U.S. stocks ended mostly flat after the Federal Reserve held interest rates steady and signaled slower future cuts, while geopolitical tensions between Israel and Iran pushed oil prices higher. 

Fed Chair Jerome Powell emphasized that future rate decisions will remain data-dependent and warned of rising consumer prices this summer due to Trump’s new tariffs. Despite earlier gains, markets lost momentum following the Fed’s cautious tone; the Dow slipped 0.10%, the S&P 500 dipped 0.03%, and the Nasdaq edged up 0.13%. 

Meanwhile, Brent and WTI crude rose slightly amid fears of broader Middle East conflict and supply disruptions. U.S. Treasury yields, initially lower on safe-haven demand, rebounded after Powell’s comments on inflation. 

Finsum: Economic data added to uncertainty, with retail sales declining sharply in May and jobless claims suggesting weakening labor market momentum.

The active Exchange-Traded Fund (ETF) market in the US is experiencing rapid growth, with assets expanding from $81 billion in 2019 to $631 billion in 2024. Despite this surge, active ETFs still comprise only 6% of total active Assets Under Management (AUM), suggesting significant room for expansion. However, success in this space is not guaranteed. A small number of dominant funds and managers capture a disproportionate share of flows, and early asset accumulation – particularly in the first year – is a critical determinant of long-term success.

The paper outlines three strategic imperatives for managers looking to launch or scale active ETFs: 

1. Go with the flow -Success hinges on robust distribution, particularly within Registered Investment Advisor (RIA) channels, which account for the majority of active ETF assets. Managers must align with the right distributors and tailor outreach to platform-specific dynamics, recognizing that entry barriers are higher in brokerdealer and wirehouse channels. 
2. Pick a lane -Leading managers have thrived by leveraging one or more of the following: unique investment strategies (e.g., innovation, income), proprietary distribution channels and strong brand identity. While hitting on all three is unlikely, identifying and doubling down on one’s inherent strengths is essential. 
3. Less is more -Focused engagement with high-potential advisors who already use active ETFs significantly improves conversion and gross sales. By prioritizing advisor scoring and segmentation, managers can better allocate resources and boost early momentum. Other key insights include the diversification of active ETFs beyond bonds to equities and niche strategies, declining concentration among top managers and the critical role of tailored incentive structures for internal sales teams during the launch phase. Ultimately, while the market presents significant tailwinds, achieving “escape velocity” requires precise execution across product design, distribution, marketing and sales

Access the paper here.

Independent financial advisors switching broker-dealers prioritize a smooth transition, supportive infrastructure, and a business-friendly environment with product and operational flexibility. 

Recruiter Derrick Friedman emphasizes that advisors now have the leverage to demand these conditions—and if broker-dealers (BDs) don’t meet them, they risk decline. Industry consolidation has shrunk the pool of large BDs, prompting many advisors to consider RIAs, especially those seeking fewer compliance burdens and more freedom to grow fee-based practices. 

Hybrid models remain attractive to advisors who still maintain transactional business and want to retain flexibility. Technology—like DocuSign—has reduced friction in transitions, making it easier for advisors to move their book of business quickly. 

Finsum: While RIAs are expanding rapidly, BDs aren't disappearing; instead, consolidation is pushing advisors and recruiters alike to explore a wider landscape of firms.

On May 28, 2025, the U.S. Department of Labor rescinded its 2022 guidance that had discouraged 401(k) plans from offering cryptocurrency investments, signaling a return to investment neutrality. 

The original 2022 Release had raised concerns in the benefits industry by implying heightened fiduciary scrutiny for crypto, leading to legal challenges, though it was ultimately deemed nonbinding. Despite lacking legal force, the 2022 guidance effectively chilled crypto’s inclusion in retirement plans, with GAO data showing minimal adoption and crypto exposure limited mostly to self-directed brokerage windows. 

Under the Trump administration, broader federal policy shifted to encourage digital asset innovation, with agencies like the SEC relaxing enforcement and facilitating clearer frameworks for crypto. While the Labor Department has not explicitly endorsed crypto in 401(k)s, it now stresses fiduciaries must evaluate all investment options contextually and prudently. 

Finsum: Whether this neutral stance extends to other investment types or persists beyond the current administration remains an open question.

Oil prices surged as much as 14% in their biggest intraday jump since 2022 after Israeli airstrikes hit Iranian military and nuclear targets, rattling global energy markets. Though prices later pulled back, Brent and WTI crude still ended up nearly 6% on the day, reflecting heightened investor anxiety over potential disruptions in Middle East supply. 

