Large cap U.S. equity strategies often fail to outperform the S&P 500. Morningstar’s moat investment philosophy, however, has done just that since 2007.
Join the experts at VanEck and VettaFi for a webcast unpacking this shockingly successful strategy.
The biggest growth companies continue to increase their concentration in major equity indexes this year. It’s not surprising that investors are starting to rethink their exposure to large-caps, given concentration risk and ongoing market uncertainty.
Thematic ETFs have come a long way since they made their full debut in the ETF ecosystem.
Just about 10 “mega-cap” firms have driven more than 80% of the S&P 500’s growth in 2023. For some, that’s proven to be a source of robust returns, but that statistic also means heightened concentration risk for everyone.
Broad-based dividend strategies haven’t performed very well in 2023. But panelists at VettaFi’s Equity Symposium argued that there is value in dividend ETFs — investors just need to know where to look.
August's ZHVI came in at $349,770, up 0.47% from July and up 0.40% from August 2022. However after adjusting for inflation, the real figures are 0.09% month-over-month and -6.45% year-over-year. Nominal home values have increased for 5 straight months while "real" home values have only increased for 3 straight months.
Existing home sales continued their downward trend in August as prices remained elevated. According to the data from the National Association of Realtors (NAR), existing home sales fell by 0.7% from July to reach a seasonally adjusted annual rate of 4.04 million units. This figure came in lower than the expected 4.10 million. Existing home sales are down 15.3% compared to one year ago.
The Conference Board Leading Economic Index (LEI) fell for the 17th consecutive month in August as economic uncertainty and recession fears continue to grow. The index dropped 0.4% from last month to 105.4, the index's lowest reading since June 2020.
BlackRock Inc. and other money managers spent years rolling out sustainable funds, seeking to capitalize on surging interest in ESG investing. Now they’re abandoning an increasing number of those products in the US amid political backlash and investor scrutiny.
When Exchange first launched in 2022, it redefined what an advisor-focused conference could look like. Now, Exchange 2024 is just around the corner. The financial services industry prepares to unite at Miami Beach on February 11th-14th.
What’s inside an ETF really matters. This is an argument I’ve been making for more than a decade. However, with the growth of alternatively weighted index ETFs and actively managed products, this has become even more notable.
Inverted curves (when the gold line goes below the red line meaning that short maturity yields are higher compared to longer maturity yields) have preceded recessions.
Improve your own and your firm’s productivity by sidestepping these top five hybrid work mistakes.
Industrial securities are unloved by financial advisors. However, it is the backbone of a relatively popular sector ETF and two relatively new thematic ETFs positioned to benefit from transformational changes. Perhaps they want to dive deeper into the fundamentals with us during the VettaFi Equity Symposium on September 21.
Investors have had a lot thrown at them this year: more Federal Reserve tightening, a regional banking crisis, and geopolitical turmoil. And yet US stock indexes are on track for a stellar year.
For active managers, the math is stark. Out of thousands of mutual funds, literally only one beat the Nasdaq 100 over the last five, 10 and 15 years. It did so by boiling down stock picks to about two dozen companies and riding almost all of them to gains.
For new investors, the world of finance can appear daunting. But among the sea of investment options, Treasury bonds (often just called “Treasuries”) are a pillar of stability and reliability.
A return to the Great Moderation Era looks unlikely, which might lead to an increasingly volatile—and somewhat unfamiliar—inflationary, economic, and geopolitical landscape.
In arguably quiet fashion, active managers are performing admirably in 2023. An impressive percentage of active equity and fixed income funds beat their benchmarks in the first half of the year.
The term “Bond Vigilantes” is a nostalgic twist on an old-west theme. In the nineteenth century, the American West formed self-appointed groups, or committees, to seize the duties of law enforcement and judicial authority in situations when citizens found law enforcement lacking or inadequate.
The U.S. Census Bureau and the Department of Housing and Urban Development published their August findings for new residential housing starts and building permits. Over the long haul, the two series offer a compelling study of trends in residential real estate. Here is an overlay of the two series since the 1959 inception of the starts and permits data, which was tracked beginning a year later.
Gas prices climbed to their highest levels since the beginning of October last year. As of September 18, the price of regular and premium gas rose by 6 and 8 cents from the previous week, respectively. The WTIC end-of-day spot price for crude oil closed at $90.58, up 3.8% from last week.
Rather than reacting to financial challenges and opportunities as they arise, local entrepreneurs are embracing new perspectives on change management by preparing for change beforehand.
Fifty cents on the dollar is a very low price in the world of bonds. In most cases, it signals that investors believe the seller of the debt is in such financial distress that it could default.
US stocks continued their slog through the end of summer, but the S&P 500 Index just notched a resiliency milestone not seen in five years.
