Invesco Canada blog

Insights, commentary and investing expertise

Sell in May and go away? Maybe not


June 3, 2016
Subject | ETFs | Institutional | Smart beta

“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.

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Potential for a smoother ride in all markets


March 16, 2016
Subject | ETFs | Smart beta

The trade-off between risk and return is central to modern portfolio theory. Finance textbooks teach that the more risk an investor assumes, the greater the expected return. This is not only academic, but intuitive to most people. Following this logic, one would expect lower volatility securities to generate lower returns over time, and higher volatility securities to deliver higher returns in exchange for added risk. But this may not necessarily be the case – at least within a given asset class.

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ETF trading: A guide to best practices


January 16, 2016
Subject | ETFs | Smart beta

1. Use limit orders

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.

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