|Bid||0.00 x 1300|
|Ask||0.00 x 900|
|Day's Range||70.15 - 70.15|
|52 Week Range||45.30 - 73.58|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||4.49%|
|Beta (5Y Monthly)||0.00|
|Expense Ratio (net)||0.45%|
In an effort to contain the coronavirus outbreak, the World Health Organization deemed the virus a global health emergency, which comes after the U.S. confirmed its first case of human-to-human transmission.
The U.S. is already taking measures to stave off any more infections domestically with proposed travel restrictions in the works. The restrictions could affect flights into and out of China, as well as airports across the United States, the officials said. Furthermore, organizations like the Center for Disease Control (CDC) are advising U.S. travelers to avoid the country of China completely.
Geopolitical risks from a U.S.-Iran conflict can put investors in a state of unease, and when that happens many market experts believe the best strategy to combat uncertainty is to get on the defensive. This could lead to trading options in relative value ETFs that highlight defensive sectors over cyclical sectors.
“After a 23% gain for the S&P 500 in 2019, many investors are rightfully cautious about more upside for stocks in 2020,” wrote Wayne Duggan U.S. News & World Report. “Cyclical stocks can be difficult to buy,” said Jim Paulsen, chief market strategist at Leuthold Group. “Moreover, the best time to buy economically sensitive stocks is typically when their fundamentals (e.g., earnings or sales growth) are less than stellar,” he added.
The markets, at times, exhibit uneven performances, and investors have been able to capitalize on the disparate returns in varying segments through ETFs that incorporate a relative weight strategy.
The Consumer Staples Select SPDR (NYSEArca: XLP) is staving off trade war news and hitting new highs, which could have consumer staples riding alongside its wave with strength in defensive equities over ...
In Direxion Investments' latest Relative Weight Spotlight, investors looked to add more international exposure as ETFs from abroad took in more capital in the month of October. "Notably, ETF investors continue to play defense in the aggregate as fixed income ETFs continue to take in the lion’s share of flows compared to equity ETFs," the post said. For example, after outperforming for two months, investors added more capital to international developed markets compared to U.S. exposures.
Investors caught bullish feelings thanks to progress on the U.S.-China trade deal, the avoidance of a hard Brexit, continued accommodating monetary policy, and another decent earnings season. In our opinion, investors may be showing some signs of complacency of a reflation trade considering that earnings are far from inspiring as beats are below average.
As more investors were heading into bonds amid the summertime volatility, they also added safer plays like consumer discretionary equities to their portfolios. XLY seeks investment results that correspond to the price and yield performance of publicly traded equity securities of companies in the Consumer Discretionary Select Sector Index. The index includes securities of companies from the following industries: retail; hotels, restaurants and leisure; textiles, apparel and luxury goods; household durables; automobiles; auto components; distributors; leisure products; and diversified consumer services.
It wasn’t too long ago when the capital markets were awash with strategic countermoves to a recession, such as piling into bonds and selecting equities that were deemed as value-oriented plays. Now, it might be that investors are once again mashing the risk-on accelerator pedal and opting for cyclical equities over defensive equities. As the S&P 500 and Dow Jones Industrial Average are roaring to new highs, it might seem that investors are keen to get back into cyclical equities given the latest optimism in the markets.
The capital markets typically view defensive equities as a strategy when investors play not to lose as opposed to simply playing to win. The shift to defense underscores the recent trend of investors looking towards more value-oriented plays in the capital markets. “The S&P 500 is back at all time highs but with even greater defensive leadership it may warrant investor caution with respect to a growth reacceleration,” Mike Wilson, Morgan Stanley’s U.S. chief equity strategist, said in a note to clients on Monday.
Consumer staples are having a banner year, but as fears of a recession coupled with slower global growth continue to settle in investors’ minds, will this portend to further strength or weakness? “I do think there are better places to be in the market,” Nancy Tengler, chief equity strategist at Tengler Wealth Management told CNBC.
Third-quarter earnings are off to a good start, but weaker-than-expected retail sales data stymied the market momentum. The Commerce Department said retail sales dropped 0.3% last month, which was marked by less spending on building materials, online purchases and automobiles. August data was revised higher to reflect retail sales gaining 0.6% as opposed to the initial 0.4% reading.
A lot of talk in the capital markets is the exodus of growth strategies and the comeback of value, but Goldman Sachs is still touting growth, but with a unique twist--growth via equities that have the propensity for stable earnings. Within the last two years, the stable growers portfolio has been yielding 22% versus 16% for the S&P 500 and 1% for growth stocks. As the investors' wall of worry gets bigger, stable growth cuts out the market noise and refocuses on the fundamentals via earnings.
Soon after the quarter-point rate cut by the Federal Reserve, U.S. President Donald Trump took to Twitter for another round of central bank criticizing. This time, he tweeted that the Fed had “no guts, no sense, no vision” after what appeared to be a divided central bank on where to take interest rate policy in the future.
More than ever, investors need to get strategic as trade wars, inverted yield curves and fears of a global economic slowdown weighing on the minds of investors. There’s a plethora of options available ...
Defensive stocks and sectors have been thriving lately and with concerns mounting regarding the strength of growth stocks, investors may want to take advantage of strength in the former and weakness in ...
Safe haven investing has been the default play as market volatility descended upon the capital markets the last two months, but simply playing defense won't cut it when it comes to gains. Investors need to not only play defense, but play defense strategically given the current market landscape. “A lot of people are looking at those consumer staples stocks,” said Dave Nadig, managing director at ETF.com on CNBC’s “ETF Edge.” “I get nervous about leaning hard into consumer staples because the definition isn’t what we think it is.
Crude oil continued to decline Monday on concerns that the global economy would deteriorate further after President Donald Trump voided a tariff ceasefire with China. As a result, West Texas Intermediate Crude Oil dropped 7.9% to $53.95. WTI broke a 5-day winning streak with its worst daily performance in more than 4 years, with ETFs like the United States Oil Fund (USO) , the VelocityShares 3x Long Crude Oil ETN (UWT) , and the ProShares Ultra Bloomberg Crude Oil (UCO) following suit, down more than 6%, more than 18%, and more than 12.25% respectively.
Data company FactSet has been warning investors about an earnings recession in the S&P 500. This recession risk could put defensive sectors in concentrated focus as opposed to the more cyclical sectors, which provides an opportunity for relative weight exchange-traded funds (ETFs). It’s the primary driver for investors looking for a rate cut to help prop up the market, especially after a U.S.-China trade deal that was supposed to happen eventually fell through.
As the Federal Reserve gave capital markets reason to brace themselves for interest rate cuts this year, investors can vacillate on whether they should pour funds into cyclical or defensive sectors. Led by a strong performance by the materials sector, cyclical sectors took the lead over defensive sectors in June following a volatility-laden May. "The dynamic between Cyclical Sectors and Defensive Sectors continues to be interesting," a Direxion Investments Relative Weight Outlook post noted.
Through Schwab ETF OneSource™, Investors Have Commission-Free Access to Direxion Strategies Designed for Capital-Efficient Execution of Cyclical Views NEW YORK , July 9, 2019 /PRNewswire/ -- Direxion is ...