Forecasting Factor and Smart Beta Returns (Hint: History Is Worse than Useless)
In a series of articles we published in 2016, we show that relative valuations predict subsequent returns for both factors and smart beta strategies in exactly the same way price matters in stock selection and asset allocation.
The Myth Of The “Passive Indexing” Revolution
There is little argument that Exchange Traded Funds, more commonly referred to as “ETF’s” have and will continue to change the landscape of investing.
A Smoother Path to Outperformance with Multi-Factor Smart Beta Investing
|You can outperform the market with substantially lower relative risk by diversifying across simple smart beta strategies based on a half dozen robust factors. Dynamically rebalancing these factor-based smart betas significantly improves returns.|
Morningstar Promotes ETFs to the Big Leagues
At long last the fund rating company, Morningstar, has decided to put mutual funds and exchange traded funds (ETFs) on a level playing field when it comes to fund ratings and comparisons.
How Not to Get Fired with Smart Beta Investing
It may not be my money, but it is my job. — Charles Ellis in Investment Policy: How to Win the Loser's Game
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.
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.