As the year winds down, many investors focus on year-end charitable giving and tax planning. Finding a charity and donating money is the easy part. Taking slightly different approaches to gifting can yield dramatically different results from a tax perspective.
A visit to the annual Bogleheads conference got Elm Wealth's Victor Haghani thinking about static vs. dynamic asset allocation.
With Direct Indexing, you can help your clients prepare for life-changing transactions and minimize capital gains taxes by selectively harvesting losses to offset those gains, and implementing tax-efficient trading strategies.
Valid until the market close on November 29, 2024
This article provides an update on the monthly moving averages we track for the S&P 500 and the Ivy Portfolio after the close of the last business day of the month.
The most common questions we’ve been asked as the election approaches are generally about the Federal debt and deficits. Many investors worry about a looming “day of reckoning” for US debt. They fear the US’s fiscal imprudence will eventually force a sudden and dramatic repricing of US debt. In this insight, we explore the modern history of US debt to GDP across several Presidential administrations and outline why investors should not be worried about a financial apocalyptic abyss.
When Warren Buffett calls a book on investing “by far the best book about investing ever written,” it is common sense to concede the point.
Volatility creates a number of challenges for advisors and investors, but also opportunities for those who know where to look.
The cost of higher education has skyrocketed over the last few decades, and shows no signs of slowing. That’s why it’s more important than ever that parents start saving as early as possible for their children’s future.
Opening a 529 college savings account can be a smart move if you’d like to save for college on a tax-advantaged basis. One thing to consider when opening a 529 plan is whether it should be a custodial or individual account. While both allow you to save for college costs and enjoy some tax breaks, they differ in terms of who has control of the account and the assets in it.
A 529 college savings plan, also known as a qualified tuition plan (QTP), is a popular choice among parents and families looking to meet their children’s future educational expenses. Two of the 529 plan’s helpful features are tax-deferred growth of your contributions and later, tax-free withdrawals for eligible expenses.
529 plans are one of the most popular ways Americans save for the college expenses of their children. As of June 2024, there were 16.8 million 529 savings accounts holding $508 billion, according to the College Savings Plan Network.
Exchange-traded funds (ETFs) have grown in popularity as one of the most flexible and accessible investment vehicles available today. Offering a blend of stock-like liquidity and mutual fund-like diversification, ETFs can serve as a core component in the portfolios of both novice and experienced investors
For decades, a key component of many investors’ portfolios was a fixed income ladder. It was intended to provide ballast to the more volatile equity allocation and help reduce interest-rate risk.
Discussion about more political oversight or political control of the U.S. Federal Reserve (Fed) occasionally heats up. We are seeing more of this type of discourse today as the election approaches. In our view, limited Fed independence could prove disastrous.
Taxes can have a major impact on the long-term growth of a portfolio. Find out how continuous, thoughtful tax management can help investors maximize their wealth.
America’s financial industry has long had trust issues. Never mind the Great Financial Crisis of 2007-08; mistrust of the markets dates back to at least 1929, if not the Dutch East India collapse of 1769. But this history has an upside: Financial institutions have a lot of experience creating systems to build, maintain and restore trust — and have learned lessons that can be applied across the economy.
Taxes may be the biggest fee your tax-sensitive clients are paying on their investment portfolios. And neither they nor you, their advisor, may be aware of just how big that fee is.
While the beach version of SoCal has had an epic, non-marine layer summer, it seems to have been enjoyed by few locals who instead violate the cardinal rule of adult life without children living at home and nevertheless travel to Europe in summer. We haven’t missed you.
Active fixed income ETFs have taken a big leap this year per new research about active ETFs that may draw new investor eyes.
With tax-loss harvesting season on the horizon, investors may want to consider a pair of tax-conscious, active fixed income ETFs.
Certificates of deposit (CDs) and Treasuries both can offer steady, predictable investment income—but how to decide between them? Here are five factors to help you choose.
Passive fixed income index investing has evolved significantly over the previous decade, offering investors the flexibility to align risk requirements and investment goals. Learn more from our experts.
With U.S. equities perhaps calling for diversification, an active international ETF like TOUS could play a helpful role.
Here’s a quote attributed to P. J. O’Rourke, an American author, journalist and political satirist: “There is a simple rule here, a rule of legislation, a rule of business, a rule of life: beyond a certain point, complexity is fraud.”
In this article, we’re going to throw some cold water on the DI love-fest by explaining why most tax-sensitive investors would be better off with a simpler approach to tax loss harvesting.
