Is 2022 finally the year when some active managers will outperform?

FRI, NOV 04, 2022

YOUR WEEKLY UPDATE ON TOP ETF TRENDS

A NOTE FROM BOB

Is 2022 finally the year when some active managers will outperform? It's looking that way. It's a bit of a joke: active managers almost invariably underperform their benchmarks and index strategies over time. But 2022 is seeing some active managers outperform. Among them are Commodity Trading Advisors (CTAs), who specialize in trading futures contracts. The problem: they are expensive. Is there a cheaper ETF for that? There is! The iMDBi Managed Futures Strategy ETF (DBMF) has been hugely successful and is one of the top performing ETFs of the year, up over 30%. It aims to emulate the performance of 20 CTA hedge funds. Find out more on ETF Edge at 1 PM Monday when we will be joined by Andrew Beer, founder of Dynamic Beta Investments and co-portfolio manager of DBMF; Andrew McOrmond, Managing Director at WallachBeth Capital, will also join us.

Van Eck has launched an ETF that looks for high yields anywhere it can find it. The VanEck Dynamic High Income ETF (INC) looks for the highest yielding instruments in dividend-paying stocks, business development companies (BDCs), preferred securities, mortgage REITs, and MLPs. INC's fixed income sleeve will be made up of exposures to "fallen angel" high yield bonds, international and emerging market high yield bonds, emerging market local currency bonds, and 10-20-year U.S. Treasuries.

For more analysis and actionable insights, catch me live this Monday at 1 PM ET on ETF Edge.

Bob Pisani
@BobPisani

KEY STORIES

Bond-based ETFs entice balance-seeking investors

As investors weigh the timing of a potential pivot from the Federal Reserve away from rising rates, more traders are seeking balance with longer-dated bonds.