ETF Edge: Managing long-term risk amid a new Fed chair nominee, jobs data and market volatility

• Fixed income is seen as playing an essential role, with long-term interest rates potentially remaining elevated due to inflation, making corporate bonds compelling.
• Investors are advised to diversify away from US-centric assets, with strong performance noted in emerging markets debt and a shift towards options income ETFs over traditional dividend ETFs.
• Expect increased market volatility due to the new Fed chair and upcoming midterm elections, suggesting a focus on low-volatility equity strategies and careful consideration of private credit investments.

The discussion focuses on managing long-term risk for ETF investors amidst changing market dynamics, including a new Fed chair nominee, jobs data, and market volatility. Key recommendations include diversifying into fixed income, particularly credit sectors and emerging markets debt, and considering low-volatility strategies for equities.