What if we stop thinking of prospects who don’t commit as “tire-kickers,” and instead view them as potential clients we lost?
New residential housing starts plummeted to their slowest pace since 2020 according to the U.S. Census Bureau and the Department of Housing and Urban Development. In August, housing starts dropped to a seasonally adjusted annual rate of 1.283 million, falling short of the forecasted 1.440 million. This marks an 11.3% decrease from July and a 14.8% decline compared to one year ago.
New residential building permits jumped to their fastest pace in almost a year according to the U.S. Census Bureau and the Department of Housing and Urban Development. In August, building permits reached a seasonally adjusted annual rate of 1.543 million, surpassing the forecasted 1.440 million. This marks a 6.9% increase from July but reflects a 2.7% decrease compared to the same period last year.
Now seems like a good time to talk about wrappers and which ones are best for different situations. How do you decide whether to use an ETF, a mutual fund, or something else?
Confidence is returning to the bond markets and one sign is corporations’ willingness to start taking on debt again with new issuance.
Markets are convinced that the Federal Reserve (Fed) is going to pause its interest rate campaign after it finalizes its Federal Open Market Committee (FOMC) meeting on Wednesday, September 20.
Despite substantial growth and huge advancements in public policy support, clean energy has had an abysmal stretch in the stock market the last two and a half years.
Seven of the eight indexes on our world watch list posted gains through September 18, 2023. Tokyo's Nikkei 225 finished in the top spot with a YTD gain of 28.51%. The U.S.'s S&P 500 finished in second with a YTD gain of 16.46% while India's BSE SENSEX moved into third with a YTD gain of 10.28%.
FINRA has released new data for margin debt, now available through August. The latest debt level fell for the first time since April to $689.19 billion. Margin debt is down 2.9% month-over-month (MoM) and up 0.2% year-over-year (YoY). However, after adjusting for inflation, debt level is down 3.3% MoM and down 3.3% YoY.
High mortgage rates continue to weaken builder confidence. The National Association of Home Builders (NAHB) Housing Market Index (HMI) fell 5 points from last month to 45, the index's second straight monthly decline.
Stock-market strategists who were largely wrong about this year’s rally are finally starting to come to face their mistake, raising year-end targets for the S&P 500 Index.
In a significant turnaround for its aviation sector, Mexico’s air safety rating was upgraded from Category 2 back to Category 1 by the Federal Aviation Administration (FAA). The upgrade could be a game-changer, offering opportunities for both Mexican airlines and their U.S. joint venture partners.
The S&P 500 fell sharply on Friday by 1.2%, leading to the index's second consecutive weekly loss. The index is currently up 16.37% year to date and is 7.22% below its record close from January 3, 2022.
Competing narratives have emerged to describe the state of the U.S. economy.
As the artificial intelligence (AI) investment thesis continues evolving, one benefit accrued by investors will be that it becomes easier to identify winners and losers.
With actively managed ETFs, advisors and clients are willing to pay a premium relative to investing in an index-based approach. However, they want to be rewarded. In 2023, VettaFi is seeing this occur and is eager to share more about some of these active equity ETF strategies.
Today, I am going to do something that I've never done. I am going to start a two-part series describing what is in my personal portfolio and why. Let me start by offering two caveats: This letter is in the “do as I say and not as I do” category.
Bitcoin, the largest cryptocurrency by market value, is mired in a slump. The decision in the Greyscale case stoked optimism that the SEC will eventually, finally approve spot bitcoin ETFs. Still, the bitcoin slump has erased all of the upside generated by the court ruling.
Bearish China traders have had the upper hand for most of the year. Still, easing deflation could give bulls a glimmer of hope.
A host of Wall Street funds have minted profits riding the recent crypto fever after Grayscale Investments LLC snagged a big win over America’s top financial watchdog in its bid to create a US Bitcoin ETF.
Some investment trends seem obvious — people are watching more streaming movies, consumers like shopping online, and more people are buying electric cars. So why don’t these ETFs always work?
Although US bond yields are well above their lows of the past decade, it’s always a good idea to think globally.
Last week the World Gold Council reported that central banks continued to add to their global gold reserves during the month of July. The World Gold Council also highlighted that China, Poland and Turkey were among the countries that were the largest buyers of gold during the month.
All week, stock traders have shrugged off everything from hot inflation data in the US to another recession-threatening hike in interest rates over in Europe.
For a lesson in the pitfalls of market timing, consider the Dow Jones Industrial Average, whose refusal of admission to Alphabet Inc. and Amazon.com Inc. has gone from a blessing to a curse in the space of a year.
Touchstone Investments now has six actively managed ETFs. It seeks to bring its “distinctively active” mutual fund approach to meet advisors where they are focused.
