In this week’s episode of the MarketBeat Podcast, Kate chats with David Wagner, Equity Analyst & Portfolio Manager at Aptus Capital Advisors. This story originally appeared on MarketBeat
In this week’s episode of The MarketBeat Podcast , Kate chats with David Wagner, Equity Analyst & Portfolio Manager at Aptus Capital Advisors. Dave discusses his barbell strategy to pair two seemingly disparate sectors for portfolio balance. MarketBeat.com - MarketBeat
In this unprecedented market environment, with macro uncertainties causing intense selling, David is looking at the reasons behind the decline, which include rising concerns about a global recession. Is a recession inevitable, following the yield curve inversion? How David uses a barbell strategy, in this case with energy stocks paired with homebuilders. What big factor do those two disparate sectors have in common
Are energy-industry dividends and share buybacks attractive approaches to draw investors? Which sub-industry within the energy sector David likes right now, due to a growing need for its products and services
Does the energy-sector weighting within the S&P 500 mean it’s under-owned, relative to past weightings? How has the ESG movement been bullish for the energy industry? Why the homebuilder's sector has been a falling knife this year, despite rising demand. David disagrees with other analysts that 2022 represents peak earnings in that industry, and why he sees potential for further earnings growth. Are the effects of institutional home buying exaggerated? How will higher interest rates affect the housing market? What is the proper way to evaluate homebuilders, which also shows you the proper time to buy? Is the traditional 60/40 portfolio simply looking through the rearview mirror in this environment? Stocks Mentioned In This Episode:

MarketBeat Podcast: Barbell Strategy To Strengthen Your Portfolio

MSMR Seeks to Provide Tax-Efficient Tactical Investment Management to Investors
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DALLAS, Dec. 9, 2021 /PRNewswire/ --  McElhenny Sheffield Capital Management, LLC (MSCM) announces the launch of the McElhenny Sheffield Managed Risk ETF (CBOE: MSMR), an actively-managed exchange-traded fund (ETF) targeting U.S. stocks with a focus on managing risk through tactical rules-based strategies. The launch of MSMR adds to the firm's growing investment management offerings, as the firm recently surpassed $400 million in assets under management across its direct-client and subadvisory business. McElhenny Sheffield has successfully managed client investments since its founding in 2000, providing full wealth management services to individuals and families as well as sub-advised investment management capabilities to other Registered Investment Advisors and institutional investors. Independent wealth managers have gravitated to MSCM's tactical strategies for their ability to pursue upside while dynamically managing risk and seeking to avoid significant drawdowns. "We believe our tactical strategies provide a compelling solution for many investors as they look to achieve their investment goals while avoiding the painful drawdowns associated with bear markets." said Bruce Fraser, Founder and Managing Partner at McElhenny Sheffield. "We're proud to have supported our clients and other advisors over the past two decades, and we are excited to extend our tactical investment strategies to the investing public through a tax-efficient active ETF with the launch of MSMR." "We are excited to partner with McElhenny Sheffield," said JD Gardner, Founder and CIO of Aptus Capital Advisors. "The ETF wrapper offers an accessible way to deliver their active expertise with maximum efficiency." MSMR combines two separate tactical strategies into one ETF. The ETF is based on a blend of MSCM's Trend Plus trend following strategy and MSCM's Sector Rotation momentum strategy. Both strategies offer a disciplined, rules-based approach that focuses on risk management. The strategies are fully tactical in that they can go from being 100% invested in U.S. equity ETFs to having zero exposure to the stock market (i.e., 100% defensive). Grant Morris, MSCM Partner and Portfolio Manager, said, "We believe all investors can benefit by adding a tactical investment allocation to their existing portfolio due to the low correlation of tactical strategies to more traditional asset allocations." The MSMR ETF provides a simple and tax-efficient way for investors to add an allocation to tactical investment management. MSMR began trading on the CBOE BZX Exchange on Wednesday, November 17, 2021. Investors can learn more about MSMR at www.mscmfunds.com . McElhenny Sheffield Capital Management
McElhenny Sheffield Capital Management is an SEC registered investment advisor and serves as the Funds' investment sub-advisor. The funds are distributed by Quasar Distributors, LLC. Aptus Capital Advisors
Aptus Capital Advisors is an SEC registered investment advisor and serves as the Funds' investment advisor. The fund is distributed by Quasar Distributors, LLC. An investor should carefully consider the investment objectives, risks, charges and expenses of the ETFs as applicable, before investing. The prospectus of MSMR contains this and other important information and is available free of charge by calling toll-free at 1-800-617-0004 or writing to Aptus at 265 Young Street, Fairhope, AL 36532. The prospectus should be read carefully before investing. Investing involves risk. Principal loss is possible. The Fund is non-diversified meaning it may concentrate its assets in fewer individual holdings or sectors. Therefore, the Fund is more exposed to individual stock volatility or sensitive to developments that significantly affect those issuers or sectors which could have a greater impact on its performance. The Fund is new with no operating history or track record to base an investment decision upon. The Fund utilizes momentum and trend-based strategies that use a variety of market indicators and stop levels that seek to identify upward or downward trends in the U.S. equity markets. If an indicator or stop level fails to detect significant downturns in the market, the fund may continue to be exposed to underlying positions that may lose value during such downward periods. Similarly, if the indicators fail to timely identify a reversal of a downward trending market, the Fund may continue to be exposed to defensive ETFs at a time when there is significant appreciation in the equity markets. Either scenario could result in the Fund underperforming other funds that do not employ these strategies. There can be no guarantee the Sector Rotation strategy will correctly or timely identify the industries, sectors, or asset classes that will outperform during a given quarter or that the Trend Plus strategy will correctly or timely identify market trends. The Fund may invest in other investment companies and ETFs which may result in higher and duplicative expenses. If the Fund invests in U.S. Dollar ETFs, changes in currency exchange rates and relative value of non-U.S. currencies will affect the value of the Fund's investment and the value of Fund shares. Investments in fixed income securities typically decrease in value when interest rates rise. If interest rates fall certain obligations may be paid off more quickly and the proceeds invested in securities with lower yields. Changes in an issuer's credit rating or the market's perception of an issuer's creditworthiness may also affect the value of an investment in an issuer. Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice. Any tax or legal information provided is merely a summary of our understanding and interpretation of some of the current income tax regulations and it is not exhaustive. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. SOURCE McElhenny Sheffield Capital Management
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McElhenny Sheffield Capital Management Launches the McElhenny Sheffield Managed Risk ETF (CBOE: MSMR)

