Wealth Management
While standard ETFs are built for long-term investors, more complex products like leveraged, inverse, and synthetic ETFs are designed for short-term or specialized strategies and carry higher risks. Leveraged ETFs amplify daily index returns, but compounding effects mean they often underperform over longer periods, making them unsuitable for buy-and-hold investors.
Inverse ETFs, by contrast, rise when their benchmark falls and are typically used as temporary hedges against downturns rather than core holdings.
Synthetic ETFs take a different approach by using swap agreements with banks to replicate index performance instead of directly owning the securities, which reduces tracking error but introduces counterparty risk. These advanced products can be useful in the right hands, yet they require a clear understanding of their mechanics and limitations.
Finsum: These tools can be tactical moves, not long-term wealth building, but serve short term client desires.
The U.S. stock market set new highs in Q3 2025, and while index funds largely outperformed, active funds were more mixed. Among the 10 largest active funds, only the JPMorgan Large Cap Growth Fund stood out, returning 9.3% and ranking in the top third of its category, while the Dodge & Cox Stock Fund lagged with just 3.2%.
Index funds fared better, with the Vanguard Total Stock Market Index Fund delivering 8.2% and ranking highest among its peers, though the Vanguard Mid Cap Index Fund landed near the middle of its category.
Over the past three years, seven of the 10 largest active funds have outperformed their categories, led by two Capital Group funds that landed in the top decile of large-cap blend. Index funds also showed consistent strength, with S&P 500 trackers like Vanguard, Fidelity, and iShares ranking in the top quartile over that period.
Finsum: Investors looking to capitalize on falling interest rates should look to large cap growth as they tend to be more interest rate sensitive.
Global real estate is shifting from traditional “visible” assets like office towers and shopping malls to “invisible” property such as data centers. These facilities have become essential infrastructure as cloud computing and AI workloads demand massive amounts of power, cooling, and networking. According to CBRE, 95% of major investors plan to boost their allocations to data centers in 2025, with many committing $500 million or more.
The surge in demand is driving enormous capital requirements, with hyperscale facilities costing billions to build. Boston Consulting Group estimates that $1.8 trillion will be needed globally by 2030 to keep pace with AI and cloud growth.
Despite funding challenges, investors continue to reallocate away from conventional real estate sectors toward alternatives like data centers, battery storage, and related infrastructure. While construction costs and financing hurdles pose risks, institutional capital remains active, signaling that real estate’s future will be increasingly tied to digital infrastructure.
Finsum: Artificial intelligence may also reshape physical office demand as companies adjust headcount and space needs.
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Assets under management is one way to value an advisory firm, but buyers also want stability, leadership depth, and client retention. Consultant Linda Bready, author of The Exit Equation, says successful sales depend on seven “pillars,” including clear exit goals, strong financials, next-generation leadership, scalable operations, client stability, effective technology, and reduced compliance risks.
Buyers look for firms that can run smoothly without the founder and have systems in place to support future growth. To prepare, Bready advises advisors to organize their financials, document processes, and consider continuity beyond the founder.
She also stresses the importance of knowing what life after the sale will look like, since that influences buyer fit.
Finsum: Asking pointed questions of potential buyers and addressing risks upfront can strengthen both valuation and trust in the process.
The ETF market continues to expand as more firms convert mutual funds into ETFs, with a major asset manager completing the shift of its $1 billion unconstrained debt fund into the JPMorgan Flexible Debt ETF (JFLX).
The fund charges 45 basis points and is designed to provide long-term total return through both current income and capital appreciation. JFLX has the flexibility to invest across a wide range of debt instruments, including bonds, loans, convertible securities, and money market holdings.
Its managers can actively adjust allocations across markets and sectors in response to changing conditions, positioning the fund as a versatile fixed income option. The move reflects rising investor interest in active, transparent ETF structures during periods of volatility.
Finsum: With active ETFs adaptive strategies, these ETFs could serve as a core or complementary fixed income holding for investors.
Bond markets have been volatile lately, but some multisector bond funds have managed to deliver stronger returns than the broader bond market. These funds diversify across different fixed-income sectors, such as government, corporate, high-yield, and foreign bonds.
Over the past year, the category has returned 5.93%, better than the Morningstar U.S. Core Bond Index’s 5.66%, and it has also outperformed over three- and five-year periods. A screen for the best performers by one-, three-, and five-year results highlighted three actively managed funds: Axonic Strategic Income Fund (AXSIX), DoubleLine Flexible Income Fund (DFFLX), and NYLI MacKay Strategic Bond Fund (MSYEX).
Each has topped peers recently, with returns ranging from about 7% to nearly 8% over the last year.
Finsum: For investors looking to reduce volatility while maintaining competitive returns, these funds show the potential benefits of a multisector approach.