ETF of the Week

VettaFi’s vice chairman Tom Lydon discussed the abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF (BCIM) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” BCIM offers investors a targeted way to capture exposure to the the growing demand in raw materials globally by investing in futures contracts of aluminum, copper, nickel, and zinc.  The energy transition will continue to drive demand for industrial metals as almost all renewable energy option utilizes these metals. Supply side issues created due to the war in Ukraine and shortage of Russian metals such as nickel and aluminum have created an underlying support for the metals market.  

VettaFi’s Vice Chairman Tom Lydon discussed the Neuberger Bergman Disrupters ETF (NBDS) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” NBDS is part of an active suite of ETFs launched by Neuberger Berman and containts a high conviction, all-cap portoflio of companies that are either disrupting existing markets or are creating their own new ones.  The fund seeks to maximize returns through its concentrated, low-turnover portfolio of companies that it believes are on the leading edge of innovation across multiple themes. 

Vettafi’s Vice Chairman Tom Lydon discusses the Merk Stagflation ETF (STGF) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. STGF offers investors a way to benefit in an environment of stagflation where there is persistent, high inflation coupled with slow economic growth.  The fund includes a dynamic basket of inflation hedges and invests in gold, oil, real estate and TIPS, all through other ETFs, as well as dynamically rebalancing its allocations. 

With inflationary indicators signalling longer-term potential, such as the expected rise of shelter within CPI (rent generally lags anywhere from a year to 18 months beyind home prices), and wholesale inflation high in April, now is the time to consider inflation-oriented funds.  RAAX is actively managed and invests in exchange traded products with exposure to real assets like commodities, real estate, infrastructure, and natural resources. It provides an inflationary hedge, a leverage to global growth, and is a portfolio diversifier. 

ETF Trends’ CEO Tom Lydon discusses the SPDR S&P 500 Dividend ETF (SDY) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. As stock markets plunge after the Fed announcement of a 0.50% interest rate increase and balance sheet tightening in June, investors continue to seek out steady-paying dividend ETF strategies.  Analysts believe that income-generating securities are becoming one of the new safe havens as growth and tech stocks continue to fall.  SDY provides a potential hedge against inflation by investing in companies that have increased their dividends for the past 20 consecutive years. 

ETF Trends’ CEO Tom Lydon discusses the Invesco Water Resources ETF (PHO) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. Water scarcity is becoming increasingly common globally, with a 57% decrease in renewable water between 1962 and 2017. A McKinsey study estimates that global demand for water will outstrip supply by 40% by 2030. Addressing water scarcity will require technological solutions and investment.  PHO invests in U.S. exchange-listed companies within the water industry that create products to purify and conserve water for homes and industries. 

ETF Trends’ CEO Tom Lydon discusses the India Internet and Ecommerce ETF (INQQ) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. INQQ offers investors exposure to the favorable demographic trends in India, with over a quarter of the world's Gen-Z population and a middle class that should double by 2030.  India is the world leader for start-ups and has had more than 70 unicorns, or companies that have an IPO of $1 billion or higher. Regulatory support continues from a government perspective for the digitization of India.  INQQ currently is comprised almost entirely of small- and mid-caps, offering great growth opportunity for investors. 

ETF Trends’ CEO Tom Lydon discusses the U.S. Global Jets ETF (JETS) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. Brazil has been a strong outperformer within emerging markets, up 38% year-to-date, with strong fundamentals such as a stabilizing consumer confidence index, high interest rates proving attractive for carry trades, and retail sale growth.  Brazil is a large exporter of crude oil, iron, sugar cane, and coffee bean and with the Russia/Ukraine war, has experienced rising commodity and energy prices.  FLBR offers access to the Brazilian stock market at attractive prices and tracks large- and mid-cap companies within Brazil. 

ETF Trends’ CEO Tom Lydon discusses the U.S. Global Jets ETF (JETS) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. There is an uptick in travel demand as COVID-19 concerns retreat for many. February saw travelers spending an estimated $6.6 billion on domestic flights, up 6% from three years ago in pre-pandemic times. Airliners are passing on rising fuel costs to customers in the form of higher ticket prices and remain confident that they can maintain revenues despite rising gas and oil prices.  JETS offers exposure to the global airline industry, both manufacturers and operators. 

ETF Trends’ CEO Tom Lydon discusses the Emerging Markets Internet & Ecommerce ETF (EMQQ) on this week’s ETF of the Week podcast with Chuck Jaffe of the MoneyLife Show. EMQQ is a broad strategy of gaining exposure to the emerging middle-income consumer classes in developing countries and is up 33% since mid-March lows.  Developing countries make up 85% of the world's population and have a greater demographic of young people, have faster growth rates, and make up 50% of the global GDP. Investors are traditionally underweight in emerging markets and by putting emphasis on the consumer sectors, it could help to drive growth for fundamentals that are improving.