All posts by Jonathan Chevreau

4 ETFs and Portfolio Strategies to Calm AI Bubble Concerns

Posted By |
Image by rihaij from Pixabay

Below we canvas four retirement experts and financial planners  about how they or their clients can select certain ETFs to calm concerns about an inflating A.I. Bubble.

These experts were gathered by Featured.com, which has been supplying Findependence Hub with quality content for several years. It recently changed its procedure so editors like myself can request input on particular topics we think will interest our readership. The sources are all on LinkedIn, as you can see by clicking on their profiles below.

Here’s what we asked for this instalment:

Concerns about an AI bubble have investors searching for ways to protect their portfolios without missing out on growth opportunities. We are looking for exchange-traded fund strategies that balance exposure to innovation with downside protection, drawing on analysis from seasoned market professionals. These approaches range from value-weighted diversification to defensive sector allocation, offering practical options for managing risk in today’s volatile market environment.

  • Buy Undervalued Dividend Stocks With Discipline
  • Blend Value Equal Weight and Payouts
  • Cap AI Exposure Favor Quality and Income
  • Diversify Broadly Across Defensive and Alternative Hedges

Buy Undervalued Dividend Stocks with Discipline

I don’t use low-volatility ETFs at all: I build concentrated portfolios of individual dividend-paying stocks that meet strict valuation criteria. Our G@RY system scans for companies trading cheap relative to historical P/E ratios and dividend yields; then I manually curate based on fundamentals. When the AI hype cooled this spring, we added JPM and WMT on April 3rd during panic selling: both quality names with real earnings power and dividends near historical highs.

The “AI bubble” question assumes you need defensive positioning, but I see it differently after 25 years watching cycles. UnitedHealth dropped 40% last year on sentiment, not fundamentals: we bought it at sub-10 forward P/E with a 2.8% yield when everyone hated it. That’s value investing: buying durable businesses when they’re out of favor, not hedging with volatility products.

For clients worried about tech concentration risk, we simply avoid overvalued names and focus on companies with EBITDA margins, consistent cash flow, and dividend growth histories. Home Depot and PepsiCo replaced Darden after 40% gains:  that’s active management, not passive ETF layering. When fundamentals are solid and yields are attractive, volatility becomes opportunity rather than risk. — Frank Gristina, Managing Partner, Acadia Wealth Advisors

Blend Value, Equal-Weight and Payouts

One way to think about positioning for 2026 in light of AI valuation concerns is not to treat it as a binary choice between “all in” or “all out” on growth and AI-linked assets, but rather as a balanced exposure strategy that manages valuation risk while preserving participation in structurally important themes.

The low-volatility approach discussed in the Findependence Hub blog is one practical building block because it tempers portfolio swings, but I view it as part of a broader allocation framework. Three additional options I like are:

  1. Broad indices like the S&P 500 have become increasingly concentrated in a small group of high-growth, high-multiple technology stocks. Shifting part of the allocation toward value-oriented companies with solid cash flows and more reasonable valuations helps reduce reliance on continued multiple expansion (yes, value has underperformed recently, but that is what has driven today’s valuation gap). A practical implementation in the U.S. market is the iShares S&P 500 Value ETF (IVE), which tilts exposure toward businesses where returns are more closely tied to fundamentals.
  2. Using an equal-weight S&P 500 allocation. An equal-weight approach naturally reduces concentration in the largest mega-cap names and redistributes exposure across the broader market. The Invesco S&P 500 Equal Weight ETF (RSP) is a straightforward way to achieve this. It keeps investors invested in U.S. equities while limiting dependence on a handful of stocks that dominate index returns.
  3. Adding a dividend growth strategy for stability. A dividend growth ETF such as the iShares Core Dividend Growth ETF (DGRO) adds another layer of balance. Its historical performance has been strong and has only modestly lagged the benchmark, while offering a more stable return profile. Companies with a consistent ability to grow dividends tend to have resilient cash flows and disciplined capital allocation, which can help smooth returns during periods of elevated volatility or valuation compression. Continue Reading…

Beyond Annuities: Innovative Longevity Products for Retirees

Posted By |
Deposit Photos

Below we canvas 11 retirement experts and financial planners in Canada and the United States about how they and their clients can use new Longevity insurance products above and beyond traditional life annuities.

These experts were gathered by Featured.com, which has been supplying Findependence Hub with quality content for several years. It recently changed its procedure so editors like myself can request input on particular topics we think will interest our readership. The sources are all on LinkedIn, as you can see by clicking on their profiles below.

Here’s what we asked for this instalment:

 “In addition to Annuities, what is one new Longevity product or fund that you believe in enough to recommend to clients approaching or already in Retirement? Examples in Canada are Purpose Longevity Fund and Guardian’s Longevity Funds. Are there similar new products in the U.S. (or Canada) of which  you are aware?”

