Parametric Hedged Equity ETF

PHEQ

Market cap $143M

The "Mag 7" and tech stocks have led the market to record gains, but concerns are rising that conditions look similar to the period before the dotcom bubble burst. Investors can learn from the mistakes that sank portfolios in the early 2000s when many market participants became overly concentrated in the technology sector.

Escalating trade wars across a number of fronts continue to prove a significant drag on U.S. markets. Advisors and investors seeking hedges within U.S. equities should consider the Parametric Hedged Equity ETF (PHEQ) for its performance this year.

It's certainly no understatement to say that this week was a tumultuous one for many U.S. tech companies. January 20, China startup DeepSeek showed off its newest AI models to the world.

Approximately two years ago, just before an Exchange conference kicked off, one of the largest asset managers entered into the ETF market. Morgan Stanley Investment Management (MSIM), home to some of the strongest asset management brands, launched their initial suite of ETFs in January 2023.

Rate cuts may prove a boon for fixed income this fall, but potential economic weakening creates a challenged outlook for equities. While the Fed seeks to navigate a soft landing for the economy, positioning portfolios defensively could provide some investor peace of mind.

The Vanguard S&P 500 ETF (VOO), was up 14% as of July 26, near its all-time high. With four months to go, VOO has already set a new calendar year record with $51 billion of net inflows.

Options strategies remain a popular choice with advisors and investors for the benefits they bring to portfolios. For those seeking to enhance their equity allocations, Parametric and Morgan Stanley Investment Management offer two ETFs with differing options strategies and outcomes.

Earnings misses and hopes of a September rate cut saw many investors dropping large-cap tech stocks in favor of their small-cap counterparts. Those investors looking to hedge against potential losses in large-caps should consider the Parametric Hedged Equity ETF (PHEQ).

The economic resilience in the face of an aggressive Fed rate-hiking cycle began to show widening cracks in the second quarter. Investors concerned about economic slowing, stagflation, or recession can find defensive opportunities across a variety of strategies.

Are investors starting to get cold feet waiting out interest rate issues? The Dow dropped more than 300 points Wednesday as further Fed comments suggested that higher for longer is as serious as it sounds.