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Pivot. Pivot! PIVOT!
That's not just what Ross screamed as he, Chandler and Rachel tried to haul a couch up a tight staircase in an episode of Friends. It's also a niche strategy in the ETF world.
Moving from one **** et to another in response to market conditions isn't new, but its use inside ETFs remains relatively uncommon. Alongside buffer ETFs and low-volatility funds, trend-following products fit into broader risk-management strategies. Clients give up some upside in exchange for a measure of downside protection by shifting into more defensive **** ets when markets slip. There are some 32 trend-following ETFs now trading on US exchanges with total **** ets under management of $3.5 billion, per etf.com data. As advisors increasingly seek protection from market swings, issuers are positioning trend-following products as a core allocation in portfolios.
"If you're looking at these from a total return perspective, you're not going to get as much because you're probably getting out early," said Dan Sotiroff, **** ociate director at Morningstar. He added that these strategies can also be vulnerable to false signals and whipsaws, causing allocations to change at inopportune times.
Pivot. Pivot! PIVOT!
That's not just what Ross screamed as he, Chandler and Rachel tried to haul a couch up a tight staircase in an episode of Friends. It's also a niche strategy in the ETF world.
Moving from one **** et to another in response to market conditions isn't new, but its use inside ETFs remains relatively uncommon. Alongside buffer ETFs and low-volatility funds, trend-following products fit into broader risk-management strategies. Clients give up some upside in exchange for a measure of downside protection by shifting into more defensive **** ets when markets slip. There are some 32 trend-following ETFs now trading on US exchanges with total **** ets under management of $3.5 billion, per etf.com data. As advisors increasingly seek protection from market swings, issuers are positioning trend-following products as a core allocation in portfolios.
"If you're looking at these from a total return perspective, you're not going to get as much because you're probably getting out early," said Dan Sotiroff, **** ociate director at Morningstar. He added that these strategies can also be vulnerable to false signals and whipsaws, causing allocations to change at inopportune times.
4 months ago
