Best performing ETFs in a rising interest rate environment
Pacer ETFs president Sean O’Hara reveals the best ETFs to buy in an inflationary environment on ‘The Claman Countdown.’
ETFs, or exchange-traded funds, are baskets of securities that trade like stocks on an exchange and promote diversification, which may contribute to lowering risk during downturns in the market.
"A bear market is a prolonged period of stock market price declines, typically by 20 percent or more from its most recent high," Roberta King, a vice president and branch leader at Fidelity Investments, told FOX Business. "In times of a bear market or market instability, a diversified investment portfolio may help minimize your risk."
She explained that ETFs have advantages for long-term investors during a bear market and appealing features like diversification, easy and accessible trading as well as full transparency of holdings each trading day, making it relatively easy to know exactly what you own.
"As bear markets don’t tend to last very long, it’s important to think of your long-term saving strategy and consider creating a diversified portfolio," King said.
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Understanding the investing big picture
According to King, there is no one-size-fits-all approach to investing and there are different factors to consider when building your portfolio.
"Investors should choose the best option for their specific investing needs, keeping their time horizon, risk tolerance, financial circumstance and short- and long-term goals in mind before making any investment decision," said King.