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The article discusses how to start investing in commodities, emphasizing the benefits of diversification and hedging against uncertainty. Market professionals suggest a small allocation of 2-10% in commodities within a traditional portfolio, with a 5% allocation currently recommended due to inflation and geopolitical risks. The article also highlights the importance of broad-based commodity exchange-traded funds for investors seeking exposure to commodities without directly buying futures or physical products. Additionally, it advises against chasing headlines and recommends strategies like dollar-cost averaging and monitoring price dips for buying and selling commodities. [Extracted from the article]

The article discusses the increasing popularity of collateralized loan obligations (CLOs) and the launch of new exchange-traded funds (ETFs) aimed at individual investors. Asset managers like BlackRock and Nuveen are seeking SEC approval to offer CLO ETFs, which bundle junk-rated loans together. CLOs offer higher yields than corporate bonds, attracting investors seeking income, although they come with risks such as potential defaults in an economic downturn. The ease of buying and selling ETFs is expected to appeal to individual investors looking for higher yields in a low-interest-rate environment. [Extracted from the article]

The asset-management industry has seen a surge in the launch of actively managed exchange-traded funds (ETFs), but their performance has often been poor. While most investors associate ETFs with passive investment, the industry is trying to change that. However, active ETFs have generally underperformed compared to their passive counterparts, and fees add to the performance drag. It is important for investors to consider their own interests and not solely rely on the investment industry when deciding whether to venture into active ETFs. [Extracted from the article]

Individual investors are increasingly turning to state-specific municipal exchange-traded funds (ETFs) due to falling interest rates and tax uncertainty. ETFs offer lower taxes compared to mutual funds or individual municipal bonds, as they aim to minimize taxable events. They also provide a low-cost entry into municipal bonds and easy exit options. The tax efficiency and investment flexibility of ETFs could be particularly attractive if certain provisions of the 2017 Tax Cuts and Jobs Act expire in 2025. Additionally, the fate of the $10,000 cap on state and local tax deductions could further drive demand for state-specific muni ETFs. These funds have been gaining popularity, with at least eight new funds launched since 2023, focusing on California and New York. Investing in state-specific ETFs may also help diversify municipal bond portfolios and potentially lock in higher yields for longer durations. [Extracted from the article]

According to an article in the Wall Street Journal, there is a surprising inverse relationship between a country's GDP growth and its stock market returns. The article presents research that shows the countries with the highest GDP growth rates have the lowest market returns. The research analyzed monthly returns for country-specific exchange-traded funds over the past 10 years and found that out of the top seven fastest-growing countries, only one had a positive annual rate of return in the stock market. The article suggests that this may be due to missed expectations, government taxation or expropriation of earnings, or the impact of a weakening currency. The article advises U.S.-based investors to be cautious when investing in high-growth, emerging-market countries. [Extracted from the article]

Armored funds, also known as buffer, defined-protection, or structured-protection ETFs, have become popular investment options. These funds use options contracts to protect against losses while capturing some gains. However, there is a trade-off: investors give up the potential for full gains in exchange for downside protection. Armored ETFs are cheaper and less risky than other investment options, but they have limitations. If interest rates continue to fall, the upside potential of these funds may shrink. Additionally, they do not offer the diversification benefits of bonds. Investors should carefully consider their investment goals and the costs associated with these funds before investing. [Extracted from the article]

Investment giants such as Apollo Global Management, BlackRock, Capital Group, KKR, and State Street are competing to launch private-credit exchange-traded funds (ETFs) and other retail products. These funds would allow individual investors to access the $1.7 trillion market for loans made by nonbanks on Wall Street. However, the challenge lies in converting rarely traded private loans into shares that can be easily bought and sold. Regulators are also struggling to establish guidelines for the private-credit market, which is projected to double in size to $3.5 trillion by 2028. [Extracted from the article]

Investors in the SPDR technology sector fund were exposed to Nvidia four times more than Apple, despite their comparable market values. This disparity was costly for shareholders because Apple outperformed Nvidia in the third quarter. As a result, S&P Dow Jones Indices had to change its index-weighting rules to account for the growing influence of the largest tech companies. The rise of a few big tech stocks has disrupted the market in unexpected ways, challenging the effectiveness of passive investing. S&P changed its methodology to comply with concentration rules, lowering the weights of Apple, Microsoft, and Nvidia in the SPDR fund. [Extracted from the article]

Silver's price has increased by about 34% this year, outpacing gold. Demand for silver as both a store of value and an industrial commodity has been strong, with the market experiencing a deficit for the past five years. Weak mine production and growing demand from industrial uses, particularly in solar-panel manufacturing, have contributed to the deficit. Investors' interest in silver coins and bars has also driven up prices. While there is still enough silver in vaults to cushion deficits, inventories have decreased by 26% in the past two years. China's demand for silver as a store of value and for industrial purposes could further drive up prices. The trajectory of the Federal Reserve's interest rates and industrial activity in the US are also factors to watch. Despite its recent rally, silver remains relatively cheap compared to gold. [Extracted from the article]

