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Zacks: ETF Strategies to Avert Market Swings or Profit From Them

Zacks: ETF Strategies to Avert Market Swings or Profit From Them

By    |   Tuesday, 05 January 2016 08:02 AM

U.S. stocks last year reached record highs but also suffered the biggest corrective pullback and annual decline since 2011. That result has optimists looking for a strong rebound while pessimists warn that the pain has only just begun as the global economy weakens and the Federal Reserve raises the cost of borrowing.

Investors who want to protect their wealth in volatile markets should consider exchange-traded funds that provide a way to diversify their holdings, according to Zacks Investment Research.

“The Fed is not hiking rates to rein in inflation. The tightening is reflective of U.S. economic growth and lower risk of deflation, both of which are encouraging for stocks,” according to Zacks. “Stocks should offer decent, if not spectacular, returns.”

Stock ETFs for Steady U.S. Economy
iShares MSCI USA Momentum Factor (MTUM)
S&P Small-Cap 600 Value ETF (VIOV)
PowerShares S&P 500 ex-Rate Sensitive Low Volatility ETF (XRLV).

Individual Industries for Rising Rate Environment
PowerShares KBW Bank ETF (KBWB)
Dow Jones U.S. Insurance Index Fund (IAK)
Consumer Discret Sel Sect SPDR ETF (XLY)
Technology Select Sector SPDR ETF (XLK)

Bond ETFs
iPath U.S. Treasury Flattener ETN (FLAT)
iShares Floating Rate Bond (FLOT)
High Yield Interest Rate Hedged ETF (HYHG)

Dividend Funds
Vanguard High Dividend Yield ETF (VYM)
Schwab U.S. Dividend Equity ETF (SCHD)

Global Funds
Europe Hedged Equity Fund (HEDJ)
Japan Hedged Equity Fund (DXJ)
Golden Dragon Halter USX China Portfolio (PGJ)

Volatility-Themed Funds
SPDR S&P Low Volatility ETF (SPLV)
iShares MSCI Minimum Volatility ETF (USMV)
U.S. Market Neutral Anti-Beta Fund (BTAL)
AdvisorShares Active Bear ETF (HDGE)
C-Tracks on Citi Volatility Index ETN (CVOL)
ProShares VIX Short-Term Futures (VIXY)

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U.S. stocks last year reached record highs but also suffered the biggest corrective pullback and annual decline since 2011. That result has optimists looking for a strong rebound while pessimists warn that the pain has only just begun.
ETF, investing, market, stocks
269
2016-02-05
Tuesday, 05 January 2016 08:02 AM
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