13 Secret Ways to Invest for the Fed Rate Hike - Zack's Market Edge Podcast 10

In this episode, Tracey is joined by Eric Dutram, Zacks ETF Strategist and editor of Zacks ETF Investor newsletter. He’s an expert on all the different ETF products, especially the more obscure ETFs that most investors have never heard about. The Federal Reserve will be raising rates (and might have already done so by the time you’re reading this). How can you cash in on the change in Fed policy? Many investors are already invested in the obvious areas that should benefit from Fed rate hikes like the regional banks. Tracey and Eric give their take on the regional bank ETFs, including one of the more popular choices, and Tracey’s favorite, the iShares US Regional Banks (IAT). But a secret way to invest in the financials is through the iShares Broker-Dealers ETF (IAI) which holds companies like Goldman Sachs and Charles Schwab but also the NASDAQ and CME Group. Why would I want to own the broker dealers? Eric explains why they could cash in as the Fed raises. Another secret way to invest in stocks is a low volatility fund like the PowerShares SaP 500 ex-Rate Sensitive Low Volatility Portfolio (XRLV). It holds mostly large cap, low volatility SaP 500 stocks. Eric discusses why this ETF might appeal to those looking for a smoother ride if the stock market turns rocky. If you think the dollar will continue to strengthen if the Fed raises, then the currency hedging ETFs are for you. Eric really likes the WisdomTree Europe Hedged Equity ETF (HEDJ) even though it’s no longer a secret. Tracey and Eric also discuss other currency hedging possibilities, including the Japanese Currency ETF and Tracey’s dream of hedging the Mexican or Colombian peso. Thinking about bonds? The secret way investors can play the rise in bond yields is by taking a look at the WisdomTree Barclays US Aggregate Bond Negative Duration ETF (AGND). It’s not yet a popular fund, because so many have been betting on the bond bull for decades, but Eric thinks that could change as rates move higher. These are just a few of the ETFs that Tracey and Eric discuss. Be sure to listen to the podcast to get another 8 secret ETF ideas for cashing in on a Fed rate hike. ISHARES US REGIONAL BANKS ETF: http://www.zacks.com/funds/etf/IAT/profile?cid=cs-soundcloud-ft-pod ISHARES US BROKER-DEALERS ETF: http://www.zacks.com/funds/etf/IAI/profile?cid=cs-soundcloud-ft-pod POWERSHARES SaP 500 EX-RATE SENSITIVE LO: http://www.zacks.com/funds/etf/XRLV/profile?cid=cs-soundcloud-ft-pod WISDOMTREE EUROPE HEDGED EQUITY FUND: http://www.zacks.com/funds/etf/HEDJ/profile?cid=cs-soundcloud-ft-pod WISDOMTREE BARCLAYS US AGGR BOND NEG DUR: http://www.zacks.com/funds/etf/AGND/profile?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch

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