Best ETF Ideas for the Second Half of 2019

We discuss how investors should position their portfolios for the second half of 2019. Read More...

(1:10) – Stock Market Performance Over 2019 So Far
(6:50) – What Sectors Are Poised To Perform The Best?
(11:40) – Emerging Markets and International ETFs To Watch
(17:00) – Current Trends and Fund Flows
(20:15) – ETF Fee Wars: Looking Beyond Expense Ratios
(24:05) – Episode Roundup: [email protected]

In this episode of ETF Spotlight, I talk with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors. We discuss the best strategies for the second half of 2019.

Major indexes are now close to their all-time highs, thanks mainly to optimism that the Fed will cut rates soon and some positive developments in trade negotiations. What could move the markets next?

US stocks are not cheap now as the rally earlier this year was driven mainly by multiple expansion. Matt recommends focusing on inexpensive quality names in the late cycle environment. Take a look at the SPDR MSCI USA StrategicFactors ETF QUS and the SPDR S&P Dividend ETF SDY.

Technology is the best performing sector year-to-date, up 24% while the broader S&P 500 index is up about 15%. Last year’s winner Health Care is the worst performing sector, up about 6%. What lies ahead for these sectors?

Matt likes the SPDR S&P Software & Services ETF XSW and the Health Care Select Sector SPDR Fund XLV. Find out about them on the podcast.

Emerging market ETFs look attractive from valuation perspective. If the Fed cuts rates, EM ETFs would benefit from a weaker dollar but trade tensions have created headwinds for them.

The SPDR Portfolio Emerging Markets ETF SPEM, the cheapest EM ETF, and the SPDR S&P Emerging Markets Small Cap ETF EWX are worth considering now.

We also discuss other major trends from recent fund flows and the key risks to watch now.

ETF fee wars have been escalating as investors have become increasingly cost-conscious. However, they sometimes forget to look beyond expense ratio alone when evaluating ETF costs. Matt explains why it’s important to consider the total cost of ownership.

SPDR’s suite includes the SPDR S&P 500 ETF SPY and the SPDR Dow Jones Industrial Average ETF DIA which trade on average four times more than Apple AAPL, Google GOOGL and Amazon AMZN combined. To learn more about these ETFs, please visit us.spdrs.com.

Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email [email protected]

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