VettaFi’s Equity Symposium is just over a week away and will provide advisors with free access to some of the most important thought leaders in the investment space.
Month-over-month nominal retail sales in August were up 0.6% and up 2.47% year-over-year. However, after adjusting for inflation, real retail sales were down 0.1% MoM and down 1.19% year-over-year.
The Census Bureau's Advance Retail Sales Report for August revealed a 0.6% increase in headline sales compared to July, marking the fifth consecutive month consumer spending has increased. The latest figure surpassed expectations of 0.2% monthly growth. Core sales (ex Autos) also exceeded expectations by registering 0.6% growth in August, defying the forecasted 0.2% increase.
Wholesale inflation rose more than expected in August as producer prices increased for a second straight month. The producer price index for final demand was up 0.7% month-over-month, its largest monthly increase since June 2022 (s.a.). On an annual basis, headline PPI accelerated for a second straight month from 0.8% in July to 1.6% in August (n.s.a).
Expectations of central-bank interventions are helping to steady emerging-market currencies, even as traders adjust to a higher-for-longer regime for developed market interest rates.
This year’s hottest options trade has found its way into the $7.4 trillion ETF arena for the first time, in the latest push by the financial industry to tap booming demand for stock investments with an income stream.
Recently, some clarity emerged on Nvidia (NASDAQ: NVDA) and Taiwan Semiconductor (NYSE: TSM) — two of the most important names in the semiconductor industry.
A wide range of possible outcomes, a multitude of negative earners, and significantly less Wall Street coverage are just a few of the reasons investors in the small-cap universe should consider active managers who could steer them toward better results.
ETFs are the instrument of choice for millions of investors in the U.S. Through a single trade and for a relatively low price, an investor gains broad exposure to a market, sector or niche.
Artificial Intelligence has been a category-killer among investment themes in the past year.
Its impact on the wealth management profession has been profound, from gravity-defying value creation on the stock market to optimizing the day-to-day operations of an advisory practice.
Every participant in financial services, in companies large or small, needs to embrace and integrate this powerful technology into its future, or risk falling behind.
My guest today, Valery Talma, will share his perspective on the state of the art in AI investment management and how advisors can serve their clients better with AI-powered strategies.
A flurry of hedge funds, direct lenders and others are expecting a revival of the $1.3 trillion collateralized loan obligation market — and they want to be ready to reap the benefits when it happens.
Headline inflation rose for a second straight month in August while core inflation continued to cool. According to the Bureau of Labor Statistics, the headline figure for the Consumer Price Index increased to 3.7% year-over-year from 3.2% in July. The latest reading is slightly higher than the expected 3.6% annual increase. The core CPI reading was consistent with expectations at 4.3%, a slow down from 4.7% in July.
ESG has dominated advisors’ minds when it comes to looking at the current generation of young prospective clients. It remains a popular investment approach for millennial and Gen Z clients per surveys.
While there are lots of reasons to celebrate the growth stocks inside the NASDAQ 100 index, some advisors might be looking for alternatives to the market-cap weighted index ETFs that reduce their risk profile. Thankfully there are some choices to consider.
Tesla Inc.’s Dojo supercomputer may add as much as $500 billion to the company’s market value through faster adoption of robotaxis and network services, according to Morgan Stanley.
Everyone — from moms and pops to corporate treasurers and the mega asset managers — is piling in, won over by a unique opportunity: To lock in a 5% yield, and protect themselves from uncertainty over the US economy.
The headline number for the NFIB Small Business Optimism Index decreased to 91.3 in August, as small business owners continued to report inflation as their biggest problem. The latest reading was worse than the forecast of 91.6 and marked the 20th consecutive month the index has been below the series average of 98.
Growth stocks are getting the better of their value rivals this year. Still, that doesn’t mean exchange traded funds dedicated to value stocks are delivering losses. Rather, the opposite is true. It’s just that growth stocks are delivered better returns though the first eight months of the year.
In September, where volatility can strike at any time, investors will want the safety cushion of bonds for their portfolio. At the same time, short duration continues to be the default play as the U.S. Federal Reserve still attempts to cool down inflation further.
Today's economic conditions are attractive for BDCs (business development companies), and some benefit from businesses seeking alternative financing sources.
The benefits of RILAs vary significantly by design, and buffer RILAs have historically been a more attractive addition to a portfolio than floor RILAs.
New research shows that stocks have historically been a poor hedge against inflation over anything but very long horizons.
Mega-cap stocks continue to dominate the market in 2023. The question is, why? After all, many other great companies have arguably much better valuations and fundamentals.
Traders in the $325 billion industry for emerging-market exchange-traded funds are shifting cash toward strategies that focus on brighter spots in the developing world as China’s economy stumbles.
