The rise of direct indexing is transforming public equity portfolio construction, giving institutional investors unprecedented control over market exposures through access to increasingly granular trading data. 

Instead of relying on traditional benchmarks, allocators can now customize portfolios to reflect sector convictions, exclude undesirable industries, and manage risk concentrations, like avoiding overexposure to mega-cap stocks such as Microsoft. Experts note that direct indexing's growth has been supercharged by post-pandemic volatility and evolving client expectations around values-based investing and tax efficiency. 

Industry leaders view custom indexing as a flexible, modular solution that enables investors to “build any sector tilt, factor fiesta, or thematic maze,” as one CIO put it. As technology advances and AI becomes embedded in portfolio design, managers must evolve into tech-savvy strategists capable of leveraging these tools for tailored outcomes. 

Finsum: What began as a “nice-to-have” has rapidly become essential in a market where precision, personalization, and proactive risk management drive success.

U.S. Treasury yields plummeted, particularly on short-term notes, after July’s jobs report came in significantly weaker than expected, reigniting investor expectations for an imminent Federal Reserve rate cut. 

The two-year yield dropped 25 basis points to 3.71%, its steepest one-day fall in a year, as traders priced in an 80% chance of a rate cut at the Fed’s September meeting. The labor data showed just 73,000 jobs added in July, well below forecasts, and revisions to prior months brought the three-month hiring average to a pandemic-era low of 35,000. 

The market’s reaction signaled a dramatic pivot in sentiment, further fueled by political pressure from President Trump and dovish dissent from two Fed governors. Treasury futures volumes surged as traders abandoned flattening yield curve bets, and BlackRock analysts now anticipate a 50-basis-point rate cut in September, with more to follow by year-end. 

Finsum: The Fed can afford aggressive easing without stoking inflation, setting the stage for a bold monetary policy shift.

Goldman Sachs Asset Management has introduced the GS Private Credit CIT, a collective investment trust designed to bring private credit strategies into defined contribution retirement plans. The fund will invest in North American and European direct lending and private placements, while maintaining a liquidity sleeve to meet daily portfolio needs. 

It has already been selected for inclusion in the Panorix Target Date Series by Great Gray Trust Company, which aims to offer institutional-quality investment strategies to retirement savers. Panorix will feature a custom glidepath from BlackRock, liquidity management from Wilshire, and a mix of public and private asset exposure including the GS Private Credit CIT. 

This launch leverages Goldman’s $142 billion private credit platform and global underwriting capabilities to give retirement savers access to tools traditionally reserved for institutional investors. 

Finsum: As public markets grow more concentrated, CITs can provide diversification and growth potential through private credit exposure.

At the ETFs Summit hosted by S&P Dow Jones and the Mexican Stock Exchange, industry leaders predicted that active ETFs will continue growing rapidly, drawing market share not only from mutual funds but increasingly from structured notes. Structured notes—once prized for their customization—are losing ground as active ETFs replicate similar strategies with added liquidity, transparency, and without the counterparty risk inherent in notes. 

Retrocession fees no longer necessary, ETFs provide institutional-class access with real-time pricing, something structured notes cannot offer. While structured notes often come with hidden complexities and limited tradability, active ETFs deliver the same exposure with the ease of public market trading and daily liquidity. 

This shift is part of a larger industry trend: of 600 ETFs launched last year, 400 were actively managed, signaling innovation is now happening more through ETFs than through complex structured products. 

Finsum: As ETFs expand their reach across asset classes, including private credit and crypto, their dominance over less liquid, opaque vehicles like structured notes seems increasingly likely.

Estate planning is often overlooked or treated as an afterthought, crammed into the final moments of client meetings, if it’s offered at all. Yet nearly all investors, especially younger ones, now expect their advisors to include estate and tax planning as core parts of a holistic financial strategy. 

As trillions of dollars shift between generations, advisors who avoid these conversations risk irrelevance and client attrition. A modern, effective approach to estate planning requires more than good intentions, it demands scalable technology, family-inclusive strategies, and clear, repeatable processes. 

Platforms that visualize beneficiary summaries, tax impact, and legacy goals not only make these conversations easier but also more meaningful and professional. 

Finsum: In today’s competitive advisory landscape, firms that prioritize thoughtful estate planning will be the ones that grow, retain assets, and lead the next era of wealth management.

