Fidelity Investment’s flagship Magellan fund has helped investors reach their financial goals for decades. That time-tested, actively managed approach is now available as an exchange traded fund, offering investors Fidelity’s actively managed expertise in a flexible, tax-efficient, low-cost and easily accessible investment vehicle.
Gen Z, born between 1997 and 2013, influences the investment market with its consumer trends and values. The Invesco ESG NASDAQ Next Gen 100 ETF (QQJG), composed of environmentally, socially, and governance-aligned stocks, capitalizes on these trends. Teenagers are predicted to increase spending in 2022, particularly in technology and ESG-oriented companies. Obesity reduction in this demographic is crucial as Gen Z workers are expected to be over 70% of the workforce by the decade’s end.
Investors interested in benefiting from the global clean energy transition might consider the Fidelity Clean Energy ETF (FRNW), which tracks a market-cap-weighted index of firms deriving at least 50% revenue from clean energy. Examples of such companies include Danish wind turbine manufacturer Vestas, Xinyi Solar, and Enphase Energy, all of which have demonstrated considerable growth over the recent years.
Global economic outlook faces challenges due to rising interest rates, oil prices, and a strong U.S dollar potentially escalating economic slowdowns. While U.S growth exceeded expectations, China’s economy struggles, and Europe risks stagnation. Investors are advised to position their portfolios towards high-quality and defensive assets in anticipation of a possible downturn.
Climate impact investing, an approach seeking to generate environmental and social benefits alongside financial returns, is gaining traction as a method to combat climate change. This style of investing focuses on directing funds towards sustainable projects, such as renewable energy or clean technology initiatives, that reduce carbon emissions. By channeling private capital towards these endeavours, the aim is to catalyze progression towards a low-carbon economy.
Amidst market volatility and uncertainty, alternative income strategies have grown attractive. These include ultra-short exposures, options-based strategies, dividend enhancement, and closed-end funds. Investors validate the potential safety these alternatives could provide against interest rate hikes. Key market insiders include Garrett Paolella of NEOS and Christian Magoon of Amplify ETFs, who’ve favorably endorsed these strategies.
Tradeweb and FTSE Russell are partnering to enhance fixed-income index pricing and trading commodities. The collaboration aims to widen pricing across an extensive range of FTSE Russell administered securities. The arrangement also includes closing prices, which merge Tradeweb’s electronic platform activities to align with real trading levels. Over time, FTSE Russell intends to incorporate Tradeweb’s pricing into its fixed-income indexes.
10-year Treasury yields have retreated from near 5% to around 4.52%, a positive sign for bond investors and suggesting analyst expectations of renewed interest in U.S. government debt. This trend could benefit aggregate bond ETFs, notably Vanguard’s BND which experienced a nearly 1% increase last month. Some believe persistent issues impacting bonds in 2023 may not recur next year due to factors like spending sequester and hiring returning to pre-pandemic levels.
As the third-largest donor-advised fund in the US, the Vanguard Charitable Endowment Program manages $15.2 billion in assets as of June 30, 2022. Despite being behind the Fidelity Charitable Gift Fund and Schwab Charitable Fund, it is considered the best option for investors maintaining large account balances due to its low administrative costs and robust investment lineup. The fund requires a $25,000 minimum for new accounts, encourages long-term commitments, and caters to an elite group of donors.
The Amplify CWP Enhanced Dividend Income ETF (DIVO) has been underperforming in 2023 despite its strategic approach and strong holdings. Even though the fund has stocks with a solid dividend growth history, the fund’s own dividend distribution growth has been minimal. Concerningly, dividends haven’t grown significantly in recent years, but the fund has seen net asset value growth. Whether the fund will increase its distributions remains a decision for the fund’s management.