Innovative provider of custom indexes becomes a key part of a growing suite of VettaFi index solutions, which now power nearly $19 billion in ETFs and other vehicles.
The S&P 500 Index’s surprise 16% rally this year is rewarding traders who bought in early and punishing those who’ve remained skeptical. But fear of a downturn remains.
Even though past performance doesn’t guarantee future results, investors should prepare for continued market volatility this month.
Greetings from Europe. I promised to write a letter describing my personal investment portfolio. I still plan to, but it won’t be this week.
High-yield bonds, often referred to as “junk” or “speculative grade,” are corporate bonds that command a higher interest rate than other bonds. This higher yield is essentially compensation for the increased risk of default that investors assume when purchasing these securities.
An efficient avenue for asset managers and fund issuers to avoid regulatory scrutiny of products with the environmental, social, and governance (ESG) label is to ensure that those funds live up their ESG ETF billing. That can be accomplished with data-intensive approaches.
Launches of emerging-market equity funds that exclude China have already reached a record annual high in 2023, as investor concerns grow over weak returns as well as the risks of investing in the nation.
Vanguard has forecasted that inflation will remain sticky, so the U.S. central bank will continue raising rates. But the investment giant also estimates that a recession still won’t hit the U.S. this year.
Apple Inc. is by far the world’s largest company, but the trend toward artificial intelligence is poised to upend the power rankings on Wall Street, according to Needham.
Conference season has come for Financial Services. Future Proof is coming up and Exchange is right around the corner. Many advisors have complex, busy schedules.
Dina Ting, Franklin Templeton ETFs’ Head of Global Index Portfolio Management, explores the positive trends that are making a case for holding UK equities.
Many investors are starting to look for ways to diversify their portfolios and protect their wealth. One way investors have done so in the past is through investing in gold.
Equity investors should look beyond the hype for companies with clear strategies to profitably monetize the benefits of generative AI.
Most portfolios live or die based on their equity allocations. VettaFi is thrilled to announce that they will be hosting an Equity Symposium on September 21st.
The yield on the 10-year note ended September 8, 2023 at 4.26%, the 2-year note ended at 4.90%, and the 30-year at 4.33%.
ETF
The Story Behind Moat Investing’s Decade of Dominance vs. the S&P 500
Large cap U.S. equity strategies often fail to outperform the S&P 500. Morningstar’s moat investment philosophy, however, has done just that since 2007.
Join the experts at VanEck and VettaFi for a webcast unpacking this shockingly successful strategy.
Looking to Large-Caps: Where Do We Grow From Here?
The biggest growth companies continue to increase their concentration in major equity indexes this year. It’s not surprising that investors are starting to rethink their exposure to large-caps, given concentration risk and ongoing market uncertainty.
Thematic ETF Trends to Watch Entering 2024
Thematic ETFs have come a long way since they made their full debut in the ETF ecosystem.
The Case for Mid and Small-Cap Stocks Right Now
Just about 10 “mega-cap” firms have driven more than 80% of the S&P 500’s growth in 2023. For some, that’s proven to be a source of robust returns, but that statistic also means heightened concentration risk for everyone.
There’s Value in Dividend ETFs. Investors Just Need to Know Where to Look
Broad-based dividend strategies haven’t performed very well in 2023. But panelists at VettaFi’s Equity Symposium argued that there is value in dividend ETFs — investors just need to know where to look.
Zillow Home Value Index: "Real" Values Increases for Third Straight Month
August's ZHVI came in at $349,770, up 0.47% from July and up 0.40% from August 2022. However after adjusting for inflation, the real figures are 0.09% month-over-month and -6.45% year-over-year. Nominal home values have increased for 5 straight months while "real" home values have only increased for 3 straight months.
Existing Home Sales Fall as Prices Rise
Existing home sales continued their downward trend in August as prices remained elevated. According to the data from the National Association of Realtors (NAR), existing home sales fell by 0.7% from July to reach a seasonally adjusted annual rate of 4.04 million units. This figure came in lower than the expected 4.10 million. Existing home sales are down 15.3% compared to one year ago.
CB Leading Economic Index Declines, Deepening Recession Fears
The Conference Board Leading Economic Index (LEI) fell for the 17th consecutive month in August as economic uncertainty and recession fears continue to grow. The index dropped 0.4% from last month to 105.4, the index's lowest reading since June 2020.
BlackRock, State Street Among Money Managers Closing ESG Funds
BlackRock Inc. and other money managers spent years rolling out sustainable funds, seeking to capitalize on surging interest in ESG investing. Now they’re abandoning an increasing number of those products in the US amid political backlash and investor scrutiny.
Exchange 2024 Announces Theme, “Blueprint for Growth”
When Exchange first launched in 2022, it redefined what an advisor-focused conference could look like. Now, Exchange 2024 is just around the corner. The financial services industry prepares to unite at Miami Beach on February 11th-14th.
