It’s exciting times in the ETF industry. For example, we might be headed for a photo finish in the ETF leader board. As of December 15, two ETFs stood above the rest.
The first actively managed exchange traded funds came to market in 2008. But 2023 may be remembered as the year when the asset class matured, paving the way for broader long-term adoption.
High yield fixed income has always been considered a riskier investment relative to other bonds. But strong corporate fundamentals are making this asset class far less risky these days. And that makes so-called junk bonds currently a bit of a misnomer.
What was the biggest story in ETFs in 2023 for you? What has the potential to have a lasting impact on the industry? Or is there something you think was a flash in the pan?
The 60/40 portfolio composed of stocks and bonds, respectively, has somewhat fallen to the wayside in the past decade. But with optimism flooding the bond markets for 2024, it could make a comeback.
Earlier this year, many industry observers and investors were expecting an imminent slowdown with markets. But with rates coming back down and the risk outlook improving, the outlook on fixed income has improved.
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.
If the last year or two have taught investors anything, it’s that alts can play a big role in portfolios. As recently as 2022, bonds struggled amid significantly low interest rates, with their role as a contrast to stocks weakened.
While inflation isn’t yet at the 2% range that the Federal Reserve has been targeting, it’s getting there. At least, it’s getting close enough for it to ease up on the gas on raising interest rates. In fact, the Fed could pump the brakes next year.
With stocks racing to record highs, diminishing expectations of a recession, and hopes that the Federal Reserve could potentially reduce interest rates multiple times next year, risk appetite is being reborn.
China stocks have been a source of frustration for investors this year. But there are expectations that situation will improve in 2024. The key is selectivity. That means market participants shouldn’t wager on uniformly stellar returns by China equities next year.
It’s been the year of active equity ETFs, the year of covered call ETFs, and a year when growth and quality has mattered most in the equity market. All of this is now clear from the year-to-date net inflows and fund performance records.
With 2023 drawing to a close, the time has come once again to take a longer look at what next year might bring.
With the final business of 2023 being wrapped up, the financial services community is starting to look forward to 2024. The first big event of the new year will be the Exchange 2024 conference.
Throughout most of the fourth quarter of 2023, physical gold has performed the best it has all year. According to Kitco in the last thirty days, the precious metal has seen its price increase by nearly $43.
The VettaFi Market Outlook Symposium brought together industry thought leaders and experts to help investors position for 2024.
During our Market Outlook Symposium, our panelists will offer their analysis and answers to those questions and the others that will determine whether your clients will reach their financial goals.
The growing narrative of artificial intelligence should continue as 2023 turns into 2024. One of the ongoing names to watch is chipmaker Nvidia, which should propel ETFs with exposure to the stock.
Bitcoin has pulled back over the past several days. But even with that retrenchment, the largest cryptocurrency is on pace for one of its best annual showings on record.
With Exchange 2024 less than three months away, I’ve started mapping out “the weird session” at the event: my 100-minute block on the “Silent Disco”-style stage.
If the artificial intelligence (AI) theme remains hot heading into 2024, this could help push the Direxion Daily NVDA Bull 1.5X Shares (NVDU) even higher in the new year as the chipmaker expands its market share.
Domestic aggregate bond strategies are on pace for decent showings this year. And there is mounting speculation that the Federal Reserve will lower interest rates next year, perhaps multiple times.
It’s the time of year when you look back at all that’s been accomplished. VettaFi’s covered strong net inflows into fixed income ETFs, covered call funds, and many, many, many new product launches. But VettaFi also accomplished a lot as a firm.
Following a tumultuous 2022, this year has been better, though not entirely sanguine for fixed income investors. 2024 is right around the corner, and expectations of rate cuts by the Federal Reserve are rising. Now is the ideal time for advisors to evaluate opportunities in the bond market.
It’s been a very good year for U.S. high yield. In fact, BondBloxx Investment Management has noted that riskier fixed income assets have outperformed U.S. Treasuries.
Bitcoin prices are near $44,000 and excitement is pouring into the space again. That’s largely due to the focus on the potential launch of spot bitcoin ETFs in January.