Half your coworkers might have just spent August in Europe, but there were no holiday doldrums in the booming world of ETFs.
Cliff Asness says he sounds like an “old man whinging,” but that’s not stopping him from writing 23 pages on his latest thesis: Financial markets these days aren’t what they were.
As tax season draws nearer, advisors and investors increasingly look to their portfolio to optimize exposures for taxation purposes.
Over nearly three decades, I’ve been dedicated to the sport of running. For the last five years, I chased the elusive goal of qualifying for the Boston Marathon, my ultimate aspiration. It wasn’t until I sought the expertise of a professional coach that I finally achieved this dream.
Active management can lead to high portfolio turnover and a higher tax bill. Wealth managers might feel that an active strategy could be too inefficient for clients who are sensitive to taxes. Find out how implementing a core-satellite portfolio with a direct indexing core may improve tax efficiency.
Are the “Mega-Cap” stocks dead? Maybe. But there are four reasons why they could be staged for a comeback. The recent market correction from the July peak certainly got investors’ attention and rattled the more extreme complacency.
Advisors are offering customized holistic wealth management to their clients and their families to help ensure an orderly transition of wealth
On Monday morning, investors woke up to plunging stock markets as the “Yen Carry Trade” blew up. While media headlines suggested the sell-off was due to fears of a recession, slowing employment growth, or fears over Israel and Iran, such is not the case.
When I was in high school, I really wanted a car. My loving parents took every situation as an opportunity to teach. They told me that if I wanted a car, I would have to earn it.
Investors can still extract yield while adding core bond exposure with the NEOS Enhanced Income Aggregate Bond ETF (BNDI).
When growth slows and rates fall, what will happen to an asset class with long-dated cash flows that are not very economically sensitive? Well, it is likely to strongly outperform. Ergo the short-term outlook for growth relative to value/small caps appear to be rosy.
Today’s passive index investing requires active choices, as customization and innovations in index funds have resulted in new considerations for investors and the potential for greater control.
Increasing the tax efficiency of a retiree’s income portfolio with the NEOS ETF suite may offer several benefits.
For taxable investors, an appreciating portfolio can be a mixed blessing. But regular loss harvesting isn’t the only way to reduce your portfolio’s tax bill, especially as its value rises. We share some important tax-management techniques for the future.
Experts from the third-largest ETF manager by AUM make their predictions regarding active, retail, and inheritances.
It's important to understand the true meaning behind the names of investment funds, especially when it comes to those labeled "tax-managed"
I have been looking forward to writing this blog for a long time. I joined Russell Investments on July 12, 2004 and now that it is my 20th anniversary, I feel it’s the right moment to share some of what I have learned along the way.
The boom in portfolio trading is starting to creep into the market for state and local government debt.
Join the experts at Goldman Sachs Asset Management for a free educational webcast on ActiveBeta – a factor based approach to investing.
Many investors hold a concentrated stock position that represents a large percentage—typically 10% to 20%—of their overall portfolio value. Let’s review the risks of concentrated positions and then survey some of the possible solutions.
Dimensional’s Kaitlin Hendrix explains the firm’s new unified managed account platform, which enables financial advisors to scale with Dimensional or non-Dimensional ETF model management and customize with Dimensional SMAs. VettaFi’s Cinthia Murphy highlights the top 20 active ETFs by inflows in 2024.
Rebalancing events help ensure benchmarks maintain exposure to companies within their targeted asset class or markets, but the rebalancing can also impact investment portfolios.
June of 2024 was a good month for financial markets. Leading the pack were (again) technology stocks, with the NASDAQ up 6% on the month. Close in second place were emerging market ex-China stocks, largely driven by India, Taiwan, and South Korea, all of which had large rallies in the month.
As an advisor, you know that no two clients are alike. Each has their own financial goals, risk tolerance and opinion on how they want to invest.
It is essential for financial professionals to include a variety of sources of guaranteed income to give clients the freedom to worry less, gain confidence about the future and enjoy life more.
You’ve probably heard the term “direct indexing.” It seems like everyone is talking about it. You’ve probably also read that sales of direct indexing products are booming. But what exactly is direct indexing?
In an ever-evolving healthcare landscape, Medicare’s complexities present both a challenge and an opportunity for financial advisors. As clients approach retirement or face health-related decisions, they often turn to their trusted advisors for guidance on navigating the Medicare maze.
VettaFi discusses changes in the MLP/midstream investment product landscape.
