As one year ends and another begins, we’ll look at how the Outcome-Based ETF industry evolved in 2022, how defined outcome ETFs distinguished themselves during the downturn, and what lies ahead for Outcome-Based ETFs in 2023 and why they’re more relevant today than ever before.
The Fed’s move towards more restrictive policy has rattled bonds and put equities on the brink of a bear market. But what is priced in and where do we go from here? In this month’s webinar, we discuss equity and fixed income valuations and examine how Innovator ETFs can help advisors hedge market risk and capitalize on opportunities.
Pre-retirees are facing the perfect storm of risks. Inflation is spiking, yields are low, markets are volatile, taxes are unpredictable – all while Americans are reaching new peaks of longevity. You can’t predict what’s going to happen next. But you can help investors prepare. Join us for a discussion on innovative structured strategies using Defined Outcome Funds. These strategies can help you better control investment outcomes – providing a unique return profile distinct from traditional stocks and bonds, offering clients upside agility, downside protection, and substantial tax advantages.
Pre- and current retirees seeking moderate capital preservation often have to choose between accepting mediocre returns or lower volatility. What if there were a way to make the equity portion of one’s portfolio work harder? One solution: Accelerated ETFs™ seek to 2x or 3x gains up to a cap with a 1:1 downside exposure. Learn all about them from Graham Day, CFA and Joe Becker, FRM at Innovator, the creator of Accelerated ETFs™ and other Defined Outcome ETFs™.
For the 10 years prior to the great financial crisis of 2008 (GFC), the 10-year Treasury bond’s average yield was 5.0%; for the 10 calendar years ended December 2020, it averaged just 2.3%, less than half its pre-crisis average (Source: Bloomberg).
In pursuit of higher yields, many investors are taking on more risk, either by going further out on the yield curve or further down the credit spectrum. In 2021, however, even the longer-dated and lower-quality segments of the bond market have failed to offer yields comparable to those of their shorter-dated, higher-quality counterparts prior to the GFC.
This dynamic has led investors to seek bond alternatives. One such alternative is a defined outcome investment with built-in buffers against losses.
Thought the Fed was done growing its balance sheet? Think again.
The evolution of a manic market and a fickle Fed.
The “safe-haven” is shining again.
Has recession already been averted?
Investors to bond issuers: “We’ll pay you to borrow money from us.”
How would the market interpret a Fed rate cut?
The 10-year yield broke back below a key level
Lately the stock market is doing less napping and more gapping.
The bond market has challenged the Fed to a game of chicken.
Projections of Fed rate changes appear misaligned with inflation expectations and GDP growth.
This reloaded Fed is a shadow of its former self.
Extraordinary policy measures are proving extraordinarily difficult to undo.
Stock buybacks buoy equity markets. Low rates buoy buybacks.
Is the Fed on a course to resume QE?
10-Yr Treasury Yield: Ordained to move upward or destined to move downward?
Is money market fund AUM growth signaling changing expectations?
Just how much is the Fed shaping the yield curve?
The stock market celebrated as the Fed recalibrated.
Investors have taken a big bite out of FANG.
Will the real fed funds rate please stand up?
S&P 500 Posts Deepest Monthly Loss In Seven Years, Managed Risk Investing, October Delivered On Its Reputation For Higher Equity Market Volatility
The global QE landscape is changing.
Has the Fed moved too far too fast?
The U.S's biggest debt holder strikes back.
Read the September 2018 Market Commentary from Milliman FRM
This yield metric has risen to its highest level in nearly 30 years
By this measure, money market fund assets are at a 25-year low.
U.S & China: A tale of two countries.
Central bank policies are increasingly diverging.
Is it different this time around?
Feeling the pain: Debt service on $2 trillion in USD-denominated EM debt has become more costly of late.
Stocks hit the ground running to start the second half of 2018.
U.S. stock dividends have grown much faster than inflation.
JGBs: Canary in the coal mine?
The number of stocks leading the market higher is surprisingly low.
Is this the anti-inflationary mechanism the Fed is counting on?
Fed Policy Normalization: Too little too late?
After two consecutive months of market tumult and negative returns, the S&P 500 in April exhibited greater calm and eked out a positive return. Volatility was lower in April than it was in March and closer to its five year average across each of the major segments of the global equity market. Unlike 2017, markets in post-January 2018 have been much less decisive. The ongoing divergence of supply and demand factors in the bond market is creating mounting upward pressure on interest rates.
The breakout of U.S Dollar may cause headwind for global equities.
The high level of volatility in February persisted through March as markets digested the implications of tighter monetary policy, troubles in the technology sector and the prospect of a tariff-induced trade war. The global equity market notched its first quarterly loss and its highest volatility since Q3 2015. Another Fed rate hike in March further tilted the yield curve to its flattest level in more than a decade. The S&P 500 Managed Risk Index saw its equity allocation reduced down to 67% heading into April.
The yield curve is flattening. How low will it go?
When complacency met fear: $18 billion monthly outflow of SPY.
Volatility came roaring back in February as the S&P 500 notched its first negative monthly return in more than a year. The S&P 500 Managed Risk Index reduced its equity allocation for the first time in 18 months. The U.S. bond market notched its second consecutive negative monthly return as the yield curve tilted higher and credit spreads widened, diminishing its diversification benefit.
What does the velocity of money have to do with inflation?
February 2018: A case study in VIX exposure