
ETF Defensive factors when market risk is rising
Investors can choose factors along the risk spectrum, such as quality and low volatility, two of the more defensive equity factors, when markets are volatile.
Investors face global equities challenges and are expecting the administration will lead with an “America-First” approach to foreign policy.
Our team posits that the policy agenda is largely driven by campaign promises in four key areas: immigration, inflation, inequality, and identity.
Uncertainty surrounds the specifics on timing, sequencing and the extent around implementation of policy promises and threats.
We expect a turbocharged second entry by President Trump marked by a clearer, stronger mandate than in his first term. From the early days, we observe a more eager and prepared approach to enact radical reform, and to try to establish an America-First world order, welcoming global disruption. His inauguration speech and cabinet selections point to a stronger governing style and hawkishness on national security, trade, China and confrontation on domestic reform.
For a closer analysis on these topics and more, download the full insight here.
Investors can choose factors along the risk spectrum, such as quality and low volatility, two of the more defensive equity factors, when markets are volatile.
With high concentration, heightened volatility, and growing downside risk, a low volatility strategy can help navigate these market challenges.
Many international markets are undervalued compared to the US market, presenting the potential for higher returns.
NA4351306
This link takes you to a site not affiliated with Invesco. The site is for informational purposes only. Invesco does not guarantee nor take any responsibility for any of the content.