CalPERs Size Restricts its Alternative Asset Exposure
CalPERs $402 billion pension fund (as of 2/7/20) relies more heavily on traditional equity and fixed income than many of its U.S. pension plan peers. Less than 20% of CalPERS portfolio is held in alternative investments. This is not necessarily by choice, as CalPERs staff has indicated that the fund’s extreme size makes it difficult […]
Invesco Closing 42 ETFs
Invesco recently announced that they will be closing 42 ETFs, representing $1.3 billion in assets. The closures are scheduled to occur in February of 2020.Over the past few years, Invesco has aquired a number of ETF issuers, and as a result, some redundancy has been built into their lineup. You can see the full list […]
Exchange-Traded Notes (ETNs): Know What You Own
Clients should always understand what their adviser has placed into their portfolios, why the investments are being used, and what are the particular risks. A recent Bloomberg report highlighted that Ken Fisher Investments has made a significant bet on Exchange-Traded Notes (ETNs) accounting for approximately $6.2 billion of the $22 billion of issued ETNs, and […]
It’s capital gains distribution season -check your ETFs (and mutual funds)
Mutual funds and even some ETFs typically distribute taxable capital gains to shareholders in December of each year. ETFs are commonly more tax efficient and thus less likely than mutual funds to have an annual capital gains payout. However, there are some ETFs that may have capital gains distributions, and you should confirm the distribution […]
Custodians Move to $0 Commissions Impacts Advisory Firms
Over the past month, large custodians including Schwab, Fidelity and others have eliminated commissions for both retail clients and RIA custody clients. For some RIAs, especially those that offer services via wrap fees that previously were absorbing these costs, these RIAs need to evaluate whether or not their Form ADV disclosures need to be updated. […]
Model Expense Disclosure
The Model Weighted Average Net Expense Ratio applies only to the portion of the model that is comprised of mutual funds and/or ETFs. It reflects expense waivers or reimbursements from the fund companies, which may not be permanent. The data used to calculate the Model Weighted Average Net Expense Ratio is obtained from a third-party […]
Factors to consider before adding a thematic ETF to your portfolio
In the quest to launch successful products, ETF sponsors have ventured into thematic segments of the financial markets. Think robotics, artificial intelligence, fintech, online retail, cyber security, etc. There has been mixed success among issuers, as some of these products have rapidly grown to $1 billion in AUM such as ETFMG’s Prime Cyber Security ETF […]
SEC Modernizes Regulations of Exchange Traded Funds–Eases Regulatory Burdens, Reduces Cost, Time to Market for New ETFs
On Thursday, September 26th, the SEC passed a long-awaiting ruling that differentiates ETFs from mutual funds from a regulatory perspective. The new regulations will reduce costs and substantially decrease the time in which new ETFs can be approved. The rule is expected to facilitate greater competition and innovation in the ETF marketplace, leading to more […]
China A Shares weight increases to 15% in MSCI Indexes
MSCI announced today that they have increased the inclusion factor of all China A Large Cap shares from 10% to 15% in the MSCI Indexes notably MSCI Emerging Markets Index and MSCI ACWI Index, coinciding with the recent Quarterly Index Review, effective August 28, 2019. MSCI’s previously announced decision to increase the weight of China […]
Turnkey Asset Management Platforms (TAMPs) Help Advisors With Outsourced Investment Management
Many consumers believe that an advisor’s job is to pick investments and manage portfolios. A recent article by Morey Stettner highlights that outsourcing trends indicate that more advisors are outsourcing their investment management so they can spend more time providing their clients with a broader scope of services, including retirement, taxes, insurance, household finances and […]