The stock market is having a moment of truth. A two-week window in late August/early September witnessed so-called “Minimum Volatility” strategies lose their luster, underperforming Value by 4 percentage points. Could this value trend continue?
Exchange-traded funds (ETFs) are often criticized for their perceived illiquidity, especially when looking at “size on the screen.” Ten years ago, it was much more difficult to execute large blocks in ETFs. Now, however, the market has evolved drastically and there are a wide variety of liquidity providers willing to make very large-size markets in the broad spectrum of ETFs.