Trump's 15% tariff on South Korea imports and $350B investment promise are shaking up ETF market. Look for gains in US infrastructure, industrials, semiconductors, and energy sectors.
JPMorgan's equity strategy: China trade deal, tax cuts, and deregulation may ease tariff concerns, but caution still advised for investors. Buy SPY, QQQ, USMV for upside potential.
Wall Street has exhibited heightened volatility in recent weeks. Jerome Powell’s recent warnings about severe economic consequences of escalating tariffs have also heightened volatility. Low-volatility ETFs may look appealing in such an environment.
The US stock market is struggling this year, but the low-volatility equity risk premium is still outperforming by a wide margin year to date, based on a set of ETFs.
While plummeting stock indexes sent some investors screaming for the exits, others look to shift assets from large-cap tech stocks and cap-weighted ETFs into less volatile investments..
Bond market is warning of economic slowdown, causing investors to shift towards defensive assets like ETFs that focus on stability and essential industries.
President Trump’s tariff plans as well as signs of economic slowdown have made investors jittery. Investors seeking to remain invested in the equity world may want to consider low-volatility ETFs. Here is a brief overview of some such funds.
The global sell-off will result in huge demand for inverse or inverse-leveraged ETFs as these fetch outsized returns on bearish sentiments in a short span.
These products could be worthwhile for low-risk-tolerance investors and have the potential to outperform the broader market, especially if volatility persists.
More investors are asking the question lately, in part because markets are seemingly defying gravity and ignoring various macro and geopolitical risks.
