Lukas Ahnert, Senior Product Strategist for Xtrackers, discusses market performance and managing risk on ETF TV
Lukas Ahnert, Senior Product Strategist for Xtrackers, joins Margareta Hricova and Deboah Fuhr on ETF TV to share insights on market performance and managing risk on ETF TV The key points of the discussion are:– Artificial Intelligence (AI) is a major driver of performance in the US market, with a small group of companies, the “Magnificent Seven” or “Great Eight,” leading the way in translating AI technology into earnings growth.– The S&P 500 has become concentrated, with the top ten companies making up over 30% of the index, which has implications for index-based investors, including idiosyncratic risks.– To address these risks, investors are adopting strategies like equal weighting, which allocates evenly across all constituents of the S&P 500, leading to a more balanced sector allocation and reduced concentration risks.– Another strategy is investing in the AI theme broadly to capture the benefits while avoiding single-name risks associated with large market cap companies.– For global equity investors, the current market dynamics mean an outperformance of larger companies and certain sectors, resulting in a 70% US and 30% ex-US allocation in global equities.– World ex-US is seen as a valuable component for constructing investment portfolios in 2024, offering a straightforward approach to balance US allocations and allowing more involvement in index selection.The conversation emphasizes the importance of managing concentration risks and diversifying investment strategies in response to the evolving market landscape. For further information on Xtrackers go to https://etf.dws.com/en-gb/ Disclaimer: DWS is the brand name of DWS Group GmbH & Co. KGaA and its subsidiaries under which they do business. The DWS legal entities offering products or services are specified in the relevant documentation. DWS, through DWS Group GmbH & Co. KGaA, its affiliated companies and its officers and employees (collectively “DWS”) are communicating this document in good faith and on the following basis. This document is for information/discussion purposes only and does not constitute an offer, recommendation or solicitation to conclude a transaction and should not be treated as investment advice. This document is intended to be a marketing communication, not a financial analysis. Accordingly, it may not comply with legal obligations requiring the impartiality of financial analysis or prohibiting trading prior to the publication of a financial analysis. This document contains forward looking statements. Forward looking statements include, but are not limited to assumptions, estimates, projections, opinions, models and hypothetical performance analysis. No representation or warranty is made by DWS as to the reasonableness or completeness of such forward looking statements. Past performance is no guarantee of future results. The information contained in this document is obtained from sources believed to be reliable. DWS does not guarantee the accuracy, completeness or fairness of such information. All third party data is copyrighted by and proprietary to the provider. DWS has no obligation to update, modify or amend this document or to otherwise notify the recipient in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. Investments are subject to various risks. Detailed information on risks is contained in the relevant offering documents. No liability for any error or omission is accepted by DWS. Opinions and estimates may be changed without notice and involve a number of assumptions which may not prove valid. DWS does not give taxation or legal advice. This document may not be reproduced or circulated without DWS’s written authority. This document is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, cou
