a period when the market held down the rear, drooping on average in every time period.

Now, consider that along with the fact that, already, the year, stoked by factors such as flaming inflation, bulging interest rates and a recession keeping nearly everyone on edge has, you might say, been crackling with volatility. So, how could investors react? Why, they might go shopping for a placeholder for their considerable assets.

Fed chair Jerome Powell, addressing this year’s Jackson Hole Economic Symposium, acknowledged that to stave off growth, it’s probable rates will remain on the high side, not exactly comforting to households and businesses, according to talkmarkets.com.

Trying to read the tea leaves, there are market watchers who believe Powell means he’s no longer homed in on a soft landing. Rather, his focus might on a “growth recession,” as economists characterize it. A growth recession, of course, loosely is marked as a period when the economy’s headed north, yet so slowly that it’s putting a crimp in the volume of available jobs.

 

The Great Debate. 60 Minutes’ Point Counter Point.

 

Call it what you want, but over time, there’s been a perpetual back and forth over this: should investors leverage active or passive strategies when committing dollars in fixed income markets, according to wellington.com.

 

Problem is, in light of the diatribe, a question remains: is the investor hitting the mark in terms of their investment goal or merely maintain a scent on a particular benchmark. The main issue, then, is whether investors are all In on the “appropriateness” of fixed

 

A perpetual discussion among those in financial services: active opposed to passive investment, according to ftadviser.com.

 

On one hand, as far as fees are considered, passively managed funds are viewed as easier on the wallet. Conversely, active managers purportedly offer valuable expertise; that’s why their rates are slightly higher.

 

Also asked is why large bond allocations might be the hands of investors. Is it for income? If so, do they want to fork over money to a manager to provide that little extra?, the site continued.  



During a recent Goldman Sachs webcast, advisors were surveyed and asked by VettaFi: “When it comes to fixed income investing, do you believe in active management, passive management, or a mix?” according to etftrends.com.



Fifty five percent touted a cocktail of active and passive, while 36% firmly fell into the passive camp. Active drew nine percent.

 

While active strategies still are in vogue and when it comes to their relative upside,, advisors must have their antenna up, according to data from VettaFi.

You might say this is why major ETF firms are bringing home the bacon: factor investing, which an increasing number of ETFs are tapping into, according to fa-mag.com.

 

These days, the likes of Invesco State Street and Global Advisors dispense a wave of factor ETF choices.

 

ETFs associated with, for example, value, low beta and momentum, are more investments tactics that dispense clients with a chance to overweight areas of the market that are performing the best while paring down exposure to those that are missing the boat.

 

Factor investing aside, you might say inexpensive ETFs are, well, the cat’s meow as they draw blossoming attention, according to finance.yahoo.com. The article originally appeared on ETFTrends.com.

 

Faced with opting for a pair of exchange traded funds that monitor themes or markets that are alike, cheaper options, more and more, are in the sights of long term investors. 

 

As it has been, the SPDR S&P 500 ETF Trust (SPY) remains highly popular still is an investment option with wide exposure to the U.S. equity markets. That said, reported Bloomberg, SPY, year to date, has incurred around $25 billion in outflows.

 

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