The ETF Channel

Let’s Talk About Tax, Baby

If Trump gets his way—and let’s be clear, it’s going to be an uphill fight—U.S. corporate taxes will decline from being the highest among fellow Organization for Economic Cooperation and Development (OECD) economies to just a few degrees north of Ireland’s highly favorable 12.5 percent.

Moving Averages: April Month-End Update

Valid until the market close on May 31, 2017

The S&P 500 closed April with a monthly marginal gain of 0.91% after a fractional loss of 0.04% in March. All three S&P 500 MAs are signaling "invested" and two of the five Ivy Portfolio ETFs — Vanguard Total Stock Market ETF (VTI) and Vanguard FTSE All-World ex-US ETF (VEU) — are signaling "invested".

The Rise of Fixed Income ETFs

Recent uncertainty has fueled inflows into fixed income assets, despite expected federal interest rate hikes and record-setting growth in equities. But given the “aging of America” and the fact that investors can anticipate longer retirements, we believe demand for fixed income will continue to grow.

However, well-diversified investment in individual bonds can require a great deal of money and time. This white paper discusses challenges on the horizon for fixed income investors, and why fixed income ETFs are among the fastest-growing vehicles in the marketplace.

Moving Averages: Month-End Preview

Here is an advance preview of the monthly moving averages we track after the close of the last business day of the month. At this point, before the close on the last day of the month, all three S&P 500 strategies are signaling "invested" — unchanged from last month's triple "invested" signal. Three of the five Ivy Portfolio ETFs — Vanguard Total Stock Market ETF (VTI), Vanguard FTSE All-World ex-US ETF (VEU), and PowerShares DB (DBC) — are signaling "invested", unchanged from last month's triple "invested" signal.

Finding Dividend Opportunities as the Profit Cycle Ages

A high-conviction, bottom-up approach to finding sustainable profit margins.

Risque On!

The French President semi-finals were over the weekend and the vote went about as positive as they could have for the markets. While LePen won the first round, it is unlikely that she will be able to gather enough support to upset Macron in the final tour.

Home Prices Rose 5.8% Year-over-Year in February, 32-Month High (NSA)

With today's release of the February S&P/Case-Shiller Home Price Index, we learned that seasonally adjusted home prices for the benchmark 20-city index were up 0.7% month over month. The seasonally adjusted year-over-year change has hovered between 4.2% and 5.8% for the last twenty-five months. Today's S&P/Case-Shiller National Home Price Index (Nominal) reached another new high. The Real S&P/C-S HPI is at its post-recession high.

On My Radar: Handle with Extreme Care

“As I was waiting to be introduced, I got the latest headline from the North Korean government saying ‘a super preemptive strike will reduce the United States to ashes.’ So we have that to look forward to.” Ian Bremmer said as he began his presentation yesterday afternoon at the iShares Multi-Asset Summit in New York City."

What Do the Recent SEC Robo Guidelines Mean for Advisors?

New SEC guidance provides effective ways for advisors to comply with disclosure regulations.

Nearly 100 Days In, Is Trump Any Closer to Fiscal Reform?

Trump’s 100th day arrives next Sunday, April 29, and it would be disingenuous to describe his tenure so far as smooth sailing. He’s faced a number of significant setbacks and distractions, including federal judges’ smackdown of his two travel bans, a failure to repeal and replace Obamacare and an ongoing investigation into his administration’s possible collusion with the Russian government in the months leading up to the November election.

Bonds Are Different: The Active Advantage

Ask an investor if most active bond funds outperform their passive counterparts and the response is likely to be "no."

Finding an Alternative Return Stream in a Traditional Place

With over 30,000 individual issuers and one million distinct securities, the supply of municipal bonds is highly fragmented.

Quarterly Economic Outlook for the Second Quarter of 2017

  • The Trump “reflation trade” is being undermined by the new administration’s failure to enact planned legislation like the ACA repeal, tax cuts, and the border adjustment tax.
  • Following the March 0.25% hike in the US federal funds rate, the Fed will likely raise interest rates twice more in 2017, taking the target range to 1.25% to 1.50% by the end of the year.
  • In the Euro-area the near-term environment will continue to be dominated by politics with upcoming elections in France and Germany, all against the backdrop of extended negotiations over Brexit.

A House Divided

A review of last month’s market-moving events across countries and asset classes.

Flawed Research on Factor Investing

The popularity of smart-beta products has raised concerns that certain factors have been “overgrazed” – that their expected return has been driven down due to popularity-driven demand. A new research paper purports to refute this concern. But its logic is flawed and practitioners should be highly skeptical of its conclusions.