The Smart Beta Channel

ETF Trends to Watch in 2017

The turn of the calendar to a new year brings new year’s resolutions—and predictions. While many market pundits are now making their prognostications for the year ahead, David Mann, head of Capital Markets, Global Exchange-Traded Funds (ETFs), doesn’t claim to have a crystal ball that will reveal where the market is headed next.

2017 ETF Top Trends and Insights

The Year of the Dynamic ETF With the world digesting the surprising results of the 2016 U.S. Presidential Election, the team at IndexIQ has turned their thoughts to next year and their top five ETF-focused trends and insights for 2017.

The Myths and Fallacies about Diversified Portfolios

For many years “alpha” – outperformance of the market on a risk-adjusted basis – was the Holy Grail of investment. Almost all money managers claimed they could produce it. It turned out that few could. Now a new Holy Grail: diversification. But there is little agreement as to what it means.

92% of US Financial Stocks Are Above 50-Day Moving Average and Other Market Internal Stats

For the past couple of months, and especially since the US presidential election, US financial stocks have been on a great run. On an equal-weighted basis, US mid and large cap financial stocks are up a scorching 16.7% over the past 50 days.

Rollercoaster Rides

The fourth quarter of 2016 was a profitable period for globally diversified multi asset managers. All major domestic large cap indices were up for both the quarter and the year.

A Prediction for the Future of Active Management

What effect will the index fund revolution and the Department of Labor’s (DOL) fiduciary rule have on active managers? The data shows that active management is still a healthy business model. But industry consolidation is coming and advisors will need to change the way they construct portfolios.

The Top 10 Great Articles You Probably Missed

Great articles don’t always get the readership they deserve. Earlier this week we published the top 10 most-read investing and financial planning articles and a similar top 10 practice management articles. Below are another 10 that you might have missed, but I believe merit reading.

On My Radar: In 2017…Watch Europe, Watch China and Watch Japan; “Stay Wary, Alert and Very, Very

Included in this week’s On My Radar: -Pension Fund Red Ink – Check Out Your State (Chart) -Foreigners are Dumping Treasury Bonds at Record Rate -The Year in Review -Trade Signals – Strong Dollar, Weak Gold, Equity Trend Up, Bond Trend Down, Sentiment Remains Far Too Optimistic

The Emerging Markets Hat Trick: Time to Throw Your Hat In?

In their latest piece, Rob Arnott and Brandon Kunz of Research Affiliates take a look at how the rare combination of exceptional valuation levels, depressed currencies, and powerful price and economic momentum should encourage long-term investors to “throw their hats” into the emerging markets rink.

Has Janus Added Value as an Active Manager?

To see how well Janus’ actively managed funds have performed for its investors, I’ll compare the results of its actively managed equity funds to those of index funds from Vanguard and the structured asset class funds of DFA.

A Top Performing Small-Cap Value Fund

The Queens Road Small Value fund has outperformed its benchmark, the Russell 2000 Value Index, over the past 10 years and since inception in 2002, earning an annualized return of 9.59% vs. 8.38% for the Russell 2000 Value Index. I spoke with Steven Scruggs, who has served as portfolio manager for that entire 14-year period.

An Initial Look At Smart Beta And Factor Investing

Since its founding 35 years ago, The Leuthold Group has utilized a distinctive blend of quantitative, fundamental, and technical analysis to guide its investment activities.

Banks Are Still the Worst Performing Industry Group Over the Last Year

It has certainly been a good couple of weeks for financial stocks. But the good times still haven’t been good enough to bring bank stocks out of last place among 24 developed market industry groups.

Why Are We Paying Active Managers for Beta?

For evidence, look no further than sales of bottled water in the first world. Our ancestors spent hundreds of billions of dollars developing the infrastructure to deliver potable water to every home, yet we spend billions each year to purchase bottled versions of what we can get for free almost anywhere. Boom – I just blew up the very foundation of economics.

That Was the Week That Was

So, last week was interesting, huh? If nothing else, it was definitely a far cry from two or three months ago when investors could check in on the markets only every few days and not really miss much of anything.