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  Asset Flows Monitor September 2022 Edition
Posted Under: ETFs
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Asset Flows Monitor September 2022 Edition
  • Net inflows for US-listed ETFs totaled $40.4 billion in August, bringing total ETF assets under management to $6.40 trillion.
  • Equity ETFs had net inflows totaling $27.9 billion in August, bringing trailing 12-months (TTM) net inflows to $456.3 billion.
  • Fixed income ETFs had net inflows totaling $14.9 billion in August, bringing TTM net inflows to $172.1 billion.
  • Commodities ETFs had net outflows totaling $2.7 billion in August, bringing TTM net inflows to $4.5 billion.  Precious metals ETFs (-$2.6 billion) was the weakest sub-category in August.
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Posted on Tuesday, September 6, 2022 @ 1:52 PM • Post Link Share: 
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  First Trust Energy Sector ETF Primer
Posted Under: ETFs
First Trust Energy Sector ETF Primer
 
Spurning the boom-and-bust cycle of the energy industry over the last decade, many investors have reduced their exposure to energy stocks in recent years.  However, a post-pandemic rebound in demand for oil and natural gas, relatively tight supply, and geopolitical events have contributed to higher fossil fuel prices this year, fueling a rally in both earnings and stock performance for the energy sector.  In this report, we review the methodologies of four First Trust ETFs that provide exposure to different facets of energy.  To see the latest research and long-term outlook for energy stocks, see the Q3 2022 Inside First Trust ETFs newsletter
 
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Posted on Wednesday, August 17, 2022 @ 8:19 AM • Post Link Share: 
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  Short-Term Weakness may Provide an Attractive Entry Point for Investors in Energy ETFs
Posted Under: ETFs

After rallying for much of 2022, the energy sector plunged by over 20% from June 8th through July 14th as fears of a looming recession began to mount.  While volatility may continue in the near term, we believe selloffs may provide more attractive entry points for investors, particularly those that remain underweight energy stocks.  While we concede that a deep global recession could negatively impact demand for fossil fuels in the near term, we believe longer-term supply-demand dynamics, as well as geopolitical influences, will likely support relatively high prices for oil and natural gas, which may continue to fuel robust earnings for energy companies.  Moreover, despite relatively strong performance since the Fall of 2020, energy stock valuations remain historically cheap.

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Posted on Thursday, August 11, 2022 @ 11:45 AM • Post Link Share: 
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  Asset Flows Monitor August 2022 Edition
Posted Under: ETFs
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Asset Flows Monitor August 2022 Edition
 
  • Net inflows for US-listed ETFs totaled $37.9 billion in July, bringing total ETF assets under management to $6.47 trillion.
  • Equity ETFs had net inflows totaling $15.4 billion in July, bringing trailing 12-months (TTM) net inflows to $482.8 billion.
  • Fixed income ETFs had net inflows totaling $28.6 billion in July, bringing TTM net inflows to $178.5 billion. 
  • Commodities ETFs had net outflows totaling $6.7 billion in July, bringing TTM net inflows to $5.4 billion.  Precious metals ETFs (-$4.2 billion) and broad market commodities ETFs (-$1.2 billion) were the weakest sub-categories in July.
 
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Posted on Friday, August 5, 2022 @ 3:32 PM • Post Link Share: 
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  Alternatives Update 2nd Quarter 2022
Posted Under: Alternatives

The second quarter of 2022 offered up a toxic brew for capital markets with steep losses in almost every traditional asset class. Alternatives on the other hand offered a brighter picture for investors. Most alternative categories did well on a relative basis and others even posting positive returns amidst the carnage. The economic situation grew dimmer with projected slowing and even potentially negative GDP growth and inflation levels so high they threaten to induce hypoxia or at least a 1970s flashback. There was some hope that peak inflation had been reached and more moderate levels would allow for a less aggressive rate path. Unfortunately, the Producer Price Index (“PPI”) remained above 10% and the Consumer Price Index (“CPI”) moved higher and the war in Ukraine continued with little hope for a near-term solution. 

In June, the Federal Reserve (the “Fed”) raised the Fed Funds Target Rate by 75 basis point (“bps”), the largest increase since 1994. Along with a stunning large hike, there was a reiteration that reigning in of inflation was the top priority no matter the economic costs. This of course is quite a turnaround from two years ago (August 2020) when at the annual Jackson Hole symposium, Fed Chair Jerome Powell announced a major shift in policy: the central bank would allow inflation to move above its 2% target as inflation was not a worry. In hindsight, the timing of that policy change looks just short of disastrous. Investors are understandably nervous that once again, the Fed may be implementing a significant policy shift with questionable timing. One indicator of how challenging the situation is, is the gap between the CPI and Fed Funds rate. While it has recently narrowed, it is still near record highs or the 99th percentile, which means there is a long way to go in the inflation battle.

