Defensive Positioning into 2020: Solving Your U.S. Large Cap Equity Problem

By Ed Lopez, Head of ETF Product from VanEck Global You may not have realized it, but you have a large cap problem. The current bull market that started in March 2009 is now the longest bull market in modern stock market history. By many metrics the market could be considered overvalued, which presents investors and their advisors with a dilemma: how do you continue allocating to U.S. equities in a prudent way? Forward-Looking Focus on Valuation At this point of the market cycle, it may be hard for some investors…

The Moat Stocks that Powered 2019 Outperformance

By Brandon Rakszawski, Senior ETF Product Manager for VanEck Global 2019 was an impressive capstone to an equally impressive decade for the Morningstar® Wide Moat Focus IndexSM (“Moat Index”). Superior stock selection was the theme of the year, with KLA Corp. (KLAC), Applied Materials Inc. (AMAT) and Facebook (FB) being the top contributors to Moat Index performance. Each company benefits from sustainable competitive advantages according to Morningstar equity analysts, and the Moat Index allocated to these companies at attractive entry points based on their market price relative to Morningstar’s assessment of fair value. The…

China – Supporting Green Shoots

By Natalia Gurushina, Economist, Emerging Markets Fixed Income for VanEck Global China’s activity gauges stayed in expansion zone, but authorities offered more policy support in the form of the reserve ratio cut to improve the growth momentum. Argentina issued a government bond to tap the central bank reserves for foreign debt payments. China’s latest activity gauges remained in expansion zone in December—benefitting from the past stimulus and Phase One deal’s boost to sentiment. However, policy support is still needed—especially for smaller privately-owned firms. The Caixin manufacturing PMI (Purchasing Managers Index)—which has a…

Income Investing Playbook for 2020

By VanEck Global As negative yielding government debt grows globally and U.S. interest rates remain low, where can investors look to find yield in 2020 above the levels available from savings accounts and government bonds? In this Q&A, we examine the current market environment, highlight potential areas of opportunity and discuss how they may fit within a portfolio as investors plan their 2020 allocations. 1. What trends should income investors be watching heading into 2020? One of the most significant market events in 2019 was the surge in negative-yielding debt…