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الأربعاء, 07 أيلول/سبتمبر 2022 04:21

The Great Debate: active or passive

The Great Debate. 60 Minutes’ Point Counter Point.

 

Call it what you want, but over time, there’s been a perpetual back and forth over this: should investors leverage active or passive strategies when committing dollars in fixed income markets, according to wellington.com.

 

Problem is, in light of the diatribe, a question remains: is the investor hitting the mark in terms of their investment goal or merely maintain a scent on a particular benchmark. The main issue, then, is whether investors are all In on the “appropriateness” of fixed

 

A perpetual discussion among those in financial services: active opposed to passive investment, according to ftadviser.com.

 

On one hand, as far as fees are considered, passively managed funds are viewed as easier on the wallet. Conversely, active managers purportedly offer valuable expertise; that’s why their rates are slightly higher.

 

Also asked is why large bond allocations might be the hands of investors. Is it for income? If so, do they want to fork over money to a manager to provide that little extra?, the site continued.  



During a recent Goldman Sachs webcast, advisors were surveyed and asked by VettaFi: “When it comes to fixed income investing, do you believe in active management, passive management, or a mix?” according to etftrends.com.



Fifty five percent touted a cocktail of active and passive, while 36% firmly fell into the passive camp. Active drew nine percent.

 

While active strategies still are in vogue and when it comes to their relative upside,, advisors must have their antenna up, according to data from VettaFi.

الأربعاء, 07 أيلول/سبتمبر 2022 03:56

Financial advisors shifting firms

You know what they say about timing? Well, plenty, probably, but among them is now an idyllic time – the best in years, in fact -- for financial advisors to bolt one firm for another, according to Mindy Diamond, founder and CEO of Diamond Consultants, according to diamond-consultants.com. It originally appeared on thinkadvisor.com.

 

So, why now, you might ask? Diamond says quality advisors are receiving transition packages “at real high water marks.” She added that it’s a “real sellers market” where advisors are “more likely [to] find [their] version of utopia versus five or 10 years ago.”

 

Okay, that can be persuasive.

 

Now, compensation aside, financial advisors with an eye making a change also are keen on “freedom and control,” said Diamond. Autonomy, she continued, in squarely in their wheelhouse.”

 

And there’s more, she noted. A burgeoning number of options are on the plate for advisors eyeing parting ways with large firms. Among them: aligning with “boutiques” that offer freedom and control, more opportunities for those with entrepreneurism on their radar to start RIAs of their own



That said, tempted though you might be, before delver deeper into a potential job switch, consider a few things, advises vantageinpact.com.

  1. Thoroughly Review the Expense Structure Details
  2. Upfront Bonus (Loan) - Proceed with Caution!
  3. Develop a Comprehensive Proforma to Compare and Contrast Firms

 

الإثنين, 05 أيلول/سبتمبر 2022 12:04

Factor in ETF investing

You might say this is why major ETF firms are bringing home the bacon: factor investing, which an increasing number of ETFs are tapping into, according to fa-mag.com.

 

These days, the likes of Invesco State Street and Global Advisors dispense a wave of factor ETF choices.

 

ETFs associated with, for example, value, low beta and momentum, are more investments tactics that dispense clients with a chance to overweight areas of the market that are performing the best while paring down exposure to those that are missing the boat.

 

Factor investing aside, you might say inexpensive ETFs are, well, the cat’s meow as they draw blossoming attention, according to finance.yahoo.com. The article originally appeared on ETFTrends.com.

 

Faced with opting for a pair of exchange traded funds that monitor themes or markets that are alike, cheaper options, more and more, are in the sights of long term investors. 

 

As it has been, the SPDR S&P 500 ETF Trust (SPY) remains highly popular still is an investment option with wide exposure to the U.S. equity markets. That said, reported Bloomberg, SPY, year to date, has incurred around $25 billion in outflows.

 

الإثنين, 05 أيلول/سبتمبر 2022 12:02

Cybersecurity Stocks Beating the Market

As investors grapple with inflation and economic uncertainty, there is one industry that has been outperforming the market, and that’s cybersecurity. While most technology companies have cautioned investors about slower corporate spending, cybersecurity firms are still seeing massive demand. For instance, CrowdStrike and SentinelOne, both recently increased their forecasts for this year. While cybersecurity has always been important, companies are now even more concerned about system vulnerabilities due to an increase in cyber-attacks amidst the war in Ukraine. In addition, the advent of remote and hybrid working arrangements has also increased the demand for cybersecurity solutions. While companies can trim spending on software items such as CRM, cybersecurity is too important to risk. The minute a company lets up, they are at risk of a ransomware attack. This has resulted in the Global X Cybersecurity ETF (BUG) outperforming the NASDAQ this year.


Finsum:While other software companies are seeing slowing demandthe sheer necessity of cybersecurity has resulted incybersecurity ETFs outperforming the NASDAQ this year.

الإثنين, 05 أيلول/سبتمبر 2022 12:00

Is Now the Perfect Time for Active Fixed Income?

A manager at Artemis believes now is the perfect time to consider active fixed income solutions. Grace Le, who co-manages the Artemis Corporate Bond Fund, told Financial Times that an active bond manager’s job is to protect their clients during uncertain times and that is exactly what we are experiencing now. She believes that the reversal of quantitative easing led to more volatility in bond markets, resulting in a “boon for active investors.” Investors are dealing with inflation, macroeconomic uncertainty, and the potential for a recession. Muzinich & Co's co-head of public markets Michael McEachern told the publication that active managers can invest in shorter-duration bonds less impacted by increasing rates and rotate into higher-quality credit that is less sensitive to the current environment. Managers can also avoid concentration in a portfolio and deploy carry trades, which means borrowing at a low-interest rate and investing in an asset that provides a higher return.


Finsum:According to two bond fund managers,investors should consider active fixed income in times of economic and market uncertainty. 

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