Displaying items by tag: funds


China has been a no-brainer for any diverse portfolio and quite frankly continues to be one…see the full story on our partner Magnifi’s site.

Published in Wealth Management
Friday, 11 December 2020 11:11

Stop Wasting Time Searching for Funds

Did you know that most advisors spend 5.5 hours per week handling investment management related tasks like searching for funds? That stat comes from Kitces.com and does a good job highlighting what has become an increasingly difficult problem for advisors: how to find the right funds when there is an ever-increasing ocean of options, including many that look very similar. Between screeners with limited criteria (I want “value ESG”, not just “value”) and the pain of cross-asset class searches, finding funds has increasingly become a real quagmire for time and effort. Imagine if you could have three extra hours per week to focus on new client acquisition instead of cycling through drop-down menus trying to find funds? Well, a company called Magnifi has a great new tool to help you do just that. For example, international stocks are getting some attention from Wall Street analysts right now because of their favorable valuations versus US stocks. However, finding the right international funds is even harder than doing so for domestic stocks. For example, you might want to find the best ETFs focused on Asia. Because of the antiquated architecture of existing fund screeners, it would take hours of work to pin down funds in the right fee range and with the right composition. Instead, Magnifi uses natural language search to immediately display and compare all the relevant funds for your query. For example, here are the results for searching “China Value Funds”.

FINSUM Nasdaq2 China Value Funds

Another great thing about Magnifi is that they incorporate FI360’s fiduciary risk score for every fund, allowing you to incorporate that element for clients and rest easy with concern to regulations.

FINSUM: In our view, Magnifi is the best way to search and filter investments, period. Once you try it out you will quickly move on from the many ETF “screeners” available.


Published in Wealth Management
Wednesday, 18 November 2020 07:08

How to Cut Through the Fog of Choosing Investments

(New York)

If you are like most advisors, you probably have some difficulty in identifying which funds you want for your clients. Alongside the sheer proliferation of funds has been a massive near duplication of them. Dozens of funds now seemingly look exactly the same and it is very difficult to choose one from another—even asset managers create cheaper versions of their own funds. Between these incredibly overlapped offerings and thousands of new funds, it also becomes very challenging to find niche funds that exactly fulfill the role you’d like them to in client portfolios. Well, here is the good news—a new company with a hyper-useful tool is solving the issue. Check out Magnifi, they are bringing investment selection into the 21st century. Magnifi uses patented technology focused on natural language search to seek out exactly the funds you need. No more checking endless boxes and drop-down menus, just type exactly what you want and the perfectly matched funds appear. For example, imagine you wanted ESG funds that did not include oil and gas companies. Just search “ESG no oil” and bang, you have ten perfectly matched funds, including the stocks that comprise them, their fees, and performance against one another.

Magnifi ESG no oil

Magnifi also integrates FI360’s fiduciary risk score for every fund, allowing advisors peace-of-mind on the regulatory front when choosing client investments.

FINSUM: Magnifi is nothing short of a revolution for finding and choosing investments. They bring the easy exploration and selection of e-commerce to the world of investment management. Check them out, there is a reason they are being called the “Google for investors”.

Published in Wealth Management
Monday, 25 November 2019 11:19

Schwab-TDA Deal Poses Trouble for ETFs

(New York)

The Charles Schwab-TDA acquisition will likely have a host of implications for advisors. While it will take time to figure out and explore all of those, one of the immediately negative effects will likely be less funds available on the platform. As advisors will know, TDA did not have its own suite of ETFs, while Schwab does. This meant that TDA did not favor its own funds on its platforms and there was plenty of room for everyone. Schwab openly favors its funds. With the platforms now combining, smaller funds of all varieties are going to be more challenged to find buyers and survive. Even large fund houses like BlackRock might be at a disadvantage because of how the deal will help Schwab grow its ETF offerings.

FINSUM: this is going to lead to further consolidation in the fund business and will likely allow Schwab’s ETFs to grab even more market share. They are currently in 5th place.

Published in Wealth Management

(New York)

Investors likely already know that low cost index funds tend to greatly outperform high fee actively managed funds (to the tune of 1.5% or more annually). That comes as no surprise. However, what was surprising to us is that in fixed income, the tables are greatly turned. While passive funds do have a slight edge over active ones on average (0.18% per year), in many cases high fee actively managed fixed income funds outperform passive ones. This holds true over long time periods, including ten-year horizons.

FINSUM: This is an interesting finding and one that makes intuitive sense. The bond market is vast, hard to access, and full of intricacies. That kind of environment lends itself to specialism in a way that large cap equities does not, and the performance metrics show it.

Published in Bonds: Total Market
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