Displaying items by tag: volatility
Are Millennials Buying the Dip?
(New York)
The stock markets have had some very small slumps but rebounded quickly in the last 12-months. The refusal to…see the full story on Magnifi’s site
These ETFs Can Hedge Market Volatility
(New York)
Volatility hasn’t been on almost anyone's minds for most of 2021, but…see the full story on our partner Magnifi’s site.
Helping Clients Understand Volatility
A little under a month ago the VIX spiked dramatically due to bitcoin reverberations in tech markets and macro inflation trends, and it's trending…see the full story on our partner Positivly’s site
These Tech Stocks are Too Cheap Because of the SPAC Plunge
(New York)
The market has been hard on special purpose acquisition companies (SPACs) as prices have fallen dramatically…see the full story on our partner Magnifi’s site
Be Careful of Low Vol ETFs and Models
(New York)
With the proliferation of ETFs and model portfolios and the growing amount of assets flowing into them, more and more AUM has been going into low vol and other risk management-oriented strategies. This is doubly true with the big volatility of the last year. However, a small cautionary tale to share today. If you take a look at LVHD, a popular “low volatility high dividend” ETF from Legg Mason, you see a fund that has significantly underperformed the S&P 500 and failed to protect investors from volatility. It is hard to know exactly why because the fund’s proprietary methodology is not transparent. However, even that fact is representative of the space. In their rush to defend against downside, many low vol ETFs and models can inadvertently and drastically underperform and expose investors to very low risk-return profiles.
FINSUM: What you get is not always what is being sold, so when choosing low vol products, make sure to pay significant attention to methodology and track record, especially during periods of volatility.