Being Different From Index ETFs Can Add Value
What’s inside an ETF really matters. This is an argument I’ve been making for more than a decade. However, with the growth of alternatively weighted index ETFs and actively managed products, this has become even more notable.
To the Point!
Inverted curves (when the gold line goes below the red line meaning that short maturity yields are higher compared to longer maturity yields) have preceded recessions.
The Top Five Hybrid Work Mistakes
Improve your own and your firm’s productivity by sidestepping these top five hybrid work mistakes.
How Thematic ETFs Differ From Sector Funds
Industrial securities are unloved by financial advisors. However, it is the backbone of a relatively popular sector ETF and two relatively new thematic ETFs positioned to benefit from transformational changes. Perhaps they want to dive deeper into the fundamentals with us during the VettaFi Equity Symposium on September 21.
Big Seven Face Test on How Far Rally Can Run
Investors have had a lot thrown at them this year: more Federal Reserve tightening, a regional banking crisis, and geopolitical turmoil. And yet US stock indexes are on track for a stellar year.
Only Fund Beating Nasdaq Long-Term Is Defying Stock-Picking Odds
For active managers, the math is stark. Out of thousands of mutual funds, literally only one beat the Nasdaq 100 over the last five, 10 and 15 years. It did so by boiling down stock picks to about two dozen companies and riding almost all of them to gains.
The ABCs of Treasury Bonds
For new investors, the world of finance can appear daunting. But among the sea of investment options, Treasury bonds (often just called “Treasuries”) are a pillar of stability and reliability.
Say Goodbye…to Great Moderation?
A return to the Great Moderation Era looks unlikely, which might lead to an increasingly volatile—and somewhat unfamiliar—inflationary, economic, and geopolitical landscape.
Assessing Allure of Active Management
In arguably quiet fashion, active managers are performing admirably in 2023. An impressive percentage of active equity and fixed income funds beat their benchmarks in the first half of the year.
Bond Vigilantes And The Waiting For Godot
The term “Bond Vigilantes” is a nostalgic twist on an old-west theme. In the nineteenth century, the American West formed self-appointed groups, or committees, to seize the duties of law enforcement and judicial authority in situations when citizens found law enforcement lacking or inadequate.
A Long-Term Look: Residential Building Permits and Housing Starts
The U.S. Census Bureau and the Department of Housing and Urban Development published their August findings for new residential housing starts and building permits. Over the long haul, the two series offer a compelling study of trends in residential real estate. Here is an overlay of the two series since the 1959 inception of the starts and permits data, which was tracked beginning a year later.
Weekly Gasoline Prices Reach 11-Month High
Gas prices climbed to their highest levels since the beginning of October last year. As of September 18, the price of regular and premium gas rose by 6 and 8 cents from the previous week, respectively. The WTIC end-of-day spot price for crude oil closed at $90.58, up 3.8% from last week.
The Top Five Strategies for Working with Small Business Owners
Rather than reacting to financial challenges and opportunities as they arise, local entrepreneurs are embracing new perspectives on change management by preparing for change beforehand.
Sub-50 Cent Price on Treasury Bond Underscores Investor Pain
Fifty cents on the dollar is a very low price in the world of bonds. In most cases, it signals that investors believe the seller of the debt is in such financial distress that it could default.
S&P 500 Marks 100 Days Without 1.5% Drop, First Time Since 2018
US stocks continued their slog through the end of summer, but the S&P 500 Index just notched a resiliency milestone not seen in five years.
Is More Leads the Solution?
What if we stop thinking of prospects who don’t commit as “tire-kickers,” and instead view them as potential clients we lost?
Housing Starts Plummet 11.3% in August
New residential housing starts plummeted to their slowest pace since 2020 according to the U.S. Census Bureau and the Department of Housing and Urban Development. In August, housing starts dropped to a seasonally adjusted annual rate of 1.283 million, falling short of the forecasted 1.440 million. This marks an 11.3% decrease from July and a 14.8% decline compared to one year ago.
Building Permits Jump 6.9% in August
New residential building permits jumped to their fastest pace in almost a year according to the U.S. Census Bureau and the Department of Housing and Urban Development. In August, building permits reached a seasonally adjusted annual rate of 1.543 million, surpassing the forecasted 1.440 million. This marks a 6.9% increase from July but reflects a 2.7% decrease compared to the same period last year.
VettaFi Voices On: Choosing Your Wrapper
Now seems like a good time to talk about wrappers and which ones are best for different situations. How do you decide whether to use an ETF, a mutual fund, or something else?
Get Active Exposure as Corporate Confidence Returns in Bonds
Confidence is returning to the bond markets and one sign is corporations’ willingness to start taking on debt again with new issuance.
