February’s increased volatility impacted both equities and fixed income, reminding all investors of the havoc that shifting interest rates can have on their portfolios. The correction occurred as U.S. bond yields headed higher, signaling a sell-off in the debt markets while also making equities less appealing.Leave a comment
For income investors, the recent uptick in short-term interest rates served as a reminder that their bond portfolios remain vulnerable to risk. Rising interest rates tend to erode the value of a bond portfolio, leaving investors vulnerable to declines in portion of their portfolio which is supposed to be relatively safe.Leave a comment
Bonds serve a crucial role in helping investors reach their investment goals. They generate income, provide a measure of principal protection and can mitigate volatility.
In today’s low-yield environment, fixed-income returns are uninspiring. Many advisors are looking to diversify beyond traditional fixed-income asset classes, and senior loans are an attractive floating-rate option for some investors.Leave a comment
Modern behavioural science is revolutionizing fields as diverse as medicine, government policy and sports management. Nowhere does it have more potential to add value than in the field of finance, in my opinion. Case in point: smart beta factor-based ETFs.Leave a comment
Across Canada, market participants – advisors and investors alike – access market data for securities through sophisticated market tools, such as Bloomberg and Thomson ONE. This data includes last price, bid/ask and volume, all of which play a crucial role in making trading decisions.
Income can be tough to find in today’s market. And for many investors, a monthly dividend payment is their primary investment goal. With domestic opportunities offering fewer diversification benefits, many investors are looking beyond the local markets for dividend income with greater diversification.
Factor investing has attracted a lot of attention from investors and media recently, but its roots can be traced back to the 1960s. As innovators in the factor-investing space, we believe in pushing the boundaries of portfolio construction with factor-based methodologies that go beyond traditional indices, allowing investors to target specific risk/return objectives with more precise portfolio-building tools.Leave a comment
With interest rates at historic lows, investors entering retirement may be struggling to secure adequate income from their investments – particularly where capital preservation is also a priority.Leave a comment
Investors tracking market-cap-weighted indices may be exposed to several flaws inherent to that approach. A rules-based Fundamental Index® approach focuses on the strength of the underlying business by looking at sales, cash flow, dividends and book value.Leave a comment
We hosted two experts from S&P Dow Jones Indices for an in-depth conversation about low-volatility as an investment factor. In this final installment of the interview, we discuss different advisor views on low volatility, how it pairs with other factors and how it can be used in portfolios.Leave a comment
As market volatility continues unabated, investors across the globe are seeking out tools, strategies and solutions to reduce their overall risk while still reaping the rewards that equity investing can provide. Low-volatility strategies have become valuable tools for many investors and advisors, but are all low-volatility strategies created equal?Leave a comment
With market volatility on the rise and continued uncertainty around the globe, low-volatility investing has become a valuable tool for providing risk-reduced equity exposure in investor portfolios.Leave a comment
“Sell in May and go away” is a well-known market adage that warns investors to sell their equity holdings in May to avoid the typically volatile May-to-October period. Historically, stocks have underperformed in this six-month (“unfavourable”) period, compared to the six-month (“favourable”) period from November through April.Leave a comment
Limit orders offer advantages over market orders because they provide certainty on the trade price and act as a guard against overpaying. A market order may be effective when placing small trades in highly liquid ETFs, but there is a risk that it could sweep indiscriminately through the order book, leading to an undesirable price. A limit order, however, sets the price at which you are willing to transact. The closer your price is to the bid or ask, the greater the probability that your sell or buy will be executed. The use of a limit order is not without risk, as your trade may not be executable at the specified price.Leave a comment