Investing

It posted gains of 2.04% in the third quarter.

A new white paper offers a few important warnings for institutions thinking about using ETFs and trying to understand ETF liquidity relative to other investment vehicles.

A global survey of institutional investors found more in the U.S. said ESG factors can be a source of alpha and risk mitigation, and more institutional investors overall said incorporating ESG factors into their investment approach is part of their fiduciary duty.

J.P. Morgan Asset Management says they reduce volatility and increase returns.

Forty-three percent incorporate ESG factors, up from 22% in 2013.

Responsible practices and policies have been shown to serve corporations better in the long run, strengthening their ability to meet the needs of their customers in a sustainable manner.

A Charles Schwab self-directed brokerage account (SDBA) report found that Gen Xers and Baby Boomers allocated less to their exchange-traded funds (ETFs) than the younger age group. 

Stock market volatility and a major downturn in the stock market seem worrisome for the LGBTQ community as people approach or live in retirement. MassMutual suggests adviser conversations and TDFs may help.

Political motivations and investor recommendations can result in choosing a low-performing investment for a retirement plan.

Corporate plans have significantly increased their U.S. fixed income allocation, while public plans have used the funds from U.S. equity and placed them into alternatives, Investment Metrics finds.

Higher short-term rates translate into additional income for investors from their bond portfolios, and their fixed-income allocation should provide greater ballast for the more volatile equity component of their portfolios, says Joseph Davis, with Vanguard.

One option is through a profit sharing plan that invests the money in an annuity once a participant retires.

“A majority of institutions around the world now consider bond ETFs as an alternative for fixed-income exposure and liquidity,” says Greenwich Associates Managing Director Andrew McCullum.

Northern Trust expects relatively steady economic growth, controlled inflation and accommodative monetary policy.

Industry observers fear that 10 years following the collapse of Lehman Brothers, many investors, including retirement plan investors, may have forgotten lessons that should have been learned.

In 2017, target-date funds (TDFs) represent 41% of CIT assets in 401(k) plans, Cerulli Associates finds.

Although it did answer the question of whether the decision was made in response to the 5th U.S. Circuit Court of Appeals mandate to vacate the DOL’s fiduciary rule, it is clear that T shares and so-called “clean shares” were created to comply with the rule.

An Insights article from Cammack Retirement notes how different fixed income vehicles perform under a rising interest rate environment and suggests DC plan sponsors offer a diverse menu of options for participants.

Vanguard research explains how CITs and mutual funds are just as beneficial.

Investors and broker-dealers should start treating ETFs as an asset class all their own, Kevin McPartland, with Greenwich Associates suggests.