In today’s market environment, generating income remains top of mind for many investors. As we enter 2024, it’s important to stay ahead of the latest high dividend ETFs, portfolio construction techniques, and systematic strategies. High dividend ETFs are gaining interest among investors, but many remain unaware of their alpha potential and pitfalls to avoid, which is why we’re inviting you to join VettaFi and Geoff Kelley with Manulife Investment Management for a 30-minute LiveCast focused on income generation.
Even with $2.4 trillion in ETF assets spread across more than 400 ETFs, there’s a pending offering from BlackRock that caught my eye.
Franklin Templeton recently hosted due diligence meetings with financial advisors where Tony Davidow, Senior Alternatives Investment Strategist, led discussions focused on alternative investments.
The likes of consumer resiliency based on the earliest readings on Black Friday sales and the degree to which the Artificial Intelligence theme continues support the idiosyncratic tendencies of the markets concentrated in the Magnificent 7.
Whether famous or infamous, the Magnificent 7 stocks have been 2023’s stock market story. However, the fundamentals of the Magnificent 7 aren't uniquely superior, and the breadth and depth of other growth opportunities seems historically large and attractive. In our latest insight, we complete an analysis of US companies with expected earnings growth greater than 25% and compare it against the Magnificent 7 stocks.
Free-cash-flow yield is the surplus cash after expenses and investments divided by the price of the security. Free-cashflow yield has been used for a long time by active hedge funds. Now it has become part of the indexing landscape, competing for assets with other quantitative approaches. It has historically outperformed in markets that favored value stocks and shown resilience in growth markets. My guest today will explain why, in today's intangible asset-driven economy, traditional metrics like price to earnings and price to book face challenges, making free cash flow a more relevant valuation metric. We will discuss how advisors should think about free cash flow and the steps VictoryShares & Solutions has taken to enhance traditional approaches.
All investments involve some degree of risk.
As I start thinking about Christmas this year, I decided I want to be on the nice list again, so I put together some useful year-end actions and ideas for financial advisors.
Brooks Friederich is a little-known figure in the world of investment advisory, even among the Wall Street cognoscenti. Yet every year, the 39-year-old — and his Berwyn, Pennsylvania-based employer Envestnet — helps steer billions of dollars into tailor-made strategies for financial advisers, part of what’s known as the model-portfolio boom.
Picking the “right” stock is akin to betting on a game; not only must one pick the right team (beta), but also by how much (alpha).
It’s touted as crypto’s big breakthrough on Wall Street: The imminent arrival of Bitcoin exchange-traded funds that will kick open digital-currency investing to the institutional and retail masses.
Confounding market and economic signals persist as the year’s end draws near. In a year punctuated by heightened uncertainty as investors attempted to navigate a confluence of risk factors, stock and bond correlations proved a significant challenge to traditional portfolios.
Year-to-date, technology has outperformed the broader market largely given the prevalence of low leverage, high profitability and consistent earnings across many names in the mega-cap tech space.
Senior Investment Analyst Ashley Fritz addresses three major misconceptions around ESG investing in the EM corporate space.
In an economic environment characterized by rising interest rates and a forecasted slowdown, the fixed income asset class has emerged as a beacon of opportunity.
Topics discussed included the future of investment management and generational differences among investors as well as trends and technologies transforming the industry, including artificial intelligence (AI) and digital assets.
In this period of higher interest rates, the quest to capture alpha and mitigate risk in corporate credit requires a more refined approach.
The team responsible for assembling BlackRock Inc.’s model portfolios is favoring the stock market’s largest companies, potentially unleashing a flood of billions of dollars into technology shares.
Zacks Investment Management has been managing money for more than 30 years. It is a subsidiary of Zacks Investment Research, which is one of the largest independent research providers in the United States. In 2021, Mitch Zacks, its CEO, decided it was time to bring the research-driven approach to investing that the firm has become known for to the exchange-traded product market. The firm's first active ETF was launched in the summer of 2021. Since then, it has been focused on being committed to expanding its footprint in the ETF product space while bringing continued risk-adjusted returns to clients.
Advisors face a number of challenges in current markets, given risks and stock and bond correlations. They must grapple with how to invest smartly as well as keeping their clients invested in the traditional 60/40 portfolio.
Higher macro and market volatility, along with greater dispersion, creates a favorable environment for active trading, according to K2 Advisors. Get the team’s latest hedge-fund strategy outlook.
As with most new expressions, “smart beta” is in the process of seeking an established meaning. It is fast becoming one of the most overused, ill-defined, and controversial terms in the modern financial lexicon.
