Buy in a rising stock market with these active ETFs


Stocks rose for a second day in a row on Thursday following reports of slowing inflation in July. In a sign that investor sentiment is turning bullish, the Dow Jones Industrial Average rose 321 points, or almost 1%, while the S&P 500 rose 1.1% and the Nasdaq Composite 1.3%.

That’s after all major indexes rallied in Wednesday’s regular trading session, with the Dow Jones Industrial Average climbing 535.10 points, or 1.63%. Meanwhile, the S&P 500 gained 2.13%, hitting its highest level since early May, and the Nasdaq Composite rose 2.89%, its highest close since late April.

“The trend is our friend here. Markets will appreciate this as a step in the right direction for inflation, yesterday and today,” Mona Mahajan, senior investment strategist at Edward Jones, said on CNBC’s “Squawk Box.”

“For the markets, we really can’t fight the momentum we’ve seen in the near term,” Mahajan said, but she added that further Federal Reserve rate hikes and a slowdown in the labor market could limit earnings.

Investors looking to invest in the seemingly renewed market through active management may want to consider the Avantis US Large Cap Value ETF (AVLV) and the Avantis US Equity ETF (AVUS).

AVLV seeks long-term capital appreciation by targeting large-cap US value stocks that are highly profitable, as defined by the fund manager, across all market sectors and industry groups. The fund’s portfolio is organized using fundamental screens, such as shares outstanding, cash flow, income, expenses, and price-to-book ratio.

AVLV’s portfolio manager aims to achieve the benefits of indexing, including diversification, low turnover and transparency of exposure through an active investment strategy with current prices as the base and the index Russell 1000 Value as benchmark.

AVUS, on the other hand, invests primarily in a diverse group of US companies of all market capitalizations, across all sectors and industries, with an emphasis on investing in companies believed to have higher expected returns. .

AVUS is an actively managed basket of US all-cap stocks with an emphasis on smaller companies with high profitability or value characteristics. The fund manager uses fundamental criteria such as shares outstanding, cash flow, income, expenses and price-to-book ratio to select holdings. AVUS underweights or may at times exclude large capitalization or low profitability companies. The fund is measured against the Russell 3000.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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