ETF Talk: Sultans of Market Swing

ETF Talk: Sultans of Market Swing

And then the man, he steps right up to the microphone
And says at last just as the time bell rings
“Goodnight, now it’s time to go home”
Then he makes it fast with one more thing
“We are the Sultans
We are the Sultans of Swing”

— Dire Straits, “Sultans of Swing”

You may have felt your stomach in your throat over the last two weeks as the market swung low, then back up on news of President Trump’s “Liberation Day” tariffs and the swiftly following 90-day pause.

I don’t need to tell you that “tariffs” and “liberation” are two words that don’t belong together. Tariffs are an infringement on your liberty, and destructive policy tools that will harm the world.

That said, we are still on this wild ride and must plan accordingly as the administration continues its trade war. So, how do you become a sultan of market swings in times like these? One way is to invest in exchange-traded funds (ETFs) like SPDR Portfolio MSCI Global Stock Market ETF (SPGM) to broaden your portfolio and add stability.

This ETF is a low-cost option offering broad exposure to developed and emerging global equities across the market-cap spectrum. The fund corresponds with and aims to match the return of the MSCI ACWI IMI Index, a free float-adjusted market capitalization-weighted index designed to measure the combined equity market performance of developed and emerging markets.

With excellent diversity in large-cap stocks, this passively managed global fund spreads its weight across all markets, making SPGM an appealing option for investors looking to simplify their portfolios and minimize rebalancing obligations.

This fund has holdings in a few dozen countries around the world, including established markets like the United States, 63.28%, Japan, 5.58%, and the United Kingdom, 3.63%, as well as emerging markets like China, 2.83%, India, 2.20%, and Taiwan, 1.73%.

Such geographical diversity is a good thing, given the current market volatility caused significantly by President Trump’s back-and-forth tariff twists and turns. SPGM was built to provide exposure to core asset classes across the globe, which could help investors make any further market swings feel less violent.

The fund has $929.80 million in assets under management and a low expense ratio of 0.09%. It also provides a nice 2.02% yield. It is down 3.93% over the last month, 1.58% for the last three months and 1.58% year to date.

SPGM has a huge basket of stocks, and Technology is its top sector with a weighting of 22.14%. Other top sectors in the fund are Financials, 17.99%; Industrials, 12.03%; Consumer Discretionary, 11.00%; and Health Care, 10.37%.

Top holdings include familiar big names, such as Apple, Inc. (AAPL), 3.56%, Microsoft Corporation (MSFT), 3.40%, NVIDIA Corp. (NVDA), 3.37%, Amazon.com Inc. (AMZN), 2.10%, Meta Platforms, Inc. (META), 1.51%, Alphabet, Inc. Class A (GOOG), 1.09%, Alphabet, Inc. Class C (GOOGL), 1.06%, Broadcom Inc. (AVGO), 1.03%, JPMorgan Chase & Co. (JPM), 0.99% and Taiwan Semiconductor (TSM), 0.83%.

Chart courtesy of Stockcharts.com.

Though economic policy has been menacing markets, not all is dire straits (pun intended), as big tech has been given a reprieve. President Trump’s exempting some big tech companies from tariffs is good news for this fund, as major holdings Apple, Nvidia and Taiwan Semiconductor dodge this tax bullet (for now, at least). While Commerce Secretary Howard Lutnick stated these exemptions are temporary, with new sector tariffs possible, another market swing may make the administration too queasy to follow through. Time will tell.

While you wait, it warrants asking yourself if you want to enter the investment arena despite the current tariff-related risk. For those stepping up to the microphone willing to consider buying shares of SPGM, you may end up feeling like a king — or even a “sultan” — of market swing!

You don’t need me to tell you that this could be a wild ride. Investors should always do their due diligence before adding any stock, fund or ETF to their portfolio.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.