- Why 2024 Is the Year of Active Fixed Income ETFs “A primary driver behind the popularity of active fixed-income ETFs is the fluctuating interest rate environment. Following a prolonged period of rate hikes by the Federal Reserve, yields on bonds have become more attractive. However, the future path of rates is uncertain as president-elect Donald Trump’s tax and tariff policies have reawakened inflation fears.” (ETF.com)
- Era of Private Credit Returns Beating Private Equity is Nearing an End “Looser credit conditions will begin to free up private equity’s ability to do deals again after a failure to hedge against rising borrowing costs gummed up the financial machine that fuels the industry. Lower credit costs should also ease the pressure on many portfolio firms, some of which added expensive leverage when exits became difficult at valuations demanded by managers.” (Mergers & Acquisitions)
- ‘Diversification Is Back’—Why 60/40 Portfolios Are Working “Take the third quarter, when the strategy worked well for investors. From Aug. 1 to Aug. 5, the Morningstar US Market Index fell 6.28%, but the Morningstar US Core Bond Index was up 1.53%. Similarly, from Sept. 2 to Sept. 6, stocks were down 4.32% while bonds were up 1.27%. As a result, 60/40 portfolios fell only half as much as the overall market.” (Morningstar)
- A Record Year for ETF Inflows Imminent “With more than six weeks to go in 2024, the 2021 record of $911 billion is about to be shattered. Crossing the $1 trillion net inflows mark in 2024 seems quite achievable.” (ETFTrends.com)
- ETF world buzzing about new cash flooding into funds seen winning from Trump trades “Matt Bartolini, head of Americas ETF Research at State Street Global Advisors, is especially positive on banks. The SPDR Regional Bank ETF (KRE) received more than $1.3 billion of new investor cash the day after the election, meaning 36% of the fund’s current assets came in on a single day. Bartolini said in an an email that the prospect of diminished government oversight is a key driver." (CNBC)
- Non-Listed BDCs Extend Streak to Nine Consecutive Quarters of Growth “The Stanger NL BDC Total Return Index posted a 2.4% increase in Q3 2024, marking its ninth consecutive quarter of steady growth. Despite this consistent performance, traded BDCs have still outperformed non-listed BDCs on a one-year, three-year and five-year basis.” (The DI Wire)
- BlackRock Targets Money-Market Fund Business in New ETF Push “ In the case of the money-market funds, however, that liquidity comes at the expense of a protection provided by traditional funds: Unlike those, the ETFs aren’t required to maintain a stable net-asset value of $1, meaning investors can be exposed to some downside risk.” (Bloomberg)
- Navigating The Great Wealth Management Paradox “While there is a trend developing toward more widespread use of low-cost, self-directed accounts—particularly among younger investors—the bulk of total assets (77%) is still held in full-service advisory accounts.” (Forbes)
- Bitcoin ETFs bring in $1.1b as Ether ETFs see record inflows “Since the start of November, a total of $4.96 billion has flown into Bitcoin ETFs according to SoSoValue data. The recent uptick in demand followed Donald Trump’s victory in the U.S. elections which has sparked market-wide optimism across the broader sector.” (Crypto.news)
- Should Clients Pay Less for Advisors Who Use Generative AI? “Investors are not against advisors using generative AI to help with tasks like summarizing materials to create educational resources for clients. However, it’s true that generative AI means it takes less time and effort to execute these tasks—so, does this affect how much clients are willing to pay advisors for their services?” (Morningstar)
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