Indexed annuities are becoming increasingly popular as retirement tools because they blend growth potential with protections not found in traditional fixed annuities. These products allow investors to defer taxes on gains until distributions begin, making them attractive for long-term retirement income strategies. 

Equity-indexed annuities (EIAs) and registered index-linked annuities (RILAs) tie returns to market indexes, with EIAs offering a guaranteed minimum return and RILAs providing downside buffers or floors to manage risk. However, features like caps, participation rates, and fees can limit upside potential, so retirees must carefully review contracts to understand how returns will be credited. 

Indexed annuities are designed for long-term holding, and early withdrawals can lead to surrender charges and tax penalties that erode principal. 

Finsum: For retirement savers, these products can serve as a middle ground between fixed and variable annuities, offering balance, income potential, and risk management over the long haul.

Private equity leaders are cautioning that while industry assets are likely to keep expanding, the number of firms competing for those dollars could shrink dramatically. KKR’s CFO Robert Lewin and Apollo’s president Jim Zelter both suggested that smaller managers, burdened by high fixed costs and limited fundraising capacity, may not survive the next cycle. 

Lewin forecasted a wave of organic consolidation over the next five years, while Zelter warned that many firms may already have raised their last fund without realizing it. Larger players, by contrast, are positioned to thrive, offering a wider array of products and attracting investors eager to simplify their GP relationships. 

Consolidation could also accelerate through acquisitions, with bigger firms absorbing weaker rivals. 

Finsum: The same pressures are expected to spread into venture capital, where scale and distribution strength are becoming just as critical.

The target date market surged in the first half of 2025, with combined assets across mutual funds, CITs, and custom solutions rising 10% to more than $4.7 trillion. Vanguard extended its dominance, adding $121 billion to reach $1.6 trillion, far ahead of Fidelity’s $623 billion. 

A major development is the rapid rise of income-enabled target date funds, whose assets climbed to $103 billion, led by TIAA’s RetirePlus model and BlackRock’s LifePath Paycheck series. 

These products reflect growing demand for pension-like security within modern 401(k) structures, blending glide paths with annuity-based income features. Co-manufacturing partnerships between recordkeepers, insurers, and asset managers are fueling much of this innovation, while CIT-based target date funds have overtaken mutual funds, now holding 53% of assets. 

Finsum: Target date funds are a great way to start a portfolio for clients and then to build customization around the edges. 

Rocky markets with lots of macro uncertainty have investors looking harder for diversification. While private assets are drawing attention, a quieter corner of the alternatives world — managed futures ETFs — has quietly surged in popularity. 

Funds like the Simplify Managed Futures Strategy ETF (CTA) and the Invesco Managed Futures Strategy ETF (IMF) have each attracted hundreds of millions of dollars in new inflows this year. 

These strategies follow market trends across asset classes, taking long and short positions in commodities, rates, currencies, and sometimes equities. Their key appeal lies in their historically low correlation to both stocks and bonds, making them useful portfolio diversifiers. 

Finsum: With investors searching for tools to steady returns in volatile markets, managed futures ETFs are stepping into the spotlight as timely complements to traditional allocations.

Treasury Secretary Scott Bessent said Tuesday he is optimistic that the U.S. and China are closing in on a trade agreement. In an interview with CNBC, he noted that upcoming talks ahead of November’s scheduled reciprocal tariffs have become increasingly productive. 

Bessent suggested Beijing now recognizes that a deal is within reach, even after months of back-and-forth since tariffs were first announced in April. 

While China initially faced duties as high as 145%, those measures have been suspended through Nov. 10 to allow negotiations to continue. He also highlighted that U.S. allies are frustrated by the surge of Chinese goods into their markets, a dynamic adding urgency to the talks. 

Finum: With the U.S. trade deficit with China already narrowing sharply in 2025, there could be a strong incentive to reach a trade deal as soon as possible. 

Recent changes allow 401(k) plans to hold private market and alternative investments, opening the door for managed accounts to expand their offerings. Managed accounts, which provide professionally managed, customizable portfolios, are seeing rapid growth, with assets reaching $13.7 trillion in 2024 and net flows topping $811 billion. 

