Betting against momentum and large-cap growth continues to be a losing proposition, at least in relative terms, for positioning US equity portfolios in 2024, based on a set of factor ETFs.
Betting against the hottest equity risk factors this year has been a painful strategy. But no matter how you slice the numbers, momentum and large-cap growth continue to outperform in 2024, based on a set of ETFs through yesterday’s close (Aug. 27).
With the first half of 2024 now behind us, here is a snapshot of asset class performance across the financial landscape using US-listed ETFs and other exchange-traded products.
The March CPI came in a little hotter than expected, derailing Fed interest rate cut forecasts and encouraging additional flight to the mega-caps. What would you do?
Shares of small companies and value stocks have had a tough time keeping up with the broad market in recent years, and the headwind for these risk factors is still blowing so far in 2024.
Will 2024 mark the return of the momentum factor to the performance spotlight? This risk premium’s star faded in 2023, but there are hints that a rebound may be brewing for this slice of the equity risk premium.
Large-cap shares remains on track to dominate US equity factor performance for 2023, based on a set of ETFs through Wednesday’s close (Oct. 25). Within the large-cap space, technology shares are the driving force behind the outperformance.
Big-cap growth is back. After taking a back seat to various flavors of small-cap and value factors earlier in 2023, the large-company growth risk factor is again leading the horse race.
The strong outperformance of high-beta stocks shows no sign of relinquishing leadership in the US equities market this year, based on a set of ETF proxies.
Is this just another bear market rally that’s going to peter out, or is this the beginning of a new bull market? Analysts will tell you when it’s safe to go back in the pool, but you should really get in the pool when it is still dangerous to get in.
It’s too early in the new year to draw hard conclusions, but the initial results for 2023 through the first half of January show a broad-based rally in most equity factors led by so-called high beta shares, based on a set of ETF proxies.
During the fund-flows week ended July 27, 2022, investors were overall net purchasers of fund assets (including both conventional funds and ETFs) for the third week in four, adding a net $6.1 billion.
With just over a month to go until we put a fork in 2021, high beta stocks look set to deliver the strongest performance among US equity factors this year, based on a set of ETFs.
The selling is now in a situation where it could take on a life of its own, creating an environment where the bearish tide takes all stocks out to sea with it. Except, not all stocks are actually being taken out to sea.
The strategy of holding stocks with the highest beta risk have stumbled recently, but remain comfortably in the lead year to date for US equity factors, based on a set of exchange traded funds.
