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| Market Minute - May 2024 |
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Posted Under: Market Minute |
“Sell in May and go away” is an old Wall Street adage you will be hearing a lot in the coming weeks. While we have never advocated timing the market, it is certainly rational to be nervous about the continued upward trajectory of US equities after the 21% increase over the last 6 months as of 4/30/24 in the S&P 500 Index including the 6% year-to-date (YTD) increase. This is especially true considering valuations are stretched, the Federal Reserve (Fed) is attempting to be restrictive, inflation is proving tough to tame and market leadership is heavily concentrated. Geopolitical worries in Russia and the Middle East along with the looming US election add further to investor angst.
Click here to read entire piece.
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| Rethinking Diversification: Are Stocks and Bonds Enough? |
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Posted Under: Podcast |
In this episode, we explore why more and more investment professionals are allocating to call-writing funds, long/short strategies, and commodities.
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| Navigating a Narrow Market…Are There Opportunities Outside of the Magnificent 7? |
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Posted Under: Podcast |
Ryan discusses factor investing with Chris Bush, portfolio manager at First Trust, as well as risk and opportunities for various industries and themes, including artificial intelligence, regional banks, and more.
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| Asset Flows Monitor April 2024 Edition |
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Posted Under: ETFs |
- Net inflows for US-listed ETFs totaled $112.4 billion in March, bringing total ETF assets under management to $8.73 trillion.
- Equity ETFs had net inflows totaling $81.7 billion in March, bringing trailing 12-months (TTM) net inflows to $523.2 billion. Active equity ETFs accounted for $20.2 billion in net inflows in March, compared to $61.5 billion in net inflows for passive equity ETFs. Total AUM in actively managed equity ETFs was $400.9 billion, accounting for 5.7% of all equity ETF assets ($6.98 trillion), as of 3/31/24.
- Fixed income ETFs had net inflows totaling $18.2 billion in March, bringing TTM net inflows to $202.4 billion. Active fixed income ETFs accounted for $7.0 billion in net inflows in March, compared to $11.2 billion in net inflows for passive fixed income ETFs. Total AUM in actively managed fixed income ETFs were $194.9 billion, accounting for 12.6% of all fixed income ETF assets ($1.55 trillion), as of 3/31/24.
- Commodities ETFs had net inflows totaling $0.5 billion in March, bringing TTM net outflows to $14.2 billion. Precious metals ETFs (+$0.3 billion) was the strongest commodity sub-category in March.
To continue reading, click here.
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| Market Minute - April 2024 |
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Posted Under: Market Minute |
In a market that has been driven significantly by momentum and speculation this year, investors still have an eye on what matters in the end. Earnings! And if that focus continues, future earnings forecasts suggest a further broadening of the market is in order. The performance of the Magnificent 7 stocks in 2023 was stunning. The basket accounted for 58% of the 26.23% gain in the S&P 500 Index and the 7 stocks increased by an average of 76% for the year. Earnings growth for the Magnificent 7 was incredible for several reasons. NVIDIA had a massive increase in profits as a result of its Artificial Intelligence (AI) semiconductor chips. Apple, Google, and Microsoft had solid earnings growth, although Tesla saw earnings decline. The real earnings stars though were Meta and Amazon. Both saw huge earnings increases in 2023 as a result of significant cost cutting and easy comparisons to the disastrous earnings both companies reported for 2022. Meta increased earnings by nearly 70% in 2023 after seeing a 37% decline in earnings the prior year. Amazon actually lost money in 2022 after earning over $30 billion in 2021. This past year they again earned over $30 billion. Both companies rebounded and earnings growth was off the charts compared to 2022 declines.
Click here to read entire piece.
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| How Can Technical Analysis Guide Portfolio Allocations? |
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Posted Under: Podcast |
In this episode, Ryan is joined by Jay Gragnani, Senior Market Strategist at Nasdaq Dorsey Wright for a discussion about how financial professionals are utilizing technical analysis and Dorsey Wright’s research as an objective input for their decision-making process.
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| Has the Balance between Potential Risks and Returns Shifted in Favor of Bond Investors? |
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Posted Under: Podcast |
In this episode of the podcast, Ryan is joined by Bill Housey, Managing Director of Fixed Income at First Trust for a discussion about the US economy, the Federal Reserve, interest rates, and why Bill believes that an asymmetry between risk and return has shifted in favor of bond investors.
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| Market Minute - March 2024 |
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Posted Under: Market Minute |
One of our favorite Yogi Berra sayings is “Nobody goes there anymore. It’s too crowded.” Momentum was the most dominant equity factor in February (see chart above). In fact, it has been the main factor behind the massive equity rally that started in late October that has added almost 1,000 points to the S&P 500 Index in four months. The momentum factor is also extremely crowded... but everyone is still going there. For now. While we employ the momentum factor in our research, we prefer a multifactor approach and also like to see tangible evidence why the momentum factor is working and can continue to outperform. That is where our concern lies.
Click here to read entire piece.
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| Asset Flows Monitor March 2024 Edition |
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Posted Under: ETFs |
- Net inflows for US-listed ETFs totaled $66.7 billion in February, bringing total ETF assets under management to $8.34 trillion.
- Equity ETFs had net inflows totaling $48.9 billion in February, bringing trailing 12-months (TTM) net inflows to $444.1 billion. Active equity ETFs accounted for $15.5 billion in net inflows in February, compared to $33.4 billion in net inflows for passive equity ETFs. Total AUM in actively managed equity ETFs was $365.9 billion, accounting for 5.5% of all equity ETF assets ($6.65 trillion), as of 2/29/24.
- Fixed income ETFs had net inflows totaling $11.6 billion in February, bringing TTM net inflows to $212.0 billion. Active fixed income ETFs accounted for $6.5 billion in net inflows in February, compared to $5.1 billion in net inflows for passive fixed income ETFs. Total AUM in actively managed fixed income ETFs were $186.7 billion, accounting for 12.3% of all fixed income ETF assets ($1.52 trillion), as of 2/29/24.
- Commodities ETFs had net outflows totaling $2.5 billion in February, bringing TTM net outflows to $15.1 billion. Precious metals ETFs (-$2.5 billion) was the weakest commodity sub-category in February.
To continue reading, click here.
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| What Solutions Can Direct Indexing Offer? |
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Posted Under: Podcast |
In the episode of the podcast, Ryan speaks with Jon DiGiovanni, Managing Director of Direct Indexing and Separate Managed Accounts at First Trust, about some of the reasons that Direct Indexing has quietly been one of the fastest growing innovations in the financial services industry.
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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.
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The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
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