The Market Outlook Symposium is coming on December 14. The latest symposium from VettaFi will offer investors a deep and incisive look at how to position for 2024 and beyond. In today’s unusual market environment, this is a critical topic.
Jeremy Grantham will be a keynote speaker at Exchange, joining an exceptional roster of luminaries, thought leaders, and industry titans.
The winter holiday season is here, and I wanted to join in the festivities. Recently, advisors have become more comfortable turning to active ETFs to help them and their clients navigate the uncertain market environment. Actively managed ETFs have gained traction in 2023.
The capital markets are already pricing in rate cuts ahead of 2024, causing yields to fall. One way to continue supplementing income amid a potential drop in yields is to diversify income using a pair of active exchange-traded funds.
As of late Monday, bitcoin had surged nearly 14% over the past seven days. That’s exceeded 42% for the first time since May 2022.
In early October, gold was valued at around $1,820 according to Kitco. That is fairly close to its low for the calendar year. Its previous low came in late February, at $1,811.
A year ago, I’m pretty sure I had little idea what artificial intelligence (AI) was and what it could become. While there were a few related ETFs, AI was just another one of the long-term investment themes.
The recent rate pause by the Federal Reserve is bringing optimism to the capital markets that interest rates may finally head lower. In turn, it’s pushing yields down. Conversely, bond prices rallied in November, which should help bring investors back to the market.
The real world and the digital world are converging every day and becoming increasingly interconnected, and where the two intersect is described by some as “phygital.”
Among Asia’s major economies, China has long been the benchmark against which other countries’ growth is measured. India, currently the continent’s third-largest economy behind China and Japan, appears poised to take the baton of economic growth leadership.
Valuations for municipal bonds are very attractive right now. And as yields remain strong, so do their fundamentals.
November was kind to fixed income investors as bonds posted their best month of 2023. High yield corporate debt participated in that rally as highlighted by the fact that the largest junk bond exchange traded fund is higher by nearly 4.3% over the past month.
With more than 3,000 ETFs to cover and many new ones launching each month, it is easy to forget. For many people, S&P 500 Index-based ETFs remain the core of their portfolio. Heading into 2024, these products topped the latest monthly flow leaderboard.
Recent data point to a record shopping season for Shopify (SHOP), which saw Black Friday sales grow 22% y/y. Additional reports from Adobe Analytics show a strong $9.8 billion Black Friday season.
Even with $2.4 trillion in ETF assets spread across more than 400 ETFs, there’s a pending offering from BlackRock that caught my eye.
Tax-loss harvesting creates an opportunity every year for advisors to turn lemons into lemonade. Advisors can realize losses that their clients experienced during the year and use them to offset realized gains in other parts of their portfolio.
Many advisors and investors in 2023 have turned to fixed income ETFs with an average duration of less than one year. Taking on very little interest rate risk through duration has been rewarding as well.
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.
Collateralized loan obligations, or CLOs, may be a way for advisors to enhance retail clients’ portfolios. They provide investors with access to a diverse pool of senior secured loans. While they have been primarily used by institutional clients to date, CLOs could enhance risk-adjusted returns for individual clients.
VettaFi is thrilled to announce that the ETF Express U.S. Distribution Awards will be part of Exchange in 2024. Exchange is just a few short months away. The financial services community will be gathered in Miami Beach February 11-14. Accordingly, Exchange is an ideal venue for the ETF Express awards.
The fourth quarter has seen a strong performance from gold. In early October, the price of gold stood at $1,820 per ounce, according to Kitco, and looked as if it would continue to drop in value as it had done the previous five months.
Real estate headlines seem to only focus on bad news right now, from remote work’s impact on offices to struggles for city center retail.
Broad commodities have struggled this year. The S&P GSCI Index is down more than 5% year-to-date. However, there are still opportunities when investors dig a little deeper, according to Teucrium’s Senior Portfolio Specialist Jake Hanley.
On November 28, 2023, VettaFi hosted an Alternatives Symposium with an excellent turnout of nearly 750 advisors and investors registered for the event.
