Economy

Bond outflows are starting to slow as a response to rising rates and lower prices. The Fed’s hawkish policy stance has been elevating prices but now they are relatively attractive given the return. Previously bond prices were held purely as a safety net because yields on government debt generated no income, but rising rates are making them a competitive income option for those investors. In addition, more investors are looking for a way to mitigate volatility in these trying times, which has them shifting toward bonds and out of high-risk assets. Additionally, a whole new generation of investors are much more comfortable with ETFs and are thus turning to bond funds as their source of security.


Finsum: Bonds could make a comeback if inflows turn around they could be bottoming out price-wise.

While not new, direct indexing’s come a long way. Catch was, it primarily was a tool of larger investors in light of its cost and daunting technology, according to smartasset.com.
 
But with those hurdles easing, the site continued, the time might be right to contemplate a few things it brings to the table. For one thing, gains on stocks with an uptick in value can be deferred.
 
Another juicy nugget: tax efficiency, according to barrons.com. Direct indexing’s viewed by advisors as a potentially game changing tool for their firms. Powered by computer algorithms, with direct indexing, advisors can cherry pick sales of specific shares that have headed south in value.
 
“Tax-loss harvesting is incredibly important now and may be even more so if tax rates go higher,” noted Jim Hagedorn, managing partner at Chicago Partners. In 2019, the company began offering direct indexing.  
 
But there are catches.
 
For example, active management’s a prerequisite for direct investing portfolios while it’s mostly hands off with index mutual funds and ETFs or exchange traded funds, according to smartasset.com.  
 
And this: tracking performance can be tricky. Investors in ETF and mutual funds receive relatively easy to digest statements with a few ticker symbols to track. It’s not so simple with direct indexing. A statement might be rife with individual stocks, which could stretch into the hundreds, the site stated. 
According to reports, it appears the use of ESG products might no longer be in vogue.
 
A ballooning percentage of advisors are indicating their plans to reel back the recommendations of the investments, according to a recently published survey, reported investmentnews.com.
 
Of over a third of more than 400 advisors indicated they include ESG in the portfolio of clients in a Financial Planning Association survey. While that figure’s been on the uptick but has essentially stagnated over the past four years. 
 
 
In the next 12 months, ESG use could turn downward, according to the 2022 Trends in Investing Survey, conducted by the Journal of Financial Planning and the Financial Planning Association, the leading membership organization for Certified Financial Planner™ professionals, reported yahoo.com.
 
 
ESG investing aligns individual principles, purpose, and values with the virtuous greater good of the human condition and the Earth. Sometimes such missions and esteemed purposes come with higher investment costs and slightly trimmed investing returns, said Dr. Preston Cherry, CFT-I, CFP-(I wouldn’t use these, but not sure about your policy), practitioner editor of the Journal of Financial Planning.
 
"If ESG investing has reached an inflection point, it could be due to several factors, including higher fees, lower performance, or a lack of ESG impact and index differentiation that inspires investment."
Page 29 of 46

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top
We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…