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Motifs of the Week: Two for the Price of None

21 September 2015 in Trading Ideas

You read that correctly. This week, we have not one, but two different motifs as our Motifs of the Week. That means you can trade them commission free from now through September 25.

Further sweetening this deal, they’re both in a category that’s been gaining popularity in the current climate: reduced volatility. Two different approaches to this concept are reflected in Stable Earnings and Low Beta.

Here’s the reason why these motifs look good right now: Analysts have said that economic uncertainty may cause market volatility to continue during the medium term, based on what has happened in the past when interest rate increases loomed on the horizon.1

So with analysts expecting more of this to come, stability has an appeal. Where do you find stability in a market that’s shaking all about? Look for signs of consistency in areas like income. Companies that have demonstrated minimal fluctuation in their earnings tend to have stocks that behave the same way, relatively speaking. That’s the logic behind the Stable Earnings motif, which contains 24 stocks in companies that have enjoyed positive earnings growth of at least three percent over the past five years.

Meanwhile, the 25 stocks in our Low Beta motif have reduced correlation risk, which refers to the extent to which stocks move in tandem with a market benchmark. Stocks that exhibit less sensitivity to the rest of the market’s ups and downs have an increased likelihood of performing with less volatility compared to the rest of the market.

You don’t have to choose one of these motifs over the other—this week, it’s two for the price of none!

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$0.00 commission offer is for trades (buys, sells, rebalances) of the benchmark version of the Motifs of the Week. $0.00 commission buys, sells, and rebalances offer end 4PM ET September 25, 2015. Commissions for the Motif of the Week that is customized in any way – adjust weighting, add or remove securities will include regular $9.95 total commission per motif transaction or pay $4.95 per stock for individual stock/ETF transactions. Regular commissions apply for other Motif-created benchmark motifs and customer-created customized motifs ($9.95 total commission per motif transaction or $4.95 per stock for individual stock/ETF transactions).