ETF of the Week

VettaFi’s vice chairman Tom Lydon discussed the iShares 20+ Year Treasury Bond ETF (TLT) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” The first half of 2022 proved painful for bonds in particular but with recession risk now top of mind for many advisors and investors, the dual benefit of recession hedge and cheaper price could make TLT an attractive fund. Bonds have traditionally been a safe haven asset in times of recession and in the last week there has been nearly $800 million of net inflows into TLT. With interest rate risk already priced in, the fund has an effective duration of 18.16 years.

VettaFi’s vice chairman Tom Lydon discussed the XTrackers S&P 500 ESG ETF (SNPE) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” SNPE provides exposure to the S&P 500 but through an environmental, social, and governance lens. The S&P 500 ESG Index that the fund seeks to track utilizes ESG factors and criteria for inclusion while excluding companies that don't have sufficient UN Global Compact scores or else participate in certain industries such as tobacco, controversial weapons, and thermal coal. ESG is going to be a growing part of the investiong equation looking ahead both from a regulatory risk perspective as well as a climate risk perspective and SNPE seeks to provide performance while also reducing risk.

VettaFi’s vice chairman Tom Lydon discussed theKFA Mount Lucas Index Strategy ETF (KMLM) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” Alternatives have become an attractive option for many advisors and investors in an environment where both bonds and equities are challenged. Managed futures funds have offered returns during the prolonged period of market volatility and have become a popular option within alts. KFA Funds, a KraneShares company, invests in futures contracts within commodities, currencies, and global fixed income. KMLM offer possible hedges for equity, bond, and commodity risk and has demonstrated a negative correlation to both equities and bonds in bull and bear markets.

VettaFi’s vice chairman Tom Lydon discussed the iMGP DBi Managed Futures Strategy ETF (DBMF) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” The challenges that portfolios are facing this year in both equities and bonds have given rise to a growing interest in alternatives, and the uncorrelated benefits that managed futures can offer portfolios has caused an influx of interest and flows in the first half of the year. Managed futures can provide both diversification opportunities as well as the potential for "crisis alpha" in their ability to seek out the pockets of opportunity during market dislocations. DBMF is an actively managed fund that seeks to replicate the performance of the 20 largest managed futures hedge funds at ETF fee prices.

VettaFi’s vice chairman Tom Lydon discussed the VanEck ChiNext ETF (CNXT) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” While the U.S. engages in a policy of fiscal tightening, China is easing, with the Shanghai Composite and CSI 300 both in a two-month rally that has resulted in a gain of 13%. While mainland markets have had challenges this year, the recovery and supportive fiscal policies have equated to outperformance compared to other emerging and developed markets. CNXT tracks the ChiNext Index which is comprised of the 100 largest and most liquid securities listed on the ChiNext Market on the Shenzhen Stock Exchange, and invests in China A-shares, the stocks that trade in mainland China.

VettaFi’s vice chairman Tom Lydon discussed the Pacer Industrials and Logistics ETF (SHPP) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” Since the onset of the pandemic in 2020, supply chains have experienced a supply and demand mismatch that has only been further exacerbated by the war in Ukraine and lockdowns in major port cities in China. SHPP seeks to offer exposure to the companies that support and allow global supply chains to function. The fund has exposure to a broad swathe of supply chain related companies, from railways to domestic and international shipping companies such as FedEx.

In May the U.S. dollar hit a two decade high, with rising interest rates offering support forward-looking. It reflects the increased risk aversion that investors are having in the current market environment, creating greater strength for the dollar as they move away from riskier assets. When stacked up against foreign currencies, the dollar remains one of the strongest global currencies currently with the euro weakening on Russian oil embargo concerns while the Japanese yen remains at almost two-decade lows. UUP tracks the value of the dollar relative to a basket of six major world currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc.

