
The key question of 2023 – will there be a hard or soft landing – strongly depends on which economy one looks at: the goods economy or the service economy. Will falling commodity prices and ample productive capacity ‘beat’ low unemployment and persistent wage inflation?
In the upcoming webcast, Market outlook for 2023: a story of two economies, Simeon Hyman, global investment strategist and head of investment strategy at ProShares; Kieran Kirwan, director of investment strategy at ProShares; and Troy Goldstein, executive director of distribution at ProShares, will provide expert insight into current markets and potential investment opportunities for 2023.
While markets have been weighed down by uncertainty, investors have found some stability in exchange-traded dividend-themed funds such as the ProShares S&P 500 Aristocrats ETF (NOBL)which focuses only on S&P 500 companies that have increased their dividends for at least 25 consecutive years.
ProShares also offers dividend growth ETFs that target other market segments, such as the ProShares Russell 2000 Dividend Growers ETF (SMDV) and the ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL) for those looking for high-quality dividend growers in the small and mid-cap categories respectively. The mid-cap Dividend Aristocrats Index only requires 15 consecutive years of increased dividends for inclusion. SMDV, a dividend spin on the Russell 2000, the US small-cap index, tracks the Russell 2000 Dividend Growth Index, which includes small-cap companies with dividend increases of at least a decade.
With the Federal Reserve still adamant about reducing heightened inflationary pressures, investors might look to something like the ProShares Equities for Rising Rates ETF (NasdaqGM: EQRR), the first US equity ETF designed to outperform traditional large-cap indices, such as the S&P 500, when interest rates rise. EQRR seeks to mirror the performance of the Nasdaq US Large-Cap Equities for Rising Rates Index, which selects 50 components from a universe of the 500 largest companies by market capitalization listed on the US stock exchange that have historically outperformed during periods of rising interest rates . The sector with the highest correlation has a position of 30% in the index, followed by 25% for the second highest, 20% for the third highest, 15% for the fourth highest, and 10% for the fifth highest.
Supply-side snares can persist and investors can benefit from fundamental changes in the supply chain through a related ETF, the ProShares Supply Chain Logistics ETF (SUPL). SUPL is designed to give investors access to companies involved in every point of the process that moves raw materials and goods around the world. The ETF focuses exclusively on companies transforming the movement of commodities and goods around the world — including global shipping, rail, air and trucking companies that collectively touch every point of the supply chain, according to a statement from the company.
Financial advisors who want to learn more about investment strategies for 2023 can register here for the webcast of Thursday 19 January.