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Exchange-traded funds (ETFs) are easy to love, but successfully navigating the space can be challenging — even for experienced investors. Like mutual funds, ETFs allow investors to own many stocks at once. For example, investors' returns can be meaningfully altered by relative moves of the US dollar. Within that group, just 15 ETFs had a Sortino ratio of over 1. The Sortino ratio evaluates a fund or ETF's returns on a risk-adjusted basis relative to its downside volatility, and any mark over 1 is seen as solid.
Persons: Jared Woodard, Woodard Organizations: Bank of America, BofA's Research Investment Locations: There's, foolproof, one's, Japan, India, Mexico
Investors are sitting on a $2 trillion cash pile, but they should wait before investing it in stocks. Bank of America said "timing is everything" and investors will see stock buying opportunities in early 2023. "History reveals superlative returns after the last Fed hike," Bank of America said. "Active US household investors, the $40 trillion whale in equity markets, never sold aggressively enough in 2022 to reverse the $4.2 trillion equity inflows since COVID." BofA expects new market leadership in 2023 as 5% inflation levels become the new normal, compared to prior years of just 2%.
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