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The Tidal Financial Group (Tidal) expanded rapidly over the last decade and encompassed multiple ETF related brands including Toroso Investments, Tidal ETF Services, and the ETF Think Tank. Going forward all activity will be unified under the Tidal brand as we become one company, dream, family, and platform focused on holistic ETF customer solutions.

Get Think Tanked Distilled with Todd Rosenbluth

The Exchange ETF conference is happening February 5-8 in Miami, FL. Several people from the Tidal Financial Group team will be in attendance both as presenters and participants. The conference is being run by VettiFi, the firm that manages the ETF Trends and ETFdb investing sites. Todd Rosenbluth, the Director of Research at VettiFi, joined the ETF Think to discuss the conference and offer his insights on the ETF marketplace.

What is the Exchange ETF conference all about? It’s designed to be a broad educational event designed to be a little bit different from other conferences. Its plan is to ease back on the number of events and scheduled speakers, while emphasizing the number of networking opportunities available. Rosenbluth describes it as a conference by financial advisors for financial advisors but says there will also be plenty of focus on the traditional asset management track as well.

Jon Fee, the Chief Marketing Officer at VettiFi, also joined to explain the philanthropic focus of the event. They will be partnering with the Susan G. Komen Foundation, Junior Achievement and Surfrider so that participants can also partake in charitable and mentoring opportunities.

Returning to the financial markets, Rosenbluth was asked his opinion of where the energy market is today. He says that investors had better understand where it fits in their portfolio and what an ETF holds because it doesn’t have what it used to. Energy was historically considered a value sector, but that’s no longer the case. He points out that energy has just a 1.6% weighting in the S&P 500 value index, but roughly 8% in the growth index. The landscape is further complicated by the addition of alternative energy and renewables. Some will treat those as separate themes while others may lump them together. As always, knowing what you own is a good rule of thumb.

Overall, Rosenbluth explained that the market is complicated. Energy has become a growth sector more than a value sector (thanks to some definitional tweaks by the index providers). Meta’s share price plunge dropped into the value category. Tesla may or may not be an ESG stock. Even momentum investing has been thrown for a loop by overweighting in healthcare and energy. Investors need to be very aware of what’s changing.

The discussion shifted to international and emerging markets stocks, which have been off to a fast start in 2023. Rosenbluth explained that these areas were written off by investors as recently as just a few months ago. It is easy to say that international was due for a comeback for a while, but many didn’t think we’d see the relative economic improvements in Europe. The reopening in China has also added an assist. He believes that investors may be underappreciating the dollar’s role in this year’s performance. Most people who are investing in non-hedged products probably don’t even think about the impact that the dollar plays on their investments. It’s another example of knowing what’s in your portfolio.

Other key takeaways:

  • It’s important that investors understand that thematic investing and tech aren’t synonymous. Thematic investing can also include things, such as travel, infrastructure, and renewable energy. Not all advisors want to touch thematic ETFs, but there are some worth considering.
  • A lot of people are still considerably underweight in international investments, but that may be changing. International equity ETF flows are beating U.S. equity ETF flows by a 20-to-1 margin so far in 2023.

Advisors have been favorable long-term towards crypto and are finally gaining some comfort holding it in portfolios. Many are just looking for regulatory clarity. 2022 has shown us that you can’t give up on any investment if you believe in the story. You need to give it time to play out.

Disclosure

All investments involve risk, including possible loss of principal.

The material provided here is for informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

The value of investments and the income from them can go down as well as up and investors may not get back the amounts originally invested, and can be affected by changes in interest rates, in exchange rates, general market conditions, political, social and economic developments and other variable factors. Investment involves risks including but not limited to, possible delays in payments and loss of income or capital. Neither Toroso nor any of its affiliates guarantees any rate of return or the return of capital invested. This commentary material is available for informational purposes only and nothing herein constitutes an offer to sell or a solicitation of an offer to buy any security and nothing herein should be construed as such. All investment strategies and investments involve risk of loss, including the possible loss of all amounts invested, and nothing herein should be construed as a guarantee of any specific outcome or profit.  While we have gathered the information presented herein from sources that we believe to be reliable, we cannot guarantee the accuracy or completeness of the information presented and the information presented should not be relied upon as such. Any opinions expressed herein are our opinions and are current only as of the date of distribution, and are subject to change without notice. We disclaim any obligation to provide revised opinions in the event of changed circumstances.

The information in this material is confidential and proprietary and may not be used other than by the intended user. Neither Toroso or its affiliates or any of their officers or employees of Toroso accepts any liability whatsoever for any loss arising from any use of this material or its contents. This material may not be reproduced, distributed or published without prior written permission from Toroso. Distribution of this material may be restricted in certain jurisdictions. Any persons coming into possession of this material should seek advice for details of and observe such restrictions (if any).

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Get Think Tanked with Todd Rosenbluth

Get Think Tanked with Todd Rosenbluth

The Exchange ETF conference is happening February 5-8 in Miami, FL

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