Wealth Management

A robust pipeline of prospects is essential for the long-term growth of a successful financial advisor practice, however the major challenge is that it takes consistent investment of time and energy that won’t yield immediate results. In an article for SmartAsset, Rebecca Lake CEFP laid out some tips on building a strong pipeline.

The first step is to understand that there are multiple paths to successful prospecting. So when coming up with a strategy, figure out the one that best aligns with your inclination and personality. For instance, a digital savvy advisor may elect to invest their efforts into creating an online presence. Someone with a background or interest in athletics may look to sponsor and/or get involved with local sports leagues. 

Related to this, your prospecting strategy must create visibility and interactions with your target demographic. This means defining your ideal client in terms of income, wealth, age, occupation, etc. 

Finally, you can look at your network and existing clients for referrals for prospects who may be receptive to your message or services. Often, these have the highest conversion rate but are only earned through years of building trust. 

Finsum: Having a strong pipeline of prospects is necessary for an advisors’ success. Here are some tips on formulating an effective strategy.


In an article for ETFTrends, Todd Rosenbluth discussed how US insurance companies are aggressively investing in fixed income ETFs. Last year, the industry invested a total of $37 billion in ETFs. This is a small portion of the overall ETF market and the $7.9 trillion that is cumulatively managed by US insurance companies. 

However, insurance companies are some of the largest holders of fixed income ETFs especially for corporate bonds according to a report from S&P Dow Jones Indices. S&P Dow Jones believes that insurers are gravitating to these products because of increased liquidity and higher yields. Additionally, these ETFs functioned well over the last couple of years despite periods of considerable market stress. 

In terms of ownership, insurance companies own 14% of the iShares iBoxx $ Investment Grade Corporate Bond ETF at year-end 2022. The average duration is 8 years with a split of A- and BBB-rated bonds. 

2 more popular bond ETFs are the iShares 1-5 Year Investment Grade Corporate Bond ETF andthe iShares 10+ Year Investment Grade Corporate Bond ETF (IGLB). Both invest in similar products but with different durations. Each has 11% and 7% ownership by the insurance industry, respectively. 

Finsum: Fixed income ETFs are becoming increasingly accepted by institutional investors. Research from S&P dow Jones shows that insurance companies are some of the largest holders.


In an article for ETFTrends, James Comtois discusses 3 benefits of direct indexing as laid out by Vanguard. The asset manager sees the trend continuing to grow in popularity in the coming years and is investing heavily to capture market share in the space.

Direct indexing combines the benefits of index investing such as low costs and diversification while allowing for greater personalization. Rather than gaining exposure through an ETF or mutual fund, investors own the individual stocks in the index. This allows for more flexibility, transparency, and potential tax savings. 

In terms of returns, tax savings is the biggest benefit. According to research, it can add between 20 and 120 basis points annually. Losing positions can be sold to offset gains from profitable positions. Then, these positions can be replaced with other stocks that have similar factor scores to continue tracking the underlying index. 

Direct indexing allows for customization to reflect an individual’s circumstances and values. This could mean ESG investing or reducing exposure to a particular industry because of outside holdings. Finally, direct indexing leads to increased transparency as the holdings are always visible while avodiing complications of conentrated positions. 

Finsum: Direct indexing has 3 benefits for advisors and clients: tax savings, increased customization, and greater transparency.


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