Content provided by Case Eichenberger, CIMA, CLS Client Portfolio Manager In 2016, every major index that CLS tracks was positive, as shown in the chart below, and outperformed cash (which is the whole reason to invest in stocks and bonds in the first place). In the CLS Quarterly Market Outlook, we often write about what worked… Continue reading Trading on Headlines: One Strategy That Did Not Work in 2016
Category: Exchange Traded Funds
Why Smart Beta ETFs are Leading the New Investment Revolution
Content provided by Joe Smith, CFA, CLS Senior Market Strategist Our industry continues to undergo a deep transformation that is shaking the very foundation of investing. Over the last two decades, indexing has moved from an afterthought for many investors to an increasingly dominant trend that has allowed many to access the global markets at… Continue reading Why Smart Beta ETFs are Leading the New Investment Revolution
Smart Beta: Back to Basics
Content provided by Grant Engelbart, CFA, CAIA, CLS Portfolio Manager We are three quarters down in 2016, and we can definitively say that smart beta is here to stay — in CLS portfolios and the industry as a whole. At CLS, our X-Factor theme, which is based on our use of smart beta ETFs, has… Continue reading Smart Beta: Back to Basics
CLS & American Funds: Asset Allocation
Content provided by Grant Engelbart, CFA, CAIA, CLS Portfolio Manager We are often asked about our ability to add value to a portfolio of American Funds. After all, American Funds are the largest actively-managed fund company in the United States for a reason – they are darn good. There are over 60 different American funds… Continue reading CLS & American Funds: Asset Allocation
The Makings of a Good Smart Beta ETF
Content provided by Joe Smith, CFA – CLS Senior Market Strategist Smart beta ETFs continue to be a popular topic in the investment industry. They’ve created excitement because they follow indexes that intentionally deviate from a market-cap-weighted index and have deep roots in academic and institutional investment circles. This provides opportunities for additional risk management… Continue reading The Makings of a Good Smart Beta ETF
Seeing (The Wrong) Stars
Content provided by Case Eichenberger, CLS Client Portfolio Manager CLS portfolio managers often get questions from clients about Morningstar’s renowned star rating system. But these days, the questions are more commonly about exchange-traded funds (ETFs) than mutual funds. Some of the most common ones are: Why do some ETFs that CLS uses have low Morningstar… Continue reading Seeing (The Wrong) Stars
ETF Trading During Volatile Markets
Content provided by Josh Jenkins, CFA, CLS Associate Portfolio Manager ETFs got a lot of attention during the spike in market volatility in August. On the morning of Monday August 24, certain ETFs traded substantially below the value of their underlying securities. Many experienced a halt in trading on several occasions before market functionality normalized… Continue reading ETF Trading During Volatile Markets
GREK: A Case Study for Price Discovery in ETFs
Content provided by Josh Jenkins, CFA, CLS Associate Portfolio Manager I frequently see commentary in the financial media warning about exchange-traded fund (ETF) liquidity. One major fear is if an ETF’s underlying securities stopped trading, the ETF could cease to function correctly. The risk, some argue, is large premiums or discounts could arise, which would… Continue reading GREK: A Case Study for Price Discovery in ETFs
Oil is Down, Why Aren’t Gas Prices?
Content provided by Case Eichenberger, CLS Client Portfolio Manager Energy and oil funds have been volatile this year (to say the least), a trend that’s continued since the second half of 2014. Take a look at the chart below from January 9, 2015 to August 19, 2015, and you’ll see some bumpy rides for investors… Continue reading Oil is Down, Why Aren’t Gas Prices?
ETF Trends in the First Half of 2015
Content provided by Grant Engelbart, CFA, CLS Portfolio Manager How much have Exchange Traded Funds (ETFs) grown so far this year? The quick answer is “tons” (TONS, ironically, is the ticker symbol of the ETF launched this year with the lowest assets). So far this year, 112 exchange-traded products have been launched, on pace to… Continue reading ETF Trends in the First Half of 2015