Exchange-Traded Funds (ETFs) are still reasonably young investment products, but they are changing the nature of trading in the markets. When investors utilize ETFs in their portfolios, they are interacting either directly or indirectly with an ETF trader. At WisdomTree, we believe that helping our investors understand the markets and the ways to trade ETFs efficiently is paramount to the customer experience.
Even before the election results were fully counted in May, Indian currency and equity markets were reacting. After touching all-time lows last year, the rupee surged on the optimism that the reform-minded Modi would push through an agenda to improve Indian economic competitiveness.
While our view on rising rates has yet to meaningfully materialize this year, our underlying thesis has not changed. In our view, it may be time for investors to think about how a bond portfolio may perform as a result of changes in Federal Reserve (Fed) policy.
One of the most crucial outcomes from 2008 was that many investors became more aware of the importance of downside protection and true diversification. Traditional allocations, as it turned out, generally did not provide enough diversification, and as the markets unwound, correlations between traditional asset classes increased.
In most cases, when investors think about international equities, they consider the fact that they are gaining exposure to the performance of the equities. However, that’s not the only investment they are making, they are also investing in the currency of the local market.