MARKET WATCH MAGAZINE SERIES
Indeed, many traditionally market mutual funds have launched their own series of ETFs, including J.P. “I think the future for ETFs is bright, and that they will continue to grow as an investment vehicle used by advisers,” said duQuesnay. In fact, one in two advisers say they plan to increase their use/recommendation of ETFs over the next 12 months. We also avoid ETFs that invest in illiquid securities such as high-yield bonds, certain municipal bonds, and any private investments.”Īccording to the study, the trend to use ETFs is likely to continue in 2017 and beyond. “These types of products are designed to perform based on daily pricing, which make them inappropriate for long-term investors. “Leveraged ETFs and those with derivatives underlying are ones we avoid,” she said. Because we are long-term, strategic investors, the intraday liquidity of ETFs is not of great importance to us.”ĮTFs are most appropriate for liquid securities traded in real time, duQuesnay said. “While mutual funds must pay out capital-gains distributions, ETFs are often able to avoid capital gains through the share creation process. The tax efficiency of the ETF structure is the most overlooked benefit,” she said. “We favor ETFs for their tax efficiency and low cost. ThirtyNorth Investments, said duQuesnay, is “agnostic” to whether a mutual fund or ETF will be the appropriate investment in each asset class. “We build portfolios by first determining the proper asset allocation, then by selecting investments to fulfill the allocation decision.” “We are long-term, strategic investors,” said Blair duQuesnay, chief investment officer at ThirtyNorth Investments. Additionally, ETFs are more available, with trading possible when the market is open, opposed to end-of-day only for mutual funds.”Īnother adviser, meanwhile, says her firm tends to use the investments that best fit a client’s needs - be it a mutual fund or ETF. “While historically the downside to utilizing ETFs was trading costs, the race of larger custodians to zero fees has plummeted costs to $4.95 per trade. “ETFs are a great way to capture sector or asset-class exposure with very little expense,” said Kelly Crane, president and chief investment officer of Napa Valley Wealth Management. Despite that increase use of ETFs, which are largely passive investments, 77% of advisers say they favor a blend of active and passive management investments. What’s driving the increased use of ETFs among advisers? Three things: Lower costs (49%) tax efficiency (23%) and trading flexibility (14%). But advisers’ appetite for private-equity funds has risen from 3% in 2006 to 15% in 2017.Īlso of interest, the survey suggests that advisers will decrease their use of individual stocks, mutual-fund wrap programs, variable annuities, individual bonds and nontraded REITs over the next year. For instance, 85% of advisers use and recommend cash and cash equivalents 80%, non-wrap mutual funds 61%, individual stocks 52% individual bonds and 33% mutual fund wrap programs.īy contrast, a low percentage of advisers surveyed use esoteric investments such as hedge funds (9%) and nontraded REITs (15%). These ideas are used by individual investors as well as institutional investors to do further research and stay ahead.Of course, advisers use/recommend other types of investments too. The reader-friendly presentation of the idea, supplemented by relevant data and information, can be accessed online through Capita Telefolio and Telefolio Gold. The power of the database is harnessed by our fired-up reporters to generate interesting ideas. Besides stock market and company-related articles, the magazine’s independent and insightful coverage includes mutual funds, taxation, commodities and personal finance. While all the leading institutional investors use Capitaline databases, Capital Market magazine gives access to the databases to individual investors through Corporate Scoreboard.
MARKET WATCH MAGAZINE OFFLINE
Many innovative online and offline applications of these databases have been developed to meet various common as well as customized requirements. Over the years the scope of the databases has enlarged to cover economy, sectors, mutual funds, commodities and news. Latest technologies and standards are constantly being adopted to keep the database user-friendly, comprehensive and up-to-date. Today Capitaline corporate database cover more than 35,000 listed and unlisted Indian companies. Formed in 1986, Capital Market Publishers India Pvt Ltd pioneered corporate databases and stock market magazine in India.
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