Wealth Management
Institutional appetite for sustainable investing is rising sharply, with more than 80% of global asset owners and managers planning to increase allocations over the next two years, according to Morgan Stanley’s new Sustainable Signals 2025 report.
Surveyed investors overwhelmingly cited strong performance and the growing maturity of ESG strategies as the primary reasons behind their expanding commitments. Demand is also reshaping the competitive landscape, as roughly 9 in 10 asset owners now view sustainable investment options as a key differentiator when selecting or retaining managers.
Top areas of focus include renewable energy, energy efficiency, and, surging in priority this year, climate adaptation, reflecting mounting concern about physical climate risks and their impact on asset prices.
Finsum: ESG remains a long term play as the short run outlook appears clouded by regulatory changes.
Large-cap growth stocks include many of the market’s most innovative and resilient companies, and tilt toward mega-cap tech and consumer names has helped fuel their long-term performance. U.S. large-cap growth ETFs provide concentrated exposure to the companies that have played a major role in shaping the modern economy.
This focus has benefited QQQ over the past decade, supported by the outperformance of mega-cap stocks and strong results from the technology sector. While no strategy works in every market environment, growth companies, often characterized by rapid earnings expansion and reinvestment in new technologies, have historically contributed to long-term capital appreciation, even with the higher volatility that can accompany them.
For many investors, large-cap growth strategies like QQQ serve as a core allocation, offering access to companies driving economic transformation from cloud computing to artificial intelligence.
Finsum: Although growth stocks can be more sensitive to interest rates and market cycles, they remain key components of portfolios aiming to capture the momentum and innovation.
Derivative income ETFs are gaining momentum with financial advisors as firms broaden their income-generation strategies amid ongoing market volatility and shifting client expectations. Cerulli Associates reports that 15.2% of advisors used derivative income strategies in 2024, with another 7% planning to adopt them, led by strong uptake in wirehouses and increasing interest across independent and regional broker-dealers.
Defined as liquid alternatives that generate income through option-selling, these ETFs drew $26 billion in net inflows in 2023 and $29 billion in 2024, with advisor demand expected to continue rising.
Cerulli notes that inflation-beating returns and expanding issuer participation are driving growth, as the ETF structure reshapes how income-oriented solutions are designed and delivered.
Finsum: Defined outcome ETFs are also expanding, as investor demand for downside protection and predictable outcomes continues to strengthen.
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Working with high-net-worth (HNW) clients offers advisors the opportunity to grow assets under management and revenue, but winning these relationships requires delivering more specialized expertise. Wealthy investors tend to prioritize education, performance and deep relationship-building, while focusing heavily on wealth preservation and legacy planning.
Surveys show that most HNW households plan to transfer wealth during their lifetimes, worry about healthcare costs and inflation, and are highly engaged in charitable giving, valuable insights that can help advisors shape their service models.
To meet this demand, firms can expand into estate planning, succession planning, tax strategy and other complex services that align with affluent investors’ needs. Advisors who collaborate with estate attorneys, CPAs and other centers of influence may find it easier to build credibility and attract HNW prospects through referrals.
Finsum: Ultimately, growing an advisory practice in the HNW segment comes down to offering sophisticated, personalized planning that speaks directly to the financial realities.
The Great Wealth Transfer, an estimated $90 trillion shifting across generations over the next two decades, is poised to reshape advisor–client relationships, yet most affluent investors remain underprepared for the transition. Nearly one-third of wealthy investors lack even a basic will or trust, and many who do have plans will require significant updates as their lives, assets, and tax environments evolve.
The research identifies four distinct motivational segments—Financial Achievers, Leisure Seekers, Legacy Leavers, and Cautious Givers—each defined by emotional drivers that meaningfully shape how clients view wealth, planning, and risk.
With younger generations showing a higher affinity for digital tools yet still wanting human guidance, advisors must blend personal expertise with accessible online solutions to meet clients where they are.
Finsum: Ultimately, those who tailor their estate-planning approach to individual psychology will be the ones who thrive as this massive transfer of wealth unfolds.
Advisors are increasingly adopting outsourced model portfolios as a way to streamline investment management and redirect their time toward deeper client relationships and higher-value planning work.
Research from Cerulli shows that model users spend just over 10% of their time on investment oversight, enabling them to devote more than 60% of their time to client-facing activity and business development. The trend is especially pronounced among younger advisors running leaner practices, many of whom lack in-house investment staff and rely on models to achieve greater efficiency.
These advisors view outsourced portfolios as a strategic tool, using the time savings to focus on complex planning, attract wealthier households, and sharpen their competitive positioning. High demand for product education, best practices, and access to portfolio managers underscores the need for model providers to keep advisors well-informed.
Finsum: While some advisors avoid models due to concerns about customization or added fees, the overall shift highlights how outsourcing has become central to scaling a modern advisory practice.