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What You Need to Know
OSAM has added a suite of emerging markets and developed markets strategies on its Canvas platform. State Street is partnering with Lukka to expand its cryptocurrency asset fund administration capabilities. Impact Shares, Aptus Capital Advisors, Timothy Plan and Direxion all have launched new ETFs. O’Shaughnessy Asset Managemen t (OSAM) has introduced a suite of emerging and developed markets ex-U.S. American depositary receipt strategies on its Canvas custom indexing platform. The new offering consists of both passive strategies that replicate the market and active strategies that leverage proprietary quantitative research to optimize for risk-adjusted excess return. “The search for alpha or excess return is leading investors to the emerging markets,” said Patrick O’Shaughnessy, CEO of OSAM in a statement. “Good companies headquartered in developing countries often trade at a steep discount relative to peers in developed countries [and] research demonstrates emerging market companies show higher revenue growth and return on capital.”
He added that emerging markets generally have a low correlation with developed markets, providing diversification for portfolios, and current valuations and spreads in emerging markets indicate investment opportunities. OSAM uses factor-based strategies to eliminate low-performing companies and stress high-performing companies based on valuation and momentum. Advisors incorporating EM can decide if and how much active or factor exposure they want and further customize the portfolio for environmental, social and governance considerations. They can also optimize after-tax returns in Canvas accounts. State Street Boosts Crypto Fund Administration Capabilities
State Street Corp. has partnered with Lukka, an enterprise crypto-asset data and software provider, to provide digital and cryptocurrency asset fund administration capabilities for the firm’s private funds clients. The partnership will help provide clients with collection, standardization, enrichment, reconciliation, processing and reporting related to crypto and other digital assets. It is State Street’s latest effort in the digital and crypto asset space following the launch of State Street Digital in June 2021 and Lukka’s Series C funding round in December 2020, led by State Street. State Street will leverage Lukka’s product suite, which includes a proprietary middle- and back-office data management solution, purpose-built for blockchain and crypto-asset data, as well as Lukka’s reference and pricing data. “Lukka was the ideal partner to help provide these services given their leading position in crypto asset data as State Street continues to add to our growing offering in the digital asset space,” said Jen Tribush, alternatives lead for State Street Digital, in a statement. Impact Shares Launches Affordable Housing MBS ETF
Impact Shares has launched the Impact Shares Affordable Housing MBS ETF (OWNS) , which is designed to help increase homeownership in traditionally underserved communities. The ETF, which trades on the New York Stock Exchange, invests in agency mortgage-backed securities (MBS) backed by pools of mortgage loans made to minority families, low- and moderate-income (LMI) families, and/or families that live in persistent poverty areas and seeks to help increase homeownership for these traditionally underserved communities. Its net expense ratio is 0.30%. “Decades of economic inequality and discriminatory homeownership policies have created a prominent racial wealth gap,” said Marvin Owens, chief engagement officer at Impact Shares, in a statement. “The Black homeownership rate is approximately 45%, the lowest of all ethnic and racial groups in the nation. “
