ETF TV #130 Steven Schoenfeld, Chief Executive at MarketVector Indexes discusses economic exposure indexes, investable strategies for a global world in flux.
Precisely defined global and domestic economic exposure indexes allow investors to supplement or diversify their country/regional exposure, or take tactical investment actions to add alpha.
- Globalization is in flux, oscillating between globalization and deglobalization forces, with deglobalization currently the prevailing trend.
- Increased cycles of global versus domestic dominance will drive divergence within country and regional performance.
- The world is shifting in a major way – macro-economic trends, new and disruptive industries/themes, and changes in trade flows warrant a reconsideration of how investors define countries.
- Using country or regional indexes structured around economic exposure can provide investors with a more precise, targeted investment solution for a world in flux.
The seemingly inexorable globalization trend has been halted by the COVID-19 pandemic, heightened geopolitical tension, the war in Ukraine, and inflation on a global scale. Although it is unimaginable to expect a fully deglobalized world, structural trends toward localization now exist. The impact of global and local macro drivers will impact business depending on their dominant business exposure. Investors who want to capture these differences that may result in divergent trends will need a targeted approach that segments companies within a country or region by their revenue exposure to global or local drivers. Precisely defined global and domestic economic exposure indexes allow investors to supplement or diversify their country/regional exposure, or take tactical investment actions to add alpha.
Listen to podcasts of this and prior episodes of ETF TV on
Originally Posted June 20, 2023 – Steven Schoenfeld, MarketVector Indexes discusses economic exposure indexes on ETF TV
Disclosure: ETF TV
Lyxor Asset Management S.A.S. (“Lyxor S.A.S.”) is a French investment management company authorized by the Autorité des Marchés Financiers and registered as a commodity trading advisor and commodity pool operator with the CFTC.
The information in this material is for illustration and discussion purposes only. It is not intended to be, nor should it be construed or used as, investment, tax or legal advice, a recommendation or opinion regarding the appropriateness or suitability of any investment or strategy, or an offer to sell, or a solicitation of an offer to buy, an interest in any security. Any decision to invest in a product should be made only after reading the offering document for that product, conducting such investigations as the prospective investor deems necessary after consulting with the prospective investor’s own independent investment, legal, accounting and tax advisors in order to make an informed determination of the suitability and consequences of an investment in such product. Any recommendation or opinion regarding an investment in a product managed by Lyxor S.A.S. or one of its affiliates, as opposed to another product with a similar investment program, is subject to potential conflicts of interest.
The information displayed in this document may change from time to time without notice. Certain information presented herein has been obtained from other sources believed to be reliable. Such information has not been verified for purposes of this material and no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of such information, nor does Lyxor S.A.S. accept any liability arising from its use. Any opinions expressed herein are statements of our judgment on this date and are subject to change without notice. The information contained herein is strictly confidential and may not be reproduced, in whole or in part, nor may its contents be disclosed to any other person (other than the recipient’s confidential advisers) under any circumstances without the prior written consent of Lyxor S.A.S.
Securities in certain funds mentioned herein which are managed by Lyxor S.A.S. are offered and sold to U.S. investors through SG Americas Securities, LLC (“SGAS”), an affiliate of Lyxor S.A.S. and Lyxor Inc. and a member of the U.S. Financial Regulatory Authority, the U.S. Securities Investor Protection Corporation and the New York Stock Exchange. Lyxor S.A.S. may pay a placement fee to, and provide compensation for expenses to SGAS in connection with its services provided in connection with such funds.
Disclosure: Interactive Brokers
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from ETF TV and is being posted with its permission. The views expressed in this material are solely those of the author and/or ETF TV and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Any discussion or mention of an ETF is not to be construed as recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.