Direct Indexing

Experts from the third-largest ETF manager by AUM make their predictions regarding active, retail, and inheritances.

It's important to understand the true meaning behind the names of investment funds, especially when it comes to those labeled "tax-managed"

I have been looking forward to writing this blog for a long time. I joined Russell Investments on July 12, 2004 and now that it is my 20th anniversary, I feel it’s the right moment to share some of what I have learned along the way.

Many investors hold a concentrated stock position that represents a large percentage—typically 10% to 20%—of their overall portfolio value. Let’s review the risks of concentrated positions and then survey some of the possible solutions.

Rebalancing events help ensure benchmarks maintain exposure to companies within their targeted asset class or markets, but the rebalancing can also impact investment portfolios.

June of 2024 was a good month for financial markets. Leading the pack were (again) technology stocks, with the NASDAQ up 6% on the month. Close in second place were emerging market ex-China stocks, largely driven by India, Taiwan, and South Korea, all of which had large rallies in the month.

As an advisor, you know that no two clients are alike. Each has their own financial goals, risk tolerance and opinion on how they want to invest.

You’ve probably heard the term “direct indexing.” It seems like everyone is talking about it. You’ve probably also read that sales of direct indexing products are booming. But what exactly is direct indexing?

VettaFi discusses changes in the MLP/midstream investment product landscape.

If you’re not sure what direct indexing means, you’re not alone. Even after the recent growth, direct indexing remains relatively unknown. As our compliance team never fails to remind us, you can’t invest directly in an index. So what exactly is direct indexing?

As equity volatility and market uncertainty continue, investors increasingly turn to equity income strategies for opportunity.

We believe high-yield munis carry additional risks, but are worth consideration by investors in higher tax brackets who are comfortable taking added risks.

It’s a frequent question asked by organizations looking for an outsourced investment solutions provider. Our answer may surprise you.

Educating workers about workplace benefits is vital to employee retention, according to findings from Franklin Templeton’s 2024 “Voice of the American Workplace” survey. Our Jacque Reardon shares findings from the survey related to what employees want—and how employers can meet these needs to benefit both parties.

April 15 is undoubtedly one day that is not enthusiastically celebrated by most people. It is safe to say that the discomfort around Tax Day likely ranks right up there with your annual physical or renewing your driver’s license.

This week continues our series on dividends and dividend growth stocks. This is one part of my strategy to try to get through what I see as a coming crisis by the end of the decade with as much of my buying power as intact as possible.

Our outlook is still positive, but it may be difficult to replicate the strong returns of the past few quarters.

Since their inception, exchange traded funds (ETFs) continue to grow their market share and popularity with investors. The tax efficiency for which they are known comes down to three primary mechanisms from which the vehicle wrapper benefits.

On the lookout for some new ETFs? Active ETFs had a great year in 2023 and are off to a hot start in 2024. The question, then, is how to choose from a growing list of strategies. One powerful heuristic for assessing ETFs — tech analysis — can help.

Looking back, I believe the financial advisors who were most willing to adapt to changing times were generally more able to set themselves apart from the crowd and experienced a higher rate of success.

Municipal bonds posted negative total returns as the market reassessed macro expectations. Seasonal supply-and-demand dynamics were supportive, albeit less so than in prior years.

In less than 2 weeks, advisors will flock to sunny Miami for the annual Exchange Conference. Content sessions this year offer advisors insight into growing their business models in unexpected ways, the macro and market environment of 2024, navigating the AI revolution, and more.

Many advisors wait until the end of the year to harvest tax losses, but that may not be the best policy. Stock markets frequently go up in the last two months of the year so better harvesting opportunities may be available at other times.

A traditional 60/40 stock/bond portfolio has been a tried and tested strategy among financial planners. But income seekers can specifically reap the benefits of both assets with exposure to one active exchange-traded fund: the NEOS Enhanced Income Aggregate Bond ETF (BNDI).

Initiate the year with direct indexing, encompassing tax planning, personalized investing strategies, rejuvenating sidelined cash, and navigating concentrated stock positions or financial windfalls.

