Top ETF Investing Ideas For Rest Of Year

June 21, 2019

The second half of 2019 is upon us, and investors have plenty to worry about.

From reading cues from the Federal Reserve, to making sense of ongoing trade wars, to assessing geopolitical risk, questions abound about what U.S. and global growth look like going forward.

Year to date, ETF investors have piled into fixed income strategies, showing some aversion to risk—a theme that has prevailed this year, and by most accounts, one that will continue to guide investment decisions.


Year-To-Date Asset Flows As Of Mid-June

  Net Flows ($, mm) AUM ($, mm) % of AUM
U.S. Equity 23,930.52 2,194,269.52 1.09%
International Equity 6,295.59 816,371.51 0.77%
U.S. Fixed Income 57,699.73 671,852.31 8.59%
International Fixed Income 6,602.36 75,151.04 8.79%
Commodities  -1,853.13 63,114.34 -2.94%
Currency -236.74 1,553.96 -15.23%
Leveraged -1,965.77 36,562.63 -5.38%
Inverse 2,658.94 11,895.24 22.35%
Asset Allocation -372.90 9,420.75 -3.96%
Alternatives 612.57 4,582.68 13.37%
Total: 93,371.16 3,884,773.98 2.40%


Looking ahead, how should you allocate your portfolio in light of so much uncertainty?

We asked ETF strategists what’s top of mind for the coming months, and how best to invest in the second half of the year. Here’s what they had to say.

Gary Stringer, president & chief investment officer; Memphis, Tennessee-based Stringer Asset Management

We have recently been paring back our equity market exposures. While the U.S. stock market is nearing all-time highs, some of our favored economic indicators have weakened. Their weakening suggests sluggish economic growth ahead, and their deterioration will likely make equity markets more vulnerable.

As a result, we have recently moved to further increase the defensive nature of our strategies. We think the Fed will begin to reduce short-term interest rates soon in response to the weaker economic growth.

However, we’re concerned the Fed won’t act soon enough or forcefully enough to avert further economic deterioration. Though we have positioned our strategies somewhat more cautiously, we continue to expect global economic growth and higher equity prices, subject to bouts of volatility.

Here are our favored choices currently:

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