To Increase or Not to Increase: That Is the Question
Markets are convinced that the Federal Reserve (Fed) is going to pause its interest rate campaign after it finalizes its Federal Open Market Committee (FOMC) meeting on Wednesday, September 20.
Turbulence on the Path to Transformation
Despite substantial growth and huge advancements in public policy support, clean energy has had an abysmal stretch in the stock market the last two and a half years.
World Markets Watchlist: September 18, 2023
Seven of the eight indexes on our world watch list posted gains through September 18, 2023. Tokyo's Nikkei 225 finished in the top spot with a YTD gain of 28.51%. The U.S.'s S&P 500 finished in second with a YTD gain of 16.46% while India's BSE SENSEX moved into third with a YTD gain of 10.28%.
Margin Debt Down 2.9% in August; First Decline Since April
FINRA has released new data for margin debt, now available through August. The latest debt level fell for the first time since April to $689.19 billion. Margin debt is down 2.9% month-over-month (MoM) and up 0.2% year-over-year (YoY). However, after adjusting for inflation, debt level is down 3.3% MoM and down 3.3% YoY.
NAHB Housing Market Index: Builder Confidence Weakened by High Mortgage Rates
High mortgage rates continue to weaken builder confidence. The National Association of Home Builders (NAHB) Housing Market Index (HMI) fell 5 points from last month to 45, the index's second straight monthly decline.
Wall Street Comes to Grips With How Wrong It’s Been in 2023
Stock-market strategists who were largely wrong about this year’s rally are finally starting to come to face their mistake, raising year-end targets for the S&P 500 Index.
Why Mexico’s Category 1 Air Safety Status Spells Good News For Investors
In a significant turnaround for its aviation sector, Mexico’s air safety rating was upgraded from Category 2 back to Category 1 by the Federal Aviation Administration (FAA). The upgrade could be a game-changer, offering opportunities for both Mexican airlines and their U.S. joint venture partners.
S&P 500 Snapshot: Friday Slump Leads to Weekly Loss
The S&P 500 fell sharply on Friday by 1.2%, leading to the index's second consecutive weekly loss. The index is currently up 16.37% year to date and is 7.22% below its record close from January 3, 2022.
Schwab Market Perspective: Tension
Competing narratives have emerged to describe the state of the U.S. economy.
Some Internet Companies Could Find AI Gold
As the artificial intelligence (AI) investment thesis continues evolving, one benefit accrued by investors will be that it becomes easier to identify winners and losers.
Successful Active Equity ETF Managers to Answer Questions
With actively managed ETFs, advisors and clients are willing to pay a premium relative to investing in an index-based approach. However, they want to be rewarded. In 2023, VettaFi is seeing this occur and is eager to share more about some of these active equity ETF strategies.
What's in My Personal Portfolio?
Today, I am going to do something that I've never done. I am going to start a two-part series describing what is in my personal portfolio and why. Let me start by offering two caveats: This letter is in the “do as I say and not as I do” category.
Bitcoin Slump Could Lead to Rally, Says Research Firm
Bitcoin, the largest cryptocurrency by market value, is mired in a slump. The decision in the Greyscale case stoked optimism that the SEC will eventually, finally approve spot bitcoin ETFs. Still, the bitcoin slump has erased all of the upside generated by the court ruling.
Easing Deflation Could Give China Bulls Some Hope
Bearish China traders have had the upper hand for most of the year. Still, easing deflation could give bulls a glimmer of hope.
Cathie Wood, Boaz Weinstein Among Winners From Bitcoin Fund Bet
A host of Wall Street funds have minted profits riding the recent crypto fever after Grayscale Investments LLC snagged a big win over America’s top financial watchdog in its bid to create a US Bitcoin ETF.
How Analysts Look at Trends to Invest in Stocks and ETFs
Some investment trends seem obvious — people are watching more streaming movies, consumers like shopping online, and more people are buying electric cars. So why don’t these ETFs always work?
Why Global Bonds Make Sense for US Investors
Although US bond yields are well above their lows of the past decade, it’s always a good idea to think globally.
Central Banks and Investors Are Interested in Gold
Last week the World Gold Council reported that central banks continued to add to their global gold reserves during the month of July. The World Gold Council also highlighted that China, Poland and Turkey were among the countries that were the largest buyers of gold during the month.
A $4 Trillion ‘Triple Witching’ Event Endangers Stock Market Calm
All week, stock traders have shrugged off everything from hot inflation data in the US to another recession-threatening hike in interest rates over in Europe.
Dow Industrials Paying Price for Leaving Out Amazon and Alphabet
For a lesson in the pitfalls of market timing, consider the Dow Jones Industrial Average, whose refusal of admission to Alphabet Inc. and Amazon.com Inc. has gone from a blessing to a curse in the space of a year.
