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ETF use increasing among insurance companies

A recent Greenwich Associates/Invesco study showed 70% of U.S. insurance companies now use ETFs. The primary reasons for using ETFs were better access to cash/liquidity management, to gain or maintain specific exposures and low cost. ETF holdings are still a small portion of insurance company portfolios. The main reason for increased adoption is the result of a 2017 systematic value accounting ruling by National Association of Insurance Commissioners. The...

Forty five percent of advisors could benefit from embracing model portfolios

Only 12% of advisors currently outsource their investment decisions. A Cerulli study suggests that 150,000 advisors, or 45% should be implementing models in their practices. Link to read more.  

80% of the stock market is now on autopilot

Passive investments control about 80% of the equity assets while quantitative funds (trend following models) account for 20% of market share. Passive Funds have attracted $39 billion in inflows during first half of 2019, while active funds have lost $90 billion. (link to article: https://tinyurl.com/y62es57r)

The Next Markets for ETF Disruption? Hedge Funds, Private Equity and SMAs

Hedge funds and private equity are two large markets with huge fees and lockup periods that are ripe for disruption by ETFs, says Matt Hougan of ETFs.com at their annual Inside ETFs conference. Such markets will continue to drive growth in assets in ETFs, which currently account for only $5 trillion of the $150 trillion in global assets. Despite their growth, trading in ETFs is falling, suggesting that ETFs...

University Endowments Reporting Significantly Improved Investment Returns Over Past Fiscal Year

Early reporting data from schools providing endowment performance for the fiscal year ended June 30,2017 suggest that university endowments boosted their investment returns significantly over the last fiscal year from 2016. The median gain for all colleges reporting is 11.3 percent, while the median gain for larger schools (over $500 million in assets) was 13.3 percent for the 12-month period ended June 30th as reported by the Wilshire Trust...

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...

ETF Model Solutions^TM 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...

ETF Model Solutions^TM 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...