Wealth Management
Artificial intelligence has remained one of the most resilient sectors in U.S. equities, with companies like Nvidia and Microsoft benefiting from rising adoption even as other sectors faced volatility.
With trade war and inflation concerns beginning to ease, analysts suggest AI growth could strengthen further, making direct exposure an appealing option for investors. ETFs provide one way to access this theme, but careful due diligence is essential in selecting strategies with the best long-term potential.
The Alger AI Enablers & Adopters ETF (ALAI) differentiates itself by using bottom-up research and active management to uncover overlooked AI innovators. Its proprietary framework emphasizes companies showing high unit volume growth or positive lifecycle changes, positioning the fund to potentially outperform passive AI ETFs.
Finsum: Investor interest is already growing—FactSet data shows ALAI attracted $40 million in net flows in July 2025, signaling strong confidence in its approach.
A new Northwestern Mutual study shows that while Americans are experimenting with AI in daily life and at work, most remain hesitant to rely on it for something as personal as financial planning.
More than half of respondents said they trust human advisors over AI for tasks like retirement planning and portfolio management, with only a small fraction willing to put that responsibility in the hands of algorithms. The survey underscores that money decisions are not purely analytical but tied to life goals, emotions, and family priorities—areas where people value empathy and nuance.
At the same time, nearly half of Americans say they are comfortable with financial advisors using AI behind the scenes, particularly younger generations who see technology as a natural extension of expertise. Gen Z and millennials, in particular, were more open to advisors who integrate AI into their practice, compared to Gen X and baby boomers.
Finsum: Americans want the best of both worlds: the efficiency and insights that AI can provide, paired with the judgment and human connection of a trusted financial advisor.
Corebridge Financial has launched Power Select AICO℠, a new index annuity developed in partnership with Market Synergy Group, featuring a unique Additional Interest Credit Overlay (AICO) that can boost earnings by up to 200%. The product offers exposure to major indices like the S&P 500® and Nasdaq-100®, along with fixed interest options, while providing 100% downside protection against market losses.
Unlike traditional index annuities, the overlay allows for enhanced accumulation during weak markets, though it comes with a 0.80% annual fee and a cap on the maximum overlay benefit.
Executives say the design helps investors diversify and accumulate assets regardless of market conditions, while still offering protection during downturns. The contract guarantees are backed by American General Life Insurance Company, a Corebridge subsidiary, though withdrawals may carry tax implications and early withdrawal penalties.
Finsum: With its combination of growth potential, protection, and innovative crediting structure, index annuities are perfect for retirement savers seeking balance between safety and upside.
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Structured notes are often pitched as sophisticated tools for yield and downside protection, but they carry layers of risks that can outweigh their potential benefits. Because they are debt obligations of the issuing bank, their value hinges on the issuer’s creditworthiness, leaving investors vulnerable in the event of a default.
High, often hidden, fees further erode returns, with some products charging over 2% annually on top of advisor commissions. Liquidity is another concern, as structured notes rarely trade in active markets, forcing early sellers to accept steep discounts.
Their complex payoff structures can also mislead investors into believing they hold principal protection when in reality protections are conditional and limited. Tax treatment is murky as well, with many products generating taxable “phantom income,” creating unexpected burdens that make structured notes a risky choice for most retail investors.
Finsum: While structured notes are perfect for lots of investors illiquidity and complexity that may leave investors worse off than with simpler, more transparent options.
Large-cap blend mutual funds offer investors a balance of growth and value stocks, providing diversification and stability compared to small- or mid-cap funds.
Among the top picks are Ultrabull Profund Investor Shares (ULPIX), Vanguard Growth and Income Fund (VQNPX), and JPMorgan U.S. Research Enhanced Equity Fund (JDEAX), all carrying a strong buy. ULPIX aims to double the daily performance of the S&P 500, posting impressive three-year annualized returns of 29.5%.
VQNPX focuses on capital appreciation plus dividend income, with three-year annualized returns of 19.7% and a low expense ratio of 0.38%. JDEAX delivers consistent returns by investing in a diversified mix of S&P 500 companies, achieving three-year annualized returns of 19.6% under the steady management of Raffaele Zingone.
Finsum: These funds typically invest in companies with market capitalizations above $10 billion, making them attractive for risk-averse investors seeking long-term performance.
Separately managed accounts (SMAs) are gaining traction among financial advisors, with Cerulli Associates projecting assets in these programs to surpass $2 trillion in 2025. Assets grew 12% in 2023 and are expected to rise another 15% this year, boosted by the popularity of unified managed accounts (UMAs) that combine SMAs, mutual funds, and ETFs for tax efficiency and personalization.
Advances in technology have made SMAs easier to manage, lowering minimums from millions to as little as $100,000 and expanding access beyond just high-net-worth clients.
Advisors now use SMAs to tailor portfolios for tax management, ESG preferences, or concentrated stock positions, while UMAs provide a holistic view for strategies like tax-loss harvesting. The shift from commission-based brokerage accounts to fee-based managed accounts reflects investor demand for fiduciary oversight, transparency, and control.
Finsum: With features like fractional share trading and portfolio-wide tax optimization, SMAs are increasingly seen as a flexible and efficient tool for personalized wealth management.