The financial world’s computer-loving crowd is preparing for the dawn of a new AI-powered era — but that doesn’t mean they’re ready to fully embrace the technology just yet.
VettaFi’s vice chairman Tom Lydon discussed the RiverFront Strategic Income Fund (RIGS)on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.”t
Before we get carried away anew with declarations about how “the investing world is forever changing,” it’s worth remembering how fluid the relationship has proved over the past couple of years — and how another twist is always just around the corner.
With the Fed’s pause on hikes, investors may be tempted to reposition fixed income portfolios for a lower rate environment - but rates could remain elevated for longer than many think. Get prepared.
Join the professionals at State Street Global Advisors and VettaFi for a webcast that unpacks the ins and outs of fixed income portfolio construction
Active ETFs have gained in popularity in recent years. However, some pundits have prematurely taken out their shovels for some funds. Even as these products show signs of vitality.
As investors face continued macroeconomic and market uncertainty, evolving the 60/40 portfolio of stocks and bonds to include alternative investments may help build portfolio resiliency.
A multi-asset approach to sustainable investing brings a broad and more balanced palette to paint with.
Some investors are considering making tactical tilts to their fixed income portfolios to take advantage of the current high-yield environment.
There is a growing movement among investors to align their portfolio to their values or belief systems. Advisors can use Direct Indexing products and Separately Managed Accounts to help their clients pursue faith- or values-based investing.
Advisor Perspectives has announced its Venerated Voices™ awards for commentaries published in Q3 2023.
In investing, you can have a safe present or future value, but not both!
Global central bank hiking cycles have dominated financial market headlines for the last 18 months, keeping many investors on the sidelines, hiding out in cash as inflation and the resulting rate hikes were serious headwinds to returns.
If you go to a financial adviser to chat about investments, here’s how your first meeting will probably go: They will ask you about your attitude to risk. How much money are you prepared to lose?
Public credit markets offer high quality investments with attractive yields and downside resilience, while we see growing longer-term opportunities in private markets.
Rising real interest rates invariably trigger recessions. The residual impact of pandemic related behaviors delayed the impact in this cycle.
Intermission is over. Today we resume my series on the global cycle theories that, probably not by coincidence, all point to major change unfolding in the next few years. Finishing it may take some time since I keep finding new material.
Private infrastructure offers unique investment characteristics and potential diversification benefits for portfolio construction.
In many ways, 2023 continues to be the mirror image of 2022, with the most volatile assets being some of the best performers for much of the year.
Investment-grade credit is currently offering impressive yields, with relatively less risk than other fixed income sectors, according to Josh Lohmeier of Franklin Templeton Fixed Income. He makes a case for investing in the space today.
Financial advisors often face the challenge of transitioning a new client into their practice in a tax-efficient way.
ETF Trends interviewed three sources about active ETFs, why financial advisors are opting for these investment solutions for clients, and how these factors have changed in recent years. Each source responded to the same questions in their respective interviews.
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.
As investors consider the complicated environment we live in, building a portfolio requires a robust understanding of market sentiment, volatility, styles, and positioning. Strategies centered around sector rotation that put volatility top of mind or asset allocation strategies that have smart, tactical risk management can help advisors construct a portfolio to meet the moment.
Join a panel of experts from State Street Global Advisors, VettaFi, Horizon Investments, and Main Management for an in-depth webcast.
VettaFi’s Dave Nadig covers the launch of the first ETF holding 0DTE options, along with IPOs in ETFs, flows, and stories to watch moving forward. Astoria’s John Davi spotlights their recently launched U.S. Quality Kings ETF (ROE) and discusses current model portfolio positioning. Fort Washington Investment Advisors’ Laura Mayfield explains the management process behind two Touchstone ETFs, including their Securitized Income ETF (TSEC).
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.
Today's economic conditions are attractive for BDCs (business development companies), and some benefit from businesses seeking alternative financing sources.
Last week, the VettaFi AI Symposium was one of the more popular places to be in the days before Labor Day.
As multi-asset income investors, we seek to help a wide range of clients meet their income needs. The benefits of an income-centric approach are especially relevant for investors as they enter retirement – and that’s especially true today. We bring that to life with two case studies.
Many advisors are now providing customized wealth management services to their clients and their families, often across multiple generations.
Declining commercial real estate valuations will not likely lead to a wave of defaults among muni issuers, according to Franklin Templeton Fixed Income’s municipal bond team.
In the current landscape, where bonds and stocks are experiencing positive correlation, it becomes even more important (if not critical) to incorporate additional diversification strategies to help mitigate portfolio risk and preserve portfolio balance.
