[10/22/24] Risk-Obsessed Investors May Be Unprepared Come Year’s End

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WEEKLY ROUNDUP OF ETF FILINGS, LAUNCHES & CLOSURES

Looming events like the upcoming election, a potentially larger-scale war in the Middle East, and interest rate decisions from the U.S. to Europe have had some investors obsessed with the potential risks and paying up for protection as volatility rises on stocks and bonds.

However, while these investors are less bullish in the market due to the implied volatility, their action could have adverse effects if November events are less catastrophic than expected. This, in turn, could leave investors with too much protection and too little exposure, which could potentially make them ill-prepared for a year-end market rally. 

Still, there are some signs emerging that investors are starting to pivot and position themselves for such a rally. For instance, according to Bloomberg, over the past week, traders bought more than 100,000 December $615 calls on the SPDR S&P 500 ETF (SPY)---options currently more than 5% above the market.

While the volatility issues of August still remain and have some investors still feeling the effects, tempering expectations and fears about what lies ahead in the coming weeks could be crucial as 2024 comes to a close.

By: Kiran Aditham

Below is a roundup of the key developments in the ETF industry for the seven-day period ending Oct. 18:

Betterment Tells Clients: Shift Crypto Holdings to ETFs The New York-based robo platform is closing direct crypto in favor of lower-cost ETFs.

Janus Henderson Debuts First Active ETF in Europe The American-British global asset management group’s high-conviction Japan strategy will list on Deutsch Borse.

An ETF Strategy for Tailored Market Hedging Two ETFs track volatility as a signal to add market protections.

SPY Helps State Street Top Vanguard in Monthly Flows Morningstar report shows inflow rebound for SSGA and big bond ETF flows.

MSTX Doubles in 2 Months, Attracts Huge Inflows MSTX has benefited from price appreciation and inflows.

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WHAT TO WATCH

ETF Spotlight: NUKZ Glows as Nuclear Power Demand Rises The fund, which tracks equities in the nuclear fuel and energy sector, has risen 27% over the past month. Read More

Will the Election Move the Markets? Based on historical precedent, the financial markets will shrug off the election results. Read More

FTSE Russel Survey Finds Opportunity for Advisors in Index Fund Market. Read Now*

SPY Becomes First ETF to Surpass $600 Billion in Assets The SPDR S&P 500 ETF Trust reached milestone even as rivals have gained ground. Read More

10 Top Performing Precious Metal ETFs The top gold and silver ETFs are outperforming the S&P 500 index in 2024. Read More

Webinar Today: The Presidential Election and Its Impact On Your Portfolio. Tuesday, October 22, 2024 2:00 PM ET. Register and receive 1 CE credit for attending. Register Now

TALK ETF’S VIDEO SERIES

In this episode of Talk ETFs, etf.com Senior Analyst Sumit Roy sits down with George Milling-Stanley, Chief Gold Strategist at State Street Global Advisors, to discuss this year’s gold price surge. Watch Now | YouTube

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