Touchstone’s Active ETF Lineup Is Focused on Income
Touchstone Investments now has six actively managed ETFs. It seeks to bring its “distinctively active” mutual fund approach to meet advisors where they are focused.
Equity Symposium Set to Cast a Wide Net
VettaFi’s Equity Symposium is just over a week away and will provide advisors with free access to some of the most important thought leaders in the investment space.
The Big Four Economic Indicators: Real Retail Sales Down 0.1% in August
Month-over-month nominal retail sales in August were up 0.6% and up 2.47% year-over-year. However, after adjusting for inflation, real retail sales were down 0.1% MoM and down 1.19% year-over-year.
Retail Sales Rise 0.6% in August, Exceeding Expectations
The Census Bureau's Advance Retail Sales Report for August revealed a 0.6% increase in headline sales compared to July, marking the fifth consecutive month consumer spending has increased. The latest figure surpassed expectations of 0.2% monthly growth. Core sales (ex Autos) also exceeded expectations by registering 0.6% growth in August, defying the forecasted 0.2% increase.
Producer Price Index: Wholesale Inflation Rises to 1.6% in August
Wholesale inflation rose more than expected in August as producer prices increased for a second straight month. The producer price index for final demand was up 0.7% month-over-month, its largest monthly increase since June 2022 (s.a.). On an annual basis, headline PPI accelerated for a second straight month from 0.8% in July to 1.6% in August (n.s.a).
Emerging Markets Boosted by Interventions as Rate Fears Grow
Expectations of central-bank interventions are helping to steady emerging-market currencies, even as traders adjust to a higher-for-longer regime for developed market interest rates.
Zero-Day Options Boom Is Spilling Into $7.4 Trillion ETF Market
This year’s hottest options trade has found its way into the $7.4 trillion ETF arena for the first time, in the latest push by the financial industry to tap booming demand for stock investments with an income stream.
Clarity Arrives for Pair of Big-Name Chip Stocks
Recently, some clarity emerged on Nvidia (NASDAQ: NVDA) and Taiwan Semiconductor (NYSE: TSM) — two of the most important names in the semiconductor industry.
Why Active Over Passive for Small-Cap Investing
A wide range of possible outcomes, a multitude of negative earners, and significantly less Wall Street coverage are just a few of the reasons investors in the small-cap universe should consider active managers who could steer them toward better results.
What’s the Right Price for an ETF?
ETFs are the instrument of choice for millions of investors in the U.S. Through a single trade and for a relatively low price, an investor gains broad exposure to a market, sector or niche.
The Future of AI-Powered Investment Management
Artificial Intelligence has been a category-killer among investment themes in the past year.
Its impact on the wealth management profession has been profound, from gravity-defying value creation on the stock market to optimizing the day-to-day operations of an advisory practice.
Every participant in financial services, in companies large or small, needs to embrace and integrate this powerful technology into its future, or risk falling behind.
My guest today, Valery Talma, will share his perspective on the state of the art in AI investment management and how advisors can serve their clients better with AI-powered strategies.
New CLO Managers Eye $1.3 Trillion Market, Betting on Return
A flurry of hedge funds, direct lenders and others are expecting a revival of the $1.3 trillion collateralized loan obligation market — and they want to be ready to reap the benefits when it happens.
Consumer Price Index: Inflation Rises to 3.7% in August
Headline inflation rose for a second straight month in August while core inflation continued to cool. According to the Bureau of Labor Statistics, the headline figure for the Consumer Price Index increased to 3.7% year-over-year from 3.2% in July. The latest reading is slightly higher than the expected 3.6% annual increase. The core CPI reading was consistent with expectations at 4.3%, a slow down from 4.7% in July.
Gen Z Clients: The Active ETF Investing Generation?
ESG has dominated advisors’ minds when it comes to looking at the current generation of young prospective clients. It remains a popular investment approach for millennial and Gen Z clients per surveys.
NASDAQ 100 ETF Exposure Comes in Many Forms
While there are lots of reasons to celebrate the growth stocks inside the NASDAQ 100 index, some advisors might be looking for alternatives to the market-cap weighted index ETFs that reduce their risk profile. Thankfully there are some choices to consider.
Morgan Stanley Sees Dojo Boosting Tesla’s Value by $500 Billion
Tesla Inc.’s Dojo supercomputer may add as much as $500 billion to the company’s market value through faster adoption of robotaxis and network services, according to Morgan Stanley.
Treasury Bills Yielding 5% Are a Big Hit With Retail Investors
Everyone — from moms and pops to corporate treasurers and the mega asset managers — is piling in, won over by a unique opportunity: To lock in a 5% yield, and protect themselves from uncertainty over the US economy.
