Custodian transitions can make RIAs anxious about losing clients, but careful planning and strong communication can significantly reduce attrition risk. On average, advisors may lose nearly 20% of client assets during a transition, but that figure often reflects poor preparation rather than an inevitable outcome.
The key to a successful move lies in two areas: reinforcing client relationships and clearly explaining the reasons and benefits behind the change. Advisors should prioritize transparency without overloading clients with technical details, offering reassurance, a timeline, and emphasizing how the switch enhances service.
Relationships that feel unstable before a transition may signal deeper issues, making them worth addressing whether or not a move happens.
Finsum: Ultimately, sticking with a subpar custodian out of fear can hurt more than switching—especially if poor service impacts how clients perceive the advisor’s value.
Active ETFs combine professional management with the liquidity and transparency of ETFs, making them powerful tools for portfolio construction. They offer investors access to active security selection and the potential to outperform benchmarks, while still benefiting from intraday trading, tax efficiency, and often lower costs.
These funds are especially valuable in areas of the market with inefficiencies, where deep research and targeted exposure can improve outcomes. Derivative-income ETFs can enhance portfolio income and stability by generating yield through options, offering an equity-based alternative to fixed income.
Meanwhile, buffer ETFs help manage downside risk by capping losses (and gains) over set periods, making them useful for preserving capital during volatile markets.
Finsum: Together, these active ETF strategies provide investors with flexible, diversified, and goal-oriented components for building resilient and adaptive portfolios.
Once considered obscure and underutilized, interval funds are emerging as powerful tools for investors seeking access to private markets without sacrificing structure or transparency.
Kimberly Flynn, President of XA Investments, has long believed in their potential, seeing them as a middle ground between illiquid alternatives and mainstream accessibility. With investor interest in non-traditional assets on the rise, these funds are experiencing a surge in growth, gaining attention for their ability to offer periodic liquidity while deploying capital efficiently.
Unlike mutual funds, which must maintain daily liquidity, interval funds can hold private assets and still meet redemption requests through built-in buffers and structured liquidity schedules. The uptick in SEC filings, new entrants like KKR and Hamilton Lane, and record inflows suggest that momentum is accelerating, positioning interval funds as a cornerstone of the alternative investing landscape.
Finsum: Interval funds are meeting a specific need right now, and investors willing to sacrifice a little liquidity might be able to get better returns.
Low-volatility ETFs are proving their worth during the current market downturn, outperforming broad benchmarks like the S&P 500. Funds like iShares USMV and Invesco SPLV are both up over 3% year-to-date, even as the Vanguard S&P 500 ETF (VOO) is down nearly 5%.
Despite their performance, these ETFs haven't attracted significant inflows, overshadowed by trendier buffered and defined-outcome products that rely on complex options strategies. Low-volatility ETFs, by contrast, use a simpler factor-investing approach and tend to come with lower fees, making them more cost-efficient.
While they can underperform during strong bull markets, their resilience shines when equities struggle, as seen during major drawdowns in 2022 and 2018.
Finsum: Advisors still value them for clients seeking steadier returns in uncertain conditions, especially as bonds show increasing volatility themselves.
Pickleball has continued its meteoric rise, maintaining its title as America’s fastest-growing sport for the fourth year in a row. In 2024 alone, participation surged nearly 46%, with the number of U.S. players estimated at 19.8 million by SFIA, and some alternative estimates from the APP suggesting that number could be as high as 48 million.
The sport is becoming increasingly popular among younger demographics, with the 25–34 age group now leading participation and the average player age dropping to just under 35. Infrastructure is racing to keep up, with over 68,000 courts now in the U.S. and a projected $855 million investment needed to meet future demand.
While challenges like court shortages persist, the sport’s rapid growth has attracted significant attention from manufacturers, with over 1,200 new paddles and 476 brands registered in 2024 alone.
Finsum: With cross-generational appeal and increasing institutional support, pickleball has evolved from a niche pastime to a defining part of the American athletic landscape.
As market volatility rattles investors, many are turning to “buffer” ETFs—funds that trade off some upside potential in exchange for protection against downside risk. These ETFs, which use options strategies to cap losses while limiting gains, have drawn $4.7 billion in inflows so far this year, with a notable $140 million coming in on the S&P 500’s worst day of 2024.
Financial advisors are increasingly adopting them to reassure clients and keep them invested during turbulent times, especially as traditional stock valuations remain high. The appeal lies in downside protection, though investors must accept lower upside caps and higher fees—some charging more than ten times what plain index ETFs do.
Assets in buffer ETFs surged to $64 billion by February, up from $38 billion at the end of 2023, as their defensive qualities grow more attractive in an uncertain economic and political climate.
Finsum: Some advisors warn against overcommitting, reminding investors to balance protection with realistic expectations about long-term growth and costs.
Closed-end funds (CEFs) can be valuable additions to a diversified portfolio, offering the potential for capital growth and income through both investment performance and regular distributions.
Unlike open-end mutual funds, CEFs typically provide higher distribution rates, often paid monthly or quarterly, and allow reinvestment that may enhance long-term returns. Their fixed-share structure after IPOs means managers aren’t forced to hold cash for redemptions, allowing for more efficient and fully invested portfolios.
CEFs also give investors exposure to the illiquidity premium by enabling access to less liquid, potentially higher-yielding investments that open-end funds often avoid.
Finsum: Many CEFs may use leverage to try to boost returns, though this adds risk and volatility.
Despite high interest rates and rising property prices, real estate investors still have several promising opportunities to consider in 2025.
- Experts point to both short- and long-term rentals as reliable income sources, with travel demand and declining homeownership supporting steady occupancy and profitability.
- Distressed, off-market properties are also gaining traction, offering value to investors who can act quickly and renovate effectively.
- Multi-family homes, especially triplexes and fourplexes, are ideal for new investors looking to house hack—living in one unit while renting the others to offset mortgage costs.
Another savvy strategy is converting basements into rentable units, particularly in high-rent cities, where this can generate solid monthly income.
Finsum: In short, even in a tricky housing environment, creativity and timing can open doors to strong real estate returns.
Advisors are constantly asking where the wealth management industry is headed—who’s hiring, who’s losing talent, and which models are gaining favor. In response, the Advisor Transition Report was created to fill a gap: a clear, data-driven look at advisor movement that wasn’t available anywhere else.
The latest report uncovers five unexpected insights, including the surprising uptick in recruiting despite market highs that typically encourage advisors to stay put. It also highlights the rise of boutique and regional firms like RBC and Rockefeller, which are gaining ground thanks to competitive deals and a balance of flexibility and support.
Even firms often labeled as “losers” in the recruiting wars, such as Merrill and Edward Jones, made meaningful hires, proving the narrative is more nuanced than headlines suggest. Ultimately, this intelligence isn’t just for those considering a move—it’s essential knowledge for any advisor aiming to future-proof their business.
Finsum: Trends are shifting in recruiting and studies like this can help advisors and BDs stay abreast of advisors needs.
The private equity industry is experiencing a shift towards greater accessibility for individual investors. Historically dominated by institutional participants, the sector is now witnessing the dismantling of barriers that once limited broader participation.
This transformation is driven by the emergence of new investment vehicles and regulatory changes that facilitate entry for non-institutional investors. While this democratization opens opportunities for a wider audience, it also introduces challenges related to investor education and the management of liquidity in traditionally illiquid assets.
Industry stakeholders are actively addressing these issues to ensure that the expansion of the investor base is both sustainable and beneficial.
Finsum: Private equity is becoming an increasingly viable option for individual investors seeking diversification and potential returns.