VettaFi’s vice chairman Tom Lydon discussed the abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF (BCIM) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” BCIM offers investors a targeted way to capture exposure to the the growing demand in raw materials globally by investing in futures contracts of aluminum, copper, nickel, and zinc. The energy transition will continue to drive demand for industrial metals as almost all renewable energy option utilizes these metals. Supply side issues created due to the war in Ukraine and shortage of Russian metals such as nickel and aluminum have created an underlying support for the metals market.

VettaFi’s Vice Chairman Tom Lydon discussed the Neuberger Bergman Disrupters ETF (NBDS) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” NBDS is part of an active suite of ETFs launched by Neuberger Berman and containts a high conviction, all-cap portoflio of companies that are either disrupting existing markets or are creating their own new ones. The fund seeks to maximize returns through its concentrated, low-turnover portfolio of companies that it believes are on the leading edge of innovation across multiple themes.

Vettafi’s Vice Chairman Tom Lydon discusses the Merk Stagflation ETF (STGF) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. STGF offers investors a way to benefit in an environment of stagflation where there is persistent, high inflation coupled with slow economic growth. The fund includes a dynamic basket of inflation hedges and invests in gold, oil, real estate and TIPS, all through other ETFs, as well as dynamically rebalancing its allocations.

With inflationary indicators signalling longer-term potential, such as the expected rise of shelter within CPI (rent generally lags anywhere from a year to 18 months beyind home prices), and wholesale inflation high in April, now is the time to consider inflation-oriented funds. RAAX is actively managed and invests in exchange traded products with exposure to real assets like commodities, real estate, infrastructure, and natural resources. It provides an inflationary hedge, a leverage to global growth, and is a portfolio diversifier.

ETF Trends’ CEO Tom Lydon discusses the SPDR S&P 500 Dividend ETF (SDY) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. As stock markets plunge after the Fed announcement of a 0.50% interest rate increase and balance sheet tightening in June, investors continue to seek out steady-paying dividend ETF strategies. Analysts believe that income-generating securities are becoming one of the new safe havens as growth and tech stocks continue to fall. SDY provides a potential hedge against inflation by investing in companies that have increased their dividends for the past 20 consecutive years.

ETF Trends’ CEO Tom Lydon discusses the Invesco Water Resources ETF (PHO) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. Water scarcity is becoming increasingly common globally, with a 57% decrease in renewable water between 1962 and 2017. A McKinsey study estimates that global demand for water will outstrip supply by 40% by 2030. Addressing water scarcity will require technological solutions and investment. PHO invests in U.S. exchange-listed companies within the water industry that create products to purify and conserve water for homes and industries.

ETF Trends’ CEO Tom Lydon discusses the India Internet and Ecommerce ETF (INQQ) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. INQQ offers investors exposure to the favorable demographic trends in India, with over a quarter of the world's Gen-Z population and a middle class that should double by 2030. India is the world leader for start-ups and has had more than 70 unicorns, or companies that have an IPO of $1 billion or higher. Regulatory support continues from a government perspective for the digitization of India. INQQ currently is comprised almost entirely of small- and mid-caps, offering great growth opportunity for investors.

ETF Trends’ CEO Tom Lydon discusses the U.S. Global Jets ETF (JETS) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. Brazil has been a strong outperformer within emerging markets, up 38% year-to-date, with strong fundamentals such as a stabilizing consumer confidence index, high interest rates proving attractive for carry trades, and retail sale growth. Brazil is a large exporter of crude oil, iron, sugar cane, and coffee bean and with the Russia/Ukraine war, has experienced rising commodity and energy prices. FLBR offers access to the Brazilian stock market at attractive prices and tracks large- and mid-cap companies within Brazil.

ETF Trends’ CEO Tom Lydon discusses the U.S. Global Jets ETF (JETS) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. There is an uptick in travel demand as COVID-19 concerns retreat for many. February saw travelers spending an estimated $6.6 billion on domestic flights, up 6% from three years ago in pre-pandemic times. Airliners are passing on rising fuel costs to customers in the form of higher ticket prices and remain confident that they can maintain revenues despite rising gas and oil prices. JETS offers exposure to the global airline industry, both manufacturers and operators.

