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U.S. Markets “T+2” Shortened Settlement Begins Tuesday
When you return from the long Labor Day holiday, your securities transactions in equities, corporate or municipal bonds, unit investment trusts, and any securities comprised of these security types will be subject to a “trade date plus 2 days” ( “T+2″) shortened settlement, from the current”T+3”. Thus, any trades executed on Tuesday will settle on September 7. The move harmonizes U.S. markets with most major international markets. It is also expected to reduce... -
Multi-Asset ETF Portfolio Best Route for Smaller Endowments, Isenberg Professor Says
Hossein Kazemi, senior adviser to the Chartered Alternative Investment Analyst (CAIA) Association and professor of finance at the Isenberg School of Management at the University of Massachusetts, is claiming that many endowments should skip investments in illiquid assets such as hedge funds and private equity in favor of a multi-asset ETF portfolio. Kazemi argues that most endowments should not attempt to mimic the Harvard or Yale Endowment portfolio mix by... -
The Other 496 S&P Stocks
In an article from the Wall Street Journal, Justin Lahart describes how the immense growth of Amazon, Apple, Google parent Alphabet, and Facebook has been propelling a substantial portion of the S&P 500’s gains. The article also touches on how the S&P 500 Growth index has outperformed, while the S&P 500 Value index has under-performed. It goes on to discuss the S&P 500 Equal Weight Index and its inability... -
New Book Encourages Investors to Join The “Index Revolution”
Charley Ellis’ new book “The Index Revolution: Why Investors Should Join It Now” discusses how the investment landscape has changed and how investors are better served with passive, indexed strategies than active management. A few stats investors should consider: Trading volume on the New York Stock Exchange increased from three million to five billion shares daily over the past 50 years. The dollar value of trading in derivatives rose... -
ETF Model SolutionsTM Named Finalist for 2016 Wisconsin Innovation Awards
August 4, 2016. APPLETON, Wis.—ETF Model SolutionsTM has been named a finalist for the Wisconsin Innovation Awards for the development of its automated investment service, www.MyRoboAdviser. com. MyRoboAdviser.com is an online investment service that provides automated, goals-based investment advice directly to individuals through any internet-connected device. MyRoboAdviser.com was created for millennials and digitally-connected individuals who are increasingly using digital apps. The service provides automated: Account creation Account funding Portfolio management... -
A Look at Managed Futures
In a recent article on Bloomberg.com, Ye Xie discusses one winner in the Brexit rout. Over the past few days, managed futures funds were one of the few investment classes to boast positive returns. One fund, AQR Managed Futures Strategy Fund, rallied 6.3% over the past 2 days (as of June 27, 2016). What are managed futures? Managed Futures are an example of an alternative investment which adds diversification... -
MassMutual will pay $31M for 401(k) lawsuit
Massachusetts Mutual Life Insurance Co. will pay nearly $31 million to settle a lawsuit claiming that it mismanaged its 401(k) plan, according to recently filed court documents ( Gordan v. Mass. Mutual Life Ins. Co. , D. Mass., No. 3:13-cv-30184, motion for preliminary settlement approval filed 6/15/16 ). The lawsuit, filed in 2013 by a proposed class of more than 14,000 plan participants, alleged that MassMutual and its top... -
ETF Model SolutionsTM Recognized As Finalist For 2016 WealthManagement.com Awards
APPLETON, Wis, June 21, 2016 / PRNewswire/– ETF Model SolutionsTM has been honored as a finalist for the WealthManagement.com Industry Awards in the “Asset Manager-ETF Strategist” category for 2016. WealthManagement.com’s Awards Program recognizes firms that are contributing to advisor success in various categories. By acknowledging outstanding achievement in the industry, the Awards seek to inspire innovation and leadership among industry participants, creating an environment that will enable the industry... -
ETF Model SolutionsTM ETF Spotlight: Low Volatility ETFs
Recently, low volatility ETFs have become increasingly popular. The PowerShares S&P 500 Low Volatility Portfolio (SPLV, $41.19 – NYSEArca) invests in the top 100 S&P 500 stocks that have been least volatile for the trailing 12 months. SPLV seeks to alleviate downside risk and the opportunity to participate in rising markets. However, low volatility ETFs like SPLV aren’t just for risk-averse investors. Over the last 25+ years, low volatility... -
More Collective Investment Trusts Being Added to DC Plans
There are now over 3,200 collective investment trusts (CITs) tracked in the Morningstar CIT database, collectively holding nearly $2 trillion according to a recent article that appeared on WealthManagement.com. That’s up from $896 billion in 2008. Callan Associates estimates that 71% of DC include at least one CIT in their plan up from 60% and 52% in 2014 and 2013, respectively Why are CITs becoming more popular? Reasons included...