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Tags: etfs | buy | uncertain | market

US News: 7 ETFs to Buy for an Uncertain Market

US News: 7 ETFs to Buy for an Uncertain Market

By    |   Thursday, 14 November 2019 09:49 AM EST

US News recently offered some ETFs to ease fears of a shaky market for savvy investors.

Though the S&P 500 grinds higher, some worry that 2019 looks a lot like the "irrational exuberance" cited by Alan Greenspan during the dot-come heyday of the 1990s, US News explained.

“There’s been trouble on the IPO front, with the We Company failing to enter public markets out of low valuation fears. Aggressive buyout offers have been made, including a plan worth more than $70 billion to take Walgreens Boots Alliance (WBA) private. And, investors have pushed the S&P to record highs,” US News said.

“There are good reasons to stay in stocks, and plenty of economic data points indicate U.S. stocks may keep moving higher in the near term. But if you fear the other shoe may drop soon, here are seven exchange-traded funds to buy for protection in an uncertain market,” it said.

  1. SPDR Gold Shares (GLD)
  2. iShares Core U.S. Aggregate Bond ETF (AGG)
  3. iShares Edge MSCI Min Vol USA ETF (USMV)
  4. Invesco S&P MidCap Low Volatility ETF (XMLV)
  5. Vanguard Megacap ETF (MGC)
  6. Legg Mason Low-Volatility High-Dividend ETF (LVHD)
  7. Cambria Tail Risk ETF (TAIL)

To be sure, a relatively new category of exchange-traded fund is poised to hit it big, according to Greenwich Associates.

Bloomberg reported that institutional investment in so-called liquid alternative ETFs -- including products that seek to mirror hedge funds -- will more than double to $114 billion during the next 12 months, analysts led by Andrew McCollum wrote in a recent report.

The study was commissioned by IndexIQ, part of New York Life Investment Management, which runs two of the largest ETFs with hedge fund-like strategies, data compiled by Bloomberg show.

Pension funds, endowments and other large investors currently have $882 billion invested in liquid alternatives -- a catch-all pot that encompasses everything from hedge funds and real estate, to private equity and infrastructure -- but only about $47 billion of that is in ETFs, Greenwich found. However, that gap could soon shrink as almost 20% of institutions not currently investing in these funds told Greenwich that they will consider using them in the next 12 months.

“The interest to allocate more to liquid alternative investment strategies overall is really investors’ need to get a diversified source of return to reduce volatility in their portfolio, especially as we are getting to an extended bull market,” said Kelly Ye, director of research and alternative investments with IndexIQ.

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These ETFs can ease fears of a shaky market.
etfs, buy, uncertain, market
Thursday, 14 November 2019 09:49 AM
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