Russia’s 2022 invasion of Ukraine and the ensuing war have prompted new and difficult questions for sovereign debt investors.
In the current macroeconomic environment, investors seeking income-focused products are increasingly interested in tax-efficiency. By layering the tax efficiency of investments into portfolio construction, advisors can help clients maximize income and returns, particularly during uncertain markets. In the upcoming LiveCast, Tom Lydon, Vice Chairman of VettaFi, will moderate an interactive discussion with Garrett Paolella, Portfolio Manager of the Nationwide Risk-Managed Income ETFs. The LiveCast will include a market outlook and advisor best practice for assisting clients building tax-efficient portfolios including considering Nationwide’s risk-managed income ETFs - an innovative approach to sourcing investment income and tax efficiency
Readers of this publication know the costs of an investment product reduce the net return and consider cost as an important criterion for selecting investments to make up client portfolios. But how do advisors define costs, and how important is cost reduction compared to other portfolio objectives?
U.S. corporate earnings have stagnated for a year, but Q2 beat a low bar. Expectations of improving margins look rosy. We stay selective in equities.
Following the YTD strength in equity markets, Russ Koesterich discusses how a combination of cyclical, and a growth bias may serve investors well in today’s market.
Advisors are using tax-managed products for tax-sensitive clients. In this interview, we learn how tax-managed products maximize the after-tax returns for investors to help them get to their goals with greater certainty.
For the better part of the last century, the largest companies in the world were those that produced physical property – traditional transportation machines, the energy that powered them, or the capital that financed them.
Effective tax planning means thinking about how tax rates might change.
Broader domestic equity benchmarks turned in impressive showings through the first seven months of the year. A significant portion of that bullishness comes thanks to large- and mega-cap growth stocks.
Each year, I head to the woods of Maine for an event called “Camp Kotok.” Over the coming week or so, I’ll be sharing some videos of conversations I had with attendees while there (and also pointing to coverage from other attendees, as well).
We see emerging markets better withstanding volatility and benefiting as supply chains rewire. We switch our EM debt preference to hard currency from local.
Markets posted a strong first quarter, though it was a rollercoaster ride. The path forward will likely stay turbulent, with bank turmoil likely tightening credit conditions and the Fed still wrestling with inflation.
The sale of a business, property, or large stock position can generate a financial windfall that may trigger a large tax liability.
Advisors must go beyond a one-size-fits-all approach and embrace the power of personalization.
Dimensional Co-CEO Gerard O’Reilly discusses the firm nearing $100 billion in ETF assets and goes in-depth on their recent SEC application for ETF share class exemptive relief. VettaFi’s Lara Crigger covers several topics including Dimensional’s pursuit of the ETF share class structure, Grayscale’s recent letter to the SEC, and surprising new ETF launches. Sage Advisory’s Komson Silapachai outlines the firm’s approach to ETF-focused portfolio construction.
Russ Koesterich CFA, JD, Managing Director, and Portfolio Manager discusses how improving economic expectations may suggest adding to cyclical areas of the market.
Central banks are set to hike policy rates this week. Markets expect rate cuts to soon follow due to cooling inflation, whereas we see central banks holding tight.
Transitioning to a green net-zero economy requires climate solutions that enable the economy to decarbonise, such as renewable energy, electric vehicles, and recycling technologies.
We favor emerging market (EM) to developed market (DM) assets on a brighter macro backdrop. We get granular and harness mega forces, per our playbook.
Climate change presents a significant source of transition risk for investors as companies face increasing pressures from regulators, consumers, and shareholders to lower their carbon footprints.
The second quarter was characterized by a debt ceiling showdown (which perversely provided a boost to liquidity) and by a big spurt in tech stocks.
Investors have more investment options than ever before, thanks to the number and variety of exchange-traded funds available to everyone. Think of an investment strategy, and it’s probably available in an ETF.
BlackRock Inc. expects the model-portfolio realm of money management to grow to a $10-trillion business over the next five years.
Higher expected corporate earnings mask broad pressure under the surface. We see more earnings pain ahead and look for opportunities at the sector level.
We have announced our Venerated Voices™ awards for commentaries published in Q2 2023.
I discuss recent regime changes and reveal findings from the SPIVA scorecard and Morningstar’s U.S. Active/Passive Barometer.
Shifting the risk-reward ratio in your favor.
A conversation with Dave Nadig, Financial Futurist at VettaFi and Elisabeth Kashner, CFA, Director of ETF Research & Analytics at FactSet on ETF capital markets, regulation, and adoption.
