Displaying items by tag: equities

Treasury Secretary Scott Bessent said Tuesday he is optimistic that the U.S. and China are closing in on a trade agreement. In an interview with CNBC, he noted that upcoming talks ahead of November’s scheduled reciprocal tariffs have become increasingly productive. 

Bessent suggested Beijing now recognizes that a deal is within reach, even after months of back-and-forth since tariffs were first announced in April. 

While China initially faced duties as high as 145%, those measures have been suspended through Nov. 10 to allow negotiations to continue. He also highlighted that U.S. allies are frustrated by the surge of Chinese goods into their markets, a dynamic adding urgency to the talks. 

Finum: With the U.S. trade deficit with China already narrowing sharply in 2025, there could be a strong incentive to reach a trade deal as soon as possible. 

Momentum remains the dominant factor in 2025, with the iShares MSCI USA Momentum ETF (MTUM) up 19.6% and the Invesco High Beta ETF (SPHB) close behind at 18.7%, both well ahead of the S&P 500’s 10.7% gain. 

Growth ETFs are trailing the leaders, with the iShares S&P 500 Growth ETF (IVW) delivering a solid 14.2% return. Factor leadership has been narrow, with momentum and high beta capturing most of the gains so far this year. 

At the same time, investors are showing renewed interest in high-dividend strategies, as the Vanguard High Dividend Yield ETF (VYM) hit a record high. Expectations of Federal Reserve rate cuts are making dividend payouts more attractive relative to bonds. 

Finsum: Momentum, high beta, and dividend strategies are setting the tone for factor performance in 2025.

Midcap stocks are emerging as a compelling option for investors seeking balance in the current U.S. market environment, offering a middle ground between the stability of large-caps and the growth potential—but higher volatility—of small-caps. 

Midcaps, by contrast, combine growth opportunities with resiliency and adaptability, making them well-suited for uncertain conditions in 2025. One core strategy gaining traction is the BNY Mellon US Mid Cap Core Equity ETF (BKMC), which tracks the Solactive GBS United States 400 Index TR. 

BKMC delivers broad diversification by investing in 400 midcap companies, including REITs, with no single holding exceeding 1% of portfolio weight. As of July 31, 2025, the ETF has returned nearly 12% over the prior three months, underscoring midcaps’ potential to deliver both near-term performance and long-term stability.

Finsum: While large-caps provide scale to weather tariff and policy headwinds, they face concentration risks and reduced flexibility, whereas small-caps remain vulnerable to inflation and Federal Reserve policy shifts.

The investment banking industry has surged in 2025, fueled by heightened client activity, a rebound in underwriting and advisory services, and widespread adoption of artificial intelligence to boost long-term efficiency. 

Leading investment banks include Goldman Sachs, JPMorgan Chase, Citigroup, Evercore, and Interactive Brokers. Goldman Sachs is benefiting from growth in its Global Banking & Markets division, a strong M&A pipeline, and rising revenues and earnings, while JPMorgan Chase emphasizes AI investments and expects steady net interest income growth despite macro volatility. 

Citigroup is expanding private lending partnerships and posting strong earnings gains, Evercore continues to diversify its advisory and investment management revenue with robust capital distributions, and Interactive Brokers is expanding globally with new services and solid revenue growth. 

Finsum: Overall, these top investment banks are positioned for continued expansion and shareholder value creation through 2025 and into 2026.

Large-cap blend mutual funds offer investors a balance of growth and value stocks, providing diversification and stability compared to small- or mid-cap funds. 

Among the top picks are Ultrabull Profund Investor Shares (ULPIX), Vanguard Growth and Income Fund (VQNPX), and JPMorgan U.S. Research Enhanced Equity Fund (JDEAX), all carrying a strong buy.  ULPIX aims to double the daily performance of the S&P 500, posting impressive three-year annualized returns of 29.5%. 

VQNPX focuses on capital appreciation plus dividend income, with three-year annualized returns of 19.7% and a low expense ratio of 0.38%. JDEAX delivers consistent returns by investing in a diversified mix of S&P 500 companies, achieving three-year annualized returns of 19.6% under the steady management of Raffaele Zingone.

Finsum: These funds typically invest in companies with market capitalizations above $10 billion, making them attractive for risk-averse investors seeking long-term performance.