What’s the go-to asset class right now? With the narrative still shifting — and many investors perhaps unwilling to let go of the assets that worked for them in 2022 — having the flexibility to invest across the spectrum of both fixed income and equities could be particularly useful. There’s one specific strategy that not only takes a multi-asset approach but has also outperformed over the last month, and that’s the go-anywhere ETF, the iMGP RBA Responsible Global Allocation ETF (IRBA ).
That’s the new ETF from Richard Bernstein Advisors, or RBA. RBA leaders like deputy CIO Dan Suzuki have been commenting in media appearances recently that many investors don’t want to abandon the leadership of U.S. large-cap growth and more tech-related options, even as that big tech bubble has started to deflate. RBA instead focuses on the profits cycle, investing according to whether profits are accelerating or decelerating overall and taking a top-down view of macro sectors accordingly.
RBA’s use of key indicators in as uncertain a market environment as this one, and its avoidance of stock picking, could make the go-anywhere ETF IRBA an appealing option. IRBA actively invests according to RBA’s research and takes an ETF of ETFs approach, using a slate of ETF strategies to hone its exposures, with an ESG overlay in the strategy as well. Despite its overall active approach, IRBA offers a “pactive” investing vehicle by using passive ETFs in its overall active view.
IRBA charges a 69 basis point fee for its exposures, investing in a broad range of categories, sectors, styles, and classes including equities, fixed income, real estate, commodities, currencies, and cash. Over 10 years, IRBA would expect to allocate 65% to equities and 35% to fixed income overall, and has outperformed its ETF Database category average and its FactSet segment average over the last month, returning 3.6% to 3.1% and 3.2% respectively.
That performance could make IRBA a go-anywhere ETF to watch, actively combining fixed income, equities, and various cyclical or defensive ETFs within its own holdings to adapt as needed to the market. With so much uncertainty arriving as we hit earnings season proper, IRBA may be one to consider.
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