We see different and abundant opportunities in the new macro regime. We go granular within asset classes, regions, and sectors – and harness mega forces.
Spring cleaning is essential to a cleaner home, just like rebalancing is essential to keeping an investor on track.
A direct indexing solution can help make an investment portfolio as personalized as a home.
VettaFi’s Todd Rosenbluth offers perspective on the top five ETFs in inflows this year. ASYMmetric ETFs’ Darren Schuringa explains the technologically underpinning their “Smart” ETF lineup. Motley Fool’s Charly Travers spotlights their Small Cap Growth ETF (TMFS) and provides a behind-the-scenes look at day-to-day portfolio management.
Macroeconomic uncertainty has remained front and center in 2023 as the new investment regime continues to play out. Inflation remains above central bank targets and some signs of economic weakness have started to surface in the wake of rapid monetary tightening.
Since the March trough the S&P 500 Index has gained around 14% and ten-year Treasury yields have risen roughly 0.50%. As market conditions have improved, inter-asset correlations have also shifted.
Market news has always moved fast, but these days it moves faster than ever. The Monthly Market Tune Up Webcast Series is a monthly webcast where Tom Lydon and financial advisors break down the market news in real time and apply it to real portfolio construction strategies. Find out how the best strategists in the business are navigating the news of the moment.
Sticky inflation looks to compel developed markets (DM) central banks to crank policy rates higher – and keep policy tight for longer. The Federal Reserve paused last week but pointed to more hikes on the way.
Macroeconomic uncertainty has sparked questions over the durability of the traditional 60/40 portfolio—highlighting why investors may want to add alternative investments to the mix.
In 2022, both fixed income and equities stumbled, creating greater focus on alternatives. As market headwinds continue to remain strong, investors are increasingly turning to alternative strategies to increase diversification, address higher rates, and mitigate risk. Join the experts at Swan Global and VettaFi for a webcast that digs into where alternatives can fit in a portfolio.
Topics will include:
Portfolio Building
LiveCast: Expanding the High Dividend Portfolio
In today’s market environment, generating income remains top of mind for many investors. As we enter 2024, it’s important to stay ahead of the latest high dividend ETFs, portfolio construction techniques, and systematic strategies. High dividend ETFs are gaining interest among investors, but many remain unaware of their alpha potential and pitfalls to avoid, which is why we’re inviting you to join VettaFi and Geoff Kelley with Manulife Investment Management for a 30-minute LiveCast focused on income generation.
A Pending BlackRock ETF to Watch
Even with $2.4 trillion in ETF assets spread across more than 400 ETFs, there’s a pending offering from BlackRock that caught my eye.
Alternative Allocations: Alternatives by Franklin Templeton—Access Granted
Franklin Templeton recently hosted due diligence meetings with financial advisors where Tony Davidow, Senior Alternatives Investment Strategist, led discussions focused on alternative investments.
Black Friday Expectations & AI Hype
The likes of consumer resiliency based on the earliest readings on Black Friday sales and the degree to which the Artificial Intelligence theme continues support the idiosyncratic tendencies of the markets concentrated in the Magnificent 7.
Magnificence Beyond the Magnificent 7
Whether famous or infamous, the Magnificent 7 stocks have been 2023’s stock market story. However, the fundamentals of the Magnificent 7 aren't uniquely superior, and the breadth and depth of other growth opportunities seems historically large and attractive. In our latest insight, we complete an analysis of US companies with expected earnings growth greater than 25% and compare it against the Magnificent 7 stocks.
The Advantages of Free-Cash Flow in Portfolio Construction
Free-cash-flow yield is the surplus cash after expenses and investments divided by the price of the security. Free-cashflow yield has been used for a long time by active hedge funds. Now it has become part of the indexing landscape, competing for assets with other quantitative approaches. It has historically outperformed in markets that favored value stocks and shown resilience in growth markets. My guest today will explain why, in today's intangible asset-driven economy, traditional metrics like price to earnings and price to book face challenges, making free cash flow a more relevant valuation metric. We will discuss how advisors should think about free cash flow and the steps VictoryShares & Solutions has taken to enhance traditional approaches.
All investments involve some degree of risk.
Year-End Strategies for Advisors. Will You Make Santa’s “Nice” List?
As I start thinking about Christmas this year, I decided I want to be on the nice list again, so I put together some useful year-end actions and ideas for financial advisors.
