3 Ways ETFs Can Efficiently Re-Position Your Portfolio For 2017

If one thing is certain right now, it’s that we’re truly at an economic and political turning point. In the face of such major change, building a portfolio may feel daunting—like dressing in the dark and hoping you come out reasonably put together. Fortunately...here are 3 things that investors can consider doing to start the new year.

Written by Martin Small (BlackRockBlog.com)

The swirl around the U.S. election pulled the markets sharply into its vortex. The surprise came in the intensity, scope and direction of the trading activity. Most notably, the weeks following the election saw the birth of the “Trump put,” in which economic optimism buoyed U.S. stocks to record highs, while taking down once-loved sectors like bonds and emerging markets.

As we’ve seen in previous periods of intense trading, exchange traded funds (ETFs) once again stepped in to provide investors with orderly, efficient portfolio repositioning. On November 9, the day following the election, ETF trading volume doubled, to 3.2 billion shares, according to Bloomberg; that week, U.S. stock ETFs absorbed flows of $27 billion, a record.

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 How to get buttoned-up in 2017

Given this past year’s tumult, what should investors look for in the months ahead?

The recent market frenzies, while dramatic, have simply brought to the surface investment themes that have been percolating for some time—around global growth, interest rates, corporate earnings and ultimately how much return you should expect for your risk. We can’t know exactly how and when these themes will play out, but there are steps you can consider to potentially position yourself for success.

Here are 3 investment ideas and ways to consider when executing with ETFs:

1. Welcome back, inflation

The ongoing trend toward reflation—rising wages, higher core inflation, a strengthening dollar and stabilizing oil prices—may be accelerated by Trump’s win.

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