ETF shelters from the Middle East War
Speakers
Christian Magoon
— CEO of Amplify ETFs
Jamie Harrison
— Former Chair, Democratic National Committee
Summary
The video discusses the impact of Middle East unrest on markets and how ETFs can provide shelter. Christian Magoon and Jamie Harrison talk about market resilience, ETF structure, and specific strategies for navigating volatility. They highlight hedged equity, energy, cybersecurity, and crypto as areas of interest, and discuss trends like active management and prediction markets in ETFs.
- Markets have shown resilience despite Middle East war and other shocks.
- ETF market structure has proven robust through volatility.
- Investors are shifting allocations to sectors like energy and basic materials.
- Hedged equity strategies with options income are gaining interest for protection.
- Energy and natural resources ETFs have performed well.
- Cybersecurity presents a buying opportunity after a pullback.
- Long-term bullish stance on crypto despite current headwinds.
- Active management in ETFs continues to grow.
Trade Ideas
International hedged equity with covered calls.
The international dividend covered call ETF IDVO allows investors to stay invested in international equities while hedging against market volatility and targeting an income rate of around 6%.
Energy ETF with high income and returns.
The energy and natural resources ETF ENDIV invests in oil, gas, and chemical companies, targets a 10% distribution rate, has a five-star rating, and has returned over 30% this year, making it a hotspot for investor demand.
Buy cybersecurity dip for AI-driven growth.
Cybersecurity has pulled back due to AI-related headlines, but the dip is a buying opportunity because in an AI-driven world, cybersecurity and M&A in the sector will be significant.
Long-term bullish on crypto despite headwinds.
They are long-term bulls on crypto with various crypto-oriented products, though currently range-bound due to liquidity and legislative headwinds from the Iran situation.
Use hedged equity ETFs for election volatility.
Due to historical drawdowns in midterm election years, there will be a continued drive towards equity strategies with protection, such as hedged equity, buffer, or outcome ETFs, to help investors stay invested and benefit from subsequent recoveries.
