ETF Edge: Navigating Tariff Risks with John Davi and Todd Rosenbluth
Join us as we delve into the world of Exchange-Traded Funds (ETFs) and the top investment ideas that can help shield investors from the potential risks posed by tariffs, as discussed on CNBC’s ‘ETF Edge’ with John Davi, Founder & CEO of Astoria Portfolio Advisors, and Todd Rosenbluth, Head of Research at VettaFi.
John Davi’s Perspective
John Davi, a seasoned financial professional, shared his insights on the current market landscape and the potential impact of tariffs on investors. Davi highlighted the importance of diversification in a volatile market, suggesting the following ETFs:
1. iShares MSCI ACWI ex Japan ETF (EFA)
- Provides exposure to developed markets outside of Japan
- Helps investors hedge against potential risks in specific regions, such as those affected by tariffs
2. iShares MSCI Emerging Markets ETF (EEM)
- Offers exposure to emerging markets
- Can serve as a hedge against potential risks in developed markets, as emerging markets may not be as directly impacted by tariffs
- Invests in U.S. Treasury Inflation-Protected Securities (TIPS)
- The principal of the underlying bonds adjusts with inflation, providing investors with protection against rising prices
- Offers exposure to high dividend-paying U.S. stocks
- Inflation-resilient companies often provide stable dividends, helping investors maintain purchasing power in an inflationary environment
- Increased inflation due to higher production costs
- Slowed economic growth in affected regions
- Disrupted global supply chains
Todd Rosenbluth’s Recommendations
Todd Rosenbluth, an accomplished researcher, added his expertise to the conversation, discussing various ETFs that can help investors manage inflationary risks, a potential consequence of tariffs:
1. iShares TIPS Bond ETF (TIP)
2. iShares Select Dividend ETF (DVY)
How This Impacts You
As an individual investor, understanding the potential risks of tariffs and how they may affect your portfolio is crucial. By considering the ETFs discussed above, you can diversify your holdings and hedge against both regional and inflationary risks. Remember, it’s always essential to consult with a financial advisor before making any investment decisions.
A Global Impact
The effects of tariffs are not limited to individual investors. The world economy as a whole may face consequences, including:
By investing in a diversified portfolio that includes the ETFs discussed above, you can help mitigate some of the risks associated with tariffs. However, it’s important to remember that no investment is foolproof, and market conditions can change rapidly.
Conclusion
In an uncertain market, it’s crucial to stay informed and adapt your investment strategy accordingly. By exploring the insights shared by John Davi and Todd Rosenbluth on CNBC’s ‘ETF Edge,’ you’ve taken the first step in understanding how to navigate the potential risks of tariffs using ETFs. Remember, diversification and a well-thought-out investment plan are your best allies in maintaining a healthy and resilient portfolio. Happy investing!
