Debentures are long-term debt instruments that allow companies and governments to raise capital without pledging specific assets as collateral. These unsecured bonds appeal to investors seeking portfolio diversification and fixed income, though they carry risks tied to the issuer’s creditworthiness. 

While government-issued debentures are generally low-risk due to sovereign backing, corporate debentures rely on the company’s financial health and reputation, making credit ratings an essential consideration. 

There are various types: convertible debentures can later be exchanged for company stock, while nonconvertible ones cannot but typically offer higher interest rates; similarly, secured debentures are backed by company assets, whereas unsecured ones are not, increasing the investment risk but potentially offering higher yields. 

Finsum: While they provide regular income and reduced exposure to market volatility, investors must weigh those benefits against interest rate sensitivity and potential default risk.

Active ETFs have officially outnumbered their passive counterparts in the U.S. for the first time, with 2,069 listed funds as of mid-June. While passive ETFs still hold the lion’s share of assets under management, investor interest is clearly shifting—active strategies have attracted nearly 40% of total ETF inflows this year. 

Many investors are turning to active ETFs for more agile, hands-on approaches in navigating today’s unpredictable markets, particularly in fixed income and equity sectors. The SEC is also weighing changes that would allow mutual funds to launch ETF share classes, a move that could dramatically expand access to active strategies and boost tax efficiency. 

However, this flexibility may come at a cost for asset managers, as ETFs typically can't turn away new investors like closed mutual funds can, potentially limiting a manager's control over fund size and strategy execution. 

Finsum: With U.S. ETF assets reaching $11 trillion in May, these structural shifts could fuel continued growth and reshape the way investors access actively managed portfolios.

Oil prices climbed as markets reacted to looming U.S. sanctions targeting Russian energy exports, signaling tighter global supply ahead. West Texas Intermediate surged over 2%, breaking above $68 per barrel after President Trump teased a major announcement on Russia and hinted at aggressive tariffs on countries like China and India that continue buying Russian oil. 

Analysts suggest these potential sanctions are offsetting concerns about rising OPEC+ output, especially as Saudi Arabia exceeded its production quota in June amid heightened geopolitical tensions with Iran. 

However, the rally was tempered by Trump's separate threat of a 35% tariff on select Canadian goods, though core energy imports under the USMCA will likely remain unaffected. Meanwhile, traders shrugged off the temporary production surge from Gulf producers, focusing instead on stable Saudi pricing to China and expected output curbs from OPEC+ starting October. 

Finsum: With sluggish global demand growth in 2025 the market may face a delicate balance between geopolitical supply shocks and muted consumption.

The U.S. wealth management industry enters 2025 with strong fundamentals and surging demand for advice as Americans accumulate more wealth and face increasingly complex financial decisions. Over the past decade, revenue from fee-based advisory relationships has grown significantly, and the number of human-advised relationships is projected to rise by as much as 34% by 2034. 

However, a looming shortage of advisors—an estimated gap of 100,000 by 2034—threatens the industry’s ability to keep pace, prompting firms to modernize operating models, leverage AI for productivity, and intensify recruitment efforts. Amid this talent crunch, advisor transitions will become more common, and ensuring continuity in client service will hinge on robust recordkeeping practices, including detailed CRM usage and clear documentation of financial plans and client preferences. 

Properly managed data is not just a regulatory requirement—it also allows new advisors to step in seamlessly and sustain trust when client relationships change hands. As firms evolve, the combination of human guidance, well-preserved institutional knowledge, and tech-driven scalability will be critical to supporting the next generation of clients.

Finsum: Leveraging technology to optimize your transition will be key for both new advisors and clients. 

Value investing, long championed by legends like Warren Buffett, has historically delivered strong long-term returns. However, in the past decade, growth stocks have significantly outpaced value due to low interest rates inflating the valuations of high-growth companies. 

From 2011 to 2020, large value funds underperformed growth funds by more than five percentage points annually, and in 2020 alone, the gap was a striking 32.2%. Although value outperformed in 2022, the trend reversed in 2023 and 2024, with growth indexes returning over 40% and 33%, respectively, compared to value’s 11.5% and 14.4%. 

Still, investors looking for long-term value exposure can consider top ETFs like the Vanguard Value ETF (VTV), iShares Russell 1000 Value ETF (IWD), and Vanguard Small-Cap Value ETF (VBR). 

Finsum: These funds offer broad diversification, low expenses, and dividend yields making them attractive options for value-focused portfolios.