Fixed-Income Factors in Target Date Strategies
Fixed-income factors are not as widely discussed as equity factors, but they are equally important in designing a target date portfolio in an attempt to improve participant outcomes.
Each factor of a fixed-income portfolio—so interest-rate sensitivity, credit exposure, and inflation sensitivity—may play an important role in constructing a dynamic fixed-income portfolio for target date investing.
Another common factor in fixed-income investing is credit exposure because investing in securities with an element of credit risk has historically generated positive risk premiums over time.
VanEck London Stock Exchange Group (LSE LN) has undergone a major transformation in the past five years and has evolved from a small to a top player among exchanges. London…
VanEck Visa (V US) is a great example of how the network effect creates powerful competitive advantages for companies in the electronic payments industry. Visa (V US) dominates the global…
Currently, in the industry, there has been sizable growth within recent years. Over the past five years, ETF AUM have grown in the US alone from $1.2 trillion to almost $3 trillion and the growth appears to be accelerating.
With so many positive tailwinds for the financial sector, how can investors use ETFs to target this growth?
In addition to the promising signs of the financial sector passing the rigor of this stress test, talk of deregulation makes the financial sector even more attractive.
Mercury General (MCY) has consistently recorded revenue growth since fiscal 2011, except for a minor decline in fiscal 2015
The London Stock Exchange’s high market share in growth areas such as client clearing, along with its good asset quality, suggest that the stock exchange is on solid ground.
Visa (V) boasts a significant advantage in terms of its worldwide acceptance. This availability lent to the network effect’s being the source of the company’s moat.
Just as early snowmelt or increased rainfall in the Rocky Mountains will swell the Colorado River come springtime, so too do Upstream announcements eventually lead to increased opportunities for midstream companies.
Over the past six months, Tesoro Logistics (TLLP) returned 14.9%, beating the AMZ by 11.8%.
MLPs have secondary equity offerings like I buy new plants—in other words, every time I see an opportunity.
The financial sector has performed the best since the elections. Higher interest rates are likely to improve banks’ margins going forward.
Since the beginning of 2016, the financial sector has been whipsawed by worries of a global recession and a low interest rate environment.
In a Reuters survey of 38 analysts, eight analysts assigned a “strong buy” rating to Bank of America (BAC), and 16 rated it as a “buy.”
In June 2016, the Federal Reserve approved Wells Fargo’s (WFC) capital plans after it determined that the bank could continue its lending program during a severe economic slump.
Bank of America trades at a PBV of 0.87x, which implies an ~14% discount to its book value.
Bank of America (BAC) reported a 11% yearly gain in trading revenues in 4Q16.