Displaying items by tag: technology
BlackRock Expands Tech ETF Offerings
BlackRock has introduced two new ETFs: the iShares Technology Opportunities Active ETF (TEK) and the iShares A.I. Innovation and Tech Active ETF (BAI). According to Tony Kim, BlackRock’s head of fundamental equities technology, these ETFs aim to capitalize on the rapidly expanding AI and tech landscape.
The TEK fund focuses on global tech leaders and disruptors, incorporating companies across various market caps to balance stability and potential growth. Meanwhile, BAI seeks strong returns by investing in innovative companies within the AI sector, applying rigorous fundamental research.
The fund covers a diverse range of cap sizes globally, emphasizing groundbreaking advancements in AI. BlackRock now manages over $3.1 trillion in U.S.-listed ETFs across 430 funds.
Finsum: Using ETFs to target a clients interests presents an already more balanced approach for portfolios
Crackdown on China AI
The U.S. is close to finalizing rules that will restrict certain American investments in China’s artificial intelligence sector, with a focus on national security. These regulations, currently under review by the Office of Management and Budget, are expected to be released soon and stem from an executive order issued by President Biden in August 2023.
The new rules will require U.S. investors to notify the Treasury Department about AI-related investments and limit funding for technologies like semiconductors, quantum computing, and microelectronics that could benefit China's military.
Some exceptions, such as investments in publicly traded securities and certain limited partnerships, have been proposed. Experts expect further clarification in the final rules, particularly regarding AI's scope and the conditions for limited partners.
Finsum: There seems to be broader efforts to safeguard U.S. technological from China and this trend is worth monitoring.
The Best Tech Accessories of 2024
At CES 2024, innovative tech products continued to capture attention despite Apple’s preemptive announcement of the Vision Pro headset earlier in the year. Standout devices included:
- The Rabbit R1, a compact AI assistant designed with Teenage Engineering, which can handle simple tasks, play music, and more, all for $199 starting March 2024.
- The Audio Pro C20 emerged as a versatile wireless speaker that supports multiple streaming options, doubles as a soundbar, and connects to a turntable, available in February 2024 for $550.
- LG unveiled its first transparent TV, the 77-inch Signature OLED T, which can transform into a 3D display or a functional visual piece when not in use. This year’s CES showcased a range of groundbreaking gadgets that highlighted new possibilities in consumer electronics.
Finsum: CES 2024 reaffirmed its status as the world’s premier tech event, showcasing cutting-edge innovations that promise to redefine the future of consumer electronics and lifestyle technology.
Technology Gives Advisors a Leg Up
Model portfolios simplify portfolio management, allowing financial advisors to deliver customized investment strategies without starting from scratch. Leveraging technology, advisors can access high-quality, ready-made models that can be adjusted to meet specific client needs.
Customizing these portfolios provides a balance between using institutional expertise and offering personalized service. Advanced analytics tools are seamlessly integrated, enabling advisors to filter, screen, and select the best-performing assets based on millions of data points.
Tracking performance over time with precision ensures that clients see accurate, realistic outcomes. This approach gives advisors a competitive edge, allowing them to scale their practice while maintaining individualized attention.
Finsum: Having the analytics at your fingertips can really aid in distilling complex information to clients.
Morgan Stanley says AI Key to Advisor Productivity
Morgan Stanley's CEO Ted Pick announced that artificial intelligence could potentially save the bank's financial advisers 10 to 15 hours per week by automating tasks such as transcribing and entering notes from client meetings. This AI tool is expected to significantly boost adviser productivity and help tailor investment strategies to better meet the needs of wealthy clients.
Pick also predicted that high interest rates in the U.S. will continue, aligning with views from leaders at JPMorgan Chase and Goldman Sachs, and noted that this environment could benefit the bank's trading and market-making activities.
Morgan Stanley plans to expand its lending to high-net-worth clients through more advanced financial products as deposits increase. Pick emphasized the bank’s commitment to maintaining its dividend while suggesting that stock buybacks would be influenced by market conditions.
Finsum: By using AI to boost productivity this extra time could be devoted to deepening client relationships or new client adoption.