Incorporating private equity, venture capital, private credit, and real estate into these accounts requires robust technology for reporting, valuations, and liquidity management. 

Firms like InvestCloud are creating platforms that enable scalable, model-based access to private market investments, allowing advisors to integrate these assets alongside traditional ETFs and mutual funds. Such technology also supports liquidity solutions, like lending against securities, so investors can access cash without disrupting long-term strategies. 

Finsum: With regulatory adjustments, including tweaks to the Accredited Investor rules and the 401(k) shift, managed accounts are positioned to broaden access to previously hard-to-reach alternative investments.

Momentum remains the dominant factor in 2025, with the iShares MSCI USA Momentum ETF (MTUM) up 19.6% and the Invesco High Beta ETF (SPHB) close behind at 18.7%, both well ahead of the S&P 500’s 10.7% gain. 

Growth ETFs are trailing the leaders, with the iShares S&P 500 Growth ETF (IVW) delivering a solid 14.2% return. Factor leadership has been narrow, with momentum and high beta capturing most of the gains so far this year. 

At the same time, investors are showing renewed interest in high-dividend strategies, as the Vanguard High Dividend Yield ETF (VYM) hit a record high. Expectations of Federal Reserve rate cuts are making dividend payouts more attractive relative to bonds. 

Finsum: Momentum, high beta, and dividend strategies are setting the tone for factor performance in 2025.

In August 2025, small-cap and value stocks staged strong comebacks, with the Morningstar U.S. Small Cap Index up 4.6% and the Value Index up 5.1%, far outpacing large-cap and growth peers. 

Despite this rally, value stocks still trade at a 3% discount to fair value and small caps at a steep 15% discount, making them the most attractive corner of the market. Historically, small caps thrive when the Fed is easing and long-term rates are falling—conditions now taking shape as policymakers prepare to cut rates and Treasury yields trend lower.

The question is whether this marks a lasting rotation or just a temporary head fake, but investors continue overweight exposure given the difficulty of timing inflection points. Beyond style and size, the most undervalued sectors remain communications, real estate, energy, and healthcare, each offering selective opportunities. 

Finsum: Investors seeking value and long-term upside should continue looking to small-cap stocks, where discounts remain widest and potential gains greatest.

The best wines for fall are those with structure, depth, and versatility, offering comfort and pairing well with seasonal foods as cooler weather sets in. Fuller reds like pinot noir, cabernet franc, and GSM blends provide earthy, peppery, and spiced notes that complement hearty meals, while structured rosés such as Tavel, pinot noir rosé, and Spanish garnacha rosado hold up well against richer fare. 

Affordable bottles—including Bogle Old Vine Zinfandel, Cline Viognier, Louis Jadot Beaujolais-Villages, and Pine Ridge Chenin Blanc + Viognier—deliver character without breaking the budget.

Proper service enhances the experience: reds show best when poured at 55–65°F depending on body, and glassware shapes can amplify aroma and texture. Oak-aged wines with hints of spice or vanilla mirror autumn cooking, while clean, thoughtful pours reinforce the season’s slower, more intentional dining pace. 

Finsm: Fall wines bring together flavor, mood, and ritual, turning every meal into an expression of the season.

We’re excited to share that Finsum is entering a new chapter! In the near future you’ll see some big changes as we roll out a refreshed look, a brand-new website, and an upgraded newsletter experience.

As part of this transition, our emails will soon come from a new sender address: عنوان البريد الإلكتروني هذا محمي من روبوتات السبام. يجب عليك تفعيل الجافاسكربت لرؤيته.. To ensure you don’t miss future issues, please take a moment to add us to your safe senders list so you’ll always get the latest news straight to your inbox.

This change is just the beginning—we have exciting updates planned to bring you sharper insights, a cleaner design, and an overall better reading experience.

Thank you for being part of the Finsum community. We can’t wait to share what’s ahead.

FinWarm regards,
The Finsum Team