Bahl & Gaynor recently launched two new dividend-focused ETFs, the Bahl & Gaynor Dividend ETF (BGDV) and the Bahl & Gaynor Small Cap Dividend ETF (SCDV). Both funds aim to provide long-term dividend income and downside protection by investing in high-quality, dividend-paying equities. 

BGDV focuses on large-cap stocks with a 0.45% expense ratio, while SCDV targets small caps with a 0.70% expense ratio. These funds use a bottom-up stock selection strategy, emphasizing factors like historical performance, competitive advantages, and future cash flow potential. 

Sector exposure is not a primary focus but may tilt toward health care, financials, and industrials for SCDV and financials, industrials, and information technology for BGDV. 

Finsum: The bond market could have a tumultuous Q1 and income investors might want to look elsewhere for returns. 

Family offices are increasingly pivoting away from traditional investments and embracing alternative assets such as private equity, real estate, and venture capital. According to J.P. Morgan’s Global Family Office Report, nearly half of family office portfolios are now in private markets, reflecting their long-term horizons and ability to capitalize on illiquidity premiums. 

This shift allows for higher potential returns and smoother valuation changes compared to the volatility of public stocks. Many family offices also leverage their entrepreneurial roots for direct investments, contributing expertise and networks to private companies. 

Beyond diversification, these offices adopt goal-based strategies tailored to multigenerational needs, ensuring alignment with unique family objectives. 

Finsum: As they navigate evolving trends like generative AI and private market rebalancing, family offices continue to balance innovation with prudent risk management.

Advisors remain divided on the adoption of direct indexing, despite its increasing popularity and benefits like tax efficiency and portfolio customization. A recent survey revealed that while 34% of respondents currently use or plan to use direct indexing, 39% have no plans to adopt it, and 28% are open to considering it in the future. 

Experts view the 62% engagement or consideration rate as promising but notes barriers such as high account minimums and misunderstandings about the strategy. Advocates highlight its advantages, including tax loss harvesting, personalized portfolios aligned with client values, and competitive performance compared to traditional ETFs. 

However, misconceptions persist, particularly around how capital loss generation works without sacrificing returns. 

Finsum: Advisors should start exposing themselves to direct indexing because we will see costs decrease and the tool become more standard over the decade.