Since their inception, exchange traded funds (ETFs) continue to grow their market share and popularity with investors. The tax efficiency for which they are known comes down to three primary mechanisms from which the vehicle wrapper benefits.

Investors appear increasingly optimistic regarding equity performance in the second half. However, frothy markets continue to create challenges this quarter and advisors looking to find opportunities within equities this year don’t want to miss the recent 2024 Equity Symposium hosted by VettaFi.

The potential for a soft landing continues to grow as the Fed indicates rate cuts later this year. A soft landing could cause further tightening in credit spreads, while a divergence from market expectations could lead to sudden widening.

This year continues to follow in the footsteps of 2023, marked by increased investor optimism but ongoing uncertainty. For now, much remains unknown, and a higher January inflation print only proves the challenges that still lie ahead.

In such a troubled year, investors increasingly turned to alternative strategies to augment or enhance their existing core exposures. With more equity income funds coming online, how do the top ETFs in the category stack up?

In less than 2 weeks, advisors will flock to sunny Miami for the annual Exchange Conference. Content sessions this year offer advisors insight into growing their business models in unexpected ways, the macro and market environment of 2024, navigating the AI revolution, and more.

GMO’s Jeremy Grantham recently shared what he’s thinking about and watching in markets ahead of Exchange.

In one week, advisors will flock to sunny Miami for the annual Exchange Conference. Content sessions this year offer advisors insight into growing their business models in unexpected ways, the macro and market environment of 2024, navigating the AI revolution, and more.

Todd Rosenbluth, head of research at VettaFi, discussed the launch of the iShares Bitcoin Trust (IBIT), with BlackRock’s Jay Jacobs. Rosenbluth and Jacobs also talked about the benefits of ETF bitcoin exposure for investors, and about blockchain technology at the Crypto Symposium hosted on the VettaFi platform.

This year proved a difficult one for bonds as the Federal Reserve aggressively hiked rates for much of the year. With the rate narrative changing moving into 2024, investors moved back into bonds in a big way beginning in October, including municipal bonds.

After the underperformance of stocks and bonds last year, it’s no surprise that diversification strategies are a significant focus this year. Alternatives continue to garner advisor and investor interest as market dispersion grows, including managed futures and long/short strategies.

Though inflation continues to cool, there remains a potentially longer road ahead to get to the Fed’s desired 2%. In an environment of uncertainty and elevated inflation, the inclusion of managed futures in a portfolio made a significant difference in the last few years as modeled by DBi recently.

Confounding market and economic signals persist as the year’s end draws near. In a year punctuated by heightened uncertainty as investors attempted to navigate a confluence of risk factors, stock and bond correlations proved a significant challenge to traditional portfolios.

Advisors face a number of challenges in current markets, given risks and stock and bond correlations. They must grapple with how to invest smartly as well as keeping their clients invested in the traditional 60/40 portfolio.

It’s been a great year for alternative income strategies as inflation, interest rate, and recession risk fears dominated markets. Garrett Paolella of NEOS and Christian Magoon of Amplify ETFs joined VettaFi’s Tom Lydon to discuss alternative income opportunities at the Income Strategy Symposium hosted by VettaFi on October 27.

Given concentration risk, understanding what a strategy and portfolio owns is more important than ever in current markets.

The biggest growth companies continue to increase their concentration in major equity indexes this year. It’s not surprising that investors are starting to rethink their exposure to large-caps, given concentration risk and ongoing market uncertainty.

In an environment of pronounced volatility and less-than-certain equity and bond performance in the last few years, investors are leaning toward more complex strategies such as alternatives.

The United States Court of Appeals announced this morning it’s ruling in favor of the Grayscale petition to convert its flagship fund, GBTC, to a bitcoin ETF. In the intricate game of chess the SEC plays with bitcoin funds, it’s a “check” for Grayscale’s white knight strategy.

Increasingly more advisors and investors are discovering the benefits of options strategies in their portfolios. There is great value in understanding and utilizing options strategies with the range of benefits they can provide portfolios, including protective puts.

It’s been a challenging year for many managed futures strategies but they continue to offer long-term potential for portfolios. The benefits of trend-following strategies are numerous and worth consideration for inclusion in any alternative sleeve.