Amplify ETFs has launched the Amplify CWP Growth & Income ETF (QDVO), further expanding its suite of income-focused funds. QDVO aims to deliver high total returns by strategically investing at least 80% of its assets in growth-oriented U.S. equities, while also generating high monthly income through an opportunistic covered call writing strategy.
This approach targets around 4-6% income from option premiums and up to 2% from dividends. QDVO is designed to complement Amplify's other successful ETFs, DIVO and IDVO, offering a diversified strategy for optimizing portfolios in various market conditions.
The ETF seeks to provide investors with a balanced approach to growth and income, making it an attractive option for those looking to enhance their portfolios.
Finsum: Pairing income with an active ETF might make the most sense as we head into the final bout with inflation in the fall.
Transitioning to a new custodian in the financial industry can seem challenging, especially with the complex regulatory environment. However, with thoughtful preparation and the right choice of custodian, the process can be seamless and beneficial.
This involves understanding the differences between bank custodians and broker-dealers, with banks often providing greater transparency, asset safety, and flexibility. Key steps include reviewing existing contracts, gathering necessary documents, and clearly communicating your organization’s needs to the new custodian.
Engaging a dedicated conversion team ensures a smooth transition by managing timelines, addressing concerns promptly, and customizing the process to your specific requirements. With these measures in place, you can successfully navigate the transition, allowing your organization to thrive with the support of a custodian that aligns with your long-term goals.
Finsum: These tips provide a nice framework for transitioning and considering wither you are ready, but keep in mind the technology accommodations as well.
Asian currencies experienced a significant rally, reaching their highest levels in seven months. This surge was driven by diminishing concerns about a U.S. recession, expectations of Federal Reserve rate cuts in the near future, and a more favorable economic outlook within the region.
The Bloomberg Asia Dollar Index increased by 0.6%, with notable gains from the South Korean won, Malaysian ringgit, and Thai baht. These currency gains were supported by stronger-than-expected economic data and political developments in key Asian markets. Additionally, regional equities also rose, reflecting growing investor confidence in Asia’s economic prospects.
The South Korean won and the Philippine peso were among the top performers, with the won reaching its highest level since March and the peso marking its biggest gain since November. Meanwhile, the Japanese yen also appreciated, with traders closely monitoring potential hints from the Bank of Japan's governor on the future direction of the country's monetary policy.
Finsum: The demand driving these currency shifts could really come into full swing if the Fed successfully dodges a recession.
Golub Capital is increasingly active in trading private credit deals, reflecting a broader trend in the industry as interest in secondary markets for direct loans grows. The firm traded approximately $1 billion in private debt during the first half of the year, positioning itself as a key player alongside others like JPMorgan Chase.
While secondary trading in the $1.7 trillion private credit market remains relatively uncommon, there's growing demand for liquidity and flexibility among investors. However, some industry participants argue that trading could undermine the appeal of direct lending, which traditionally offers privacy and stability.
Despite this, Golub and other firms are exploring these markets, balancing the benefits of liquidity with the traditional advantages of private credit.
Finsum: For investors not concerned with liquidity, private credit could prove a strong investment in this fall cycle.
Crypto ETFs are expected to be integrated into model portfolios by late 2024, according to Samara Cohen, BlackRock’s Chief Investment Officer for ETFs. Cohen emphasized the roles of Bitcoin and Ether as portfolio diversifiers, noting that major wirehouses are currently conducting due diligence on these assets.
BlackRock projects significant growth in model portfolio management, anticipating an increase from $4.2 trillion to $10 trillion over the next five years.
Cohen also mentioned that while Bitcoin and Ether are gaining traction, the introduction of spot ETFs for altcoins like Solana is unlikely in the near term. Despite net outflows from spot Ether ETFs since their launch, Cohen remains optimistic, viewing them as valuable entry points for investors seeking ETH exposure in their portfolios.
Finsum: Integration into standard financial products has been critical to cryptos success in recent years.
Family offices are pivoting from conventional asset allocations towards a heavier focus on alternative investments like private equity, real estate, and venture capital. J.P. Morgan's recent report indicates that nearly half of these portfolios now consist of alternative assets, with larger family offices taking the lead in this shift.
This approach is driven by the desire for higher returns, reduced volatility, and better alignment with long-term wealth preservation and growth goals. These offices are capitalizing on their ability to invest in illiquid assets, which offer the potential for higher returns over time.
By engaging more directly in private companies, family offices are leveraging their entrepreneurial expertise to achieve greater alignment with their wealth preservation objectives. While traditional public markets still hold a portion of these portfolios, the emphasis is clearly shifting towards alternatives that can better meet the complex, multi-generational needs of these families.
Finsum: With macro volatility looming alts could offer more risk cover and should be heavily considered.
The growing focus on private equity among family offices is driven by their longer-term outlook and the flexibility of deal-by-deal investing, offering higher potential returns and greater control. This approach is increasingly appealing amid global economic instability, high interest rates, and lingering pandemic effects, as traditional investments often underperform in such conditions.
Private equity can cushion portfolios against market volatility, consistently outperforming listed equities over the past two decades. Family offices pursuing a deal-by-deal strategy face challenges like high minimum investment requirements and the need for specialized expertise.
Embracing alternative investments enables family offices to seek superior returns, greater diversification, and enhanced risk management while contributing to innovation and economic dynamism.
Finsum: If the hedge is the clear concern, maybe investors should lean into alternatives, but look at historical correlations.
