Watch Lukas Ahnert, Senior Product Strategist for Xtrackers, discuss market performance and managing risk

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.

You can listen to this episode and prior episodes as podcasts on:
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For further information on Xtrackers go to https://etf.dws.com/en-gb/

To watch other episodes of ETF TV:  https://www.etftv.net/


ETF TV is your insight into the world of exchange-traded funds, issuers and investment. Register to receive updates and watch prior episodes at www.ETFtv.net.


Disclaimer: ETF TV is a news update and is intended for informational purposes only. ETF TV does not provide investment advice nor recommend products.

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Published on July 2, 2024

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