As investors grow more familiar with the exchange-traded product structure, many have started to utilize these instruments for tactical exposure and not just as buy-and-hold building blocks in their portfolios. After equity markets logged a stellar performance in 2013, volatility has rightfully been a key concern for many investors looking to navigate this year’s ups and downs on Wall Street. Andy O’Rourke, Managing Director and Chief Marketing Officer at Direxion, recently took time to discuss some of the headwinds that could plague markets in 2014, in addition to explaining the differences between two seemingly identical low-volatility strategies. ETF Database (ETFdb): Broadly speaking, what are some high-level expectations that you have about volatility levels in 2014 compared to the environment seen last year? Andy O’Rourke (AR): We have been in a period of historically low volatility for quite some time. Outside of a few brief spikes post-credit crisis, the VIX has been mostly [...] Click here to read the original article on ETFdb.com. Related Posts: PowerShares Rolls Out Hedged S&P 500 ETF (PHDG) First Trust Debuts “Tail Hedge” S&P 500 ETF (VIXH) 3 ETF Types For Downside Protection Closer Look At S&P 500 ETF Options 13 Wild ETF Charts from 2013
As investors grow more familiar with the exchange-traded product structure, many have started to utilize these instruments for tactical exposure and not just as buy-and-hold building blocks in their portfolios. After equity markets logged a stellar performance in 2013, volatility has rightfully been a key concern for many investors looking to navigate this year’s ups and downs on Wall Street. Andy O’Rourke, Managing Director and Chief Marketing Officer at Direxion, recently took time to discuss some of the headwinds that could plague markets in 2014, in addition to explaining the differences between two seemingly identical low-volatility strategies. ETF Database (ETFdb): Broadly speaking, what are some high-level expectations that you have about volatility levels in 2014 compared to the environment seen last year? Andy O’Rourke (AR): We have been in a period of historically low volatility for quite some time. Outside of a few brief spikes post-credit crisis, the VIX has been mostly [...]
Click here to read the original article on ETFdb.com.
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