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ETF Mid-Year Outlook & Investing Strategies

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·3 min read
In this article:
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  • (1:00) - Breaking Down The Recent Market Action: Have We Reached A Bottom?

  • (9:15) - Has Inflation Peaked: The Fed's Fight Against Recession

  • (13:50) - Portfolio Positioning: What Should Investors Expect From The 2nd Half of The Year?

  • (19:00) - Will Fossil Fuel Investments See A Boost?

  • (22:25) - Can We Reach Net Zero By 2050?

  • Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Kristy Akullian, Director on BlackRock’s iShares Investment Strategy team, about the market outlook and investing strategies for the second half of 2022. BlackRock, the world’s largest asset manager, offers about 400US listed iShares ETFs.

After a brutal first-half, stocks have rebounded this month as some investors believe that the sell-off could be reaching a bottom. Second quarter earnings reported so far have been better than feared.

Per iShares, we have entered a new regime marked by high volatility, inflation, and uncertainty.

While positioning the portfolio for the second half investors should focus on three themes: 1) embracing volatility, 2) living with inflation, and 3) the long-term impacts of shortages.

Low volatility ETFs like the iShares MSCI USA Min Vol Factor ETF USMV underperform the broader indexes during strong bull markets but hold up relatively well during market declines. The iShares Core High Dividend ETF HDV is also worth a look since high dividend-paying companies offer some stability in volatile markets. Johnson & Johnson JNJ and Exxon Mobil XOM are among the top holdings in these funds.

Recent inflation reports were hotter than expected and while there are still hopes that inflation might have peaked in June, it is expected to remain at elevated levels in the coming months.

Investors could look at the iShares 0-5 Year TIPS Bond ETF STIP and the iShares U.S. Pharmaceuticals ETF IHE for some protection against rising prices.

The iShares U.S. Oil & Gas Exploration & Production ETF IEO and iShares MSCI Global Agriculture Producers ETF VEGI are poised to benefit from shortages in energy and food products caused by the war. Longer-term focused investors could also look at products that invest in clean energy and future of food.

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.


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Johnson & Johnson (JNJ) : Free Stock Analysis Report
 
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
 
iShares U.S. Oil & Gas Exploration & Production ETF (IEO): ETF Research Reports
 
iShares U.S. Pharmaceuticals ETF (IHE): ETF Research Reports
 
iShares Core High Dividend ETF (HDV): ETF Research Reports
 
iShares MSCI USA Min Vol Factor ETF (USMV): ETF Research Reports
 
iShares MSCI Global Agriculture Producers ETF (VEGI): ETF Research Reports
 
iShares 05 Year TIPS Bond ETF (STIP): ETF Research Reports
 
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