CDC - CDC: Peculiar Market-Timing Strategy Incapable Of Capturing Sufficient Upside A Hold
2024-06-02 01:59:17 ET
Summary
- CDC is an index-based ETF that favors less volatile high-yield stocks. Its strategy incorporates a sophisticated market-timing ingredient.
- CDC offers a lesson on how safety-oriented market-timing strategies can disappoint, especially when downside and upside capture are completely out of proportion.
- I believe CDC has growth factor-related risks. Valuation and quality are a silver lining, yet they are not necessarily supportive of outperformance.
- While I appreciate the strong spots in its factor mix, I believe CDC is only a Hold.
The VictoryShares US EQ Income Enhanced Volatility Wtd ETF ( CDC ), an exchange-traded fund I am initiating coverage of today, is an excellent example of how a seemingly nicely calibrated market-timing strategy can disappoint investors over the long run....
CDC: Peculiar Market-Timing Strategy Incapable Of Capturing Sufficient Upside, A Hold