All entries by this author

IG picks six of the best socially responsible ETFs

Sep 20th, 2017 | By
Sam Dickens, assistant portfolio manager at IG.

By Sam Dickens, assistant portfolio manager at IG.

If you are looking to invest in the stock market but also want to make a positive impact on environmental and social issues, then socially responsible investing may be for you. In this piece we take a look at six of the best ETFs that facilitate socially responsible investing.



Smart Beta & Factor Correlations to the S&P 500

Sep 14th, 2017 | By
Smart Beta & Factor Correlations to the S&P 500

By Nicolas Rabener, Founder, FactorResearch.

In our recent research note “Smart Beta vs Factors in Portfolio Construction” we concluded there was no improvement in returns or decrease in drawdowns, compared to an improvement in the risk-return ratio when using Value & Growth factor exposures. However, the question remains if any of these offer diversification benefits, which is one of the few free lunches in the investment world.



MSCI reports fear of extreme events rising higher

Sep 14th, 2017 | By
MSCI reports fear of extreme events rising higher

By George Bonne, executive director of equity factor research, MSCI.

In May, we wrote that despite the generally low market volatility that has prevailed this year, investors were paying relatively high prices for downside protection as measured by “options skew” – the difference in implied volatility between an out-of-the-money option and an at-the-money option. Low market volatility largely continued through the summer, but how has options skew behaved – has it fallen to more “normal” levels?



Franklin Templeton: Bringing the human factor to index investing

Sep 13th, 2017 | By
Chandra Seethamraju, vice president of systematic modelling, Franklin Templeton.

By Chandra Seethamraju, vice president of systematic modelling, Franklin Templeton.

For decades, Franklin Templeton has been a vocal advocate for active management. We believe the skills and insight human oversight brings should play a crucial role in the investment process. The emergence of risk-factor investing and the evolution of traditional indexes have opened up fresh opportunities to bring a human touch to what has traditionally been considered the passive exchange-traded fund space.



VanEck: Real yields rule – emerging markets local bonds lead the way

Sep 11th, 2017 | By
Fran Rodilosso, head of fixed income ETF portfolio management at VanEck.

By Fran Rodilosso, head of fixed income ETF portfolio management.

Looking for attractive yields? Look no further than emerging markets local currency bonds. These bonds provide significantly higher yields than those offered by developed markets bonds, both in nominal terms and in real terms. While higher yields often mean greater credit risk, local inflation levels can be a greater contributor to the nominal yields of emerging markets bonds.



Smart Beta vs Factors in Portfolio Construction

Sep 6th, 2017 | By
Smart Beta vs Factors in Portfolio Construction

By Nicolas Rabener, Founder, FactorResearch.

FTSE Russell’s 2017 Smart Beta Investor Survey showed that the Number 1 objective for evaluating smart beta strategies was for risk reduction, followed by return enhancement. Naturally there are many types of smart beta strategies available to investors today, however, they are nearly all long-only products. If equity markets crash, then smart beta products will also crash and would not substantially reduce portfolio risks.



WisdomTree predicts multi-year bull market in Indian equities

Sep 6th, 2017 | By
Equities India ETFs

By WisdomTree’s economic research team.

We recently spoke with Ridham Desai, who heads Morgan Stanley’s India Equity Research. Desai recently made headlines when he said “India’s market can triple in next five years.” We agree with Desai on his bullish outlook for India, and in our opinion India’s earning expansion and equity inflows will be propelled by two fundamental shifts in the economy.



S&P DJI: Metals never had an August this hot

Sep 5th, 2017 | By
S&P DJI: Metals never had an August this hot

By Jodie Gunzberg, managing director, product management, S&P Dow Jones Indices.

August 2017 was the first August on record that all the metals gained together (since 1995 – the earliest year all seven metals were included in the index,) and it was the first month every metal gained together since September 2016. As a result, the S&P GSCI All Metals Total Return Index gained 7.3% in August, posting its best August ever since 1995.



WisdomTree: Why you can’t afford to miss European small caps

Sep 4th, 2017 | By
WisdomTree: Why you can't afford to miss European small caps

By WisdomTree’s economic research team.

After getting past a variety of elections—most notably the French presidential election—without anti-market sentiment spreading throughout Europe, we have seen a relatively large shift in equity market performance. Fundamentals within Europe were allowed to drive performance as opposed to equity markets needing to be wary of Brexit or Trump-like election surprises.



WisdomTree: How to use ETPs to manage equity risk

Aug 31st, 2017 | By
Nizam Hamid , ETF strategist at WisdomTree in Europe.

By Nizam Hamid, ETF strategist, WisdomTree in Europe.

The European macro-economic backdrop for equities has remained positive with a renewed focus on stronger underlying growth, and limited political risk compared to the first part of 2017. However, as recent market events have shown there is every reason for investors to consider efficient tools to help manage overall portfolio risk.