When writing the introduction to last year’s first edition of ETF Insider, the narrative was very similar to what it is today – markets are pricing in more interest rate cuts in the US than the Federal Reserve (or the majority of fund selectors ETF Stream has spoken to) are signalling.
The unexpected resilience of the US economy is the key reason why rates have stayed higher for longer. This scenario looks set to continue over the next six months following positive jobs data and US inflation beating analysts’ forecasts.
While markets are still pricing in an 89% chance of as many as seven rate cuts this year, fund selectors are not so sure. Short-duration bond and TIPS ETFs have seen a pick-up in demand so far in 2024 amid concerns the Fed will need to keep higher rates than market expectations in the face of ongoing economic resilience.
This scenario would sink long-duration US Treasuries which saw booming demand last year and significant outperformance following the Fed’s dovish pivot last December.
The February 2024 issue of ETF Insider examines how fund selectors are positioning over the next 12 months, the outlook for markets and what role ETFs can play within this environment.
Also inside are the usual segments such as ETF of the Month (p.13), Education Corner (p.12), Fund Fights (p.14) and Expert Investors, where ETF Stream interviews fund selectors on the role of ETFs within their asset allocation (p.11).
Read the headlines below:
Leader: Fund selectors reveal biggest risks for 2024 (p.34)
ETF trading in Europe: Challenges ahead (p.7)
ETF Buyers Club: A new lease of life for the mighty moving averages? (p.16)
The Patient Investor: Searching for the Holy Grail (p.18)
ETF innovation: What are fund selectors demanding in 2024? (p.20)
Market overexuberance: What next for ETFs? (p.22)
Elections: What half the world voting means for ETF investors (p.26)
Are the stars aligning for emerging market ETFs in 2024? (p.30)
Is yield curve normalisation still on the cards? (p.38)
Sponsored content from Invesco, JP Morgan Asset Management (JPMAM) and MSCI:
ESG ETFs: Understanding the different approaches with Invesco (p.24)
Locking in yields with JPMAM (p.28)
Biodiversity funds: Welcome to the jungle in 2024 with MSCI (p.32)
ETF Insider is only available to professional investors and members of the ETF industry in Europe. To request access to the full issue of ETF Insider, click here.
