Wealth Management
BlackRock is increasing its bets on U.S. equities and artificial intelligence across its $185 billion model-portfolio platform, according to a new investment outlook. The firm shifted allocations away from international developed markets, leaving its models 2% overweight equities and triggering billions of dollars in ETF flows.
The move reflects confidence in a rally that has pushed the S&P 500 to record highs this year, fueled by strong earnings, enthusiasm for AI, and expectations of Federal Reserve rate cuts. BlackRock pointed to U.S. corporate earnings growth of 11% since late 2024, far outpacing developed peers at under 2%.
The firm also reallocated tech exposure, moving from a broad tech ETF into an AI-focused fund, which attracted nearly $1.4 billion in a single day.
Finsum: As BlackRock put it, AI is both a growth driver and a defensive tool for portfolios.
Consumer midcap stocks are starting to show technical strength, with Victoria’s Secret, TripAdvisor, and Steve Madden emerging as standouts beyond the usual Tesla and Amazon focus.
Victoria’s Secret has surged nearly 50% in three months, breaking out of a consolidation range and reclaiming its 200-day moving average, a sign of a potential trend reversal. TripAdvisor has gained 28% this year, with activist involvement and technical support around $18 pointing to a possible move toward $25.
Steve Madden, despite being down 27% in 2025, has built a base at $20 and is showing signs of institutional accumulation, suggesting a rebound toward $50 by mid-2026. Retail sales data this week also provided a positive backdrop for the sector, reinforcing momentum for midcaps.
Finsum: As strength broadens, overlooked mid-cap consumer names like these may offer compelling opportunities relative to the mega caps that dominate headlines.
Indexed annuities are becoming increasingly popular as retirement tools because they blend growth potential with protections not found in traditional fixed annuities. These products allow investors to defer taxes on gains until distributions begin, making them attractive for long-term retirement income strategies.
Equity-indexed annuities (EIAs) and registered index-linked annuities (RILAs) tie returns to market indexes, with EIAs offering a guaranteed minimum return and RILAs providing downside buffers or floors to manage risk. However, features like caps, participation rates, and fees can limit upside potential, so retirees must carefully review contracts to understand how returns will be credited.
Indexed annuities are designed for long-term holding, and early withdrawals can lead to surrender charges and tax penalties that erode principal.
Finsum: For retirement savers, these products can serve as a middle ground between fixed and variable annuities, offering balance, income potential, and risk management over the long haul.
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Private equity leaders are cautioning that while industry assets are likely to keep expanding, the number of firms competing for those dollars could shrink dramatically. KKR’s CFO Robert Lewin and Apollo’s president Jim Zelter both suggested that smaller managers, burdened by high fixed costs and limited fundraising capacity, may not survive the next cycle.
Lewin forecasted a wave of organic consolidation over the next five years, while Zelter warned that many firms may already have raised their last fund without realizing it. Larger players, by contrast, are positioned to thrive, offering a wider array of products and attracting investors eager to simplify their GP relationships.
Consolidation could also accelerate through acquisitions, with bigger firms absorbing weaker rivals.
Finsum: The same pressures are expected to spread into venture capital, where scale and distribution strength are becoming just as critical.
The target date market surged in the first half of 2025, with combined assets across mutual funds, CITs, and custom solutions rising 10% to more than $4.7 trillion. Vanguard extended its dominance, adding $121 billion to reach $1.6 trillion, far ahead of Fidelity’s $623 billion.
A major development is the rapid rise of income-enabled target date funds, whose assets climbed to $103 billion, led by TIAA’s RetirePlus model and BlackRock’s LifePath Paycheck series.
These products reflect growing demand for pension-like security within modern 401(k) structures, blending glide paths with annuity-based income features. Co-manufacturing partnerships between recordkeepers, insurers, and asset managers are fueling much of this innovation, while CIT-based target date funds have overtaken mutual funds, now holding 53% of assets.
Finsum: Target date funds are a great way to start a portfolio for clients and then to build customization around the edges.
Rocky markets with lots of macro uncertainty have investors looking harder for diversification. While private assets are drawing attention, a quieter corner of the alternatives world — managed futures ETFs — has quietly surged in popularity.
Funds like the Simplify Managed Futures Strategy ETF (CTA) and the Invesco Managed Futures Strategy ETF (IMF) have each attracted hundreds of millions of dollars in new inflows this year.
These strategies follow market trends across asset classes, taking long and short positions in commodities, rates, currencies, and sometimes equities. Their key appeal lies in their historically low correlation to both stocks and bonds, making them useful portfolio diversifiers.
Finsum: With investors searching for tools to steady returns in volatile markets, managed futures ETFs are stepping into the spotlight as timely complements to traditional allocations.