where invesco is a big innovator in that space.mart beta etf's coming off of their biggest year ever last year, which is notable, given it was a down year. what do you observe about how people are using smart beta? was this money leaving active in a down year, do smart beta offer more defensive? dan: a lot of the strategies have been around for more than three or four years building track records and you had the market dislocation in q4. a lot of fiduciaries who were normally rebalancing, trying to de-risk to some degree, when they were whipsawed back into the rally this year. rather than saying market cap weighted, i want to be tilted more to higher quality. maybe higher dividends. those have been important factors. eric: a smart beta etf has wiring. that wiring is active. let's look at something you looked at, the momentum etf, an interesting bit of wiring that kind of messed it up a bit. >> we looked at the performance year to date based on some research. mtum has lagged the s&p 500 by 4% this year, has also underperformed a lot

we are very excited to have a long-term investment with invesco.hat will allow us to participate in the success of the firm going forward. vonnie: i want to bring our viewers a small bit of breaking news. shareholders have rejected edward bramson's bid to join the board. self hyper that himself had protected this. i think he may have made his part -- point about barclays. back to you, roger. what about the global macro landscape these days? did impact your decision on how massmutual is changing your opinion on asset management? roger: there's a lot of talk about the fed and where they are with policy. globally, we have very low interest rates. we expect long-term interest rates to stay low for a long time. as indicated earlier in the show, we don't have a lot of productivity growth, low inflation, technology is deflationary, and the world is aging. you want to position our business to be successful. , the bigset management shift to etf's, we are excited with invesco having a global footprint and a strong beta business to have a stake in a firm that

invesco has an etf that does this.re's a fifth and it is unique because all of these other ones i mentioned invest solely in their own underlying etf, but the main sector rotation is an etf so issue and invest in any etf across the platform. guy: the big two, blackrock and vanguard, don't seem to have these kind of etf's. any plans to launch them? james: we don't know. there are other ways they are doing this. rock launched a fund -- blackrock launched a fund. the other way they are doing things, all of these etf managers offer models, advisors. they are models that use underlying etf's to generate exposures for clients, and they are free. they make their money because they invest in their own etf's directly. guy: we will leave it there. james, thank you much, indeed. a quick look at where europe is, wrapping up the week. we have a negative session as you can see. london markets are down the little bit. the dax is really under pressure today. the auto sector is really under pressure. this is bloomberg. ♪ this is bloomb

they actually sold their investment management business to invesco.heir biggest focuses multifactor funds. this is sort of a good natural step for them. etf's tend to been what -- tend to be one of the growing areas here. the other thing is assets tend to be a little stickier because they are more of a core exposure with assets -- with access to all of them. guy: great stuff. thank you very much indeed. if you want to see the factors you can track on your bloomberg, ft w on your bloomberg. this is bloomberg. ♪ ♪ taylor: live from new york, i'm taylor riggs. guy: from london, i'm guy johnson. this is "bloomberg markets." here with the first word news is renita young. china: the u.s. and resume trade talks today, but overshadowed by president trump's threat to raise tariffs tomorrow and china's threat to retaliate. pres. trump: you see the tariffs we are doing? because they broke the deal. they broke the deal! so they are flying in. the vice premier is flying in tomorrow, a good man. but they broke the deal. : leaders of european union countries, m

we've lost 2% and it's interesting when you look at things like the equal waited technology etf by invesco and i plot this over the s&p to get a look at how technology is as a group. we've broken this entire uptrend since december and that's a concern that this stage in the rally suggesting that tech is starting to show signs of withering and then it's going to really be important to be more selective in the sector. you see stocks like google and this peaked at the latter part of april and a couple of things to note and you have the potential formation of lead and shoulders form eggs and earlier you have to get down under 980 and you see big stocks like google starting to show increasing signs of peaking out and you moved down under 1250 in the last couple of weeks and that broke and i think it will have a tough road getting the momentum pressure starting to definitely lead lower in key stocks like alphabet, google the third is semiconductors and the huge leading sector. what's this telling us similar to what happened in technology, this has shown evidence of peaking out. smh getting down

we will be joined by invesco's kristina hooper and she'll give us her take on the market rebound. the bitcoin boom that's coming up at 1:00 p.m. eastern on "futures now" on cnbc.com scott, back to you. >>> thank you very much. your questions and final trades are next on "the halftime report." the w unely00doisp ar 3 this is my headquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. monitor their blood glucose every day. which means they have to stop. and stick their fingers. repeatedly. today, life-changing technology from abbott makes it possible to track glucose levels. without drawing a drop of blood, again and again. the most personal technology, is technology with the power to change your life. life. to the fullest. every day, visionaries are creating the future. ♪ so, ever

this is the invesco s&p high beta etf basically the most aggressive or faster-moving members of the s&p 500. a lot of either highly valued or a little bit more cyclical and heavily indebted stocks. that's down 3.7% as well and then the semi index, that's a little more on the news today. of course it has been in retreat pretty sharply down 4.2% very china related i think what we're seeing is a broad step back from risk. it's not just about figuring out the dollars and cents of what tariffs from china mean on earnings it's basically an occasion to say we have a much more volatile market, how much is my equity exposure feeling uncomfortable right now or not and now that we've had a little bit of a 5% pullback, guys >> mike santoli. mike, thank you very much. so alicia, if you own a semi, you've been leading the market, it's been a great few months, and now bam, information technology down more than 6% from the highs what do you do with those stocks with the kind of china trade tensions we're going through >> that's a great question because part of the reason the semis outperformed was th