ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Innovative ETFs Channel
  2. What Investors Should Know About the Economic Landscape
Innovative ETFs Channel
Share

What Investors Should Know About the Economic Landscape

Elle CarusoOct 13, 2022
2022-10-13

Economic outlooks have continued to darken as the year unfolds, leaving investors unsure and uneasy about if and where to move their money. 

Investors are currently waiting for better inflation data, for central banks to pivot, for companies to report earnings while also waiting to see if a global recession is imminent and if the Russia-Ukraine war can be de-escalated, according to Kristina Hooper, chief global market strategist for Invesco

“So what should investors do in a holding pattern? Well, obviously, wait. And don’t overreact,” Hooper wrote in an October 10 insight. “Don’t assume the Fed or other central banks will be pivoting momentarily because ISM Manufacturing New Orders fell into contraction territory, and don’t assume the Fed will remain aggressive ad infinitum just because the US jobs report for September didn’t indicate the economy is slowing quickly enough for the Fed. In short, I believe it’s important to stick to the long-term plan.”

Hooper said one area where investors may be underrepresented in dividend-paying stocks. Two funds that offer exposure to dividend stocks include the Invesco Dividend Achievers ETF (PFM A-) and the Invesco S&P 500 High Dividend Low Volatility ETF (SPHD C+).

The S&P 500 Low Volatility High Dividend Index, tracked by SPHD, has managed to close out the first three quarters of the year, declining just 11.0%, compared to the S&P 500’s decline of 23.9% during the same period. PFM has also outperformed the S&P 500 year to date through the end of the third quarter while collecting dividends. 

“I believe it makes sense to have exposure there, as one gets ‘paid to wait’ through dividend payments,” Hooper wrote. “Those payments can be an important component of one’s portfolio when we’re all stuck in a holding pattern. And, for those who are overexposed to cash, as hard as it sounds, I believe investors should be getting ready to reposition for a recovery.”

“I suspect we will learn a lot from the next few months, as long as we don’t overreact and keep our eyes on long-term goals,” Hooper added.

For more news, information, and strategy, visit the Innovative ETFs Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X