Displaying items by tag: equity

President Donald Trump has signed an executive order that could reshape 401(k) investing by allowing retirement savers broader access to private equity, cryptocurrency, real estate, and other alternative assets. 

Proponents argue the change could improve diversification and expand opportunities, particularly as more companies remain private, while critics warn of higher risks, limited transparency, and steep fees compared to traditional mutual funds and ETFs. The order directs the Department of Labor and SEC to review guidance and consider rules that would make these investments more accessible within 180 days, potentially encouraging more employers to offer them. 

Supporters in the asset management industry see this as a democratization of private markets, but fiduciary advocates caution that inexperienced investors could suffer devastating losses without strict safeguards. Experts recommend limits—such as capping exposure to 5%–10% of a portfolio—and robust investor education to mitigate risks. 

Finsum: Even if changes take months to materialize, the move signals a major shift in U.S. retirement policy, one that could expand investment menus while also amplifying the stakes for 401(k) participants.

Momentum investing has gained traction as a powerful tool for capturing upside in post-recessionary bull markets, and the iShares MSCI USA Momentum Factor ETF (MTUM) exemplifies this approach. 

Designed to overweight stocks with strong recent performance, MTUM delivered a 1,030% total return from 2009 to 2025, recovering quickly from drawdowns and outperforming broader market indices. Its risk-adjusted returns, reflected in a Sharpe ratio of 0.68 and Sortino ratio of 0.90, show that it balances volatility with consistent performance, particularly when tilted toward high-growth sectors like tech. 

Academic research backs this strategy, highlighting its resilience and efficiency during economic recoveries, especially when managed with volatility controls. While MTUM carries market risk, its focus on large and mid-cap stocks helps mitigate exposure to smaller, more volatile names. 

Finsum: For long-term investors willing to ride short-term swings, MTUM presents a disciplined way to harness the enduring power of momentum.

The Franklin U.S. Large Cap Multifactor Index ETF (FLQL), launched by Franklin Templeton in 2017, provides broad exposure to the U.S. large cap blend market by tracking the LibertyQ US Large Cap Equity Index. With $1.56 billion in assets under management and an expense ratio of just 0.15%, FLQL is a low-cost option for investors seeking diversified exposure to large, stable companies combining value and growth traits. 

The ETF emphasizes information technology, healthcare, and telecom, with top holdings including Nvidia, Microsoft, and Apple—its top ten positions making up over a third of the portfolio. 

Its strategy uses a multifactor model focusing on quality, value, momentum, and low volatility to outperform traditional benchmarks like the Russell 1000 over time. Year to date, FLQL has returned 10.89% and nearly 18.52% over the past year, with a beta of 0.94 and 217 holdings to help mitigate company-specific risk. 

Finsum: For those comparing alternatives, SPY and VOO are larger and slightly cheaper S&P 500-tracking ETFs, but FLQL offers a unique multifactor approach worth considering.

Global equity funds attracted $8.71 billion in net inflows, reversing the previous week’s $4.4 billion outflow, as risk appetite returned. Investor optimism was fueled by solid U.S. economic data, progress on trade deals with Japan and the EU, and upbeat early earnings reports, including record profits from TSMC and a forecast bump from PepsiCo. 

European equity funds led the charge with $8.79 billion in inflows, their best showing in 11 weeks, while U.S. equity outflows slowed significantly. Sector-wise, tech rebounded with $1.61 billion in inflows, while financials and industrials each brought in over $1 billion. 

Global bond funds continued their 14-week inflow streak, adding $17.94 billion, led by short-term, euro-denominated, and high-yield bond categories. Commodity funds saw a resurgence too, with gold and precious metals funds notching $1.9 billion in net inflows, their strongest showing in over a month.

Finsum: If optimism over trade deals and AI-driven earnings continues to build, we could be on the verge of a sustained equity rally that pulls even hesitant U.S. investors off the sidelines.

As investors brace for the effects of Donald Trump's second term, Scott Sperling, Co-CEO of Thomas H. Lee Partners, offers a fresh outlook on the private equity scene. Mark Rowan, CEO of Apollo Global Management, hints at pursuing strategic acquisitions to bolster the firm's growth, while maintaining a strong focus on its existing operations. 

Sperling foresees an uptick in economic expansion and reduced operational costs under the new administration, largely due to regulatory reforms. He reflects on the past few years, noting that stringent regulations have made deals like mergers and acquisitions more complex and costly.

 Sperling also highlights the recent pressure on major tech companies, as government scrutiny and antitrust actions could stifle innovation in key sectors. Nonetheless, he remains hopeful that private equity will thrive, despite the challenges posed by shifting political dynamics

Finsum: We anticipate both regulatory and policy changes to be friendlier to P/E in the new administration.