ETF Trends’ CEO Tom Lydon discusses the Emerging Markets Internet & Ecommerce ETF (EMQQ) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. EMQQ is a broad strategy of gaining exposure to the emerging middle-income consumer classes in developing countries and is up 33% since mid-March lows. Developing countries make up 85% of the world's population and have a greater demographic of young people, have faster growth rates, and make up 50% of the global GDP. Investors are traditionally underweight in emerging markets and by putting emphasis on the consumer sectors, it could help to drive growth for fundamentals that are improving.

ETF Trends’ CEO Tom Lydon discusses the Vangaurd S&P 500 ETF (VOO) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. Markets have had a month to digest the Russia-Ukraine war and the initial panic and uncertainty of the invasion by markets has settled into a more predictable pace as analysts determine what areas of the global economy are impacted specifically. The underlying economic fundamentals in the U.S. remain strong, with unemployment benefit rolls at their lowest in 52 years and manufacturing and homebuilding both increasing in February. VOO is currently offering a cheaper entry point for investors, trading at 19.7 price-to-earnings compared to the 26.1 P/E ratio of the S&P 500 at the beginning of 2022.

ETF Trends’ CEO Tom Lydon discusses the SPDR S&P Oil and Gas Exploration and Production ETF (XOP) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. The Russia/Ukraine war have caused market volatility and concerns around the global supply of oil and natural gas. Russia makes up up for 10% of crude oil supply and banking sanctions have meant that the vast majority of it cannot be touched. Increasing energy prices equate to increasing demands on energy companies to increase both drilling and the number of oil wells they have. XOP provides exposure to oil and gas production and exploration.

ETF Trends’ CEO Tom Lydon discusses the Aberdeen Standard Physical Palladium Shares ETF (PALL) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. The invasion of Ukraine by Russia and subsequent war has driven up palladium prices significantly, which began 2022 around $1,900 an ounce and have spiked above $3,000 an ounce. The current conflict puts a big portion of the world's palladium supply in question as it is a Russian export. PALL is a physically backed palladium ETF, with each share equating to around 0.0942 ounces of palladium.

ETF Trends’ CEO Tom Lydon discusses the Invesco DB Agriculture Fund (DBA) this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. Increasing energy costs combined with the potiential ripple effects from war in Ukraine could drive U.S. farm crop prices higher. Invesco DB Agriculture Fund (DBA) provides investors a convenient and cost-effective way to invest in agricultural commodity futures. The invasion and outbreak of war in Ukraine stands to potentially impact agriculture the world over in many ways, from Russian price gouging of fertilizer (a major export from Russia), to up to 12% of global wheat exports and 13% of global corn exports being affected out of Ukraine. Collectively, Russia and Ukraine make up 30% of the world's global wheat exports. The effects of war could have widespread implications for agriculture.

ETF Trends’ CEO Tom Lydon discusses the AXS Astoria Inflation Sensitive ETF (PPI) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. PPI is a strategey that advisors can use that embraces the inflationary environment by investing in "inflation-sensitive" assets to limit inflation risk. The fund is actively managed and has broad, multi-asset exposure to sectors and securities that could potentially benefit from rising prices. By investing in a diversification of asset classes within one fund, it may help to create a more heightened buffer against inflation.

ETF Trends’ CEO Tom Lydon discusses the IQ Healthy Hearts ETF (HART) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. HART is a "dual impact" ESG ETF that is designed to offer investors an innovative thematic strategy connected to key sustainability priorities, while advancing social good. The fund was created in alignment with the American Heart Association and invests in companies that reflect their core initiatives of healthy, active lives as well as the treatment of cardiovascular disease. IndexIQ, the issuer. along with New York Life Investments, will make ongoing contributions to the American Heart Association's Social Impact Fund.

ETF Trends’ CEO Tom Lydon discusses the XTrackers MSCI All World ex US-Hedged Equity ETF (DBAW) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. DBAW is a pure play on international equities that eliminates the need for foreign exchange currency risks. Unhedged international positions can create greater volatility within a portfolio, particularly in an environment of global inflation. DBAW tracks the performance of equity securities in developed and emerging markets while also mitigating the currency value fluctuations of the countries invested in.