Clients often face unexpected personal setbacks, and advisors should be prepared to offer support without overstepping. Asking thoughtful, respectful questions during reviews can help uncover early warning signs, such as increased withdrawals or halted contributions. 

If something feels off, gently probing with intuitive questions that may reveal issues like family medical concerns or caregiving challenges. When a problem surfaces, framing it with empathy and context, like noting how common it is, can make clients feel less isolated and more receptive. 

It is crucial to gauge whether the client welcomes involvement or views it as intrusive; their response should guide your next steps. 

Finsum: Being present during hard times, not just the good ones, is what builds lasting trust and loyalty.

The Franklin U.S. Large Cap Multifactor Index ETF (FLQL), launched by Franklin Templeton in 2017, provides broad exposure to the U.S. large cap blend market by tracking the LibertyQ US Large Cap Equity Index. With $1.56 billion in assets under management and an expense ratio of just 0.15%, FLQL is a low-cost option for investors seeking diversified exposure to large, stable companies combining value and growth traits. 

The ETF emphasizes information technology, healthcare, and telecom, with top holdings including Nvidia, Microsoft, and Apple—its top ten positions making up over a third of the portfolio. 

Its strategy uses a multifactor model focusing on quality, value, momentum, and low volatility to outperform traditional benchmarks like the Russell 1000 over time. Year to date, FLQL has returned 10.89% and nearly 18.52% over the past year, with a beta of 0.94 and 217 holdings to help mitigate company-specific risk. 

Finsum: For those comparing alternatives, SPY and VOO are larger and slightly cheaper S&P 500-tracking ETFs, but FLQL offers a unique multifactor approach worth considering.

PayPal announced a new service called “Pay with Crypto,” which will enable businesses to accept over 100 types of cryptocurrencies, including bitcoin and ethereum. The system allows users to pay with popular crypto wallets like Coinbase and MetaMask, with all payments instantly converted into fiat or PayPal’s U.S.-dollar-backed stablecoin, PYUSD. 

Aimed at streamlining cross-border transactions, the service promises lower fees, with a promotional 0.99% transaction rate through July 2026—well below typical credit card processing costs. 

CEO Alex Chriss highlighted that merchants can receive dollars within seconds, bypassing the volatility and technical challenges typically associated with crypto payments. Businesses can begin opting into a beta rollout in the coming weeks, with broader availability expected later this year. 

Finsum: The launch coincides with a major policy shift as the GENIUS Act, the first U.S. crypto legislation, was recently signed into law, solidifying regulatory support for stablecoins and digital assets.

Only about 6% of advisors planning to retire within the next ten years have a fully documented succession plan in place. While most first‑generation (G1) advisors express confidence about their transition, many feel reluctant to relinquish control, with 58% admitting they struggle to hand over leadership functions.

 On the other hand, successors (G2 advisors) often report uncertainty about timelines and compensation, and roughly one in three say they would consider leaving if the succession path remains vague. 

To bridge the gap, the study identifies three pillars essential for successful transitions: transparency, training, and tangible, documented leadership plans. Equity incentives also matter: fewer than half of G1 advisors have transferred any ownership stake, which fuels G2 turnover risk when their compensation lacks clarity. 

Finsum: Ultimately, without structured alignment between retiring firm owners and their successors, firms face elevated risks of client attrition, fractured continuity, and erosion of enterprise value.

Global equity funds attracted $8.71 billion in net inflows, reversing the previous week’s $4.4 billion outflow, as risk appetite returned. Investor optimism was fueled by solid U.S. economic data, progress on trade deals with Japan and the EU, and upbeat early earnings reports, including record profits from TSMC and a forecast bump from PepsiCo. 

European equity funds led the charge with $8.79 billion in inflows, their best showing in 11 weeks, while U.S. equity outflows slowed significantly. Sector-wise, tech rebounded with $1.61 billion in inflows, while financials and industrials each brought in over $1 billion. 

Global bond funds continued their 14-week inflow streak, adding $17.94 billion, led by short-term, euro-denominated, and high-yield bond categories. Commodity funds saw a resurgence too, with gold and precious metals funds notching $1.9 billion in net inflows, their strongest showing in over a month.

Finsum: If optimism over trade deals and AI-driven earnings continues to build, we could be on the verge of a sustained equity rally that pulls even hesitant U.S. investors off the sidelines.