The article discusses the proliferation of exchange-traded funds (ETFs) and the potential risks associated with their expansion. It highlights a new ETF that focuses on stocks that have been removed from major indexes, arguing that these stocks can offer long-term investment opportunities. The article also mentions the challenges of creating innovative ETFs, particularly when it comes to illiquid assets. It concludes by suggesting that good investment ideas are becoming increasingly scarce. [Extracted from the article]

The article discusses the potential for small-cap stocks to perform well in the current economic climate. Small-cap stocks have historically underperformed compared to large-cap stocks due to their sensitivity to interest rates and economic conditions. However, with falling inflation and expected interest rate cuts, analysts and investors are optimistic about the future performance of small-caps. Small-cap exchange-traded funds have seen increased investment, but financial advisers caution that small-caps come with unique risks and costs. It is recommended that individual investors consider buying low-cost ETFs or mutual funds that track small-cap indexes for diversification. [Extracted from the article]

The article focuses on the implications of a potential Federal Reserve interest rate cut, which would favor borrowers but disadvantage savers, particularly impacting income investments. Topics include the surge in popularity of high-dividend funds amid falling interest rates, the associated risks such as tax implications and market overexposure, and the comparison of dividend yields with traditional stock indices.

U.S.-based mutual and exchange-traded funds have seen a net inflow of $172 billion so far this year, a significant turnaround after experiencing outflows in the past two years. This shift reflects a departure from risk aversion and a belief in the strength of the U.S. economy to support financial markets. Investors are now putting their money into stocks and bonds instead of cash-like products. The global investment in ETFs has reached a record high, and the S&P 500 is up 11% in 2024. However, skeptics argue that equity valuations are expensive and corporate debt yields are historically low. The stock market rally is dependent on the anticipated easier monetary policy, and if it doesn't materialize, the rally may falter. Despite these concerns, investors are displaying an elevated risk appetite and confidence, as seen in the significant inflows to riskier corporate bonds and loans. The breadth of funds taking in money is broad-based across various categories, and international stock benchmarks in Europe and Japan have also seen record highs. [Extracted from the article]

Grayscale Investments CEO Michael Sonnenshein has stepped down, and Peter Mintzberg, the global head of strategy for Goldman Sachs's asset and wealth management division, will take over as CEO in August. Grayscale's flagship bitcoin fund, the Grayscale Bitcoin Trust (GBTC), has experienced an investor exodus, with over $17 billion being pulled out since it converted into an exchange-traded fund in January. Mintzberg will face the challenge of reversing this trend and competing with newly launched bitcoin ETFs from other asset managers. Grayscale currently has about $30 billion in total assets under management. [Extracted from the article]

Vanguard Group, a major asset manager, has appointed Salim Ramji, a former executive at BlackRock, as its new CEO. This marks the first time an outsider has been chosen to lead Vanguard in its 50-year history. Ramji, who previously led BlackRock's exchange-traded funds and index investing, will assume the role in July. Vanguard is known for its low-cost index funds and is seeking to expand into the financial advice business. Ramji's appointment comes after the departure of CEO Mortimer J. "Tim" Buckley. [Extracted from the article]

The article discusses the global rush for physical gold, including bars, coins, and jewelry, driven by geopolitical turbulence and economic concerns. Small investors, worried about government debt and stock market volatility, are seeking tangible assets for security. The price of gold has risen over 40% since October 2022, despite the lack of bullish bets in futures and options markets. Chinese consumers, in particular, have been hoarding gold due to concerns about their country's economy. Central banks and individual buyers are both contributing to the increased demand for gold. The article suggests that uncertainty, inflation, and global debt are factors driving investors towards gold. [Extracted from the article]

Cannabis stocks experienced a surge after reports that the Biden administration may reclassify marijuana as a less dangerous drug. However, this reclassification would not lift the federal ban on marijuana. The main benefit of reclassifying marijuana would be to improve the cash flows of American growers by reducing their tax rates. However, other challenges such as limited access to banking services, trading restrictions across state lines, and the reluctance of major stock exchanges to list U.S. pot companies would still remain. Despite the potential boost from reclassification, investing in cannabis stocks remains a risky bet on federal approval. [Extracted from the article]

Investors are shifting their focus from moonshot projects to immediate profitability, as demonstrated by the market's response to Tesla and Meta's recent financial results. Tesla pleased investors by scaling back plans for a new car platform and prioritizing the launch of cheaper vehicles, while Meta's plan to invest billions more in artificial intelligence unsettled investors who were already concerned about the company's spending habits. This shift in investor mindset is driven by rising bond yields, which make risky ventures less appealing compared to safer investments. The performance of Cathie Wood's ARK Innovation ETF reflects this change, as investors now demand a clear path to profitability. The link between Big Tech share prices and earnings expectations has also become stronger, with stocks experiencing gains or losses based on changes in forecasted profits. Overall, CEOs who prioritize immediate profitability are more likely to satisfy investors and maintain a strong share price. [Extracted from the article]

