Advisors are broadening portfolios beyond U.S. equities, with many now considering a more balanced fixed income allocation. 

Macroeconomic pressures, particularly uncertainty around the Federal Reserve’s next rate move, make diversification across bond sectors especially timely. Regardless of when rates shift, different areas of fixed income are likely to react in varied ways, underscoring the value of spreading exposure.

The American Century Multisector Income ETF (MUSI) offers an example of this approach, combining investment-grade and high-yield bonds, mortgage-backed securities, emerging market debt, and more. 

Finsum: Actively managed funds can adjust sector weightings to capitalize on opportunities while reducing reliance on any single bond segment.

Faith-based ETFs remain niche but are expanding, with six launching this year and total assets now around $10 billion. These funds aim to align investments with religious values, though many end up resembling S&P 500 trackers with higher fees. 

Currently, there are 46 such ETFs in the U.S., 38 Christian, seven Muslim, and one Jewish, which have attracted about $832 million in inflows year-to-date. Some apply strict screens, like the Inspire 100 ETF (BIBL), which excludes firms tied to abortion, LGBT activism, or gambling, while others, like SPUS, filter out half the S&P 500 for Sharia compliance. 

By contrast, funds such as the JLens 500 Jewish Advocacy US ETF (TOV) and the Global X Catholic Values ETF (CATH) closely resemble mainstream products like Vanguard’s VOO, differing mostly in expense ratios. 

Finsum: Advisors must weigh whether these products are genuinely value-aligned investments or simply pricier versions of broad index funds.

Emerging-market stocks and currencies fell sharply after strong U.S. economic data reduced expectations for multiple Federal Reserve rate cuts this year. MSCI’s currency benchmark dropped more than 0.3%, marking its largest one-day loss since July, while a similar gauge for equities slipped 0.7%, the steepest decline since late August. 

Traders now see a diminished chance of two Fed cuts by year-end, as U.S. growth accelerated and jobless claims fell. Sentiment was further pressured by geopolitical risks, including rising tensions between Russia and NATO and fiscal concerns in countries such as Poland and Indonesia. 

The Philippine peso and Indonesian rupiah led declines, while the Polish zloty and Hungarian forint also weakened on regional political and energy disputes. 

Finsum: Despite recent setbacks, some strategists still expect emerging-market assets to recover toward year-end on macro tailwinds and favorable seasonality.