ETF Trends’ CEO Tom Lydon discusses the Simplify Health Care ETF (PINK) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. PINK is an actively managed fund that provides thematic exposure to some of the fastest growing areas within the healthcare sector. The fund offers multi-cap exposure to companies in biotech, medtech, gene therapy, and others. Simplify donates all of its net profits from management of the fund to Susan G. Komen, a leader in the fight against breast cancer.

ETF Trends' CEO Tom Lydon discusses the SPDR Blackstone Senior Loan ETF (SRLN) on this week's ETF of the Week podcast with Chuck Jaffe on the MoneyLife Show. SRLN is an alternative fixed-income idea that can potentially help diversify a more traditional portfolio as well as enhace the possible yield generation while defending against rising interest rates. Senior loans historically have performed better with greater income and less volatility compared to other fixed income asset classes.

ETF Trends' CEO Tom Lydon discusses the Alerian Energy Infrastructure ETF (ENFR) on this week's ETF of the Week podcast with Chuck Jaffe on the MoneyLife Show. The midstream energy sector could be positioned favorably for 2022 as both energy and midstream both tend to do well in inflationary times. ENFR seeks to track the performance of the Alerian Midstream Energy Select Index, an index comprised of North American midstream companies that include MLPs in the U.S. and Canada.

ETF Trends' CEO Tom Lydon discusses the ALPS Sector Dividend Dogs ETF (SDOG) on this week's ETF of the Week podcast with Chuck Jaffe on the MoneyLife Show. SDOG has a high conviction tilt toward income with screening that is isolated at the sector level. The fund provides high dividend exposure by selecting the five highest yielding securities in all of the eleven GICS sectors except Real Estate and provides exposure to value.

ETF Trends CEO Tom Lydon discussed the ETF of the Week: the Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL) IVOL is a first-of-its-kind ETF designed to hedge risk related to volatility within fixed income or increasing inflation expectations and is actively managed.

ETF Trends’ CEO Tom Lydon discusses the iShares TIPS Bond ETF (TIP) on this week’s ETF of the Week podcast with Chuck Jaffe on the MoneyLife Show. Treasury inflation-protected securities are a great option for fixed-income investors to hedge their portfolio against rising inflation.

The Simplify Interest Rate Hedge ETF seeks to hedge interest rate movements from increasing long-term interest rates. The fund also benefits from market stress when fixed income volatility increases, while still providing the potential for income.

ETF Trends CEO Tom Lydon discussed the ETF of the Week: ARK Transparency ETF (CTRU) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show. The ARK Transparency ETF seeks to provide investment results that closely correspond, before fees and expenses, to the Transparency IndexTM (TRANSPCY), which is designed to track the stock price movements of the 100 most transparent companies in the world.

ETF Trends CEO Tom Lydon discussed the Columbia Multi-Sector Municipal Income ETF (MUST) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show. MUST seeks investment results that, before fees and expenses, closely correspond to the performance of the Index. The fund invests at least 80% of its net assets in bonds and other debt instruments issued by or on behalf of state or local governmental units whose interests are exempted from US federal income tax.

ETF Trends CEO Tom Lydon discussed the KraneShares Global Carbon ETF (KRBN) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show. KRBN seeks to provide a total return that, before fees and expenses, exceeds that of the IHS Markit Global Carbon Index over a complete market cycle. The fund is benchmarked to IHS Markit’s Global Carbon Index, which offers broad coverage of cap-and-trade carbon allowances by tracking the most traded carbon credit futures contracts. The index introduces a new measure for hedging risk and going long the price of carbon while supporting responsible investing.

ETF Trends CEO Tom Lydon discussed the Schwab Ariel ESG ETF (SAEF) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show. SAEF is an active, semi-transparent (also known as non-transparent) ETF that invests in small- and mid-cap stocks that have been screened based on environmental, social, and governance (ESG) factors.

