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Investing Strategies to Navigate Market Volatility

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  • (1:00) - What Should Investors Expect From The U.S. Economy Going Forward?
  • (7:15) - Declining Earnings Estimates and Fed Rate Hikes: Should You Be Creating A Defensive Portfolio?
  • (18:20) - Breaking Down Big Tech Earnings and The Future of AI Investing
  • (23:10) - Is Now The Time To Gain International Exposure In Your Portfolio?
  • (28:30) - Episode Roundup: DYNF, USMV, SPLV, IGV, IHF, GLDM, IAUM
  •                 Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Kristy Akullian, Head of iShares Investment Strategy for the Americas at BlackRock, the world’s largest asset manager, about investing amid current market volatility.

Stocks have surged in recent days on trade deal optimism, but it's been a roller-coaster ride. BlackRock expects continued high volatility due to slower growth and evolving trade dynamics.

A resilient labor market and potential tariff-driven inflation could limit the Fed's capacity to cut rates. In this environment, low-volatility strategies and defensive stocks may help reduce portfolio risk.

The iShares Edge MSCI Min Vol U.S.A. ETF (USMV - Free Report) —the most popular fund in the space—selects and weights stocks to create a portfolio with lower volatility relative to the broader market. The strategy uses optimization, accounting for both the correlation between stocks and their individual volatility.

AI beneficiaries struggled earlier this year, particularly following DeepSeek’s AI reveal and growing concerns over trade wars. However, recent big tech earnings suggest the AI trade is far from slowing down.

Google (GOOG - Free Report) and Microsoft (MSFT - Free Report) reaffirmed their spending plans, while Meta (META - Free Report) raised its full-year capital expenditure guidance. This is good news for NVIDIA (NVDA - Free Report) , which remains the biggest beneficiary of the massive AI buildout.

Software ETFs like the iShares Expanded Tech-Software Sector ETF (IGV - Free Report) are also worth considering, as these companies stand to benefit from declining AI costs and increasing adoption.

Amid uncertainty surrounding monetary policy, BlackRock favors the shorter end of the yield curve. Furthermore, as bonds no longer offer the same diversification benefits, they did in previous decades, investors should consider gold and other alternative assets.

Tune in to the podcast to learn more!

Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.

Disclosure: Neena holds IGV in the ETF Investor Portfolio

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