If you’re not sure what direct indexing means, you’re not alone. Even after the recent growth, direct indexing remains relatively unknown. As our compliance team never fails to remind us, you can’t invest directly in an index. So what exactly is direct indexing?
The rise of index funds has provided millions of Americans with a cheaper and more efficient way to invest. With more than $23 trillion in assets between them, BlackRock Inc., Vanguard Group Inc. and State Street Corp. have become the top shareholders in many US-listed companies.
Tax-management strategies are crucial for clients, and they need today’s most sophisticated tools to relieve the tax burden for their clients. In this episode, my guest will dive into those strategies, such as tax-loss harvesting, and will explain how tax technology plays a significant role in driving value through smart, automated processes that find the right investment strategies for every client. We’ll also discuss why it’s important to deliver tax-loss harvesting with a purpose as well as some other hot topics affecting the advisory profession.
As equity volatility and market uncertainty continue, investors increasingly turn to equity income strategies for opportunity.
We believe high-yield munis carry additional risks, but are worth consideration by investors in higher tax brackets who are comfortable taking added risks.
It’s a frequent question asked by organizations looking for an outsourced investment solutions provider. Our answer may surprise you.
I have indicted the securities industry for spreading “a web of deceptions that have become conventional wisdom.” But a small part of the industry does provide products and services that are beneficial and necessary. That is the subject of this article.
Educating workers about workplace benefits is vital to employee retention, according to findings from Franklin Templeton’s 2024 “Voice of the American Workplace” survey. Our Jacque Reardon shares findings from the survey related to what employees want—and how employers can meet these needs to benefit both parties.
There are rules to follow if you set up a 529 college plan. If you don’t follow the rules, then the IRS will get involved, which is something you want to avoid.
While these tax-advantaged accounts are effective tools for meeting future education needs, a 2023 analysis found that overfunding a 529 plan can result in a large tax bill if money remains in the account after the beneficiary has graduated.
April 15 is undoubtedly one day that is not enthusiastically celebrated by most people. It is safe to say that the discomfort around Tax Day likely ranks right up there with your annual physical or renewing your driver’s license.
This week continues our series on dividends and dividend growth stocks. This is one part of my strategy to try to get through what I see as a coming crisis by the end of the decade with as much of my buying power as intact as possible.
While getting your loans wiped out can seem like a lifesaver, it may come with some negative financial implications.
I will explain what AI is and how it’s impacting the financial services industry; some regulatory and legal concerns with respect to the use of AI; and how RIAs can take their first steps to utilizing AI in their practice responsibly.
While most RIA firms employ funds and models when building client portfolios, a handful of wealth management and investment advisory firms utilize single-stock allocations.
Our outlook is still positive, but it may be difficult to replicate the strong returns of the past few quarters.
Since their inception, exchange traded funds (ETFs) continue to grow their market share and popularity with investors. The tax efficiency for which they are known comes down to three primary mechanisms from which the vehicle wrapper benefits.
On the lookout for some new ETFs? Active ETFs had a great year in 2023 and are off to a hot start in 2024. The question, then, is how to choose from a growing list of strategies. One powerful heuristic for assessing ETFs — tech analysis — can help.
BlackRock Inc., which capitalized on a decade-long boom in index investing, said investors should rely more heavily on actively managed strategies.
Looking back, I believe the financial advisors who were most willing to adapt to changing times were generally more able to set themselves apart from the crowd and experienced a higher rate of success.
Municipal bonds posted negative total returns as the market reassessed macro expectations. Seasonal supply-and-demand dynamics were supportive, albeit less so than in prior years.
TikTok stands accused of poisoning the minds of Gen Z, making them hate America and giving them a distorted view of history. Without getting into all that, I will say this: TikTok is not the worst place to learn about personal finance.
In less than 2 weeks, advisors will flock to sunny Miami for the annual Exchange Conference. Content sessions this year offer advisors insight into growing their business models in unexpected ways, the macro and market environment of 2024, navigating the AI revolution, and more.
While the ability of humans to demonstrate empathy is invaluable, few appreciate the impact of “artificial empathy,” which is incorporated into AI and is likely to become more sophisticated.
Many advisors wait until the end of the year to harvest tax losses, but that may not be the best policy. Stock markets frequently go up in the last two months of the year so better harvesting opportunities may be available at other times.
A traditional 60/40 stock/bond portfolio has been a tried and tested strategy among financial planners. But income seekers can specifically reap the benefits of both assets with exposure to one active exchange-traded fund: the NEOS Enhanced Income Aggregate Bond ETF (BNDI).
