Megaphone icon ETF Database is now VettaFi. Read More >
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. Portfolio Strategies Channel
  2. Reconsidering Investment Resolutions for 2022
Portfolio Strategies Channel
Share

Reconsidering Investment Resolutions for 2022

Elle CarusoFeb 08, 2022
2022-02-08

With 68 record highs, 2021 was an exciting year for the S&P 500, and the turbulence has only intensified during the early weeks of 2022.

Concerns surrounding inflation, rising interest rates, and market valuations are dominating sector rotation strategies and fund flows. 

If you’re looking to redefine your goals for 2022, here are a few investment resolutions to consider that can be implemented at any time, according to Kristina Hooper, chief global market strategist at Invesco.

Revisit your investment priorities during a scheduled time, as opposed to reacting to economic trends and market movement. Investment policy statements help investors, both institutional and individual, stay the course and keep focused on long-term goals, according to Hooper.

“The key is to do it in a ‘vacuum’ rather than in response to a market event,” Hooper said. “That helps take the emotion out of decision-making. After all, some of the investors who were most negatively impacted by the Global Financial Crisis and the pandemic were those who got out of markets when stocks started falling, only to miss out on substantial rebounds.”

Next, Hooper recommends having a well-diversified portfolio.

“For many investors, it’s not enough to just have exposure to stocks and bonds — that leaves out the potential benefits of alternatives. And within all three major asset classes, it’s important to be well diversified,” Hooper said.

According to Hooper, within both equities and fixed income, many investors are under-exposed to emerging markets and may benefit from increased exposure.

An equal-weight strategy, such as the Invesco S&P 500 Equal Weight ETF (RSP B+) or the Invesco ESG S&P 500 Equal Weight ETF (RSPE) can provide diversification benefits and reduce concentration risk by weighting each constituent company equally, so that a small group of companies does not have an outsized impact on the index.

It is also recommended to rebalance your portfolio at least once a year. That enables investors to take profits and ensure you are within the parameters of your investment policy statement, according to Hooper.

Finally, Hooper recommends keeping some cash on the sidelines to deploy during substantial stock market drops. 

“You may want to dollar cost average in the case of a stock market correction, although recent drops have been very short-lived so there may not be a lot of time to deploy a dollar cost averaging strategy,” Hooper said.

For more news, information, and strategy, visit our Portfolio Strategies Channel.

Loading Articles...
Help & Info
  • Contact 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