Wealth Management
Artificial intelligence is rapidly becoming a fixture in the financial advisory space, with over three-quarters of firms already using or exploring it. Rather than viewing AI as a threat, advisors should see it as a valuable ally that enhances efficiency and allows more time for meaningful client engagement.
AI tools can streamline research, summarize documents, and provide fast answers to complex client questions, saving hours of manual effort. During meetings, AI-driven transcription services like Zoom AI Companion and Jump AI can capture notes and action items, allowing advisors to stay fully present.
In marketing, platforms like Canva and Mailchimp now use AI to create polished content quickly, while tools like ChatGPT can also help formalize internal documentation and standardize processes.
Finsum: By embracing these tools, advisors can elevate service quality, boost operational efficiency, and increase the long-term value of their firm.
Treasury yields declined on Tuesday as investors grew more confident that an immediate escalation in the U.S.-E.U. trade conflict might be avoided. The 30-year yield fell to 4.984% and the 10-year to 4.475%, coinciding with a rise in stock futures.
This drop in yields suggests renewed investor demand for government bonds, signaling reduced risk sentiment and a preference for safety. The shift followed President Trump’s decision to delay imposing new tariffs on the European Union, pending further negotiations.
While E.U. officials expressed optimism about a potential deal, recent trade tensions have already rattled markets, leading to weak demand for U.S. Treasurys in last week’s auction.
Finsum: Compounding concerns is a major Republican policy proposal moving through Congress that lacks full funding, raising additional doubts about America’s fiscal outlook.
Growth ETFs offer a simplified way to invest in high-potential stocks without the time-consuming analysis required for picking individual winners. Key factors to consider when choosing a growth ETF include its long-term performance, sector diversification, expense ratio, and top holdings.
The best ETFs typically maintain strong five- and ten-year returns, low costs, and broad exposure to tech-heavy but diversified portfolios. Notable examples include the iShares Russell Top 200 Growth ETF (IWY), Schwab U.S. Large-Cap Growth ETF (SCHG), and Vanguard Mega Cap Growth ETF (MGK), all boasting annualized 5-year returns near or above 18%.
While many of these funds are concentrated in companies like Apple, Amazon, and Microsoft, they differ in fees, yield, and sector weightings.
Finsum: Overall, growth ETFs offer an efficient path to access strong market performers with minimal effort and competitive returns.
More...
Vanguard has introduced a generative AI-powered tool designed to help financial advisors create personalized, compliant client communications more efficiently. The tool generates tailored summaries of Vanguard’s most-read market insights, adjusting for client knowledge level, life stage, and preferred tone.
It also automatically includes the appropriate disclosures, streamlining the compliance process. Lauren Wilkinson, head of advisor technology, emphasized that this beta-tested tool reflects Vanguard’s broader push to integrate innovative technologies that support both advisors and clients.
Beyond AI, Vanguard is also exploring cutting-edge fields like spatial computing, quantum technology, and blockchain to enhance investor outcomes and deliver deeper personalization.
Finsum: AI can enhance advisor effectiveness by enabling more customized and meaningful client interactions.
In a market rattled by volatility in both stocks and bonds, dividend ETFs are drawing attention as a middle ground between growth and income strategies. While passive giants like Vanguard’s VIG and Schwab’s SCHD dominate with low fees and broad exposure, a growing number of active ETFs—like T. Rowe Price’s TDVG—are betting they can outperform by handpicking high-quality dividend payers.
TDVG blends income with potential capital appreciation and holds familiar names like Apple and Microsoft, offering tech exposure without overconcentration. Active managers argue their flexibility allows them to adapt to changing market conditions in ways passive index funds cannot, especially when navigating risks like dividend cuts or sector shifts.
Although passive dividend ETFs still attract more investor flows due to cost advantages, actively managed funds are slowly gaining traction, particularly among investors seeking income stability amid rising macroeconomic uncertainty.
Finsum: For those dependent on income—like retirees—dividend strategies remain appealing, but experts caution that yield alone shouldn’t drive decisions.
Thrivent is ramping up its recruiting efforts to hire nearly 600 new financial advisors in 2025, aiming to counteract the anticipated wave of advisor retirements expected across the industry.
While the broader advisor workforce has grown only 0.3% annually over the past decade, Thrivent’s hiring initiative would represent a 2% increase, far outpacing the trend. The firm is targeting early-career professionals for salaried virtual advisor roles in key cities like Denver, Atlanta, Minneapolis, Milwaukee, and Dallas. These roles are intended to serve as stepping stones to more advanced positions, either within Thrivent’s employee structure or through its independent RIA, the Thrivent Advisor Network.
With over a third of U.S. advisors projected to retire within the next ten years, Thrivent is focusing on building a younger, more diverse advisor base aligned with future client demographics.
Finsum: It’s worth noting this trend in recruiting and what incentives are offered to attract this talent.