Large-scale studies have shown that actively managed funds underperform their passive benchmarks on an absolute basis. New research shows that this is also true on a risk-adjusted basis – and this is true across asset classes and sub-classes.
He argues stretched corporate balance sheets and overly rosy economic projections make it too early to dive back in.
While technicals for the asset class remain a headwind in the near-term, bank loans may provide an attractive opportunity and relative value.
The recent poor performance of value funds has led some investors to illogically shift to products with less exposure to the value factor. The evidence that the value factor has worked over long periods of time means you want more exposure to it, not less.
There is accumulating evidence that market conditions are growing more attractive for showcasing stock-picking skills.
Back in March, I predicted that the total U.S. economic response to the COVID-19 crisis would be at least $10 trillion.
Read Harold Evensky's latest NewsLetter.
Recently, Advisor Perspectives published two articles based on the data found in The Robo Report regarding the performance of robo advisors compared to our normalized benchmark. We feel it is important to introduce our perspective on the data in our report and respond to the conclusions drawn in those articles.
Rob Amodeo, Head of Municipals at Western Asset Management, digs into the state of the muni-bond market, his outlook moving forward and what investors have to look for to find winners in the sector.
Why did stocks rise over the past month despite grim economic news? The Federal Reserve’s massive liquidity injection is one reason.
From a performance perspective, I give robos an “A” for being average, and hope that future research can make more meaningful statements as to how robos truly impact investor outcomes.
The concept of define-outcome investing has evolved from the use of options in conventional portfolios to structured notes and now to turnkey funds and ETFs that offer built-in downside protection with participation in the market upside. Those ETFs and related products have become extremely popular in this environment, where advisors and their clients are tuned in to the higher level of market volatility and the fear of a large market downturn.
With boozy steakhouse meetings no longer an option, evenings on the town are being replaced with wine tastings via conference call and online concerts.
Robo-advisors faced their first big challenge with the bear market in the first quarter of 2020. They lost, and that is an ominous sign for the future of automated advice.
On a day that started with good news on an experimental COVID-19 vaccine, with the stock market showing strong early gains, today’s report is more visual and less wordy than normal. Since I know not every reader of these publications follows me on Twitter—where I’m constantly posting charts, tables and data that I find compelling...
BlackRock Inc. added its contribution to a growing body of research showing that ESG portfolios outperformed traditional market benchmarks in the recent market downturn.
This article discusses the elements of the new standard and proposes some considerations for written supervisory procedures that establish practices and procedures reasonably designed to ensure compliance with Reg BI and training tips to demonstrate the efficacy of those policies and procedures.
This year marks the 100th anniversary of the renowned investment firm Tweedy Browne. The firm was originally a broker, and one of its clients was Benjamin Graham. I interviewed six members of Tweedy, Browne’s investment committee.
To the analysts at UBS Global Wealth Management, the $3.9 trillion municipal-bond market is heading into the biggest financial storm anyone has ever seen.
The recent market volatility has caused stress, fear and even panic. But that emotional toil can be alleviated by constructing what we call “dedicated portfolios,” rather than blindly following the precepts of modern portfolio theory.
Globally, there are two fundamental shifts happening in the current environment that are increasing the need for income-producing products. First, as baby boomers continue to retire from their work lives, the demand for investment income is likely to grow.
I started in the business in a mutual fund call center right out of college in 1999 (DVD players were all the rage, Y2K panic was a thing and “Who Wants to be a Millionaire” was on). At that point, average annual returns were high for the S&P 500 and most mutual funds—until the bubble burst.
Physical gold continued to catch a bid this week, trading above $1,760 an ounce, on a host of head-spinning economic news, from millions more Americans filing jobless claims to record money-printing to negative oil prices.
What is the value of a financial advisor in 2020? We believe financial advisors have never been more valuable than they are right now. This annual Value of an Advisor study quantifies that dedication and the resulting benefit.
Closed-end funds are currently trading at a discount as equity markets have dropped. Here’s where to spot opportunities.
Gold and gold stocks are among the highest performing assets of 2020 so far as investors seek a haven amid the coronavirus-fueled rout, and as central banks and governments around the world roll out unprecedented monetary and fiscal measures in an effort to mitigate the economic impact of the “Great Lockdown.”
While the COVID-19 crisis is far from over, we expect central bank and government policies to be key to performance in the second quarter.
Those whose work focuses on two other components of wellbeing – emotional and financial – are not risking their lives caring for their clients. Yet their worlds look very different today than they did a few weeks ago.
They say the pandemic has only strengthened their convictions and the performance of sustainable portfolios should vindicate their strategy.
Advisors had little use for actively managed funds over the recent bull market; index funds did exceptionally well. But just when those actively managed funds were most needed – over the recent market downturn – they failed to protect investors.
Vanguard Group and Ant Financial’s joint venture is rolling out a new robo advisor to target the Chinese fintech giant’s 900 million users.
The star fund manager is famous for the power he wields in the market — and for making bets that other investors shy away from.
Ed Rosenburg, American Century’s head of ETFs, sees opportunity.
According to John Sheehan, the recent selloff in Investment Grade fixed income was exacerbated by technical factors. In his view, regulatory changes implemented after the 2008 crisis removed a critical shock absorbing mechanism that caused spreads to spike.
Even with all the benefits attributable to closed-end funds—intraday trading, low financing costs of leverage, ability to be fully invested, and consistent source of income—they have some idiosyncrasies that present challenges, especially during extreme volatility
Most ETFs focused on companies with above-average marks for environmental, social and governance practices have outperformed this year.
Sierra Mutual Funds Chief Investment Officer Terri Spath's latest market commentary discusses when might be a good time to buy, and the importance of using a time-tested process, like the one used at Sierra and Ocean Park.
There are three key areas where the allocation requirements of passive fixed-income vehicles have an impact on the market.
The rally gained force after the White House and the Senate reached an agreement on a massive package of spending and tax breaks in a bid to prevent the swift shutdown of much of America’s economy from leading to a deep, prolonged recession.
Liquidity could remain challenged, but valuations may be attractive for long-term investors.
Putting income into a college savings account is a no-brainer. Like anything, the execution requires planning and financial expertise.
We entered into the current crisis with a whole financial system that had been incentivized by policymakers to take on excessive levels of debt and leverage. The turmoil we are seeing right now is the result of the unwinding of this leverage.
These extreme measures appear to be having great success, particularly in Asian countries. Whereas the number of cases continues to rise in Italy, Spain, Iran and elsewhere, the number has begun to stabilize, if not plateau, in Asian countries.
Markets often overshoot, and just because things are cheap doesn’t mean they can’t get cheaper.
In an incredible reversal, investors pulled a record $12.2 billion out of municipal-bond mutual funds.
Municipal closed-end funds (“CEFs”) currently offer high levels of tax advantaged income and can often be purchased at a discount to their current net asset value.
In a move that has bewildered many CFPs, the CFP Board of Standards took a giant step backward in transparency. It chose to no longer inform consumers searching for a CFP of advisors' compensation models.
Compared to past viral outbreaks, COVID-19 appears to be less fatal, yet it has received far more media coverage. Paradoxically, that may be part of the reason why it’s had a much bigger impact on public health and the economy relative to those other diseases.
The tax drag from fund distributions can be bigger than the alpha of a top-performing manager and considerably larger than the difference in fees between funds.
Warren Buffett boosted his stake in Delta Air Lines by 976,000 shares last week, raising his total holdings to 17.9 million shares. This was enough to bring Buffett’s ownership of Delta up to more than 11 percent.
