Strategic inflection points often build up gradually before causing sudden change, reflecting the need for constant innovation and adaptation in business. Embracing technology, such as direct indexing can create efficiencies, scale operations, and enhance investment processes which is crucial for asset managers. 

Understanding and meeting complex client demands, especially in retail, is essential as clients seek value, not just investment vehicles. The rise of ETFs and SMAs shows the importance of offering cost-effective, customizable solutions, while active management must justify its value in a fee-compressed environment. 

Indexing and alternatives have gained traction due to their reliable and affordable returns, but asset managers must continue to adapt and price their offerings appropriately. Ultimately, leveraging technology and maintaining a client-centric focus are key to navigating disruption and ensuring long-term success.

Finsum: Direct indexing should really be thought of as alpha that is on the table ready to deliver to clients that can afford the sizeable investment. 

When considering fixed income ETFs, active strategies offer notable advantages over passive ones. Unlike equity indexes, replicating a bond index like the U.S. Agg is "impossible" due to smaller bond quantities, infrequent trades, and varying maturities and credit ratings.

 Active management allows flexibility to adapt to shifting bond markets and interest rate environments. The T. Rowe Price QM U.S. Bond ETF (TAGG), for example, charges eight basis points and seeks to outperform the U.S. Agg through a diverse range of investment-grade U.S. bonds.

 As fixed income ETFs grow in popularity, active strategies present a valuable alternative. This trend reflects a broader move towards active management within the ETF space.

Finsum: When thinking about the advantages of active bonds its important to consider this index replicability that you can’t get in fixed income. 

The traditional leisure activities have shifted in the last couple of years and one of the most prominent is cycling. The summer months highlight the many benefits of cycling, with enthusiasts like 65-year-old Brooks Boliek calling it his "longevity drug." 

Research supports cycling’s health benefits, including reducing the risk of osteoarthritis and knee pain by age 65. A new study involving 2,600 participants found that cyclists were 21% less likely to show signs of osteoarthritis. The study, published in the journal Medicine & Science in Sports & Exercise, emphasizes cycling as a low-impact exercise that strengthens knee muscles and circulates joint-lubricating synovial fluid.

While the study was observational and cannot prove cause and effect, it aligns with advice from healthcare providers promoting non-weight-bearing exercises. Despite risks like overuse injuries and accidents, cycling is associated with increased longevity and can be a lifelong activity.

Finsum: Cycling also presents wonderful opportunities to engage with larger groups of enthusiasts as the communal aspect is very strong.