FINSUM

FINSUM

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Wednesday, 15 December 2021 20:28

Active Fixed Income ETFs Get Booming Inflows

Saying the bond market is difficult would be more than an understatement, and while yields are creeping it's still hard to get the historic performance. However, many investors are turning to active fixed income ETFs. This has led to a swelling of inflows into the market category making up 16% of ETF inflows in 2021 through October. Turmoil at the Fed and the continual threat of a taper tantrum have many investors looking to pros to sort out the difficulties in the bond market. Active FI ETFs can also fit narrower targets and accommodate the rapidly shifting macroeconomic environment.


FINSUM: Seasoned veterans at the helm make the most sense when the environment is shifting, and active ETF can edge out when the future is uncertain.

Wednesday, 15 December 2021 11:53

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The kind of support a Registered Investment Advisor ("RIA") receives is based on their personal and professional goals. Whether you want to pursue independence as an owner, an affiliate, or a teammate, Schwab can help you through the transition and support you throughout the life of your business ... [Read More]

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Monday, 13 December 2021 08:15

Goldman Says Don’t Buy the Dip

November was full of volatility, and that's more than leaked into December, but Goldman warned investors about buying the dip hoping for a post Christmas rally. The biggest two threats Goldman sees are ongoing, the new omicron Covid 19 variant and the newfound inflation hawkishness by the Fed. The bear wave has hit a variety of asset classes whether its tech or bitcoin, and their risk appetite is low. The street is mixed however as some indications of omicron is it won’t be severe and Fed actions haven’t taken hold just yet. The VIX is still above its short and longer run moving averages which should keep investors cautious.


FINSUM: There is really no reason to move drastically right now, the Fed will be more transparent in the next couple of months.

Monday, 13 December 2021 08:12

ESG Compliance May Be the New Rule

Environmental, Social, and Governance standards have, up until this point, been an opt-in style strategy to give an edge in debt and equity markets, but that could all be changing. The CEO of Norges Bank Investment, the world's largest stock owner, says that corporate life is only going to be more difficult for firms that don’t meet ESG standards. Market pressures are going to rapidly change and firms will have a difficult time raising finances, maintaining employees, and retaining customers if they aren’t part of a green future. Norges plans to utilize its market power to apply a lot of pressure, one such way is by giving companies expectation documents. They believe companies won’t be profitable in the long run if they don’t commit to ESG.


FINSUM: This strategy of pressuring companies through divestment has been shown to not necessarily be effective in holding them accountable and transitioning them into a greener world.

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