Wealth Management

Derivative income ETFs are becoming more popular among financial advisors seeking reliable income amid ongoing market volatility. A 2024 Cerulli Associates report found that 15.2% of advisors are already using these strategies, with another 7% planning to adopt them soon. 

 

These ETFs, which generate income by selling options, have attracted over $55 billion in inflows across 2023 and 2024, with the strongest uptake seen in wirehouse channels. As inflation concerns and demand for consistent yield grow, product development is accelerating—6% of ETF issuers are actively building new funds and 13% are in planning. 

 

Advisors are also increasingly interested in defined outcome ETFs, which offer preset downside protection, though adoption remains more limited for now. 


Finsum: Overall, both categories reflect the shifting demand toward more predictable, income-focused solutions in today’s uncertain markets.

As expectations for interest rate cuts build, emerging market (EM) debt is drawing increasing attention from investors. Lower U.S. rates typically weaken the dollar, making EM currencies more attractive and boosting returns on dollar-denominated EM bonds. 

 

This favorable backdrop has already spurred strong demand, with EM bond issuance in Central and Eastern Europe, the Middle East, and Africa reaching $190 billion in the first half of 2025, on pace to break historical records. 

 

The Vanguard Emerging Markets Government Bond ETF (VWOB) offers investors a low-cost, diversified way to access this space, boasting a 30-day SEC yield of 5.66% and nearly 7% YTD return. As rate cut bets intensify into September, VWOB is positioned to benefit from both income and potential price appreciation. 


Finsum: For investors seeking EM exposure without the complexities of individual bond selection, ETFs offer compelling options

Vestmark has introduced a new unified managed account (UMA) that integrates private assets alongside ETFs, mutual funds, equities, fixed income, and direct-index SMAs, developed in collaboration with iCapital, BlackRock, and Dynasty Financial Partners. This tax-managed UMA enables RIAs to streamline portfolio construction by combining traditional and alternative investments in a single account. 

 

Initially, Dynasty advisors can access subscription-based alternatives via iCapital’s platform and leverage BlackRock’s model portfolios. Vestmark CEO Karl Roessner said the innovation delivers on UMA’s long-promised simplicity and efficiency, supporting the firm’s $1.7 trillion in platform assets. 

 

BlackRock emphasized the move enhances their reach in the RIA channel, while Dynasty highlighted the ability to scale sophisticated wealth strategies for HNW clients. 


Finsum: The launch follows another major announcement from Dynasty’s investment banking arm, reinforcing its position in high-net-worth advisory solutions.

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