ETF Trends CEO Tom Lydon discussed the Direxion Daily Travel & Vacation Bull 2X Shares (OOTO) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show. The Direxion Daily Travel & Vacation Bull 2X Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the BlueStar Travel and Vacation Index.

ETF Trends CEO Tom Lydon discussed the Invesco Global Clean Energy ETF (PBD) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show. This ETF offers exposure to the global clean energy index, including both U.S. and international stocks in the underlying portfolio. PBD also diversifies across various types of clean energy—such as wind, solar, and hydro—making it an interesting option for those looking to bet on a clean energy boom but unwilling to make a concentrated bet on a specific sub-sector.

ETF Trends CEO Tom Lydon discussed the KraneShares Asia Pacific High Yield Bond ETF (KHYB) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show. KHYB is an actively managed fund that provides broad exposure to high-yield bonds from the Asia-Pacific. The fund actively invests in high-yield debt securities of any maturity issued by governments and corporations from the Asia-Pacific region, including emerging and developed countries. Nikko Asset Management Americas Inc., the sub-advisor, uses top-down macro research and bottom-up credit research to construct its portfolio, using a proprietary process that combines quantitative and qualitative factors to assess an issuer’s credit profile, along with an assessment of a security’s value and relative value compared to other similar securities. KHBY may invest in other investment companies, including ETFs, and derivatives.

ETF Trends CEO Tom Lydon discussed the Invesco Russell 1000 Equal Weight ETF (EQAL) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show. EQAL is a variation on Invesco’s popular equal-weight S&P 500 ETF, taking the 1000 largest U.S. stocks in the Russell index and assigning them equal weight in the portfolio. The result is a sector and size mix that diverges significantly from the traditional index fund. Adherents of equal weighting argue that it eliminates the market-cap bias built into traditional indexes. At the same time, critics say that equal-weighting is just another way of tilting toward smaller companies in a portfolio.

ETF Trends CEO Tom Lydon discussed the ProShares Bitcoin Strategy ETF (BITO) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show. BITO is the first U.S. bitcoin-linked ETF offering investors an opportunity to gain exposure to bitcoin returns in a convenient, liquid, and transparent way. The Fund seeks to provide capital appreciation primarily through managed exposure to bitcoin futures contracts. BITO does not invest directly in bitcoin, and the price and performance of bitcoin futures should be expected to differ from the current “spot” price of bitcoin.

ETF Trends CEO Tom Lydon discussed the ProShares S&P 500 Ex-Sector ETFs Suite (SPXE, SPXN, SPXV, SPXT) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show. ProShares S&P 500 Ex-Sector ETFs focus on S&P 500 companies, exclusive of certain sectors. Each ETF seeks investment results, before fees and expenses, that track the performance of its index.

ETF Trends CEO Tom Lydon discussed the Next Frontier Internet & Ecommerce ETF (FMQQ) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show. FMQQ is designed to provide investors with exposure to the Internet and Ecommerce sectors of the developing world. Many investors believe that the growth of consumption in Emerging Markets represents a significant growth opportunity as more than one billion people are expected to enter the consumer class in the coming decades. Increasingly, these consumers are using smartphones and broadband mobile connections to access the Internet. FMQQ holds over 60 companies operating in Emerging and Frontier Markets beyond China, including India, Brazil, Russia, South Korea, Taiwan, and South Africa.

ETF Trends CEO Tom Lydon discussed the Goldman Sachs Future Tech Leaders Equity ETF (GTEK) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show. GTEK is a fully transparent, actively managed equity ETF that will generally invest in listed technology companies with market capitalizations of less than $100 billion across both developed and emerging markets. Goldman Sachs intends to invest in the fund alongside its clients.

ETF Trends CEO Tom Lydon discussed the Amplify Thematic All-Stars ETF (MVPS) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show. MVPS is a core thematic ETF investing in the themes and stocks considered most popular as determined by U.S. ETF ownership data. MVPS seeks investment results that correspond generally to the ETF All-Stars Thematic Composite Index.