The T. Rowe Price International Equity ETF (TOUS) is an active ETF that has gained attention for its diversification benefits, especially after a recent market sell-off. With a competitive 50 basis point fee, TOUS focuses on high-quality international firms with strong business models and good valuations.
TOUS has an active strategy built around macro factors through an international lens that uniquely positions it for the type of interest rate volatility the US is experiencing.
The fund’s active management allows for flexibility in selecting companies, particularly in non-U.S. markets, which could be advantageous during volatile periods. TOUS has returned 9.8% over the past year, making it an appealing option for diversification away from U.S. mega-caps.
Finsum: We’ve been banging the drum on the need to diversify into active funds during this volatility and this recent flash was an example why.
For those who find the pain of losing money more intense than the pleasure of making a profit, there are defined-outcome or buffered ETFs. These funds, which cap potential gains in exchange for limited losses, have gained popularity since their debut in 2018. Now numbering around 270 with $47 billion in assets, these ETFs surged in interest after poor market returns in 2022.
Buffered ETFs cater to conservative investors, including those nearing retirement, who want to stay invested in the stock market while minimizing risk. Typically offering protection for a set period, usually a year, they limit potential upside in return for a cushion against losses. Major financial firms like Innovator, First Trust, AllianzIM, and Fidelity offer these funds.
Though complex, requiring thorough explanation, these ETFs are mainly used by financial advisors for their clients, presenting a balanced investment strategy by offering various levels of risk and reward to suit different needs.
Finsum: When the probability of volatility is high a buffer ETF can be a great natural hedging solution.
The 2024 Paris Olympics have already produced memorable moments. Team USA's women's gymnastics team, led by Simone Biles, won gold. South Korea's Ye-ji Kim became an internet sensation for her performance in the women's 10-meter air pistol.
Egyptian fencer Nada Hafez revealed she competed while seven months pregnant. The US men's gymnastics team won its first medal in 16 years, thanks to Stephen Nedoroscik's performance. Canadian swimmer Summer McIntosh earned her first gold medal in the 400-meter individual medley.
Former NBA player Chase Budinger won his first Olympic beach volleyball match. France’s Leon Marchand set a new record in the 400-meter individual medley.
Finsum: The streaming era has ushered in a new wave of fandom for typically unwatched events.
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Since their launch three decades ago, exchange-traded funds (ETFs) have become a favored investment vehicle. ETFs, which trade like stocks but hold baskets of securities, saw significant growth in 2024, with more money flowing into ETFs than individual stocks.
U.S.-based ETF assets hit a record $9 trillion in May, experiencing net inflows while mutual funds saw outflows. Investors are attracted to ETFs due to their low cost, ease of trading, and tax efficiency. The recent approval of cryptocurrency ETFs has further boosted their popularity, while actively managed ETFs are also on the rise.
The iShares Core S&P 500 ETF (IVV) offers broad exposure to large-cap U.S. stocks at a low expense ratio of 0.03%. The iShares Core S&P Mid-Cap ETF (IJH) provides access to mid-cap companies with no overlap with large-cap holdings. The iShares Core S&P Small-Cap ETF (IJR) focuses on profitable small-cap companies, giving it a high-quality tilt that has outpaced the Russell 2000 in recent years.
Finsum: Cost effective ETFs are also great tools to get market segmentation exposure.
Indian government bonds have been added to the JPMorgan GBI Emerging Market Global Series Index for the first time, reflecting a milestone for Indian markets. The move follows the RBI's 2020 decision to remove foreign investment restrictions on specific rupee debt.
Starting June 28, 27 Indian G-secs are now open to non-resident investors under the Fully Accessible Route, boosting their market presence. These bonds, with the longest duration in the index and a yield of 7%, present a significant opportunity for global investors.
This inclusion is expected to raise foreign ownership of Indian government debt from 2% to 4.4% and may lead to further additions in other global indices.
Finsum: Investors might start flocking to EM as rates fall in the west.
Investing in bonds has gained popularity, facilitated by platforms like Webull and Public. Bonds come in three main types: U.S. Treasury bonds, corporate bonds, and municipal bonds, each with distinct tax implications.
U.S. Treasury bonds are state and local tax-exempt, corporate bonds are fully taxable, and municipal bonds often enjoy federal and state/local tax exemptions. Credit quality is vital, with investment-grade bonds rated BBB- or higher by S&P and Baa3 or higher by Moody’s.
Comparing after-tax and taxable-equivalent yields helps investors decide the best options based on their tax brackets. Additionally, understanding the yield to maturity and coupon rates of bonds, such as those from can aid in making informed investment decisions
Finsum: Alternatively, ETFs and other products can make a wider exposure to bonds a little easier.
Cboe Global Markets has listed five spot Ethereum ETFs set to begin trading in the US on July 23, 2024. Following the SEC's approval of Bitcoin ETFs earlier this year, market participants are eager for the new Ethereum ETFs.
With Ethereum's market cap second only to Bitcoin, issuers such as Fidelity, iShares, Bitwise, VanEck, 21Shares, Invesco Galaxy, Franklin Templeton, and Grayscale have already listed Bitcoin ETFs and are now expanding to Ethereum.
This move marks a significant milestone for institutional and retail crypto investments, reflecting growing global interest in cryptocurrency ETFs.
Finsum: Cryptos will be powered by its ability to enter more mainstream financial products over the coming decade.