Fund giant BlackRock is warning regulators that the SEC's new proposed rules to fight greenwashing by fund managers could create more confusion and lead investors to think their holdings are more socially conscious than they are. Specifically, the firm is concerned over a key detail in the proposal that would require managers to say how ESG issues fit into strategies that also consider other factors. It sent a letter to the SEC arguing that the detail could mislead investors about how much environmental, social, and governance issues factors into stock and bond decisions. The SEC had proposed new regulations for ESG funds in May, which are expected to be finalized in the coming months. BlackRock’s argument has been echoed by industry trade groups such as the Investment Company Institute and the Managed Funds Association. However, these arguments are unlikely to stop the SEC’s crackdown on ESG labels.

Finsum:Blackrock sent a letter to the SEC warning that the new proposed rules on ESG labels will only muddy the waters.

In the aftermath of what had been a sweet buzz of a ride, stocks are embroiled in another unwelcome turn, according to ally.com. Last week, of course, the S&P 500, bless it, threw in the towel of what had been a four-week run. This week? You go it; the setback continues.  

So, what’s up with that? Well, let’s count the uncertainties. Corporate earnings season’s winding down. Summer? Vaulting into the rear view mirror. And the news cycle will slow to a trickle. It all spells a vacuum in solid direction which, right again, puts air under the likelihood of volatility, the site continued.

In fact, taking, well, stock, of the interest rate trend lines over this  summer, they’re more rocky than stable, according to money.usnews.com. The swings in the average 30 year fixed rates have been madcap, percolating and descending by as much as a quarter point per seek following a mid June peak to 5.81%.

The 30-year fixed rate went back up to well over 5% this week -- a reminder that recent volatility remains persistent, said Sam Khater, vice president, chief economist and head of Freddie Mac’s Economic and Housing Research division. “Although rates continue to fluctuate, recent data suggest that the housing market is stabilizing as it transitions from the surge of activity during the pandemic to a more balanced market.” 

U.S. Treasury yields rose on Monday with the benchmark 10-year yield hitting a five-week peak of 3.039%, while the 30-year yield climbed to a seven-week high of 3.268%. Yields rose as investors await a Federal Reserve gathering occurring later this week in Jackson Hole, Wyoming. The Fed is widely expected to reinforce its commitment to tackling inflation. Fed Chair Jerome Powell is scheduled to speak Friday morning at the Jackson Hole symposium. Last week's Fed minutes appeared to suggest that the Fed is on course to continue to increase interest rates with the central bank seeing "little evidence" that inflation was easing. The auction for shorter-dated coupons this week also added to the sell-off in Treasuries, pushing their yields higher. Traders typically sell Treasuries before an auction and then buy them back at a lower price. 

Finsum: Treasuries hit multi-week highs on Monday as investors await Fed Chair Jerome Powell’s speech on Friday morning at the Jackson Hole symposium.

iCapital, a leading global fintech platform, announced today that it agreed to acquire UBS Fund Advisor LLC, UBS’s legacy proprietary US alternative investment manager. The agreement also includes the feeder fund platform that UBS manages. The platform, which is also referred to as “AlphaKeys Funds,” represents more than $7 billion in client assets. It includes private equity, hedge fund, and real estate feeder funds. iCapital will now manage and operate the platform, while UBS Financial Advisors continue to serve their high and ultra-high net worth clients that hold feeder funds. UBS became an investor in iCapital in 2017 and entered into a strategic relationship to structure new feeder funds going forward. It also integrated iCapital’s proprietary technology into its private fund operations. In 2021, the partnership was enhanced to further digitize the UBS Advisor experience. The transaction is expected to close sometime this year.

Finsum:iCapital, which has had a long-standing relationship with UBS, is acquiring its Alternative Investments Feeder Fund Platform which represents more than $7 billion in client assets.

With most stocks falling yesterday, the Cboe Volatility Index (VIX), also known as Wall Street’s fear gauge, jumped 15.5% to close the day at 23.80. This was the index’s highest closing level in almost three weeks. This resulted in volatility-related ETFs seeing large jumps in performance. For instance, the ProShares VIX Short-Term Futures ETF (VIXY) rose 6.5% on the day, while the leveraged ProShares Ultra VIX Short-Term Futures ETF (UVXY) jumped 9.7%. The VIX had previously been on a downturn since the market bottomed in June, but with anxiety beginning to hit investors once again, volatility is returning. The jump in the VIX can be attributed to investors anticipating another round of interest hikes in September. Plus, last Thursday’s month-end options expirations likely contributed to a resurgence in volatility. 