Advisor Perspectives recently asked its community they are recommending the new spot bitcoin ETFs. Many made incorrect statements in their efforts to justify their opposition.
Initiate the year with direct indexing, encompassing tax planning, personalized investing strategies, rejuvenating sidelined cash, and navigating concentrated stock positions or financial windfalls.
Tax-loss harvesting is an essential tax-management strategy that can benefit a broad range of taxable investors – even those who many not think they have to worry about investment taxes.
The January effect, named for the market anomaly where stock returns in January are typically higher than in other months, has been a subject of interest since it was first documented in 1942.
2023 proved to be another year when the consensus views were not correct. A few of these views that turned out non-prescient were that inflation would remain elevated in mid-single digits or higher, higher interest rates would crush housing prices, consumer spending would collapse, and oil prices would continue to rise.
A friend of our stock picking discipline reminded us of a very important force in the stock market. It was called the 70/20/10 rule, and it was promoted by Roger Edelman, Richard Evans and Gregory Kadlec in an early 2013 Financial Analysts Journal article.
Take this little “acid” test, and you will know if a subscription model could work for your practice.
The prevailing consensus in 2024 is that the Federal Reserve will cut interest rates. But predicting central bank moves is an inexact science. That said, fixed income investors could use the help of an active strategy to continue extracting higher yields.
The average risk-adjusted excess return across all active portfolios will be less than the risk-adjusted excess return of the market portfolio, before taking account of fees and trading costs.
Municipal Bond Strategist Jim Grabovac looks at how the municipal bond market wrapped up 2023 and shares his expectations for the year ahead.
The ETF industry is buzzing as long-awaited spot bitcoin ETFs are likely to get the green light from the SEC in the coming days. We expect trading of multiple products to begin soon after.
Direct Indexing
Ins and Outs of Tax-Managed Charitable Giving
As the year winds down, many investors focus on year-end charitable giving and tax planning. Finding a charity and donating money is the easy part. Taking slightly different approaches to gifting can yield dramatically different results from a tax perspective.
Victor Meets the Boglehead
A visit to the annual Bogleheads conference got Elm Wealth's Victor Haghani thinking about static vs. dynamic asset allocation.
How Direct Indexing Can Help Offset Taxes on a Future Financial Windfall
With Direct Indexing, you can help your clients prepare for life-changing transactions and minimize capital gains taxes by selectively harvesting losses to offset those gains, and implementing tax-efficient trading strategies.
Moving Averages: S&P Finishes October 2024 Down 1.0%
Valid until the market close on November 29, 2024
This article provides an update on the monthly moving averages we track for the S&P 500 and the Ivy Portfolio after the close of the last business day of the month.
Fade the Election – Part 2: Debt & Deficits
The most common questions we’ve been asked as the election approaches are generally about the Federal debt and deficits. Many investors worry about a looming “day of reckoning” for US debt. They fear the US’s fiscal imprudence will eventually force a sudden and dramatic repricing of US debt. In this insight, we explore the modern history of US debt to GDP across several Presidential administrations and outline why investors should not be worried about a financial apocalyptic abyss.
The Intelligent Investor Is Still Worth Reading 75 Years Later
When Warren Buffett calls a book on investing “by far the best book about investing ever written,” it is common sense to concede the point.
An Advisor’s Guide to Harnessing Volatility
Volatility creates a number of challenges for advisors and investors, but also opportunities for those who know where to look.
How an UTMA Compares to a 529 Plan
The cost of higher education has skyrocketed over the last few decades, and shows no signs of slowing. That’s why it’s more important than ever that parents start saving as early as possible for their children’s future.
529 Plans: Custodial Versus Individual Accounts
Opening a 529 college savings account can be a smart move if you’d like to save for college on a tax-advantaged basis. One thing to consider when opening a 529 plan is whether it should be a custodial or individual account. While both allow you to save for college costs and enjoy some tax breaks, they differ in terms of who has control of the account and the assets in it.
529 Plan Withdrawal Rules
A 529 college savings plan, also known as a qualified tuition plan (QTP), is a popular choice among parents and families looking to meet their children’s future educational expenses. Two of the 529 plan’s helpful features are tax-deferred growth of your contributions and later, tax-free withdrawals for eligible expenses.
This 529 Plan Mistake Could Cost You Big at Tax Time
529 plans are one of the most popular ways Americans save for the college expenses of their children. As of June 2024, there were 16.8 million 529 savings accounts holding $508 billion, according to the College Savings Plan Network.
