We Are No Longer Bullish On Market Cap Weighted ETFs
We have substantially reduced our exposure to market cap weighted ETFs. In the past, our core ETF holdings were market cap weighted and that worked well. To be clear, in the past we were balancing out our factor exposures via specific bets to the momentum, value, and size factor. However, our exposure to the beta factor had trumped others. Being long beta was the 'winning trade' during the QE induced liquidity rally from 2010-2016. Why? Central Banks purchased $15 trillio
If You Don't Own Commodities, Your Portfolio Is Misallocated
Investors continue to plow money into expensive assets and ignore one of the cheapest assets in the world – commodities. Because commodities have drastically underperformed stocks and bonds during the current cycle, commodities are severely under-owned in most portfolios. This is not surprising, as most portfolios tend to be backwards looking (i.e. let’s buy what’s worked recently). Click here to read the full research report Click here for source