Finsum: Month-end option expirations and concerns over additional rate hikes drove the VIX higher yesterday, resulting in strong returns for volatility ETFs.

Stocks had one of their worst days in months as the market fell off 2% and sent volatility measures such as the VIX spiking. Wallstreet’s ‘fear gauge’ was up nearly 4% as a result. This all happens as the dollar is reaching very strong levels and almost parodies the euro. While that might be great for those on a summer vacation in the Mediterranean, it's bad news for investors, because it reflects a more fed tightening, rising treasury rates, and inflation. Investors are concerned about rising volatility once again after it felt like it was behind them. With healthy job numbers and inflation trying to turn a corner, things looked bright and the market felt it, but the reality of a one-off good inflation report is setting in.

Finsum: Advisors need strategies for resilience vs inflation and excess volatility because its persistence seems strong.

BlackRock launched a new series of fixed-income ETFs which allow access to buy-write investments on bond securities. iShares 20+ Year Treasury Bond BuyWrite Strategy (TLTW), Shares High Yield Corporate Bond BuyWrite Strategy ETF (HYGW), and the iShares Investment Grade Corporate Bond BuyWrite Strategy ETF (Cboe: LQDW) are all different variations of the new options available to investors. BR says buy-write strategies have been available to equity ETFs for a long time, but have not infiltrated fixed income. These options will give more exposure to yield in what has been one of the most difficult times for fixed-income investment in decades. This just adds to BR’s legacy of innovation and creativity in bond market ETFs.

Finsum: This is an interesting idea, and maybe if inflation is cooling quicker than expected bonds are too cheap. 

Fixed Income ETF: Bonds, Total Market, ETF, Treasuries

The U.S. has an extended history of periods of financial regulation, specifically trust-busting. That period has been in hibernation though for the last 50 years, that is, until now. Many judges in the United States may be getting a slue of cases related to similar topics with mergers and competition as Private Equity has extended its ownership to unprecedented levels. There is more alignment than ever within the administration on the future of competition and private equity when it comes to policy. They are pursuing new readings and interpretations of longer-standing precedents that will be more stringent on PE. This new strain of regulation has long-standing Democratic Economists like Larry Summers voicing concern, calling the new policies ‘populist antitrust’.

Finsum: There have been a large number of papers on the effect of co-ownership and competition that private equity companies are imposing, and that could be reaching its peak.

Sure tech investors have had their share of ups and downs, but they have been largely insulated from the market’s bigger losses but things could change. The underlying trends in the technology sector are looking as bad as they have in a long time. There is severe weakness in consumer-oriented hardware products. Moreover, as supply chains relax these prices could fall further. Additionally, sub-sectors such as enterprise tech spending are starting to deteriorate. The weakening demand is beginning to show at the company level as earnings season shows signs of weakness in technology. While there have been outliers such as Cisco, the market might not be ready for widespread tech deterioration.

Finsum: The other huge problem is rising interest rates and rampant inflation which lower the value of future earnings and make growth stocks less attractive.

Volatility can be a maddening beast. Sure, you can hope all well be relatively calm on the western front this month, and The Federal Reserve, the European Central Bank and the Bank of Japan won’t break bread until next month, pointed out marctomarket.com.

Meantime, the volatility of the S&P, the VIX, hovers at three month lows while the equivalent in the Treasury market’s off drastically from an early July peak.

A cocktail of burgeoning prices and moderating economies are giving investors a run for their money, the site continued.

Some economists insist the U.S. is sitting in a recession, hearty U.S. growth in jobs and with an unemployment rate at 3.6%, cyclical lows, aside. The market, in all its adamance, figures that prior to year’s end, the target of the Fed funds – currently 2.50% -- will bounce an additional 100 bp.

Inflation and the Fed’s policy are hanging is as some of the primary drivers of market and investor sentiment Advisors and investors upon which should train their focus in the year’s second half, Wisdom Tree believes, according to finance.yahoo.com, in an article was published originally on ETFTrends.com.