Over the weekend, we got several reports out of China that indicated that the world’s second-largest economy now is backsliding on its targeted growth rate in the 7.5% annual range. Then there’s the continued slowdown in Europe, which has put downward pressure on the region’s economy and on the equity markets of the European Union (EU).
Volatility, the potential for the market or a stock to swerve sharply in value, serves as a deterrent for many prospective investors.
All we need to look at is four key ETFs that will tell us what need to know about what’s going on in the major markets around the globe.
A key reason a person might invest in a smart beta fund would be to use the fund’s formula to invest more heavily in quality equities that are underrepresented in a typical market-cap-weighted exchange-traded fund (ETF). One quality indicator in a stock is whether or not it issues a dividend.
What can you say about the world of exchange-traded funds (ETFs) besides the fact that they are just red hot?
Although “smart beta” funds also follow a passive index like other ETFs, the smart beta funds do so in ways besides the traditional market-cap-weighted approach.