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.

As investors grapple with inflation and economic uncertainty, there is one industry that has been outperforming the market, and that’s cybersecurity. While most technology companies have cautioned investors about slower corporate spending, cybersecurity firms are still seeing massive demand. For instance, CrowdStrike and SentinelOne, both recently increased their forecasts for this year. While cybersecurity has always been important, companies are now even more concerned about system vulnerabilities due to an increase in cyber-attacks amidst the war in Ukraine. In addition, the advent of remote and hybrid working arrangements has also increased the demand for cybersecurity solutions. While companies can trim spending on software items such as CRM, cybersecurity is too important to risk. The minute a company lets up, they are at risk of a ransomware attack. This has resulted in the Global X Cybersecurity ETF (BUG) outperforming the NASDAQ this year.

Finsum:While other software companies are seeing slowing demand, the sheer necessity of cybersecurity has resulted incybersecurity ETFs outperforming the NASDAQ this year.

A manager at Artemis believes now is the perfect time to consider active fixed income solutions. Grace Le, who co-manages the Artemis Corporate Bond Fund, told Financial Times that an active bond manager’s job is to protect their clients during uncertain times and that is exactly what we are experiencing now. She believes that the reversal of quantitative easing led to more volatility in bond markets, resulting in a “boon for active investors.” Investors are dealing with inflation, macroeconomic uncertainty, and the potential for a recession. Muzinich & Co's co-head of public markets Michael McEachern told the publication that active managers can invest in shorter-duration bonds less impacted by increasing rates and rotate into higher-quality credit that is less sensitive to the current environment. Managers can also avoid concentration in a portfolio and deploy carry trades, which means borrowing at a low-interest rate and investing in an asset that provides a higher return.

Finsum:According to two bond fund managers,investors should consider active fixed income in times of economic and market uncertainty. 

NEOS Investments, an investment firm specializing in options-based income solutions, launched three actively managed ETFs this week, including two fixed income ETFs designed to help advisors and investors navigate the current market environment. The NEOS Enhanced Income Aggregate Bond ETF (BNDI) generates monthly income from investing in a representative portfolio of the U.S. Aggregate Bond Market and implementing a data-driven put option strategy. The NEOS Enhanced Income Cash Alternative ETF (CSHI) generates monthly income from investing in a portfolio of 1–3-month Treasury Bills and implementing a data-driven put option strategy. Both ETFs, which now trade on the NYSE, utilize a put spread approach that involves selling short puts and buying long puts to generate option premiums to be distributed as income without taking on outsized risk.

Finsum:Options-based investmentfirmNEOSrecently launched two fixed income ETFsoffering investors a novel approach to monthly income.

RBC Wealth Management’s aggressive recruiting has landed another team. The firm was able to lure Coatoam Wealth Management Group, a $560 million team, away from Merrill Lynch. The team, which is led by Managing Director Brian Coatoam, is joining RBC in their new office in Winter Park, FL. Coatoam has been in the industry for 24 years. He got his start with Advantage Trading Group and worked for Morgan Stanley before joining Merrill Lynch. He leads a six-person team, which includes two Certified Financial Planners, Derek Grimm, and Ryan Plank. RBC, like many firms, is pushing expansion in Florida as the state lures more wealthy investors due to a lack of income and capital gains taxes. RBC had previously announced a father-son advisor team joining its office in Palm Gardens and in January the firm recruited a $1 billion Florida team from Truist.

Finsum:With more wealthy investors moving to Florida, RBC continues its aggressive expansion in the state by recruiting a $560 million Merrill Lynch team.