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Email: dkorth@finsum.com
Thursday, 05 December 2024 06:21

Fidelity Has a New Direct Indexing Partner

Strive Asset Management has launched direct indexing services on Fidelity and Schwab platforms, reaching a broad retail audience. These services emphasize daily tax-loss harvesting and pro-shareholder governance, avoiding ESG or DEI constraints. 

 

Powered by Vestmark’s VAST technology, the initiative aligns with Strive’s anti-ESG philosophy, aiming to deliver superior financial outcomes for clients. CEO Matt Cole highlighted the unique value of Strive’s approach, citing frequent drawdowns in large-cap equities that offer tax-harvesting opportunities. 

 

Founded in 2022 by Vivek Ramaswamy, now a key figure in President-elect Trump’s administration, Strive manages $1.7 billion in assets. Its ETFs focus purely on financial returns, contrasting with ESG-oriented funds by voting against ESG shareholder proposals.


Finsum: ESG and DEI oriented funds will have an uphill battle against the trump administration. 

Thursday, 05 December 2024 06:20

New ETFs Make Private Credit Investment Easier

BondBloxx has introduced the PCMM ETF, the first of its kind to provide direct access to private credit markets through collateralized loan obligations (CLOs). This ETF focuses on middle-market companies, a $5 trillion subset of the $30 trillion private credit market, offering diversification for fixed-income portfolios. 

 

Private credit, characterized by short durations and low correlations to equities, provides resilience against Federal Reserve policy shifts. The fund, which invests 80% of its assets in private credit CLOs, delivers current yields around 7% and charges a 68-basis-point fee. 

 

PCMM is positioned as a liquid, transparent, and cost-effective alternative to traditional private credit vehicles like interval funds. BondBloxx envisions this ETF as a key tool for financial advisors seeking enhanced returns and diversification in their clients’ portfolios.

 


Finsum: This is another perfect example of ETFs making alternatives or more complicated assets easier for clients. 

Thursday, 05 December 2024 06:19

NYT Best Non-Fiction Books of 2024

The New York Times Book Review’s nonfiction selections for 2024 explore profound personal narratives, historical analysis, and timely social commentary. Cold Crematorium by József Debreczeni reflects on his harrowing experiences during the Holocaust with striking humor and humanity, resisting platitudes to convey the depth of his observations. 

 

Jonathan Blitzer’s Everyone Who Is Gone Is Here” examines U.S. immigration policy’s fallout through vivid storytelling and careful analysis, tying human experiences to political decisions. 

 

Lucy Sante reflects on her transgender journey and a life of self-discovery in “I Heard Her Call My Name,” blending intimate memoir with cultural criticism. 

 

In “Reagan,” Max Boot reassesses Ronald Reagan’s political legacy, questioning its role in shaping modern conservatism with depth and nuance. 

 

Finally, Hampton Sides’ “The Wide Wide Sea” chronicles the tumultuous final voyage of James Cook, combining historical scholarship with Indigenous perspectives. 


Finsum: These works collectively tackle identity, power, and historical reckonings.

Thursday, 05 December 2024 06:18

Investors Need to be Active in the Muni Market

As 2025 approaches, municipal bonds and related ETFs present intriguing opportunities for fixed-income investors. Actively managed options, like the ALPS Intermediate Municipal Bond ETF (MNBD), are outperforming some passive counterparts, showcasing the value of active management in this space. 



Experts predict declining muni bond issuance in early 2025, creating a favorable supply backdrop for the asset class. Attractive after-tax yields, such as 6.1% for high tax brackets, are expected to sustain strong demand across mutual funds, ETFs, and managed accounts. 

 

Goldman Sachs Asset Management anticipates robust technical support for munis, highlighting net supply reductions and compelling credit opportunities. 


Finsum: For investors seeking accessible exposure, ETFs like MNBD simplify participation in the municipal bond market.

 

Wednesday, 04 December 2024 11:39

BlackRock Makes Bigger Splash in PE

BlackRock has announced a $12 billion acquisition of HPS Investment Partners, a private credit firm led by former Goldman Sachs and JPMorgan executives. The deal highlights BlackRock’s push into private credit, a rapidly expanding $1.6 trillion market that has grown as banks retreat from leveraged lending. 

CEO Larry Fink emphasized the blending of public and private markets as a core feature of modern investing. The move aligns with BlackRock’s broader strategy to deepen its presence in alternative assets, following acquisitions of Preqin and Global Infrastructure Partners earlier this year. 

 

While some industry leaders, including JPMorgan’s Jamie Dimon, have raised concerns about risks in private credit, BlackRock sees significant opportunities for growth. 


Finsum: This acquisition could boost BlackRock’s effort to position itself as a leader in alternative asset management.

 

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