How investors are positioning in ETFs amid market volatility
Speakers
Christian Magoon
— CEO of Amplify ETFs
Summary
The video discusses how ETF investors are repositioning amid market volatility caused by the Iran War and higher oil prices. Christian Magoon, CEO of Amplify ETFs, notes a shift away from high-beta technology stocks into hedged equity and energy strategies. He also comments on the range-bound nature of Bitcoin due to liquidity and legislative concerns.
- Investors are moving away from high-beta equity plays like technology.
- Hedged equity strategies, using covered calls and dividend stocks, are gaining favor.
- Energy sector is a big winner due to geopolitical events.
- Hedged energy ETFs that offer income and capital appreciation are seeing strong inflows and performance.
- Crypto, particularly Bitcoin, is facing headwinds from liquidity and legislation.
- Bitcoin is trading in a chop range between $65,000 and $75,000.
Trade Ideas
Avoid technology due to volatility and recession fears.
Investors are moving away from higher beta equity plays like technology due to volatility, concerns about liquidity, Fed raising rates, and the risk of the economy tipping into recession with high oil prices.
Favor hedged equity for income and lower volatility.
Investors are looking more at hedged equity plays that use covered calls or dividend paying stocks to limit volatility and provide an income stream, adding to total return while cushioning against market movements.
Energy sector is a winner due to geopolitics.
There is significant exposure to hedged energy strategies; his company offers an ETF that provides a 10% income stream and capital appreciation, which is up about 30% this year, offering a cushion against volatility.
Bitcoin in chop range due to liquidity and legislation.
Crypto is being hurt by liquidity removal and lack of legislative progress, with Bitcoin chopping in a range of $65,000 to $75,000, indicating a neutral to cautious stance.
