ETFdb Logo
ETFdb Logo
ETFdb Logo
ETFdb Logo
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Database
  • 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
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
    • ETFs Future-Forward 2021: An iShares Investing Symposium
    • Three Themes for 2021: An iShares & MSCI Investing Symposium
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Nasdaq Portfolio Solutions Channel
  2. Is Latest Market Comeback a Bull Trap?
Nasdaq Portfolio Solutions Channel
Share

Is Latest Market Comeback a Bull Trap?

Karrie GordonSep 24, 2021
2021-09-24

With the crisis surrounding China’s Evergrande seeming to have abated for the time being and the Federal Reserve opting to keep the stimulus in place until employment and inflation numbers improve further, sinking markets made up their losses on Thursday. Some investors and strategists are warning that the bounce-back could be too good to be true, though, reports CNBC.

Quint Tatro, CIO of Joule Financial, believes that there is a complacency amongst traders now after having relied on Fed intervention for so long.

“We’re… getting concerned with this perpetual idea that we’re always going to be bailed out,” Tatro said. “We do think we could see some further downward momentum here, and we’re not getting all excited in this latest snapback rally. We think it could be a little bit of a bull trap.”

Fairlead Strategies managing partner and founder Katie Stockton acknowledges the strength of the bounce-back but also says that the pullback it is recovering from could be indicative of a weakening within aspects of the markets. While Stockton doesn’t anticipate a big downside risk, this most recent downturn indicates the potential of slowing momentum in the intermediate.

“The pullback that preceded it (the bounce back) did yield short-term breakdowns in the major indices” and individual stocks, Stockton said. “That shows a loss of market breadth that is somewhat concerning suggesting that with these weak seasonal influences at hand, the market probably is in store for additional consolidation here.”

CFA Offers Volatility Weighting

For cautious investors that are looking to invest in large-cap stocks that continue to perform but keep an eye on volatile markets, the VictoryShares US 500 Volatility Wtd ETF (CFA B+) is a solid option. The fund allows investors to gain balanced exposure to large-cap U.S. equities with a unique volatility-weighted approach.

CFA tracks the Nasdaq Victory US Large Cap 500 Volatility Weighted Index. The benchmark screens all publicly traded U.S. stocks and only includes those with positive earnings in the most recent four quarters.

From there, the benchmark takes the top 500 stocks by market cap and weights them based on the volatility of their price changes over the previous 180 days. Those with lowest volatility get the highest weighting, while those with highest volatility have the lowest weighting.

CFA’s sector breakdown as of the end of August includes a 17.43% allocation to industrials, 16.21% to financials, a 16.15% allocation to information technology, 14.66% to healthcare, 9.96% in consumer discretionary, and various smaller allocations.

The fund has an expense ratio of 0.35%.


Content continues below advertisement

VictoryShares US 500 Volatility Wtd ETF

For more news, information, and strategy, visit the Nasdaq Portfolio Solutions Channel.

Loading Articles...
Help & Info
  • Contact Us
  • About Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

Equity ETF Channel

Retirement Portfolio Redux: Is the 60%-40% Portfolio Dead?

Debbie CarlsonOct 22, 2020
2020-10-22

With the 10-year U.S. Treasury yield hovering below 1% and Federal Reserve Chairman Jerome Powell...

Equity ETF Channel

Portfolio Diversification Isn't Dead, It Was Just Sleeping

Debbie CarlsonOct 15, 2020
2020-10-15

Investors could be forgiven to think there was no reason to invest outside of the U.S. for the...

}
X