Wall Street’s $300 Billion Middleman Rides Model-Portfolio Boom
Brooks Friederich is a little-known figure in the world of investment advisory, even among the Wall Street cognoscenti. Yet every year, the 39-year-old — and his Berwyn, Pennsylvania-based employer Envestnet — helps steer billions of dollars into tailor-made strategies for financial advisers, part of what’s known as the model-portfolio boom.
The New “New” Alpha
Picking the “right” stock is akin to betting on a game; not only must one pick the right team (beta), but also by how much (alpha).
Bitcoin ETF Hype Has Wall Street Eyeing $100 Billion Crypto Potential
It’s touted as crypto’s big breakthrough on Wall Street: The imminent arrival of Bitcoin exchange-traded funds that will kick open digital-currency investing to the institutional and retail masses.
The Problem of Mixed Market Signals and Correlations
Confounding market and economic signals persist as the year’s end draws near. In a year punctuated by heightened uncertainty as investors attempted to navigate a confluence of risk factors, stock and bond correlations proved a significant challenge to traditional portfolios.
Mega-Cap Tech a Safe Haven
Year-to-date, technology has outperformed the broader market largely given the prevalence of low leverage, high profitability and consistent earnings across many names in the mega-cap tech space.
EM Corporates & ESG: A Surprisingly Strong Opportunity Set
Senior Investment Analyst Ashley Fritz addresses three major misconceptions around ESG investing in the EM corporate space.
Discovering Sources of Alpha and Diversification in Fixed Income
In an economic environment characterized by rising interest rates and a forecasted slowdown, the fixed income asset class has emerged as a beacon of opportunity.
The Future of Investment and Wealth Management
Topics discussed included the future of investment management and generational differences among investors as well as trends and technologies transforming the industry, including artificial intelligence (AI) and digital assets.
Portfolio Construction for Alpha Generation and Risk Mitigation
In this period of higher interest rates, the quest to capture alpha and mitigate risk in corporate credit requires a more refined approach.
BlackRock’s $100 Billion Model Makers Are Betting on Megacaps
The team responsible for assembling BlackRock Inc.’s model portfolios is favoring the stock market’s largest companies, potentially unleashing a flood of billions of dollars into technology shares.
A New ETF Targets the SMID Space
Zacks Investment Management has been managing money for more than 30 years. It is a subsidiary of Zacks Investment Research, which is one of the largest independent research providers in the United States. In 2021, Mitch Zacks, its CEO, decided it was time to bring the research-driven approach to investing that the firm has become known for to the exchange-traded product market. The firm's first active ETF was launched in the summer of 2021. Since then, it has been focused on being committed to expanding its footprint in the ETF product space while bringing continued risk-adjusted returns to clients.
When the 60/40 Portfolio Carries the Same Risk as During the GFC
Advisors face a number of challenges in current markets, given risks and stock and bond correlations. They must grapple with how to invest smartly as well as keeping their clients invested in the traditional 60/40 portfolio.
K2 Hedge Fund Strategy Outlook: Fourth Quarter 2023
Higher macro and market volatility, along with greater dispersion, creates a favorable environment for active trading, according to K2 Advisors. Get the team’s latest hedge-fund strategy outlook.
What “Smart Beta” Means to Us
As with most new expressions, “smart beta” is in the process of seeking an established meaning. It is fast becoming one of the most overused, ill-defined, and controversial terms in the modern financial lexicon.
Quants With $23 Trillion See AI Takeover Even as They Hold Back
The financial world’s computer-loving crowd is preparing for the dawn of a new AI-powered era — but that doesn’t mean they’re ready to fully embrace the technology just yet.
RiverFront Strategic Income Fund (RIGS)
VettaFi’s vice chairman Tom Lydon discussed the RiverFront Strategic Income Fund (RIGS)on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.”t
Bonds as Diversifiers Aren’t Dead — Just Dormant
Before we get carried away anew with declarations about how “the investing world is forever changing,” it’s worth remembering how fluid the relationship has proved over the past couple of years — and how another twist is always just around the corner.
Higher Rates for Longer? Fixed Income Positioning Ideas
With the Fed’s pause on hikes, investors may be tempted to reposition fixed income portfolios for a lower rate environment - but rates could remain elevated for longer than many think. Get prepared.
Join the professionals at State Street Global Advisors and VettaFi for a webcast that unpacks the ins and outs of fixed income portfolio construction
Semi-Transparent ETFs Are Alive and Well
Active ETFs have gained in popularity in recent years. However, some pundits have prematurely taken out their shovels for some funds. Even as these products show signs of vitality.
Targeting Resilient Portfolio Construction With Alternatives
As investors face continued macroeconomic and market uncertainty, evolving the 60/40 portfolio of stocks and bonds to include alternative investments may help build portfolio resiliency.
