ETF of the Week

VettaFi’s vice chairman Tom Lydon discussed the iShares Russell 200 Growth ETF (IWO) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.”

VettaFi’s vice chairman Tom Lydon discussed the SPDR Portfolio S&P500 Growth ETF (SPYG) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” Growth stocks have rallied recently while value has lagged since mid-June. Advisors are increasingly expressing optimism in the space as well: Bank of America reported that its the first time since August 2020 that fund managers are anticipating growth to outperform value, with 88% expecting inflation in the U.S. will decline in the next 12 months.  These perspectives have caused a rotation away from more defensive positions and back to sectors such as technology, energy, banks, and more, particularly given the recession risk outlook and value's historic outperformance exiting a recession versus entering one.  SPYG is a low-cost ETF that offers exposure to some of the strongest growth stocks within the S&P 500. 

VettaFi’s vice chairman Tom Lydon discussed the Global X U.S. Preferred ETF (PFFD) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.”

VettaFi’s vice chairman Tom Lydon discussed the VanEck CLO ETF (CLOI) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” Collateralized Loan Obligations are a different kind of investment for a different kind of time, and we are in a different kind of time.  

VettaFi’s vice chairman Tom Lydon discussed the Pacer Global Cash Cows Dividend ETF (GCOW) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” A strategy driven exchange traded fund that attempts to provide a continuous stream of income and capital appreciation over time by screening for companies with a high free cash flow yield and a high dividend yield.

VettaFi’s vice chairman Tom Lydon discussed the FlexShares US Quality Low Volatility Index Fund (QLV) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” Low volatility ETF strategies can allow for diversification opportunities across core allocations and have been one of the best performing factors during market contractions. Allocating to a quality, low-vol strategy could provide diversification for a traditional 60/40 portfolio while reducing standard deviation.  QLV invests in U.S. companies that display stability, financial strength, as well as quality characteristics while seeking to provide lower absolute volatility. 

VettaFi’s vice chairman Tom Lydon discussed the iShares 20+ Year Treasury Bond ETF (TLT) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” The first half of 2022 proved painful for bonds in particular but with recession risk now top of mind for many advisors and investors, the dual benefit of recession hedge and cheaper price could make TLT an attractive fund.  Bonds have traditionally been a safe haven asset in times of recession and in the last week there has been nearly $800 million of net inflows into TLT.  With interest rate risk already priced in, the fund has an effective duration of 18.16 years. 

VettaFi’s vice chairman Tom Lydon discussed the XTrackers S&P 500 ESG ETF (SNPE) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” SNPE provides exposure to the S&P 500 but through an environmental, social, and governance lens. The S&P 500 ESG Index that the fund seeks to track utilizes ESG factors and criteria for inclusion while excluding companies that don't have sufficient UN Global Compact scores or else participate in certain industries such as tobacco, controversial weapons, and thermal coal.  ESG is going to be a growing part of the investiong equation looking ahead both from a regulatory risk perspective as well as a climate risk perspective and SNPE seeks to provide performance while also reducing risk. 

VettaFi’s vice chairman Tom Lydon discussed theKFA Mount Lucas Index Strategy ETF (KMLM) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” Alternatives have become an attractive option for many advisors and investors in an environment where both bonds and equities are challenged. Managed futures funds have offered returns during the prolonged period of market volatility and have become a popular option within alts.  KFA Funds, a KraneShares company, invests in futures contracts within commodities, currencies, and global fixed income.   KMLM offer possible hedges for equity, bond, and commodity risk and has demonstrated a negative correlation to both equities and bonds in bull and bear markets.

VettaFi’s vice chairman Tom Lydon discussed the iMGP DBi Managed Futures Strategy ETF (DBMF) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” The challenges that portfolios are facing this year in both equities and bonds have given rise to a growing interest in alternatives, and the uncorrelated benefits that managed futures can offer portfolios has caused an influx of interest and flows in the first half of the year.  Managed futures can provide both diversification opportunities as well as the potential for "crisis alpha" in their ability to seek out the pockets of opportunity during market dislocations. DBMF is an actively managed fund that seeks to replicate the performance of the 20 largest managed futures hedge funds at ETF fee prices.