Wealth Management
Estate planning varies significantly by net worth, with high-net-worth individuals requiring complex trust-based strategies to reduce estate taxes and control asset distribution, while mass-affluent clients generally need simpler documents like wills and healthcare directives.
Because legal costs can be a barrier for these simpler needs, tech startups such as Wealth.com and Trust & Will have emerged to help financial advisors offer affordable estate planning at scale. Charles Schwab recently acquired a minority stake in Wealth.com to provide self-directed estate planning tools for its mass-affluent retail clients, potentially competing with RIAs that use Schwab as a custodian.
While this move could delay when clients feel they need to hire an advisor, many RIAs haven’t widely adopted estate planning tech due to low client usage and unclear ROI. Some advisors view Schwab’s actions as retail encroachment, but others see minimal threat since clients rarely update estate documents and often don’t view the service as highly differentiating.
Finsum: Ultimately, Schwab’s investment reflects a growing DIY market segment, raising strategic questions for advisors about how and when to compete—or collaborate—with such tools.
A shifting economic and demographic landscape is prompting financial advisors to evolve their strategies, particularly as women are set to control $34 trillion in U.S. assets by 2030. Yet, advisors currently manage a smaller share of female wealth, with many women engaging financial planners later in life.
Remote work has also changed the profession, with more advisors and clients opting for virtual meetings, while new talent is emerging in nontraditional markets. Advisors are increasingly launching independent RIA firms and exploring complex tax strategies like delayed RMD withholding to better serve clients.
Building strong, trusting relationships is now seen as more valuable to clients than investment advice alone, according to recent surveys.
Finsum: As the great wealth transfer accelerates, buying and selling books of business is also gaining importance, with success hinging on transition planning, client retention, and profitability.
Small-cap stocks have struggled in early 2025, hurt by trade tensions and economic sensitivity, but a broadening equity market may set the stage for recovery. Despite current volatility, small-caps could benefit from their domestic focus—nearly 80% of Russell 2000 revenues come from within the U.S.—which offers insulation from global trade disruptions.
Historically, small-caps have outperformed during periods when large-cap dominance fades, and current signs of market broadening echo those conditions. To navigate uncertainty, investors should favor high-quality small-cap stocks with strong fundamentals, as they tend to hold up better in downturns and outperform in recoveries.
Market timing, however, remains risky, missing just a few key months can erase most gains, making long-term commitment crucial.
Finsum: Patient investors who focus on quality and use active management may be best positioned to capture small-cap upside as market conditions evolve.
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With markets shaky despite record highs, investors are turning to commodity ETFs as a hedge against inflation and uncertainty driven by Trump-era tariffs and policy risks. Commodity prices tend to rise with inflation, making them attractive during volatile periods, and ETFs offer simplified access to hard assets like gold, oil, and copper without the complexity of futures trading.
The Invesco PDBC fund leads the space with $4.7 billion in assets and diversified exposure, notably in energy and metals, all while avoiding cumbersome K-1 tax forms. Meanwhile, the actively managed First Trust FTGC ETF charges higher fees but provides exposure to a wider range of commodities, including agriculture and precious metals.
For those focused on specific assets, the iShares Gold Trust (IAU) offers low-cost access to gold, while the CPER fund targets copper futures, riding recent price momentum in industrial metals.
Finsum: ETFs provide accessible, diversified, and tax-friendly ways for investors to gain exposure to commodities within traditional brokerage accounts.
U.S. stocks ended mostly flat after the Federal Reserve held interest rates steady and signaled slower future cuts, while geopolitical tensions between Israel and Iran pushed oil prices higher.
Fed Chair Jerome Powell emphasized that future rate decisions will remain data-dependent and warned of rising consumer prices this summer due to Trump’s new tariffs. Despite earlier gains, markets lost momentum following the Fed’s cautious tone; the Dow slipped 0.10%, the S&P 500 dipped 0.03%, and the Nasdaq edged up 0.13%.
Meanwhile, Brent and WTI crude rose slightly amid fears of broader Middle East conflict and supply disruptions. U.S. Treasury yields, initially lower on safe-haven demand, rebounded after Powell’s comments on inflation.
Finsum: Economic data added to uncertainty, with retail sales declining sharply in May and jobless claims suggesting weakening labor market momentum.
The active Exchange-Traded Fund (ETF) market in the US is experiencing rapid growth, with assets expanding from $81 billion in 2019 to $631 billion in 2024. Despite this surge, active ETFs still comprise only 6% of total active Assets Under Management (AUM), suggesting significant room for expansion. However, success in this space is not guaranteed. A small number of dominant funds and managers capture a disproportionate share of flows, and early asset accumulation – particularly in the first year – is a critical determinant of long-term success.
The paper outlines three strategic imperatives for managers looking to launch or scale active ETFs:
- Go with the flow -Success hinges on robust distribution, particularly within Registered Investment Advisor (RIA) channels, which account for the majority of active ETF assets. Managers must align with the right distributors and tailor outreach to platform-specific dynamics, recognizing that entry barriers are higher in brokerdealer and wirehouse channels.
- Pick a lane -Leading managers have thrived by leveraging one or more of the following: unique investment strategies (e.g., innovation, income), proprietary distribution channels and strong brand identity. While hitting on all three is unlikely, identifying and doubling down on one’s inherent strengths is essential.
- Less is more -Focused engagement with high-potential advisors who already use active ETFs significantly improves conversion and gross sales. By prioritizing advisor scoring and segmentation, managers can better allocate resources and boost early momentum. Other key insights include the diversification of active ETFs beyond bonds to equities and niche strategies, declining concentration among top managers and the critical role of tailored incentive structures for internal sales teams during the launch phase. Ultimately, while the market presents significant tailwinds, achieving “escape velocity” requires precise execution across product design, distribution, marketing and sales
Access the paper here.