Some Best Practices for Trading ETFs: Seeking to Maximize Your Investment Efficiency
Exchange-traded funds (ETFs) have grown in popularity as one of the most flexible and accessible investment vehicles available today. Offering a blend of stock-like liquidity and mutual fund-like diversification, ETFs can serve as a core component in the portfolios of both novice and experienced investors
Back in Fashion: Bond ladders
For decades, a key component of many investors’ portfolios was a fixed income ladder. It was intended to provide ballast to the more volatile equity allocation and help reduce interest-rate risk.
Hands Off the Fed
Discussion about more political oversight or political control of the U.S. Federal Reserve (Fed) occasionally heats up. We are seeing more of this type of discourse today as the election approaches. In our view, limited Fed independence could prove disastrous.
What Is Tax Management?
Taxes can have a major impact on the long-term growth of a portfolio. Find out how continuous, thoughtful tax management can help investors maximize their wealth.
Wall Street Has Proven That Trust Can Be Rebuilt
America’s financial industry has long had trust issues. Never mind the Great Financial Crisis of 2007-08; mistrust of the markets dates back to at least 1929, if not the Dutch East India collapse of 1769. But this history has an upside: Financial institutions have a lot of experience creating systems to build, maintain and restore trust — and have learned lessons that can be applied across the economy.
Value of an Advisor: T Is for Tax-Smart Planning and Investing
Taxes may be the biggest fee your tax-sensitive clients are paying on their investment portfolios. And neither they nor you, their advisor, may be aware of just how big that fee is.
Summer Cocktails, White Sneakers, Nvidia: It’s Back to Schooling
While the beach version of SoCal has had an epic, non-marine layer summer, it seems to have been enjoyed by few locals who instead violate the cardinal rule of adult life without children living at home and nevertheless travel to Europe in summer. We haven’t missed you.
Active Fixed Income ETFs Have Seen Flows Jump in 2024
Active fixed income ETFs have taken a big leap this year per new research about active ETFs that may draw new investor eyes.
Tax-Loss Harvesting? These Fixed Income ETFs Deserve a Look
With tax-loss harvesting season on the horizon, investors may want to consider a pair of tax-conscious, active fixed income ETFs.
CD or Treasury? Five Factors to Consider
Certificates of deposit (CDs) and Treasuries both can offer steady, predictable investment income—but how to decide between them? Here are five factors to help you choose.
Index Investing as an Active Decision: Implications for Fixed Income Investors
Passive fixed income index investing has evolved significantly over the previous decade, offering investors the flexibility to align risk requirements and investment goals. Learn more from our experts.
The Active International ETF Showing Continued Strength
With U.S. equities perhaps calling for diversification, an active international ETF like TOUS could play a helpful role.
It's Increasingly Difficult to Defend Your Complex Portfolios
Here’s a quote attributed to P. J. O’Rourke, an American author, journalist and political satirist: “There is a simple rule here, a rule of legislation, a rule of business, a rule of life: beyond a certain point, complexity is fraud.”
Direct Indexed Tax Loss Harvesting: Are the Benefits Worth the Fees?
In this article, we’re going to throw some cold water on the DI love-fest by explaining why most tax-sensitive investors would be better off with a simpler approach to tax loss harvesting.
Sizzling ETF Flows in Manic Markets Fuel a $609 Billion Haul
Half your coworkers might have just spent August in Europe, but there were no holiday doldrums in the booming world of ETFs.
Cliff Asness Is ‘Old Man Whinging’ as Markets Get Less Efficient
Cliff Asness says he sounds like an “old man whinging,” but that’s not stopping him from writing 23 pages on his latest thesis: Financial markets these days aren’t what they were.
The Tax Implications of Your Short-Term Investments
As tax season draws nearer, advisors and investors increasingly look to their portfolio to optimize exposures for taxation purposes.
Why Use Model Portfolios? So Advisors Can Focus on What Matters Most
Over nearly three decades, I’ve been dedicated to the sport of running. For the last five years, I chased the elusive goal of qualifying for the Boston Marathon, my ultimate aspiration. It wasn’t until I sought the expertise of a professional coach that I finally achieved this dream.
Strengthen Your Client’s Core with Direct Indexing
Active management can lead to high portfolio turnover and a higher tax bill. Wealth managers might feel that an active strategy could be too inefficient for clients who are sensitive to taxes. Find out how implementing a core-satellite portfolio with a direct indexing core may improve tax efficiency.
