| Some of the most popular ETF trades this year seem to be cooling down. The shift in momentum is a case of mean-reversion triggered by valuations and overcrowding—too many people chasing the same strategies.
We’re talking about these five pockets of the ETF market: dividends, utilities, low volatility, REITs, and gold. “After a cooling down period, on a fundamental basis, the median PE [in most of these segments] is already now more in line with the broader market, so one could argue this was a valuation mean-reversion effect,” said Wes Gray, head of Alpha Architect and an active manager.........................................Full Article: Source
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