Seeking Balance in Sustainable Multi-Asset Investing
A multi-asset approach to sustainable investing brings a broad and more balanced palette to paint with.
The Role Fixed Income Plays for Non-Profit Investors
Some investors are considering making tactical tilts to their fixed income portfolios to take advantage of the current high-yield environment.
How To Talk to Your Clients About Values and Faith-Based Investing
There is a growing movement among investors to align their portfolio to their values or belief systems. Advisors can use Direct Indexing products and Separately Managed Accounts to help their clients pursue faith- or values-based investing.
Venerated Voices™ Q3 2023 Rankings
Advisor Perspectives has announced its Venerated Voices™ awards for commentaries published in Q3 2023.
Long-Horizon Investing, Part 3: The Riskiness of "Low-Risk" Assets
In investing, you can have a safe present or future value, but not both!
Drive for Show, Putt for Dough
Global central bank hiking cycles have dominated financial market headlines for the last 18 months, keeping many investors on the sidelines, hiding out in cash as inflation and the resulting rate hikes were serious headwinds to returns.
There’s No Such Thing as a Cautious Portfolio Anymore
If you go to a financial adviser to chat about investments, here’s how your first meeting will probably go: They will ask you about your attitude to risk. How much money are you prepared to lose?
Navigating Credit Markets Today – A Q&A With Mark Kiesel and Jamie Weinstein
Public credit markets offer high quality investments with attractive yields and downside resilience, while we see growing longer-term opportunities in private markets.
Visions of Sugar Plums and Soft Landings
Rising real interest rates invariably trigger recessions. The residual impact of pandemic related
behaviors delayed the impact in this cycle.
Cyclical Forces
Intermission is over. Today we resume my series on the global cycle theories that, probably not by coincidence, all point to major change unfolding in the next few years. Finishing it may take some time since I keep finding new material.
Unlisted Infrastructure – Highway to Diversification
Private infrastructure offers unique investment characteristics and potential diversification benefits for portfolio construction.
As the Economy Slows, Favor Consistency Over Volatility
In many ways, 2023 continues to be the mirror image of 2022, with the most volatile assets being some of the best performers for much of the year.
Opportunity in Investment-Grade Credit
Investment-grade credit is currently offering impressive yields, with relatively less risk than other fixed income sectors, according to Josh Lohmeier of Franklin Templeton Fixed Income. He makes a case for investing in the space today.
6 Steps to Tax-Efficient Onboarding of Clients With Direct Indexing
Financial advisors often face the challenge of transitioning a new client into their practice in a tax-efficient way.
The Rise of Active ETFs: 3 Experts Weigh In
ETF Trends interviewed three sources about active ETFs, why financial advisors are opting for these investment solutions for clients, and how these factors have changed in recent years. Each source responded to the same questions in their respective interviews.
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.
Going ‘Back to School’: Portfolio Construction in the New Normal
As investors consider the complicated environment we live in, building a portfolio requires a robust understanding of market sentiment, volatility, styles, and positioning. Strategies centered around sector rotation that put volatility top of mind or asset allocation strategies that have smart, tactical risk management can help advisors construct a portfolio to meet the moment.
Join a panel of experts from State Street Global Advisors, VettaFi, Horizon Investments, and Main Management for an in-depth webcast.
Zero-Day Options ETFs, Quality Factor, & Securitized Income
VettaFi’s Dave Nadig covers the launch of the first ETF holding 0DTE options, along with IPOs in ETFs, flows, and stories to watch moving forward. Astoria’s John Davi spotlights their recently launched U.S. Quality Kings ETF (ROE) and discusses current model portfolio positioning. Fort Washington Investment Advisors’ Laura Mayfield explains the management process behind two Touchstone ETFs, including their Securitized Income ETF (TSEC).
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.
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.
AI Is Much More Than Hype
Last week, the VettaFi AI Symposium was one of the more popular places to be in the days before Labor Day.
Why Investors in Retirement May Want to Consider an Income Approach
As multi-asset income investors, we seek to help a wide range of clients meet their income needs. The benefits of an income-centric approach are especially relevant for investors as they enter retirement – and that’s especially true today. We bring that to life with two case studies.
C Is for Customized Experience and Family Wealth Planning
Many advisors are now providing customized wealth management services to their clients and their families, often across multiple generations.
Crisis in Concrete: Navigating the Ripple Effects of Commercial Real Estate on Municipal Bonds
Declining commercial real estate valuations will not likely lead to a wave of defaults among muni issuers, according to Franklin Templeton Fixed Income’s municipal bond team.