Are Mega-Caps About To Make A Mega-Comeback?
Are the “Mega-Cap” stocks dead? Maybe. But there are four reasons why they could be staged for a comeback. The recent market correction from the July peak certainly got investors’ attention and rattled the more extreme complacency.
Value of an Advisor: C is for Customized Experience and Family Wealth Planning
Advisors are offering customized holistic wealth management to their clients and their families to help ensure an orderly transition of wealth
Yen Carry Trade Blows Up Sparking Global Sell-Off
On Monday morning, investors woke up to plunging stock markets as the “Yen Carry Trade” blew up. While media headlines suggested the sell-off was due to fears of a recession, slowing employment growth, or fears over Israel and Iran, such is not the case.
From Sports Car to Minivan: Direct Indexing Can Help You Give Your Clients the Ride They Want
When I was in high school, I really wanted a car. My loving parents took every situation as an opportunity to teach. They told me that if I wanted a car, I would have to earn it.
Get Bond Appreciation While Still Extracting Yield
Investors can still extract yield while adding core bond exposure with the NEOS Enhanced Income Aggregate Bond ETF (BNDI).
Quant Street July 2024 Investor Letter: Momentum Crash
When growth slows and rates fall, what will happen to an asset class with long-dated cash flows that are not very economically sensitive? Well, it is likely to strongly outperform. Ergo the short-term outlook for growth relative to value/small caps appear to be rosy.
Index Investing as an Active Decision: Implications for Equity Investors
Today’s passive index investing requires active choices, as customization and innovations in index funds have resulted in new considerations for investors and the potential for greater control.
How to Augment Your Retirement Income for Tax Efficiency
Increasing the tax efficiency of a retiree’s income portfolio with the NEOS ETF suite may offer several benefits.
Four Ways to Manage Taxes as Loss-Harvesting Opportunities Fade
For taxable investors, an appreciating portfolio can be a mixed blessing. But regular loss harvesting isn’t the only way to reduce your portfolio’s tax bill, especially as its value rises. We share some important tax-management techniques for the future.
State Street: Active, Retail, Inheritances to Drive Next $10T in ETF Assets
Experts from the third-largest ETF manager by AUM make their predictions regarding active, retail, and inheritances.
What’s in a Name? Understanding Tax-Managed Funds and Strategies
It's important to understand the true meaning behind the names of investment funds, especially when it comes to those labeled "tax-managed"
GRATEFUL for the Past 20 Years
I have been looking forward to writing this blog for a long time. I joined Russell Investments on July 12, 2004 and now that it is my 20th anniversary, I feel it’s the right moment to share some of what I have learned along the way.
Wall Street’s Portfolio-Trade Fad Hooks Slow-Moving Muni Market
The boom in portfolio trading is starting to creep into the market for state and local government debt.
How to Factor in the Perks of Both Active and Index Investing
Join the experts at Goldman Sachs Asset Management for a free educational webcast on ActiveBeta – a factor based approach to investing.
Four Potential Solutions to Concentrated Stock Positions
Many investors hold a concentrated stock position that represents a large percentage—typically 10% to 20%—of their overall portfolio value. Let’s review the risks of concentrated positions and then survey some of the possible solutions.
Dimensional’s Kaitlin Hendrix Details New Unified Managed Account Platform
Dimensional’s Kaitlin Hendrix explains the firm’s new unified managed account platform, which enables financial advisors to scale with Dimensional or non-Dimensional ETF model management and customize with Dimensional SMAs. VettaFi’s Cinthia Murphy highlights the top 20 active ETFs by inflows in 2024.
Summer Index Rebalances: How They Work and Why They Matter
Rebalancing events help ensure benchmarks maintain exposure to companies within their targeted asset class or markets, but the rebalancing can also impact investment portfolios.
Quant Street July 2024 Investor Letter: U.S. vs. International Divergence Continues
June of 2024 was a good month for financial markets. Leading the pack were (again) technology stocks, with the NASDAQ up 6% on the month. Close in second place were emerging market ex-China stocks, largely driven by India, Taiwan, and South Korea, all of which had large rallies in the month.
Growing Your Business With Direct Indexing
As an advisor, you know that no two clients are alike. Each has their own financial goals, risk tolerance and opinion on how they want to invest.
Diversify Retirement Saving Strategies to Boost Clients’ Overall Financial Wellness
It is essential for financial professionals to include a variety of sources of guaranteed income to give clients the freedom to worry less, gain confidence about the future and enjoy life more.
