Wealth Management
Faith-based ETFs remain niche but are expanding, with six launching this year and total assets now around $10 billion. These funds aim to align investments with religious values, though many end up resembling S&P 500 trackers with higher fees.
Currently, there are 46 such ETFs in the U.S., 38 Christian, seven Muslim, and one Jewish, which have attracted about $832 million in inflows year-to-date. Some apply strict screens, like the Inspire 100 ETF (BIBL), which excludes firms tied to abortion, LGBT activism, or gambling, while others, like SPUS, filter out half the S&P 500 for Sharia compliance.
By contrast, funds such as the JLens 500 Jewish Advocacy US ETF (TOV) and the Global X Catholic Values ETF (CATH) closely resemble mainstream products like Vanguard’s VOO, differing mostly in expense ratios.
Finsum: Advisors must weigh whether these products are genuinely value-aligned investments or simply pricier versions of broad index funds.
Emerging-market stocks and currencies fell sharply after strong U.S. economic data reduced expectations for multiple Federal Reserve rate cuts this year. MSCI’s currency benchmark dropped more than 0.3%, marking its largest one-day loss since July, while a similar gauge for equities slipped 0.7%, the steepest decline since late August.
Traders now see a diminished chance of two Fed cuts by year-end, as U.S. growth accelerated and jobless claims fell. Sentiment was further pressured by geopolitical risks, including rising tensions between Russia and NATO and fiscal concerns in countries such as Poland and Indonesia.
The Philippine peso and Indonesian rupiah led declines, while the Polish zloty and Hungarian forint also weakened on regional political and energy disputes.
Finsum: Despite recent setbacks, some strategists still expect emerging-market assets to recover toward year-end on macro tailwinds and favorable seasonality.
From 2021 to 2024, the U.S. saw a record surge in immigration, much of it from people crossing the southern border without visas. Many were released into the country to seek asylum or given temporary protection, and millions entered the labor force.
By mid-2024, tougher policies and more deportations slowed the inflow sharply. Economists say fewer immigrants could mean slower population and job growth, which may weigh on the broader economy.
Studies show immigration tends to boost economic output while having little effect on inflation. Looking ahead, stricter policies could further reduce growth if fewer workers are available, especially if mass deportations are carried out.
Finsum: For now, the lasting impact will depend on whether immigration levels stabilize or continue to decline.
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Investors’ demand for tax-efficient investing is fueling rapid growth in separately managed accounts (SMAs), which now top $500 billion in tax-managed assets—up 67% since 2022. Unlike mutual funds or ETFs, SMAs allow investors to directly own securities, enabling personalized tax management such as loss harvesting.
Direct indexing remains the most popular strategy, but providers are expanding into active equity and fixed-income SMAs to capture additional tax alpha. Challenges arise with active managers, since balancing loss harvesting with stock-picking discipline can dilute investment ideas, though new approaches like substitute stock lists aim to resolve that.
Fixed-income SMAs offer fewer opportunities, but rising rates in recent years did create harvesting potential, while model portfolios are also integrating tax-aware transitions to ease client moves without triggering large gains.
Finsum: Overall, tax-managed SMAs are expanding across asset classes and portfolio models, giving advisors more tools to reduce investors’ tax burdens.
MarketAxess Holdings has launched Axess IQ Connect, a new web-based platform giving wealth managers and private banks real-time access to fixed-income market data. The tool enables advisors to connect with trading desks, monitor liquidity, and view AI-powered bond pricing through CP+, all from any device.
It builds on the company’s Axess IQ system, adding features like interactive watchlists and optional order management for client trades. MarketAxess, which serves about 2,100 firms worldwide, continues to expand its electronic trading and data solutions for the fixed-income market.
The company recently reported stronger-than-expected earnings for Q2 2025, though shares slipped as Jefferies lowered its price target while maintaining a Hold rating.
Finsum: Data and new technology offerings can help advisors better serve their clientele.
Derivative income ETFs, built around covered call strategies, have surged in popularity as investors seek higher yields. These funds generate income by selling call options on stocks or indexes, with the trade-off being limited upside potential during strong market rallies.
Yields can vary widely depending on how aggressively options are written, with higher payouts often signaling greater risk. The largest products in this space track benchmarks like the S&P 500 and Nasdaq, though smaller providers have introduced sector and single-stock versions.
While income potential is attractive, investors should weigh opportunity cost, since these strategies often trail the broader market over time.
Finsum: With interest rates likely to fall, option premiums, and thus fund income, may decline, but yields remain compelling compared to traditional dividend ETFs.