Inflation Remains Biggest Problem for Small Businesses
The headline number for the NFIB Small Business Optimism Index decreased to 91.3 in August, as small business owners continued to report inflation as their biggest problem. The latest reading was worse than the forecast of 91.6 and marked the 20th consecutive month the index has been below the series average of 98.
Value ETFs Could Be Worth Revisiting
Growth stocks are getting the better of their value rivals this year. Still, that doesn’t mean exchange traded funds dedicated to value stocks are delivering losses. Rather, the opposite is true. It’s just that growth stocks are delivered better returns though the first eight months of the year.
Look No Further for Active, Short-Term Exposure to Bonds
In September, where volatility can strike at any time, investors will want the safety cushion of bonds for their portfolio. At the same time, short duration continues to be the default play as the U.S. Federal Reserve still attempts to cool down inflation further.
High Rates and Lower Bank Lending May Lift BDCs
Today's economic conditions are attractive for BDCs (business development companies), and some benefit from businesses seeking alternative financing sources.
RILAs: Buffers are Still Much Better than Floors
The benefits of RILAs vary significantly by design, and buffer RILAs have historically been a more attractive addition to a portfolio than floor RILAs.
Stocks Have Been a Poor Inflation Hedge
New research shows that stocks have historically been a poor hedge against inflation over anything but very long horizons.
Mega-Cap Stocks Continue To Dominate. But Why?
Mega-cap stocks continue to dominate the market in 2023. The question is, why? After all, many other great companies have arguably much better valuations and fundamentals.
ETF Investors Pour Cash Into EM’s Non-China Growth Engines
Traders in the $325 billion industry for emerging-market exchange-traded funds are shifting cash toward strategies that focus on brighter spots in the developing world as China’s economy stumbles.
VettaFi Announces Acquisition of EQM Indexes
Innovative provider of custom indexes becomes a key part of a growing suite of VettaFi index solutions, which now power nearly $19 billion in ETFs and other vehicles.
Fear of Stock Market Dive Creeps Back as Hedging Costs Climb
The S&P 500 Index’s surprise 16% rally this year is rewarding traders who bought in early and punishing those who’ve remained skeptical. But fear of a downturn remains.
September, The Market’s Most Feared Month, Could Be A Golden Opportunity
Even though past performance doesn’t guarantee future results, investors should prepare for continued market volatility this month.
Cycle Review
Greetings from Europe. I promised to write a letter describing my personal investment portfolio. I still plan to, but it won’t be this week.
Understanding High-Yield Bonds
High-yield bonds, often referred to as “junk” or “speculative grade,” are corporate bonds that command a higher interest rate than other bonds. This higher yield is essentially compensation for the increased risk of default that investors assume when purchasing these securities.
Deeper Data Dependency Could Advance ESG ETF Usage
An efficient avenue for asset managers and fund issuers to avoid regulatory scrutiny of products with the environmental, social, and governance (ESG) label is to ensure that those funds live up their ESG ETF billing. That can be accomplished with data-intensive approaches.
China Is Being Left Out by a Record Number of New EM Stock Funds
Launches of emerging-market equity funds that exclude China have already reached a record annual high in 2023, as investor concerns grow over weak returns as well as the risks of investing in the nation.
Why Longer Treasury ETFs Could Help if a Recession Does Occur This Year
Vanguard has forecasted that inflation will remain sticky, so the U.S. central bank will continue raising rates. But the investment giant also estimates that a recession still won’t hit the U.S. this year.
Apple Risks Getting Overtaken by Bigger AI Players, Needham Says
Apple Inc. is by far the world’s largest company, but the trend toward artificial intelligence is poised to upend the power rankings on Wall Street, according to Needham.
3 Big Reasons You Should Be Attending Conferences
Conference season has come for Financial Services. Future Proof is coming up and Exchange is right around the corner. Many advisors have complex, busy schedules.
Time to Snag UK Equities From the Brexit Bargain Bin?
Dina Ting, Franklin Templeton ETFs’ Head of Global Index Portfolio Management, explores the positive trends that are making a case for holding UK equities.
Gold Exposure a Common Choice in Uncertain Times
Many investors are starting to look for ways to diversify their portfolios and protect their wealth. One way investors have done so in the past is through investing in gold.
How Can Companies Turn AI Promise into Profits?
Equity investors should look beyond the hype for companies with clear strategies to profitably monetize the benefits of generative AI.
VettaFi Equity Symposium Set for September 21st
Most portfolios live or die based on their equity allocations. VettaFi is thrilled to announce that they will be hosting an Equity Symposium on September 21st.
Treasury Yields Snapshot: September 8, 2023
The yield on the 10-year note ended September 8, 2023 at 4.26%, the 2-year note ended at 4.90%, and the 30-year at 4.33%.