Here is what these 11 thought leaders had to say:

LifeX ETF delivers transparent Longevity Income

In addition to traditional annuities, one of the emerging longevity products in the U.S. that I have come to recommend to clients approaching or already in retirement is the LifeX Longevity Income ETF, particularly the LFAI fund.

While it is not a classic insurance product, it is designed to provide predictable monthly distributions over a long horizon, effectively hedging against the risk of outliving one’s assets. The fund invests primarily in U.S. Treasuries and money-market instruments, and its structure is built around the concept of a target cohort’s 100th birthday, which allows for a systematic income stream without relying on a life insurance company guarantee.

For many clients, especially those who purchased assets during low-interest periods or are seeking reliable cash flow without tying up their entire portfolio in an annuity, this product offers a compelling complement to their existing retirement income strategy. What I find particularly valuable is the transparency it provides. Unlike certain annuities, clients can clearly see the underlying investments, understand how distributions are generated, and retain the flexibility to adjust allocations as their personal circumstances or market conditions evolve.

It also fits naturally into a broader retirement strategy where a portion of assets remains growth-oriented, some is allocated to defensive income-generating investments, and a dedicated longevity-income segment addresses the specific risk of living decades beyond retirement.

Of course, it is not without considerations; while the fund aims to provide stable income, it is sensitive to interest-rate changes, inflation, and the assumptions built into its cohort-based design. Clients need to assess the fit carefully, ensuring the time horizon and income targets align with their health, lifestyle, and other holdings. For those who understand these dynamics, however, it offers a sophisticated and innovative approach to longevity planning, bridging the gap between traditional annuities and fully self-managed income portfolios, and giving retirees confidence that they can sustain their lifestyle even as they live longer than expected.

Andrew Izrailo, Senior Corporate and Fiduciary Manager, Astra Trust

BlackRock LifePath Paycheck Fund Offers Flexibility

JP Moses, Tennessee

If you’re getting close to retirement, you might want to check out the BlackRock LifePath Paycheck fund. I’ve been following it. It works like those Canadian longevity funds, designed to give you regular monthly checks. The biggest risk is outliving your savings, and this fund has professionals handle the withdrawals so you don’t run out of money. It seems to offer more flexibility than a traditional annuity, which is worth a look.

JP Moses, President & Director of Content Awesomely, Awesomely

——————————————-

Vanguard and Fidelity Deliver Stable Retirement Income

Evan Tunis, Florida

The Vanguard Target Retirement Income Fund is not an entirely new “longevity” product in the mold of Canada’s Purpose and Guardian funds, but it fulfills a similar role for retirees. It is intended to deliver a steady flow of income while protecting against the effects of inflation by investing in a diversified blend of stocks, bonds and cash. The Fidelity Strategic Advisers (r) Core Income Fund is also designed to provide income for retirees with a diversified approach. The two funds both provide some level of stability for those who want to keep a lid on risk and market vomit in retirement.

Evan Tunis, President, Florida Healthcare Insurance

——————————————-

Modern LifeX ETFs balance Freedom and Income

Niclas Schlopsna, Germany

I’ve often been asked about newer longevity products beyond traditional annuities, especially by clients preparing for retirement who want flexibility without giving up stability. What I have observed while working with financially cautious founders and executives is that people want income structures that feel modern, transparent, and liquid, and one option in the U.S. that I genuinely find promising is the Stone Ridge LifeX Longevity Income ETFs. I first came across them while helping a client map out a long term retirement strategy, and what stood out was how these funds provide monthly distributions while still allowing investors to keep full liquidity. I remember reviewing the structure and appreciating how it focuses on Treasuries and a long horizon rather than tying someone into an insurance contract. It felt refreshing. many retirees dislike the idea of locking up money permanently, and this approach allowed them to protect their cash while still receiving consistent income. The experience reminded me of moments with founders who want efficiency without losing control, and pattern is similar

In my opinion, the biggest advantage of these longevity ETFs is the balance between predictability and freedom, since investors receive monthly payouts but can still adjust their strategy if life takes an unexpected turn. The main drawback is that there is no lifetime guarantee, so someone who ends up living much longer than expected might outlive the structure if they rely on it too heavily. I often explain that longevity planning still requires layering different tools rather than expecting one product to solve everything. Another point that came up during discussions with retirees is the sensitivity to interest rate changes, which can affect the value of the ETF itself, and it is important not to overlook that risk. Still, for clients who want something more adaptable than an annuity, this has become a strong option to consider. I also pay attention to emerging pooled longevity concepts, similar to modern tontine ideas, which share risk across participants and create higher payouts for those who live longer. Even though these structures are not mainstream in the U.S. yet, the logic is compelling for retirees who expect longer than average lifespans. Whenever I see innovation like this, I feel the same excitement I do when a founder shows us a new model at spectup because it signals that the industry is shifting toward more transparent, flexible solutions.