Diversification and Bonds: Your Portfolio's Hidden Risk
In the current landscape, where bonds and stocks are experiencing positive correlation, it becomes even more important (if not critical) to incorporate additional diversification strategies to help mitigate portfolio risk and preserve portfolio balance.
Does Democracy Matter for Emerging Sovereign Debt?
Russia’s 2022 invasion of Ukraine and the ensuing war have prompted new and difficult questions for sovereign debt investors.
LiveCast: Portfolio Construction: Keeping Tax-Efficiency Top of Mind
In the current macroeconomic environment, investors seeking income-focused products are increasingly interested in tax-efficiency. By layering the tax efficiency of investments into portfolio construction, advisors can help clients maximize income and returns, particularly during uncertain markets. In the upcoming LiveCast, Tom Lydon, Vice Chairman of VettaFi, will moderate an interactive discussion with Garrett Paolella, Portfolio Manager of the Nationwide Risk-Managed Income ETFs. The LiveCast will include a market outlook and advisor best practice for assisting clients building tax-efficient portfolios including considering Nationwide’s risk-managed income ETFs - an innovative approach to sourcing investment income and tax efficiency
Why Minimizing the Costs of Investment Products Must be a Priority
Readers of this publication know the costs of an investment product reduce the net return and consider cost as an important criterion for selecting investments to make up client portfolios. But how do advisors define costs, and how important is cost reduction compared to other portfolio objectives?
Three Takeaways From U.S. Earnings
U.S. corporate earnings have stagnated for a year, but Q2 beat a low bar. Expectations of improving margins look rosy. We stay selective in equities.
Select Segments of Growth Still Providing Steady Returns
Following the YTD strength in equity markets, Russ Koesterich discusses how a combination of cyclical, and a growth bias may serve investors well in today’s market.
The Future of Tax-Managed Investing
Advisors are using tax-managed products for tax-sensitive clients. In this interview, we learn how tax-managed products maximize the after-tax returns for investors to help them get to their goals with greater certainty.
Investing in a Changing World: From Carburetors to Compilers
For the better part of the last century, the largest companies in the world were those that produced physical property – traditional transportation machines, the energy that powered them, or the capital that financed them.
Why Think About the Sunset of the Tax Cuts and Jobs Act (TCJA)
Effective tax planning means thinking about how tax rates might change.
Time to Play Defense? Consider This ETF
Broader domestic equity benchmarks turned in impressive showings through the first seven months of the year. A significant portion of that bullishness comes thanks to large- and mega-cap growth stocks.
Camp Kotok: In the Canoe Is Where We Learn
Each year, I head to the woods of Maine for an event called “Camp Kotok.” Over the coming week or so, I’ll be sharing some videos of conversations I had with attendees while there (and also pointing to coverage from other attendees, as well).
Opportunities in Globalization Rewiring
We see emerging markets better withstanding volatility and benefiting as supply chains rewire. We switch our EM debt preference to hard currency from local.
Capital Markets Outlook: 3Q 2023
Markets posted a strong first quarter, though it was a rollercoaster ride. The path forward will likely stay turbulent, with bank turmoil likely tightening credit conditions and the Fed still wrestling with inflation.
How To Use Direct Indexing To Offset Taxes on a Future Financial Windfall
The sale of a business, property, or large stock position can generate a financial windfall that may trigger a large tax liability.
The Power of Personalization
Advisors must go beyond a one-size-fits-all approach and embrace the power of personalization.
Dimensional’s Gerard O’Reilly Discusses Firm’s Growth & Pursuit of ETF Share Class Structure
Dimensional Co-CEO Gerard O’Reilly discusses the firm nearing $100 billion in ETF assets and goes in-depth on their recent SEC application for ETF share class exemptive relief. VettaFi’s Lara Crigger covers several topics including Dimensional’s pursuit of the ETF share class structure, Grayscale’s recent letter to the SEC, and surprising new ETF launches. Sage Advisory’s Komson Silapachai outlines the firm’s approach to ETF-focused portfolio construction.
Smaller Recession Risk Suggests Stronger Cyclicals
Russ Koesterich CFA, JD, Managing Director, and Portfolio Manager discusses how improving economic expectations may suggest adding to cyclical areas of the market.
Central Bank Inflation Fight To Carry On
Central banks are set to hike policy rates this week. Markets expect rate cuts to soon follow due to cooling inflation, whereas we see central banks holding tight.