Tax-loss harvesting is an essential tax-management strategy that can benefit a broad range of taxable investors – even those who many not think they have to worry about investment taxes.

The January effect, named for the market anomaly where stock returns in January are typically higher than in other months, has been a subject of interest since it was first documented in 1942.

2023 proved to be another year when the consensus views were not correct. A few of these views that turned out non-prescient were that inflation would remain elevated in mid-single digits or higher, higher interest rates would crush housing prices, consumer spending would collapse, and oil prices would continue to rise.

A friend of our stock picking discipline reminded us of a very important force in the stock market. It was called the 70/20/10 rule, and it was promoted by Roger Edelman, Richard Evans and Gregory Kadlec in an early 2013 Financial Analysts Journal article.

The prevailing consensus in 2024 is that the Federal Reserve will cut interest rates. But predicting central bank moves is an inexact science. That said, fixed income investors could use the help of an active strategy to continue extracting higher yields.

Municipal Bond Strategist Jim Grabovac looks at how the municipal bond market wrapped up 2023 and shares his expectations for the year ahead.

The ETF industry is buzzing as long-awaited spot bitcoin ETFs are likely to get the green light from the SEC in the coming days. We expect trading of multiple products to begin soon after.

In 2023, investing in growth was highly rewarding. We all heard about the Magnificent Seven Stocks that kept climbing higher throughout the year.

From the banking crisis to the U.S. debt-ceiling saga, from inflation concerns to recession fears, from soaring bond yields to slowing consumer spending, 2023 had no shortage of issues for investors to worry about.

While 2022 was a brutal year for bonds, fixed income enjoyed many tailwinds this year, from high interest rates to lowered inflation to a less volatile economy. This made 2023 the year for fixed income. And in particular, it was a good year for Vanguard.

Municipal bonds posted their best performance of the year, and we believe municipal credit conditions remain strong.

What was the biggest story in ETFs in 2023 for you? What has the potential to have a lasting impact on the industry? Or is there something you think was a flash in the pan?

Although cash donations are appreciated, donating securities may be more impactful for both the charity and the donor.

Municipal bonds posted historic total returns of 5.90% in November. Rallying interest rates led the way, while strong demand aided outperformance versus Treasuries.

The Market Outlook Symposium is coming on December 14. The latest symposium from VettaFi will offer investors a deep and incisive look at how to position for 2024 and beyond. In today’s unusual market environment, this is a critical topic.

With more than 3,000 ETFs to cover and many new ones launching each month, it is easy to forget. For many people, S&P 500 Index-based ETFs remain the core of their portfolio. Heading into 2024, these products topped the latest monthly flow leaderboard.

Tax-loss harvesting creates an opportunity every year for advisors to turn lemons into lemonade. Advisors can realize losses that their clients experienced during the year and use them to offset realized gains in other parts of their portfolio.

As I start thinking about Christmas this year, I decided I want to be on the nice list again, so I put together some useful year-end actions and ideas for financial advisors.

What were the big ETF trends of 2023? David Mann, Global Head of ETF Product & Capital Markets, reviews some of his predictions for this year—and how they panned out.

Dina Ting, Franklin Templeton’s Head of Global Index Portfolio Management, sheds light on the benefits of single-country ETF allocations against what has been a rocky macro backdrop and discusses ways to re-evaluate potential opportunities in terms of tax-loss decision-making.

Is the Federal Reserve nearing the end of its rate-hiking cycle? The U.S. central bank is giving investors mixed messages. The Fed has recently paused its rate hikes and said it would keep interest rates between 5.25% and 5.5%.

With the end of the year rapidly approaching, it’s time again to consider tax-loss harvesting opportunities. So, it may be an opportune time for investors to consider where they can best capture potential tax benefits.

For this edition of Bull vs. Bear, Nick Peters-Golden and James Comtois debate whether this is truly the year active ETFs turned pretty.

While bond prices are generally down, the income they provide is up, providing potential opportunities for fixed income investors.

Investment taxes can have a real impact on a portfolio. Investors should be aware of four key tax realities they currently face. Without a plan to manage these taxes, investors may find their ability to retire comfortably could be compromised.