DMany advisors are worried about global equity market valuations, particularly in light of the recent pullback. However, diversifying into bonds in this current yield environment isn’t very attractive. It is necessary to find a new way to generate long-term consistent returns. This approach will use all of the tools available to manage risk while maximizing potential returns.
The webcast will be available soon Stacking Returns Strategies to Overcome a Low Return EnvironmentCorey Hoffstein (co-founder and CIO at Newfound Research); Rodrigo Gordillo president and portfolio manager, ReSolve Asset Management Global and Jeremy Schwartz global CIO at WisdomTree Asset Management will present new and compelling research suggesting that capital efficiency maximising the amount of work each invested dollar does in a Portfolio could be the key to unlocking a next generation total return portfolio. This provocative discussion is not to be missed.
For example,Strategy SharesNewfound/ReSolve Robust Momentum Index ETF (ROMO)It reflects the Newfound/ReSolve Robust Equity Momentum Index’s performance. This strategy is based on Newfound Research’s style of managing tactical equity strategies. The ReSolve principals have been doing this since 2009.
The Newfound/ReSolve Robust Equity Momentum Index gathers the votes of thousands upon thousands of simple models each week. It seeks robustness through simplicity and diversification, rather than complexity. The index favors out-performing equity regions, and avoids perennial losers by allocating toward the equity region exhibiting the highest relative performance. The index seeks not to be affected by prolonged equity market declines and allocates towards short- and intermediate-term U.S. Treasuries if global equity market returns turn down.
Something like the recently launched WisdomTree Target Range Fund, (GTR).An actively managed ETF can help you gain capital and also serve to hedge your risk. GTR is committed to pursuing these objectives and will follow the TOPS global equity target range methodology.TMIndex. GTR uses a call spread strategy that seeks to replicate the returns of the index, but its returns will not match those of the index due to the amount of assets that flow into and out of GTR as well as GTR’s fees and expenses.
Investors can look at the following for a more domestic focus: WisdomTree U.S. Growth & Momentum FundThe ONeil Growth Index is tracked at. The WGROs roster consists of large- and middle-cap equities with favorable momentum and growth characteristics.
Financial advisors interested in stacking returns strategies may want to learn more. Register for the Friday, January 28, webcast here.
The views and opinions expressed in this article are those of the author and not necessarily those of Nasdaq, Inc.