Niclas Schlopsna, Managing Partner, spectup

——————————————-

LifeX ETFs offer flexible, predictable Retirement Income

Sovic Chakrabarti, Vancouver, BC

When I think about longevity-focused options beyond traditional annuities, one U.S. product I genuinely find compelling is the Stone Ridge LifeX Longevity Income ETFs. What draws me to LifeX is that it tries to solve the same problem that Canadian funds like Purpose Longevity and Guardian Longevity address — steady income over an unknown lifespan — but without locking someone into an irreversible insurance contract.

Instead of handing over capital permanently, retirees stay invested and receive structured monthly distributions, which feels more flexible and respectful of changing needs. I’ve always liked the idea of having income that mimics an annuity while still keeping the door open if health, family, or market circumstances shift.

I’ve come to see LifeX as especially appealing for clients who want predictable cash flow but aren’t comfortable giving up control of their assets. Because the funds are built largely on U.S. Treasuries, the income stream feels relatively stable, and the target-date structure helps align payouts with the later stages of retirement, when longevity risk becomes more real. The liquidity alone makes it feel like a meaningful evolution in retirement planning: it’s easier to sleep at night knowing the money isn’t trapped.

Of course, I’m also realistic about its limitations. There’s no lifetime guarantee the way a true annuity offers, and the income still depends on market and interest-rate dynamics. It’s not a perfect replacement for insurance-based products. But as a complement — or even a middle ground between full guarantees and full market exposure — it’s one of the few newer U.S. longevity products I’d feel confident putting on the table for someone approaching or entering retirement.

Sovic Chakrabarti, Director, Icy Tales

——————————————- Continue Reading…

Unlocking the Annuity Puzzle: why Canadians avoid what seems to be the perfect Retirement vehicle

Posted By |
Image courtesy boomerandecho.com

My latest MoneySense Retired Money column looks at a curious Canadian phenomenon called The Annuity Puzzle: that while life annuities sold by insurance companies seem to have all sorts of compelling reasons to acquire them, more often that not retirees shun them.

You can find the full column by clicking the hypetexted headline here: Unlocking the Annuity Puzzle: Why Canadians avoid what seems to be the perfect retirement vehicle

Financial planner Robb Engen recently tackled this puzzle in his Boomer & Echo blog, illustrated in the above graphic. You can find the full blog here: Why Canadians avoid one of Retirement’s most misunderstood Tools.

Engen notes that experts like Finance professor Moshe Milevesky and retired actuary Fred Vettese say “converting a portion of your savings into guaranteed lifetime income is one of the smartest and most efficient ways to reduce retirement risk.” Vettese has said the math behind an annuity is “pretty compelling,” especially for those without Defined Benefit pensions.

 Engen observes that a life annuity is “the cleanest version of longevity insurance … You hand over a lump sum to an insurer, and they guarantee you monthly income for life. If you live to 100, the insurer pays you. If stock markets collapse, you still get paid. If you’re 87 and never want to look at a portfolio again, the income keeps flowing.”

In other words, annuities neutralize the two big risks that haunt retirees: Longevity Risk (the chance of outliving your money) and Sequence-of-returns risk: the danger of suffering a stock-market meltdown early in Retirement and inflicting irreversible damage on a portfolio.

Despite all the seeming positives about annuities, Engen notes that “almost nobody buys one.” He cites a Vettese estimate that only about 5% of those who could buy an annuity actually do so.

A chance to lock in recent portfolio gains?

Even so, the new Retirement Club created by former Tangerine advisor Dale Roberts earlier this year — see this blog posted on this site in June  — recently featured a guest speaker who extolled the virtues of annuities: Phil Barker of online annuities firm Life Annuities.com Inc. Barker said many clients tell him they’ve done really well in the markets over the last 20 years and now they’d like to lock in some of those gains. They may be looking for Fixed-Income strategies and many were delighted with GIC returns when they were a bit higher than they are now (some in the range of 5%). But they less happy with the new rates on GICs now reaching maturity. Meanwhile, annuities have just come off a 20-year high in November 2023 so the time to consider one has never been better, Barker told the Club in August. With annuities you can lock in a rate for the rest of your life so if your timing is good, it may make sense to allocate some funds to them.

See the full MoneySense column for the list of the eight life insurance companies that offer annuities in Canada, how they are covered under Assuris, when Annuities really shine, and how to fund annuities with registered or non-registered accounts.

 I suspect the Club’s session on annuities was enough to get a few members off the fence. I have long been impressed by the aforementioned Fred Vettese, who often argues that those preparing to convert their RRSPs into RRIFs might opt to annuitize 20 or 30% of the amount, thereby transferring a chunk of investment risk from the do-it-yourself investor on to  the shoulders of a Canadian life insurance company. Continue Reading…