The attacks avoided Iran’s vital oil infrastructure—like Kharg Island and key pipelines—tempering fears of immediate output losses, but analysts warn that any escalation could still threaten flows through the Strait of Hormuz. 

About 20% of global oil transits that narrow waterway, making it a critical choke point vulnerable to retaliation or blockade. While Iran vowed a strong response, energy analysts say an all-out disruption would hurt Tehran too, particularly as it relies heavily on oil exports to China. 

Finsum: For now, traders are eyeing whether the conflict expands into an “energy-for-energy” tit-for-tat, which could turn market jitters into a full-blown supply crisis.

Interval funds, which offer limited liquidity and access to private markets, are gaining traction as investors seek alternatives to traditional ETFs and mutual funds. Asset managers like TCW, Blackstone, and Vanguard have launched new interval funds this year, bringing the total to 139 with about $100 billion in assets. 

These funds, which allow redemptions only at set intervals (typically quarterly), enable investments in less liquid assets like private credit. For example, TCW’s new fund focuses 80% on private asset-backed credit, illustrating the shift toward alternative income strategies. 

Meanwhile, attempts to bring private asset exposure to ETFs, such as the PRIV ETF, have struggled due to regulatory concerns over liquidity and naming.

Finsum: Advisors are increasingly allocating client portfolios to interval funds, favoring their higher yields despite reduced liquidity and higher fees.

Private equity firms began the year with strong momentum and over $1.6 trillion in dry powder, eager to deploy capital amid improving deal activity. However, rising trade tensions and macroeconomic uncertainty are making investors more cautious, with many GPs expecting tariffs to slow deployment over the coming months. 

Despite this, Q1 saw a surge in deals—volume rose over 45% and value more than doubled year-over-year—driven by large transactions like Sycamore Partners’ take-private of Walgreens. Market volatility has paradoxically raised firms’ risk appetite, with nearly three-quarters indicating they’re more willing to act on mispriced opportunities across sectors such as defense, middle-market manufacturing, and distressed assets. 

Amid these trends, firms such as CNL Strategic Capital are shifting focus to value creation within their portfolio of companies seeking long-term growth

Finsum: Private Markets are a great way to sidestep current volatility

Managed accounts in defined contribution plans have long existed but suffer from low adoption, partly due to limited participant engagement. New technology now allows these accounts to personalize portfolios using more data than just age, potentially improving retirement outcomes. 

Providers are developing hybrid solutions like personalized target-date funds (PTDFs), which tailor asset allocations using existing data without requiring user input. However, experts stress that true personalization—and value—depends on incorporating outside assets and participant-provided details like retirement goals and risk tolerance. 

While artificial intelligence and subscription models may improve engagement, industry leaders see the ultimate goal as total household financial management. 

Finsum: Whether managed accounts can scale effectively and deliver on this promise remains a central question for the future of retirement planning.

Value investing pays off long term, but only a few funds consistently get it right—seven top performers just made the cut. Standouts like ClearBridge Dividend Strategy (LCBEX) and Dodge & Cox Stock (DODGX) delivered strong one-, three-, and five-year returns, outpacing peers with disciplined, research-driven approaches. 

Fidelity Equity-Income (FEKFX) and Fidelity High Dividend ETF (FDVV) combine yield with quality, offering income without overloading on risk. 

Oakmark Select (OANLX) and Natixis Oakmark (NOANX) take concentrated bets on undervalued giants, while WisdomTree U.S. LargeCap Dividend (DLN) adds a smart dividend tilt with broad exposure. On average, large-value funds gained 8.58% over the past year, but these funds beat that benchmark while sticking to sound fundamentals. 

Finsum: With interest rates remaining elevated, large cap could be more resilient compared to the small cap counter parts. 

With recession warnings growing louder, elevated bond yields are offering a compelling entry point for fixed income investors. During times of rising recession risk, bonds often shine as a defensive play—prices typically climb as demand surges and yields fall, making today's higher yields especially attractive to lock in. 

UBS highlights that quality, investment-grade bonds are offering strong yield potential without pushing investors into riskier territory. The Neuberger Berman Flexible Credit Income ETF (NBFC) stands out as one such vehicle, combining active management with multi-sector exposure to generate consistent income with reduced volatility. 

With a 7.10% 30-day SEC yield and over 350 holdings, NBFC delivers both competitive returns and cost efficiency, making it a strong candidate in today's income-hungry environment.

Finsum: Still, for those seeking more income and broader diversification, a mix of bonds and credit assets—like emerging market debt or private credit—can provide a powerful balance.