BlackRock’s Post

Exchange-Traded Funds (ETFs) have become increasingly popular as versatile investment tools, offering diversified exposure to various asset classes. Among them, sector-specific ETFs stand out for their ability to target specific industries, allowing investors to hone in on areas of the market they believe will outperform. https://lnkd.in/dJ4cdGvn

Exchange-Traded Funds (ETFs) have become increasingly popular as versatile investment tools, offering diversified exposure to various asset classes. Among them, sector-specific ETFs stand out for their ability to target specific industries, allowing investors to hone in on areas of the market they believe will outperform. https://lnkd.in/dvWpFd77

INVESTING MUST READS: Observers tend to focus a lot on ETF launches, but Morningstar analyzed more than 200 ETFs that closed in 2023. A higher interest rate environment made things tough for private equity in 2023 and that could continue this year, reports Bloomberg Businessweek. Check out WealthManagement.com editorial team's selection of articles for wealth advisors. http://spr.ly/6045RWqIS

Last year saw the closure of 224 ETFs—the second most in history behind only 2020. This is notable for a couple of reasons. First, it's a reminder that ETFs are not impervious to attrition, highlighting the importance of evaluating portfolios based on the underlying investment approach and how it aligns with an investor's long-term goals. And ETFs catering to flavor-of-the-month themes are less likely to stand the test of time.

According to Chief Investment Officer Donald Calcagni, it may be a persuasive time for the role of active ETFs in a portfolio. “If ever there was a compelling case for a more systematic approach to active management, it’s now. Look at all the dislocations that are happening globally, at valuations, at how concentrated markets have become.” Read more via Bloomberg below.

Despite a constructive growth outlook, we believe global equity markets have moved to extended valuations. What does this imply? Franklin Templeton Investment Solutions team opines on this and takes a look at other asset classes in its latest “Asset Allocations” publication. https://lnkd.in/gyspac4G.

As investors continue to hunt for diversified sources of alpha in such a dynamic market environment, FinanceAsia and FTSE Russell, An LSEG Business are bringing together experienced investment specialists to discuss how index strategies can be an effect..