ETF News & Research

First Quarter 2016 – Lots of Pain, Little Gain

Despite the fact that the S&P 500 ended slightly positive for the first quarter, the experience for investors concentrated in US equities, so far this year has been quite tumultuous. As of January 20th the S&P 500 was down 9% and then recovered. By February 11th the S&P 500 had again declined by more than …

Mike Venuto comments on new Gold Hedged ETFs

  The Rex Shares gold-hedged ETFs—new to market this month—attempt to solve a common asset allocation problem many advisors face: What to do about gold? Most advisors today feel like they must own gold. Most do so because gold offers diversification and portfolio hedging benefits. It can even prove useful for short-term tactical purposes, such …

Diversification in Context: Time to be Rational Again!!

Research compiled by Michael Venuto, CIO For the past three years, large capitalization US equities have been consistently one of the best performing asset classes.  They have outpaced small caps, international equities, bonds and especially commodities. The consistent outperformance of US large cap stocks is somewhat unprecedented (see chart below). In addition, these stellar returns were …

Mike Venuto on the use of Inverse ETFs for precise sector exposure

Investors can use leveraged and inverse exchange traded funds to hedge a long position against sudden turns or capture short-term trends in more volatile market conditions. On the recent webcast, Tactical Strategies to Combat Market Volatility, Sylvia Jablonski, Managing Director and Co-Head of the Capital Markets & Institutional Strategy Team at Direxion, points out that …

Tactical Strategies using Leverage ETFs described by Mike Venuto

As investors gear up for a volatile market in the year ahead, more aggressive exchange traded fund investors have utilized leveraged and inverse products to quickly adapt and capitalize on shifting market conditions. On the upcoming webcast, Tactical Strategies to Combat Market Volatility, Sylvia Jablonski, Managing Director and Co-Head of the Capital Markets & Institutional Strategy …

Volatility in Context: Let’s Have a Conversation

Markets Are Scaring Themselves “You have probably noticed that U.S. stock prices have fared poorly of late—and the S&P 500 closed on Wednesday at 1859, down almost 13% from its July 2015 high. You have probably also noticed that the biggest daily drops seem to occur either on bad news from China or when oil …

Guillermo Trias describes the ETF sales and marketing ladder

The journey from developing a compelling investment thesis to launching an ETF can be an arduous one indeed. While the rewards for a truly unique ETF can be substantial, the upfront work and attention to detail that are required to make an ETF concept a reality often appear daunting to new issuers that are just …

101 ETF Lessons Every Financial Advisor Should Learn

Exchange-traded funds (ETFs) have burst on to the scene in the late 2000s and early 2010s, raking in hundreds of billions of dollars in assets and prompting a major shift towards indexing strategies in the process. ETFs have empowered financial advisors (FAs), registered investment advisors (RIAs), Chief Financial Officers (CFOs), money managers, and retail investors …

Mike Venuto discusses ETFs for downside protection

It’s been a wild ride so far this year for U.S. stocks. Since the beginning of 2016, the S&P 500 has already declined some 10% in a loss that has been anything but smooth or linear. The uptick in volatility and the poor stock market performance have many investors now more concerned with downside protection …

Mike Venuto Volatility exploit it or ignore it?

Everyone is talking about increased market volatility in this new year. But if you are a long-term index investor who believes in buy-hold-and-rebalance achieved through passive vehicles such as ETFs, does volatility even matter? Should you worry about it? Perhaps just as important is the question of whether increased volatility presents unique opportunities to capture …

Enhancing the Core: What Do Insiders Know?

“What we need is a no-load, minimum management-fee mutual fund that simply buys the hundreds of stocks making up the broad stock-market averages and does no trading from security to security in an attempt to catch the winners. Whenever below-average performance on the part of any mutual fund is noticed, fund spokesmen are quick to …

Is This Lack of Fear Scary?

This lack of fear scares me.  Investors seem to believe that the Federal Reserve will save them, but that seems unlikely to me.  I believe the economy is generally in good shape and the low cost of oil acts like a stimulus to the consumer.  Additionally, employment and wages continue to improve so it is …

Mike Venuto explains what insiders KNOW

This article is part of a regular series of thought leadership pieces from some of the more influential ETF strategists in the money management industry. Today’s article is by Mike Venuto, co-founder and chief investment officer of New York-based Toroso Investments. The growth of smart-beta strategies has been staggering, but quite top heavy. Meaning, most …

Mike Venuto describes ETF picks for 2016

Michael Venuto, CIO and co-founder of Toroso Investments in New York, a strategist that uses a simple diversified asset allocation approach customized to clients: BioShares Biotechnology Clinical Trials (BBC): I really like the venture capital nature of this ETF. They equal-weight biotechnology companies that are in clinical trials. They include a screening process to avoid …

Older ETF Dividend Strategies Are Fading

By David Dziekanski Toroso Investments Published in ETF.com Allocators and investors in the smart-beta ETFs are arguably acknowledging that active and rules-based strategies offer more dynamic solutions for the current global investment environment. Flows in these vehicles have increased significantly this year. When choosing a smart-beta fund, many allocators have used similar evaluation approaches as …