Recorded on the Change ETF Convention, host Ryan Nauman welcomes Michael Mack, shopper portfolio supervisor at Victory Capital, to debate key market dangers and portfolio implications for monetary advisors. Mack highlights focus danger, noting the “Magazine Seven” comprise about 35% of the S&P 500 and may present up unexpectedly throughout methods, alongside valuation danger with the market close to ~22x earnings. He explains how free money circulation can enhance worth and development evaluation, together with how heavy AI-related CapEx could make Magazine Seven look dearer on free money circulation than earnings. Mack outlines mitigation concepts comparable to contemplating small caps, utilizing worth methods that search significant reductions, and making use of development/profitability screens to keep away from worth traps. He additionally describes how free-cash-flow ETFs can complement cap-weighted cores, dividend/worth funds, and development allocations by broadening publicity past mega-caps.
Zephyr might help monetary advisors find the very best ETF methods for his or her purchasers. Study extra right here.
Study extra about Victory Capital right here.
00:00 Welcome and Disclosures
00:40 Reside at ETF Convention
01:26 Meet Michael Mack
02:23 Victory Capital Overview
03:07 Prime Market Dangers At the moment
05:13 Tech Worth Alternatives
06:26 Mitigating Valuation Danger
09:29 Why Free Money Stream Issues
11:25 Utilizing FCF in Worth and Progress
14:19 Advisor Portfolio Implementation
17:03 Wrap Up and Sources
