Author: Arabian Media staff
The average cost of college tuition and fees at public four-year institutions has risen 141% over the last 20 years—at private universities, that figure is 181%, according to the Education Data Initiative. Given that education costs have also outpaced inflation by an average of 104.3% annually, it’s easy to see why your clients may be feeling the pressure to plan smarter and start earlier. For families saving for college, 529 plans are the gold standard. Traditionally, 529 plans have featured mutual fund-based portfolio options, but an increasing number of 529 plans now offer exchange-traded funds (ETFs). The availability of new…
Over time, investors have made more money betting against heavily shorted stocks than betting on them. Source link
Exchange-traded funds (ETFs) have never been more popular. Globally, assets under management (AUM) for ETFs surged by 27% in 2024 to a total of $14.6 trillion by year-end. And yet, although individual investors are sending record volumes of cash toward ETFs investments, there are still lingering and common misconceptions about ETFs. Fortunately, financial advisors can play a crucial role in helping clients navigate the complex landscape of ETFs and avoid pitfalls as the ETF universe continues to expand. Key Takeaways Although many financial advisors have clients investing in ETFs, investors may be unaware of some of the intricacies and risks…
Exchange-traded funds (ETFs) have been surging in popularity, with global assets under management (AUM) growing a record 27% in 2024 to reach $14.6 trillion. Despite this boom, many of your clients may still not understand ETFs or how they fit into their portfolios. In uncertain times like the mid-2020s, it’s especially important to help clients feel informed and secure, and ETFs offer an excellent chance to do that. Below, we explore how you can educate clients about these funds to make them feel confident and reinforce your value as an advisor. Key Takeaways While ETFs have been growing in size,…
Your client sits across from you, scrolling through their phone. They’ve been “researching” exchange-traded funds (ETFs) online. Again. “I found this AI robotics fund that’s up 47% this year,” they might say. “Should I dump my boring S&P 500 fund?” They’re not wrong to be led to these ideas. The ETF landscape exploded from a handful of index funds to over 13,000 products globally. In 2024 alone, 1,988 new ETFs launched, according to ETFGI data. That’s more than five new choices every day. Your clients see the noise: the FOMO-inducing headlines about crypto ETFs and quantum computing funds. They fail…
After a deadly shooting at an NYC building that housed NFL and Blackstone offices, safety experts say it’s high time businesses address the issue. Source link
Characteristics ETFs Mutual funds Trading and Pricing Traded throughout the day like stocks; prices go up and down based on market conditions Traded at the end of the day; priced once daily at net asset value (NAV) Tax Efficiency Generally more tax-efficient due to fewer taxable events May incur more capital gains taxes from asset balancing Transparency Most disclose holdings daily Disclose on monthly or quarterly basis Cost Fees tend to be lower due to less management Fees tend to be higher Liquidity and Minimums Can be bought in low quantities, even fractional shares Mutual funds may have minimums to…
Tesla Inc. is offering ride-hailing services in the San Francisco Bay Area, the birthplace of ride-sharing and where the EV maker has plenty of competition from services with drivers at the wheel as well as from self-driving cars. Source link
Diversification is as essential to portfolios today as it has ever been. Sound investing requires that a portfolio be sufficiently diverse to ensure that instability in one area can be balanced out in another. For financial advisors, a key part of the job is to help clients ensure their clients are properly diversified, regardless of the size of their accounts. When it comes to real-world portfolio construction, exchange-traded funds (ETFs) can make broad diversification across asset classes, sectors, geographies, and strategies both accessible and cost-effective. Still, many clients may need support from their advisors to include ETFs in their portfolios…
Paul Atkins, chairman of the U.S. Securities and Exchange Commission, on Thursday announced the launch of “Project Crypto,” a bold and sweeping policy initiative aimed at bringing U.S. financial markets onto the blockchain. Source link