Displaying items by tag: Growth

Thursday, 04 July 2024 05:57

Citizen Bolsters Wealth Management Recruiting

Citizens Financial Group is recruiting wealth advisors from larger firms, prioritizing advisors' character and commitment to client service over their previous affiliations. Thomas Metzger, the firm's senior vice president of private wealth management, has led this effort, bringing in significant teams from JPMorgan. 


These recruits include a 12-person team from San Francisco with over $5 billion in assets and a four-person team from Boston with about $1 billion in assets, both previously from First Republic Bank. The collapse of First Republic and Silicon Valley Bank in early 2023 created opportunities for Citizens to expand its wealth management operations rapidly. 


Citizens has opened new private wealth offices in major locations and aims to offer comprehensive, integrated services under one roof to minimize frustration points advisors face at larger firms. The bank plans to continue its growth by adding more advisor teams throughout the year.

Finsum: Firms are capitalizing on last years financial turmoil and its might be time to take advantage as well. 

Published in Wealth Management
Friday, 28 June 2024 04:24

The Best Low-Cost Growth ETFs

ETF costs have fallen precipitously over the last decade but finding growth-oriented options can be a small challenge. Investing $3,000 evenly across these ETFs incurs just $12 in annual fees, making it a cost-effective strategy. All three ETFs have outperformed the S&P 500 and Nasdaq Composite in 2024, suggesting they have more growth potential.


  • The Vanguard Russell 1000 Growth ETF (VONG) tracks top growth stocks from the Russell 1000 index, boasting significant exposure to tech giants like Microsoft, Apple, and Nvidia, and offers a low expense ratio of 0.08%. 
  • The Roundhill Generative AI & Technology ETF (CHAT) targets the burgeoning generative AI market, with holdings including Nvidia, Microsoft, and Alphabet, and has seen a 22% rise year-to-date with an expense ratio of 0.75%. 
  • The VanEck Semiconductor ETF (SMH) provides broad exposure to the semiconductor industry, including companies like Taiwan Semiconductor and ASML, with a low expense ratio of 0.35%. 

Finsum: Technology seems to have sustained the high interest rate below and could be poised to turn around!

Published in Wealth Management

Value investing has underperformed over the last 15 years. Flows have followed this performance, with allocators favoring growth strategies. As a result, the number of practitioners of pure value investing has dwindled, especially in the US. Further, many are questioning, whether, it’s still a viable strategy.

There was some optimism that a period of higher interest rates and economic growth would revitalize value stocks especially following the speculative surge of many growth stocks in 2021. However, this turned out to be fleeting as the boom in artificial intelligence (AI) in 2023 sent many growth stocks to new, all-time highs, undoing value’s brief period of outperformance. 

However, the story is much different from an international perspective, where value stocks have been outperforming for a meaningful period. This lends credence to the argument that value’s underperformance is more about the US and technological disruptions than a change in how markets operate. Disruptive technologies like cloud computing and artificial intelligence have allowed a handful of companies in the US to grow to unprecedented scale, which has distorted the growth vs. value dynamic. 

History also shows that markets adapt to these technologies quite rapidly. Over time, margins and profits compress. The long-term benefits of the technology will be realized by the companies that are able to successfully implement the technology to operate more efficiently. 

Finsum: Value investing has underperformed by a significant degree over the past couple of decades. Yet, it’s a different story from an international perspective. 

Published in Eq: Value

2024 has continued 2023’s trend of growth outperforming value. YTD, the iShares S&P 500 Growth ETF (IVW) is up 15%, while the iShares S&P 500 Value ETF (IVE) is up only 6%. For many investors and portfolio managers, this presents an opportunity to increase exposure to high-quality, value stocks. 

NewEdge Wealth CIO Cameron Dawson sees risk with many growth stocks given ‘nosebleed valuations’. However, he believes that there are value stocks with strong balance sheets and cash flow that still have growth potential, specifically in semiconductor supply chain stocks, and older growth stocks that have now matured into value stocks like eBay or Broadcom.

Another approach is to look at ‘unloved sectors’. Examples include utilities, materials, financials, and energy. These have underperformed in the last couple of years amid an environment of higher rates and decelerating global growth. If financial and economic conditions start to improve, then these sectors could enjoy strong rallies. Housing is another interesting area for value investors, given strong fundamentals due to demographic-driven demand and limited supply in addition to attractive valuations. 

According to history, small-cap value stocks tend to outperform during this part of the market cycle. Eric Leve, the CIO of Bailard, sees the next group of AI winners emerging from this category with particular upside in software-as-a-service and cybersecurity stocks. 

Finsum: Value investing is certainly out of favor given the massive outperformance of growth over the last few years. Yet, many investors and portfolio managers see this as an opportunity to increase exposure and de-risk and diversify their portfolios.

Published in Eq: Value
Wednesday, 20 March 2024 04:58

Clients Want Authenticity

Navigating social media poses considerable challenges for financial advisors, firm executives, and other professionals, where every post and interaction can potentially impact their professional reputation. However, there's a new strategy emerging, emphasizing the importance of prioritizing the personal aspect first, according to April Rudin, founder and CEO of The Rudin Group.


 This shift represents a departure from previous conventions that primarily emphasized showcasing professional backgrounds. Rudin suggests that delving into personal beliefs, passions, and backgrounds can serve as effective conversation starters and entry points for new business opportunities and recruitment efforts. 


While maintaining professionalism remains paramount, there's an increasing recognition of the value in showcasing one's personality and individuality within the confines of firm guidelines. As social media continues to play an integral role in professional networking and client engagement, Rudin's advice underscores the importance of authenticity and human connection in the digital realm.

Finsum: Standing out in a world of increased AI and robo advisors could mean putting more personality into your practice. 


Published in Wealth Management
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