Your weekly update on top ETF trends
 | FRI, APR 01, 2022 | | | |
| | | YOUR WEEKLY UPDATE ON TOP ETF TRENDS | | | | |
ESG is still a hot topic, but how do we agree on what it is? Environmental, Social and Governance (ESG) ETFs continue to attract big money, but the inability to clearly define what is being measured has attracted a lot of criticism, including from the head of the SEC, Gary Gensler. Join us Monday on ETF Edge at 1 PM ET when our guests will be Larry Swedroe, Chief Research Officer at Buckingham Strategic Wealth, and co-author of the new book, "Your Essential Guide to Sustainable Investing." Larry will break down what he believes is – and isn't – working when it comes to ESG investing. He will be joined by Mona Naqvi, Global Head of ESG Capital Markets Strategy at S&P Global. ETFedge.cnbc.com. Bond funds seeing big outflows. Some large ETF bond funds are seeing significant reductions in shares outstanding as investors pull out of the space, particularly high yield. iShares iBoxx High Yield Corporate Bond ETF (HYG) has seen shares outstanding drop nearly 30% this year, the SPDR Bloomberg High Yield (JNK) about 25%, and the iShares Investment Grade Corporate (LQD) roughly 7%. More volatility ETFs. They're controversial, but they're still around. Volatility Shares has launched two new volatility ETFs this week… The -1x Short VIX Futures ETF (SVIX) seeks to provide daily investment results that track the daily inverse performance of a basket of first- and second-month VIX futures contracts (the keywords here are daily and inverse). The 2x Long VIX Futures ETF (UVIX) seeks to provide daily investment results that correspond to twice the performance of a basket of first- and second-month VIX futures contracts that are rolled daily. You knew this was coming...a stagflation ETF in registration. I love how ETFs can capture the zeitgeist (and whatever investing fad has come along) better than any other investing vehicle. There are a raft of ETFs in registration that are going to capitalize on stagflation (Merk Stagflation ETF), the gyration in interest rates (Global X Interest Rate Volatility & Inflation Hedge ETF), and just in time for climate change, the Procure Disaster Recovery ETF (FEMA—get it?) that will invest in companies that provide products and services needed for an area to recover from a natural disaster such as severe storms, droughts, wildfires or earthquakes—tired of all the ESG talk? You're gonna love the ESG Orphans ETF, which goes in the other direction—investing in alcohol, fossil fuel energy, gambling, electric utilities, tobacco and weapons/firearms industries. |
For more analysis and actionable insights, catch me live this Monday at 1 PM ET on ETF Edge. |
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