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Posted by on Feb 23, 2017 in ETF Strategist, Featured, Investment Perspective, Market Insight

Don’t Make The Same Mistake As Norway

Don’t Make The Same Mistake As Norway

By Roger Nusbaum, AdvisorShares ETF Strategy   The Financial Times had a lengthy writeup on the Government Pension Fund of Norway and that it is considering increasing its equity allocation from 60% to 75% as it tries to grapple with oil prices that although are well off the bottom are still low. The declines and only partial recovery has created budget deficits that need to be managed and the withdrawal rate from the sovereign wealth fund and by extension the fund’s returns are of course relevant. ZeroHedge also weighs in with its usual gloom and more gloom. I’ve written a lot of blog posts on endowments/sovereign wealth funds/pensions because I think there is a lot to learn in terms of what to do and also what not to do. Changing asset allocation after eight years of rising equity prices to own more equities is a probably shouldn’t do or at least is a risky proposition. It’s a perpetual fund (in terms of time horizon) so there was no life...

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Posted by on Feb 22, 2017 in Active ETF Reports, ETF Strategist, Featured

AdvisorShares Active ETF Market Share Update – Week Ending 2/17/2017

AdvisorShares Active ETF Market Share Update – Week Ending 2/17/2017

Assets in actively managed ETFs added $325 million, more than 1%, to reach $31.559 billion. There was one new fund from First Trust last week, which brings the total to 162. First Trust was the leader in asset growth with $159 million followed by $94 million for State Street and $35 million for PIMCO. There were very few decliners last week with only PowerShares standing out with a $41 million drop. At the strategy level, Bank Loan showed continued popularity adding $87 million, Global Bond added $83 million and Short Term Bond chipped in with $72 million. Again, very few categories lost assets; Alternative contracted by $25 million. To subscribe to our full monthly report, please register at http://www.advisorshares.com/ (note the full report is only available to financial professionals).     Number of Active ETFs by Sponsor   Number of Active ETFs by Strategy   There are risks involved with investing in ETFs including possible loss of money. Shares are actively managed and are subject to risk similar to...

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Posted by on Feb 21, 2017 in ETF Strategist, Market Insight

AdvisorShares Weekly Market Review – Week Ending 2/17/2017

AdvisorShares Weekly Market Review – Week Ending 2/17/2017

Highlights of the Prior Week A Little Bumpier, But Higher!   Macro Although there were a few more ups and downs last week, domestic markets moved strongly higher. The Dow Jones Industrial Average gained 1.73%, the S&P 500 added 1.49%, the NASDAQ moved ahead 1.77% and the Russell 2000 lagged behind up 0.77%. The yield on the Ten Year US Treasury Note moved up two basis points on the week to 2.42% which seems rather docile given the 0.6% print for PPI last week and the same 0.6% for CPI. These were the largest gains since 2012 for these data points. While this would seem to be inflationary, the probability of a rate hike by the FOMC at its March meeting has actually declined to 17.7% as of late Friday In the last month, the yield of the French OAT has skyrocketed more than 20 basis points back over 1% perhaps due to what could be a populist outcome in the upcoming French election should Marine Le Pen emerge...

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Posted by on Feb 16, 2017 in ETF Strategist, Investment Perspective, Market Insight

The Blurry Line Between Active & Passive

The Blurry Line Between Active & Passive

By Roger Nusbaum, AdvisorShares ETF Strategist   Barron’s had an interesting ‘other voices’ column titled The End Of An Active-Investing Era by Donald Callaghan. Most of the article was about difficulty of outperforming the passive indexes. Active versus passive is not the point of this post, that’s been written about 1000 times, other than to say there are too many real world variables to active versus passive for that to even be the right question. A diversified portfolio likely includes both active and passive vehicles, owning any individual stocks is an active endeavor, certain strategies use passive vehicles in active strategies, an 80 year old client living comfortably off of Social Security and portfolio income is far more likely to care about that income while avoiding the market’s ups and downs and there are other points that make active versus passive the wrong question. What was more interesting was the conclusion with Callaghan’s ‘four key tactics’ Invest for the long term without market timing Invest globally Be Contrarian Allocate...

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Posted by on Feb 14, 2017 in Active ETF Reports, ETF Strategist

AdvisorShares Active ETF Market Share Update – Week Ending 2/10/2017

AdvisorShares Active ETF Market Share Update – Week Ending 2/10/2017

Assets in actively managed ETFs experienced a net gain of $380 million to reach $31.233 billion in total net assets. The number of active ETFs trading declined by four to 161. Alpha Architect, sponsor of MomentumShares and ValueShares, successfully changed the SEC exemptive of their four ETFs from actively managed to passively managed. While not covered in last week’s active ETF market share update, this change went into effect on February 1st. On the provider level, First Trust grew by $143 million, PIMCO added $121 million and State Street gained $84 million. Aside from the aforementioned change at Alpha Architect, the only other outflows of note came from Guggenheim, which realized a $19 million decline. At the strategy level, Short Term Bond witnessed an increase of $147 million, Global Bond gained $75 million and Alternative Income added $55 million. No strategy category lost more than $5 million during the last one week period. To subscribe to our full monthly report, please register at http://www.advisorshares.com/ (note the full report is...

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Posted by on Feb 13, 2017 in ETF Strategist, Market Insight

AdvisorShares Weekly Market Review – Week Ending 2/10/2017

AdvisorShares Weekly Market Review – Week Ending 2/10/2017

Highlights of the Prior Week Political Volatility? Equities Still Don’t Care   Macro Regardless of anyone’s conservative or liberal beliefs, there has been a lot political volatility since the inauguration but domestic equities continue to chug along with close to record low volatility as evidenced by the low VIX reading and the lack of 1% daily moves in this calendar year. There are technical indicators related to investor bullishness and market breadth that look terrible but for now the market shows no signs of rolling over. Anecdotally we have had several inquiries about whether now is the time to jump out for fear of a large decline. We would note the historical tendency for fast declines to snap back quickly, like the Brexit reaction, and the historical tendency for bear markets to roll over very slowly over a period of several months. Guessing is never the answer. The time to get out, if you are even one to take defensive action, is whenever the strategy you unemotionally chose as...

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