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Posted on Monday, July 25, 2022 @ 10:26 AM • Post Link Share: 
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  Closed-End Fund Second Quarter 2022 Review
Posted Under: CEFs

Second Quarter 2022 Overview

After a very difficult first quarter of 2022 for the equity and credit markets (click here for first quarter commentary) as well as for many closed-end funds (CEFs), the second quarter of 2022 was also a challenging one. Concerns about the potential for a recession in 2022, elevated inflation data as well as rising short- and long-term interest rates contributed to a tough quarter for many asset classes in the second quarter. The total return for the average CEF was -11.2% for the quarter and -17.4% for the year, as of 6/30/22. Every single CEF category tracked by Morningstar posted negative total returns for the quarter and only the master limited partnership (MLP) category was positive year-to-date (YTD), as of 6/30/22, with a return of 11.9%. For the second quarter, equity CEFs returned -14.0%, fixed-income CEFs returned -9.4%, municipal CEFs returned -7.2%, and taxable fixed-income CEFs returned -11.1%. 

Source for CEF performance: Morningstar. All performance is based on share price total return.

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Posted on Tuesday, July 19, 2022 @ 2:28 PM • Post Link Share: 
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  Asset Flows Monitor July 2022 Edition
Posted Under: ETFs
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Asset Flows Monitor July 2022 Edition

  • Net inflows for US-listed ETFs totaled $38.4 billion in June, bringing total ETF assets under management to $6.14 trillion.
  • Equity ETFs had net inflows totaling $36.6 billion in June, bringing trailing 12-months (TTM) net inflows to $501.0 billion.
  • Fixed income ETFs had net inflows totaling $4.3 billion in June, bringing TTM net inflows to $164.7 billion.
  • Commodities ETFs had net outflows totaling $2.7 billion in June, bringing TTM net inflows to $10.9 billion.  Precious metals ETFs (-$2.1 billion) was the weakest sub-category in June.

 

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Posted on Thursday, July 7, 2022 @ 2:58 PM • Post Link Share: 
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  Asset Flows Monitor June 2022 Edition
Posted Under: ETFs
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Asset Flows Monitor June 2022 Edition

  • Net inflows for US-listed ETFs totaled $62.8 billion in May, bringing total ETF assets under management to $6.6 trillion.
  • Equity ETFs had net inflows totaling $32.2 billion in May, bringing trailing 12-month (TTM) net inflows to $517.1 billion.
  • Fixed income ETFs had net inflows totaling $33.7 billion in May, bringing TTM net inflows to $183.8 billion.
  • Commodities ETFs had net outflows totaling $3.6 billion in May, bringing TTM net inflows to $12.9 billion.  Precious metals ETFs (-$2.5 billion) and Broad Commodities ETFs (-$1.0 billion) were the weakest sub-categories in May.
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Posted on Friday, June 3, 2022 @ 1:57 PM • Post Link Share: 
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  Heightened Volatility Yields a Resurgence for Dividend ETFs
Posted Under: ETFs
Dividend ETFs seem to have grown in popularity, with net inflows totaling $17.0 billion over the past 3 months and $44.5 billion over the past 12 months, as of 4/29/22. In April, while equity ETFs overall endured $5.9 billion of net outflows, dividend ETFs reported net inflows totaling $7.8 billion (Source: FactSet). The increase in demand for dividend ETFs can partly be attributed to the strong relative performance many of these ETFs have provided this year. We expect demand to remain robust for those investors seeking exposure to higher quality stocks, alternative sources of income, and potential dividend growth. To achieve these ends, dividend ETFs employ a variety of strategies. In this piece, we provide a brief overview of four of our dividend ETFs, highlighting some of the key differences between each approach.

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Posted on Wednesday, May 25, 2022 @ 2:54 PM • Post Link Share: 
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  Asset Flows Monitor May 2022 Edition
Posted Under: ETFs
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Asset Flows Monitor May 2022 Edition
  • Net inflows for US-listed ETFs totaled $9.3 billion in April, bringing total ETF assets under management to $6.6 trillion.
  • Equity ETFs had net outflows totaling $5.9 billion in April, bringing trailing 12-months (TTM) net inflows to $533.7 billion.
  • Fixed income ETFs had net inflows totaling $12.2 billion in April, bringing TTM net inflows to $169.2 billion.
  • Commodities ETFs had net inflows totaling $2.4 billion in April, bringing TTM net inflows to $22.1 billion.  Precious metals ETFs (+$1.6 billion) and Broad Commodities ETFs (+$1.1 billion) were the strongest sub-categories in April.

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Posted on Tuesday, May 3, 2022 @ 10:03 AM • Post Link Share: 
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These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
 PREVIOUS POSTS
Alternatives Update 1st Quarter 2022
Closed-end Fund Review - First Quarter 2022
Asset Flows Monitor April 2022 Edition
Asset Flows Monitor March 2022 Edition
Is it Too Late to Allocate to Commodities ETFs?
Asset Flows Monitor February 2022 Edition
Alternatives Update 4th Quarter 2021
Closed-end Fund Review - Fourth Quarter 2021
Asset Flows Monitor January 2022 Edition
Long-Term Outlook for Cybersecurity Remains Compelling
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