Weighted Average Green Revenue (Wagr): Integrating Climate Solutions into Portfolio Construction
Transitioning to a green net-zero economy requires climate solutions that enable the economy to decarbonise, such as renewable energy, electric vehicles, and recycling technologies.
Applying Our Playbook to EM
We favor emerging market (EM) to developed market (DM) assets on a brighter macro backdrop. We get granular and harness mega forces, per our playbook.
Estimating Value Chain Emissions for Portfolio Construction
Climate change presents a significant source of transition risk for investors as companies face increasing pressures from regulators, consumers, and shareholders to lower their carbon footprints.
Areté Market Review Q223: The Interest Rate Parlor Game
The second quarter was characterized by a debt ceiling showdown (which perversely provided a boost to liquidity) and by a big spurt in tech stocks.
BlackRock Portfolios Work for Investors But Not Advisors
Investors have more investment options than ever before, thanks to the number and variety of exchange-traded funds available to everyone. Think of an investment strategy, and it’s probably available in an ETF.
BlackRock Sees Model-Portfolio Investing Growing to $10 Trillion by 2028
BlackRock Inc. expects the model-portfolio realm of money management to grow to a $10-trillion business over the next five years.
Earnings Outlook: Show Us the Growth
Higher expected corporate earnings mask broad pressure under the surface. We see more earnings pain ahead and look for opportunities at the sector level.
Venerated Voices™ Q2 2023 Rankings
We have announced our Venerated Voices™ awards for commentaries published in Q2 2023.
How to Find Golden Needles in the Fixed income Haystack
I discuss recent regime changes and reveal findings from the SPIVA scorecard and Morningstar’s U.S. Active/Passive Barometer.
Train Wrecks in Slow Motion
Shifting the risk-reward ratio in your favor.
VettaFi Viewpoints: Nadig Talks Capital Markets, Regulation With FactSet’s Kashner
A conversation with Dave Nadig, Financial Futurist at VettaFi and Elisabeth Kashner, CFA, Director of ETF Research & Analytics at FactSet on ETF capital markets, regulation, and adoption.
New Regime, New Opportunities
We see different and abundant opportunities in the new macro regime. We go granular within asset classes, regions, and sectors – and harness mega forces.
Concentrated Stock Positions: The Consequence of Forgetting To Spring Clean a Portfolio
Spring cleaning is essential to a cleaner home, just like rebalancing is essential to keeping an investor on track.
What Should You Look For in A Direct Indexing Provider? 10 Things To Consider
A direct indexing solution can help make an investment portfolio as personalized as a home.
Year’s Top ETFs, “ASYMmetric” Returns, & Small Cap Growth
VettaFi’s Todd Rosenbluth offers perspective on the top five ETFs in inflows this year. ASYMmetric ETFs’ Darren Schuringa explains the technologically underpinning their “Smart” ETF lineup. Motley Fool’s Charly Travers spotlights their Small Cap Growth ETF (TMFS) and provides a behind-the-scenes look at day-to-day portfolio management.
Market Neutral Investing in a New Regime
Macroeconomic uncertainty has remained front and center in 2023 as the new investment regime continues to play out. Inflation remains above central bank targets and some signs of economic weakness have started to surface in the wake of rapid monetary tightening.
Economic Resilience Complicates Hedging With Bonds
Since the March trough the S&P 500 Index has gained around 14% and ten-year Treasury yields have risen roughly 0.50%. As market conditions have improved, inter-asset correlations have also shifted.
The Monthly Market Tune Up: Market News and Investing Strategies for Financial Advisors from Financial Advisors
Market news has always moved fast, but these days it moves faster than ever. The Monthly Market Tune Up Webcast Series is a monthly webcast where Tom Lydon and financial advisors break down the market news in real time and apply it to real portfolio construction strategies. Find out how the best strategists in the business are navigating the news of the moment.
Central Banks Compelled To Hold Tight
Sticky inflation looks to compel developed markets (DM) central banks to crank policy rates higher – and keep policy tight for longer. The Federal Reserve paused last week but pointed to more hikes on the way.
Rebuilding Resilience in 60/40 Portfolios
Macroeconomic uncertainty has sparked questions over the durability of the traditional 60/40 portfolio—highlighting why investors may want to add alternative investments to the mix.
Know Your Alternatives: A User’s Guide for Implementing Alternative Strategies
In 2022, both fixed income and equities stumbled, creating greater focus on alternatives. As market headwinds continue to remain strong, investors are increasingly turning to alternative strategies to increase diversification, address higher rates, and mitigate risk. Join the experts at Swan Global and VettaFi for a webcast that digs into where alternatives can fit in a portfolio.
Topics will include: