Many advisors are concerned about the valuations of global equity markets, despite the recent pullback. But in the current yield environment, simply diversifying into bonds isn’t particularly attractive. What’s really needed is a new approach to generating long-term consistent returns that uses all the tools in the toolbox to manage risk and enhance potential returns at the same time.
In the upcoming webcast Stacking Returns Strategies to Overcome a Low Return EnvironmentCorey Hoffstein (co-founder and CIO at Newfound Research); Rodrigo Gordillo president and portfolio manager at ReSolve Asset Management Global; Jeremy Schwartz global CIO at WisdomTree Asset Management will present new and compelling research suggesting that capital efficiency maximising the amount of work every dollar does in a portfolio could help unlock a next generation total return portfolio. You won’t want to miss this provocative discussion.
The example of this is theStrategy SharesNewfound/ReSolve Robust Momentum Index ETF (ROMO)This strategy tries to reflect the performance the Newfound/ReSolve Robust Equity Momentum Index. This strategy attempts to adopt a style borrowed from Newfound Research. It has been helping to manage tactical strategies since 2008, and the ReSolve principals 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 is biased towards outperforming equity regions. It avoids perennial losers by allocating to the equity region with the highest relative performance. The index is designed to minimize the impact of long-term equity market declines by allocating towards U.S. Treasuries in short- or medium-term situations when global equity markets returns turn negative.
Something similar to 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 will pursue these objectives by following 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 by, The WGROs roster consists of large- and middle-cap equities with favorable momentum and growth characteristics.
Financial advisors who are interested to learn more about stacking returns strategies should register here for Friday, January 28th webcast.