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OWNS invests in MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae, and over half of the loans in OWNS will be made to low- to moderate-income families, many living in census tracts where more than 50% of the population is non-white and at least 40% of the population is living at or below the poverty line. Its launch coincides with the three-year anniversary of the Impact Shares NAACP Minority Empowerment ETF (NACP), which was introduced in July 2018 in partnership with the NAACP, the nation’s oldest civil rights organization. Aptus Capital Advisors Adds Hedged International ETF of ETFs
Aptus Capital Advisors has added the  International Drawdown-Managed Equity ETF (IDME) , an actively managed exchange-traded fund (ETF) targeting non-U.S. stocks with a focus on managing drawdown risk through hedges. The ETF trades on the Cboe and has a net expense ratio of 0.65%. IDME seeks capital appreciation with downside protection by investing in a portfolio of ETFs that invest in equity securities of non-U.S. (international) companies in developed and emerging markets throughout the world. The fund purchases and/or writes (sells) exchange-listed call or put options on one or more broad-based indexes or ETFs that track the performance of equity markets outside of the United States to limit downside risk and to create additional equity exposure, and/or generate premiums from writing call options on the fund’s equity investments. At least 80% of the fund’s net assets will be invested in equity securities. Timothy Plan Launches 2 Smart Beta ETFs
Timothy Plan, a faith-based investment company, has introduced two new ETFs trading on the NYSE: the Timothy Plan High Dividend Stock Enhanced ETF (TPHE) and the Timothy Plan US Large/Mid Cap Core Enhanced ETF (TPLE). TPHE is focused on dividend returns while TPLE also protects against the abrupt downward movement of the markets. Both funds utilize the Timothy Plan eVALUEator proprietary filter, Biblically Responsible Investing (BRI), to exclude companies from its funds that don’t align with their core principles. These include companies involved in the production or distribution of alcohol, tobacco, gambling, or gambling equipment, or are involved in any way in abortion, pornography, or promoting non-biblical lifestyles. TPHE tracks the Victory US Large Cap High Dividend Long/Cash Volatility Weighted BRI Index, while TPLE tracks the Victory US Large/Mid Cap Long/Cash Volatility Weighted BRI Index. Both ETFs have a 0.52% expense ratio. Each ETF is designed to re-allocate up to 75% of its stocks to cash or cash equivalents during times of rapid market drawdowns. The cash is invested in 30-day U.S. Treasury bills or money market mutual funds that primarily invest in short-term U.S. Treasury obligations. They reallocate back to stocks once market prices bottom further or have rebounded. Direxion Introduces a Leveraged Clean Energy ETF
Direxion launched the Direxion Daily Global Clean Energy Bull 2X Shares ETF (KLNE). The Fund seeks to achieve 200% of the daily performance of the S&P Global Clean Energy Index. The index provides exposure to developed markets companies whose economic fortunes are tied to the global clean energy business. As of May 31, the index consisted of 81 constituents, which had a median total market capitalization of $11.2 billion, total market capitalizations ranging from $320 million to $143.5 billion and were concentrated in the utilities, industrials and information technology sectors. “KLNE allows traders to take a bold position in companies exposed to solar, wind and other renewable energy sources,” said David Mazza, head of product at Direxion, in a statement. Direxion warns that the ETF “is intended only for investors with an in-depth understanding of the risks associated with seeking leveraged investment results, and who plan to actively monitor and manage their positions.”
The ETF has a net expense ratio of 1.07%, but total annual operating expenses will be limited to a maximum 0.95% through Sept. 1, 2022 because the fund’s advisor, Rafferty Asset Management, has agreed to waive all or a portion of its management fee and/or reimburse the fund for other expenses until then.

