Wealth Management
Recent changes allow 401(k) plans to hold private market and alternative investments, opening the door for managed accounts to expand their offerings. Managed accounts, which provide professionally managed, customizable portfolios, are seeing rapid growth, with assets reaching $13.7 trillion in 2024 and net flows topping $811 billion.
Incorporating private equity, venture capital, private credit, and real estate into these accounts requires robust technology for reporting, valuations, and liquidity management.
Firms like InvestCloud are creating platforms that enable scalable, model-based access to private market investments, allowing advisors to integrate these assets alongside traditional ETFs and mutual funds. Such technology also supports liquidity solutions, like lending against securities, so investors can access cash without disrupting long-term strategies.
Finsum: With regulatory adjustments, including tweaks to the Accredited Investor rules and the 401(k) shift, managed accounts are positioned to broaden access to previously hard-to-reach alternative investments.
Momentum remains the dominant factor in 2025, with the iShares MSCI USA Momentum ETF (MTUM) up 19.6% and the Invesco High Beta ETF (SPHB) close behind at 18.7%, both well ahead of the S&P 500’s 10.7% gain.
Growth ETFs are trailing the leaders, with the iShares S&P 500 Growth ETF (IVW) delivering a solid 14.2% return. Factor leadership has been narrow, with momentum and high beta capturing most of the gains so far this year.
At the same time, investors are showing renewed interest in high-dividend strategies, as the Vanguard High Dividend Yield ETF (VYM) hit a record high. Expectations of Federal Reserve rate cuts are making dividend payouts more attractive relative to bonds.
Finsum: Momentum, high beta, and dividend strategies are setting the tone for factor performance in 2025.
In August 2025, small-cap and value stocks staged strong comebacks, with the Morningstar U.S. Small Cap Index up 4.6% and the Value Index up 5.1%, far outpacing large-cap and growth peers.
Despite this rally, value stocks still trade at a 3% discount to fair value and small caps at a steep 15% discount, making them the most attractive corner of the market. Historically, small caps thrive when the Fed is easing and long-term rates are falling—conditions now taking shape as policymakers prepare to cut rates and Treasury yields trend lower.
The question is whether this marks a lasting rotation or just a temporary head fake, but investors continue overweight exposure given the difficulty of timing inflection points. Beyond style and size, the most undervalued sectors remain communications, real estate, energy, and healthcare, each offering selective opportunities.
Finsum: Investors seeking value and long-term upside should continue looking to small-cap stocks, where discounts remain widest and potential gains greatest.
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The best wines for fall are those with structure, depth, and versatility, offering comfort and pairing well with seasonal foods as cooler weather sets in. Fuller reds like pinot noir, cabernet franc, and GSM blends provide earthy, peppery, and spiced notes that complement hearty meals, while structured rosés such as Tavel, pinot noir rosé, and Spanish garnacha rosado hold up well against richer fare.
Affordable bottles—including Bogle Old Vine Zinfandel, Cline Viognier, Louis Jadot Beaujolais-Villages, and Pine Ridge Chenin Blanc + Viognier—deliver character without breaking the budget.
Proper service enhances the experience: reds show best when poured at 55–65°F depending on body, and glassware shapes can amplify aroma and texture. Oak-aged wines with hints of spice or vanilla mirror autumn cooking, while clean, thoughtful pours reinforce the season’s slower, more intentional dining pace.
Finsm: Fall wines bring together flavor, mood, and ritual, turning every meal into an expression of the season.
Blackstone’s flagship private credit fund, BCRED, is issuing $500 million of five-year investment-grade bonds, expected to yield about 1.6 percentage points above Treasuries.
The sale comes after BCRED’s $1 billion issuance in January and follows a $650 million note deal from Ares Management’s BDC earlier this week. Goldman Sachs’s BDC is also preparing a potential offering as business development companies take advantage of renewed investor demand.
These firms, which lend to small and midsize companies, are tapping the market before earnings blackout periods begin. Issuance overall has surged, with 27 companies selling $43 billion of debt Tuesday, the third-largest daily volume on record. Barclays, Citigroup, Goldman Sachs, RBC, and Wells Fargo are managing the deal, with proceeds earmarked for general corporate purposes.
Finsum: The timing of this private credit move is worth monitoring, as it could have implication for earnings season.
Advisors facing heightened U.S. market volatility are increasingly turning to global infrastructure ETFs as a way to diversify portfolios and hedge against policy risks. Structural growth drivers like demographic shifts, and supportive government policies, such as Germany’s recent multi-billion-dollar funding initiatives are supportive.
The sector also has a history of resilience during inflationary periods, as infrastructure companies provide essential services that can pass costs on to consumers. One option is the BNY Mellon Global Infrastructure Income ETF (BKGI), which actively invests in global infrastructure firms with strong cash flows, balance sheets, and growth prospects.
BKGI aims to deliver a forward yield of 6% or higher by focusing on dividend-paying companies, with about one-third of assets in U.S. holdings and the rest diversified across Europe and beyond.
Finsum: Infrastructure exposure offers low correlation with U.S. equities, especially when considering outside options.