US-based financial stocks are seeing an uptick in both inflows and returns as experts reckon financial-focused ETFs are a good bet in the short term.
Emerging market equity ETFs have amassed close to $50 billion year to date despite geopolitical turmoil brewing in the Middle East and anticipated interest rate hikes from the US Federal Reserve.
Retail-focused ETFs have gained millions of assets thanks to the holiday season and Black Friday sales. Now could be a good time to invest in the sector as Goldman Sachs anticipates at least a third of annual retail sales take place in the final three months of the year.
European and US multi-factor ETFs have seen a surge of inflows in recent months as the western world equity rally shows no sign of abating and investors are keen to avoid market timing.
Aggregating ETFs designated as ‘smart beta’ in a composite portfolio demonstrates that the term does not lead to the definition of an asset class with specific risk/return attributes.
Equity and bond ETFs in the US barely reacted to two big pieces of market news over the last week, although industry experts have pointed to possible movement of municipal bond ETFs.