O'Shaughnessy Expands Custom Indexing Platform: Portfolio Products

US shares slip on the first trading day of the week, after falling from record highs last week as investors remain cautious over the slew of corporate earnings ahead as well as the ongoing vaccine rollout in the US. David Wagner, portfolio manager at Aptus Capital Advisors, said he sees similarities in the current economy to the 1920s, with plenty of pent-up demand, economic growth, and technological advancements. Wagner did add that he does not think the US will witness the higher-than-expected given the record amount of fiscal and monetary stimulus. For bonds, Rhys Williams, CIO at Spouting Rock Asset Management, thinks yields will peak in the next three months due to the excitement about reopening, and what will likely be an extraordinary second-quarter GDP print. The 10-year Treasury yield climbed to 1.582% on Monday from 1.571% on Friday. Yields rise when bond prices fall. On Friday , the Dow Jones industrial average and S&P 500 closed at record highs as investors remained optimistic about the global recovery amid strong economic data. Here's where US indexes stood at the 9:30 a.m. ET open on Monday:
Shares of GameStop rose 6% as the company announced that its CEO George Sherman will step down on July 31 or upon the appointment of a successor. Shares were already up even before the company's announcement, boosted by the company's progress in making major changes led by activist investor Ryan Cohen. Over the weekend, bitcoin slipped to 17% to its lowest since February but recovered on Monday , regaining some stability. It was only last week when the cryptocurrency hit an all-time high of over $64,000on excitement over Coinbase's direct listing. The most popular cryptocurrency rose by 2% to above $57,600 on Monday. "The euphoria did not last for too long though, as more investors started to question if the rally went too far in the short-term, and decided to cash in," said Milan Cutkovic , a market analyst at Axi. Most cryptocurrencies tumbled over the weekend with Dogecoin bucking the trend. The meme-based token on Monday rose 35% to an all-time high above $0.41. Still, not even dogecoin advocate Mark Cuban knows what to make of the cryptocurrency's 400% price gain over the past week. The billionaire investor, however, said he expects the coin to settle into a price range over time. "I have no idea what it means," the Dallas Mavericks owner told CNBC . "Supply and demand is undefeated. So it will find its level." Oil prices steadied on Monday tempered by a weaker dollar, despite rising coronavirus infections globally. West Texas Intermediate crude rose 0.16% to $62.23 per barrel. Brent crude , oil's international benchmark, climbed 0.15%, to $66.87 per barrel, at intraday lows. Gold climbed as much as 0.79% to $1,778.03 per ounce, hovering to a seven-week peak, as US Treasury yields soften, Reuters reported . Read the original article on Business Insider

US stocks slip from record highs as earnings season continues

Yubico

MobileIron

Google

Stratford University

eTango

Procter & Gamble

Aptus Capital Advisors offers investment advisory services. The company provides financial planning, portfolio management, consulting, and risk tolerance services. It is based in Fairhope, Alabama.

Name	Work History	Title	Status
JD Gardner		Founder	Current
Alexander G Romero	Yubico, MobileIron, Google, Stratford University, eTango, and Procter & Gamble	Chief Financial Officer	Former

Name	JD Gardner	Alexander G Romero
Work History		Yubico, MobileIron, Google, Stratford University, eTango, and Procter & Gamble
Title	Founder	Chief Financial Officer
Status	Current	Former

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