In case you weren't able to listen to last week's Inside ETFs webcast, 'Building the Best ETF Portfolios in the World,' here is a brief summary of what Astoria discussed.
1) UW fixed income & hedge out interest rate risk: Most parts of fixed income are crowded, expensive, and vulnerable. Investors have put $2.5 trillion into bonds since '09. There are slim pickings in our view. Astoria likes floating rate loans, mortgage backed securities, ultra short duration bonds, short duration IG credit, and short duration high quality munis.
2) Commodities: A classic late cycle play, attractive supply/demand characteristics, and a hedge against inflation.
3) Equities: Mixing several factors in a portfolio is better than just owning beta. Value, momentum, quality, and low volatility are amongst our favorites. If you are a long term investor, don't give up on Rest of World equities but make sure you hedge out your risk by owning US stocks. The US is leading the global economy and is the most attractive from an earnings growth perspective.
4) Alternatives: Astoria likes systematic hedge fund replication strategies (risk reducer) and convertible bond strategies (return enhancer).
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Best, John Davi
Founder & CIO of Astoria
For full disclosure, please refer to our website: https://www.astoriaadvisors.com/disclaimer