Understanding Direct Indexing: A Personalized Investment Approach
You’ve probably heard the term “direct indexing.” It seems like everyone is talking about it. You’ve probably also read that sales of direct indexing products are booming. But what exactly is direct indexing?
Empowering Clients to Navigate the Medicare Maze
In an ever-evolving healthcare landscape, Medicare’s complexities present both a challenge and an opportunity for financial advisors. As clients approach retirement or face health-related decisions, they often turn to their trusted advisors for guidance on navigating the Medicare maze.
ETFs, CEFs & More: MLP Investment Products Evolve
VettaFi discusses changes in the MLP/midstream investment product landscape.
What Is Direct Indexing?
If you’re not sure what direct indexing means, you’re not alone. Even after the recent growth, direct indexing remains relatively unknown. As our compliance team never fails to remind us, you can’t invest directly in an index. So what exactly is direct indexing?
Index Funds Need to Be Passive, Not Political
The rise of index funds has provided millions of Americans with a cheaper and more efficient way to invest. With more than $23 trillion in assets between them, BlackRock Inc., Vanguard Group Inc. and State Street Corp. have become the top shareholders in many US-listed companies.
The Power of Tax-Loss Harvesting
Tax-management strategies are crucial for clients, and they need today’s most sophisticated tools to relieve the tax burden for their clients. In this episode, my guest will dive into those strategies, such as tax-loss harvesting, and will explain how tax technology plays a significant role in driving value through smart, automated processes that find the right investment strategies for every client. We’ll also discuss why it’s important to deliver tax-loss harvesting with a purpose as well as some other hot topics affecting the advisory profession.
Equity Income ETFs Draw Investors Amid Volatility
As equity volatility and market uncertainty continue, investors increasingly turn to equity income strategies for opportunity.
Should You Consider High-Yield Municipal Bonds?
We believe high-yield munis carry additional risks, but are worth consideration by investors in higher tax brackets who are comfortable taking added risks.
What’s the Right Size for an OCIO Provider?
It’s a frequent question asked by organizations looking for an outsourced investment solutions provider. Our answer may surprise you.
The Road Not Taken
I have indicted the securities industry for spreading “a web of deceptions that have become conventional wisdom.” But a small part of the industry does provide products and services that are beneficial and necessary. That is the subject of this article.
Mind the Benefits Gap
Educating workers about workplace benefits is vital to employee retention, according to findings from Franklin Templeton’s 2024 “Voice of the American Workplace” survey. Our Jacque Reardon shares findings from the survey related to what employees want—and how employers can meet these needs to benefit both parties.
529 Plan Withdrawal Rules
There are rules to follow if you set up a 529 college plan. If you don’t follow the rules, then the IRS will get involved, which is something you want to avoid.
Don’t Make This Mistake With a 529 Plan
While these tax-advantaged accounts are effective tools for meeting future education needs, a 2023 analysis found that overfunding a 529 plan can result in a large tax bill if money remains in the account after the beneficiary has graduated.
Direct Indexing Decoded: A Must-Know for Financial Advisors Maneuvering Through Tax Season
April 15 is undoubtedly one day that is not enthusiastically celebrated by most people. It is safe to say that the discomfort around Tax Day likely ranks right up there with your annual physical or renewing your driver’s license.
Dividends on Offense
This week continues our series on dividends and dividend growth stocks. This is one part of my strategy to try to get through what I see as a coming crisis by the end of the decade with as much of my buying power as intact as possible.
How Does Student Loan Forgiveness Affect Someone’s Finances?
While getting your loans wiped out can seem like a lifesaver, it may come with some negative financial implications.
How to Use Artificial Intelligence Responsibly
I will explain what AI is and how it’s impacting the financial services industry; some regulatory and legal concerns with respect to the use of AI; and how RIAs can take their first steps to utilizing AI in their practice responsibly.
The Benefits of Building Portfolios of Individual Stocks
While most RIA firms employ funds and models when building client portfolios, a handful of wealth management and investment advisory firms utilize single-stock allocations.
Preferred Securities: Still Attractive?
Our outlook is still positive, but it may be difficult to replicate the strong returns of the past few quarters.
The 3 Keys to ETF Tax Efficiency
Since their inception, exchange traded funds (ETFs) continue to grow their market share and popularity with investors. The tax efficiency for which they are known comes down to three primary mechanisms from which the vehicle wrapper benefits.