Investors have been pouring billions of dollars into long-term U.S. government bond funds, only to experience significant losses when the market tanks. In 2023, a record $54 billion was invested in these funds, with more than half of the iShares 20+ Year Treasury Bond ETF's total assets coming in during that year alone. However, these funds have lost about 9% so far this year, resulting in substantial losses for investors. To avoid this fate, it is recommended to follow a few basic guidelines, such as holding individual Treasury bonds until maturity or investing in intermediate-term debt. It is important to be aware of the volatility and risks associated with long-term bond funds and to avoid making investment decisions based on interest rate forecasts. [Extracted from the article]

The Grayscale Bitcoin Trust (GBTC) has experienced significant outflows as investors move to lower-cost competing funds. GBTC remains the largest bitcoin fund in the world, but its assets have decreased by over half since November 2021 due to its 1.5% fee, while other funds charge next to nothing. Since January 11, investors have withdrawn a net $16 billion from GBTC, while competing ETFs have gained nearly $29 billion. Grayscale has resisted reducing its fees, relying on the rising price of bitcoin to sustain its fortunes. However, if outflows continue without a significant increase in bitcoin's price, the trust may face challenges. [Extracted from the article]

Franklin Templeton, a well-known asset manager, has shifted its focus towards private markets after experiencing a decline in its mutual-fund business. Through a series of acquisitions, the firm now manages over $260 billion in alternative assets such as private credit. This move comes as traditional asset managers seek to tap into the rapid growth and lucrative fee streams of private equity. However, Franklin faces challenges in integrating these acquisitions and maintaining talent and clients. Other asset managers, such as T. Rowe Price and BlackRock, have also pursued similar strategies to enter the private markets. [Extracted from the article]

Chinese investors are increasingly turning to gold as a safe haven investment due to concerns about the country's shaky economy. The central bank of China has been increasing its gold reserves, while consumers are buying gold jewelry and stock traders are investing in gold miners and exchange-traded funds. This surge in demand has contributed to the recent rally in gold prices, which reached an all-time high of over $2,200 per troy ounce. However, the price of gold could be affected by the Federal Reserve's interest rate cuts and strong economic data from the US. Chinese investors are diversifying into gold as a result of difficulties in the real estate sector, volatility in the equity market, and a weak currency. [Extracted from the article]

Bitcoin exchange-traded funds (ETFs) have attracted billions of dollars from investors since their launch in January. However, financial advisers, who oversee trillions in client assets, have been largely hesitant to invest in these funds. Most of the buying activity has come from individual investors, and it is unclear whether these buyers are new to cryptocurrency or simply shifting their bitcoin holdings from more expensive products and exchanges to low-cost ETFs. Wealth-management platforms at major firms like Morgan Stanley and Merrill Lynch currently offer the funds only on an unsolicited basis. There are concerns about reputational and legal risks associated with approving and allocating client assets to spot bitcoin ETFs, as well as regulatory caution and concerns about putting cryptocurrencies in retirement accounts. Some self-directed brokerage platforms, such as E*Trade and WellsTrade, offer the bitcoin funds, but Vanguard has stated that it has no plans to offer a bitcoin ETF. Smaller registered investment advisers have approved some of the bitcoin ETFs, evaluating factors such as fees, trading volume, and custodians before making their selections. Overall, financial advisers are cautious about bitcoin ETFs due to the volatility and regulatory uncertainties associated with cryptocurrencies. [Extracted from the article]

BlackRock CEO Larry Fink, who previously criticized bitcoin, has become a believer in the cryptocurrency. BlackRock now manages the fastest-growing bitcoin fund and has partnered with major players in the digital-assets industry. This shift in attitude from a prominent Wall Street firm like BlackRock signals a growing desire to capitalize on the cryptocurrency market. BlackRock's embrace of bitcoin has also led to the creation of a low-cost exchange-traded fund, making it easier for mainstream investors to buy and sell bitcoin. However, critics express concerns about the reputational risk and the fees associated with investing in such a volatile asset. BlackRock's move into the crypto space contrasts with its biggest rival, Vanguard, which has no plans to offer crypto-related products. In addition to bitcoin, BlackRock is also exploring the launch of an ETF holding ether, the second-largest cryptocurrency. [Extracted from the article]

Bitcoin's recent rally can be attributed to the basic principles of supply and demand, according to supporters of the cryptocurrency. The launch of US exchange-traded funds (ETFs) holding bitcoin has led to increased demand for the digital currency, prompting the funds to buy more bitcoin and drive up its price. Bitcoin's unique feature is its limited supply, with a maximum of 21 million coins that can be mined. This scarcity, combined with the influx of investment into ETFs, has contributed to the recent surge in bitcoin's value. However, skeptics still view bitcoin as a speculative asset without intrinsic value, and there is no guarantee that its rally will continue. [Extracted from the article]