3 Active ETFs Sending Buy Signals Right Now
On the lookout for some new ETFs? Active ETFs had a great year in 2023 and are off to a hot start in 2024. The question, then, is how to choose from a growing list of strategies. One powerful heuristic for assessing ETFs — tech analysis — can help.
BlackRock Says ‘New Regime’ Calls for More Active Management
BlackRock Inc., which capitalized on a decade-long boom in index investing, said investors should rely more heavily on actively managed strategies.
Staying Ahead of the Game With Direct Indexing in Financial Advisory
Looking back, I believe the financial advisors who were most willing to adapt to changing times were generally more able to set themselves apart from the crowd and experienced a higher rate of success.
Muni Investors Rewarded by Patience To Start 2024
Municipal bonds posted negative total returns as the market reassessed macro expectations. Seasonal supply-and-demand dynamics were supportive, albeit less so than in prior years.
Is TikTok’s Financial Advice Any Good? As an Economist, I Say Yes
TikTok stands accused of poisoning the minds of Gen Z, making them hate America and giving them a distorted view of history. Without getting into all that, I will say this: TikTok is not the worst place to learn about personal finance.
Countdown to Exchange: Re-Envision Wealth’s Anna N’Jie-Konte
In less than 2 weeks, advisors will flock to sunny Miami for the annual Exchange Conference. Content sessions this year offer advisors insight into growing their business models in unexpected ways, the macro and market environment of 2024, navigating the AI revolution, and more.
Artificial Empathy
While the ability of humans to demonstrate empathy is invaluable, few appreciate the impact of “artificial empathy,” which is incorporated into AI and is likely to become more sophisticated.
Tax Loss Harvesting: Frequency Matters
Many advisors wait until the end of the year to harvest tax losses, but that may not be the best policy. Stock markets frequently go up in the last two months of the year so better harvesting opportunities may be available at other times.
Get S&P and Bond Market Upside in One ETF
A traditional 60/40 stock/bond portfolio has been a tried and tested strategy among financial planners. But income seekers can specifically reap the benefits of both assets with exposure to one active exchange-traded fund: the NEOS Enhanced Income Aggregate Bond ETF (BNDI).
Even Advisors Who Like Bitcoin Got it Wrong
Advisor Perspectives recently asked its community they are recommending the new spot bitcoin ETFs. Many made incorrect statements in their efforts to justify their opposition.
Strategic Tax Planning: Kickstart the Year With Direct Indexing
Initiate the year with direct indexing, encompassing tax planning, personalized investing strategies, rejuvenating sidelined cash, and navigating concentrated stock positions or financial windfalls.
What Is Tax-Loss Harvesting? It’s a Way To Create a Tax Asset.
Tax-loss harvesting is an essential tax-management strategy that can benefit a broad range of taxable investors – even those who many not think they have to worry about investment taxes.
The Diminishing Impact of the January Effect
The January effect, named for the market anomaly where stock returns in January are typically higher than in other months, has been a subject of interest since it was first documented in 1942.
2023: The Year That Was Not
2023 proved to be another year when the consensus views were not correct. A few of these views that turned out non-prescient were that inflation would remain elevated in mid-single digits or higher, higher interest rates would crush housing prices, consumer spending would collapse, and oil prices would continue to rise.
70/20/10 Rule Redux
A friend of our stock picking discipline reminded us of a very important force in the stock market. It was called the 70/20/10 rule, and it was promoted by Roger Edelman, Richard Evans and Gregory Kadlec in an early 2013 Financial Analysts Journal article.
Is Your Practice Ripe for a Subscription Model?
Take this little “acid” test, and you will know if a subscription model could work for your practice.
Obtain Active, Higher Yield Amid Economic Uncertainty in 2024
The prevailing consensus in 2024 is that the Federal Reserve will cut interest rates. But predicting central bank moves is an inexact science. That said, fixed income investors could use the help of an active strategy to continue extracting higher yields.
Sharpe’s Arithmetic and the Risk Matters Hypothesis
The average risk-adjusted excess return across all active portfolios will be less than the risk-adjusted excess return of the market portfolio, before taking account of fees and trading costs.
Municipal Bond Outlook: Looking Brighter after 2023 Rollercoaster
Municipal Bond Strategist Jim Grabovac looks at how the municipal bond market wrapped up 2023 and shares his expectations for the year ahead.
A Spot Bitcoin ETF is Coming Soon – Join VettaFi Event to Learn More
The ETF industry is buzzing as long-awaited spot bitcoin ETFs are likely to get the green light from the SEC in the coming days. We expect trading of multiple products to begin soon after.