The Daily Brief
ETFs stock prices squares

Move Over Stocks

ETFs were more heavily traded than stocks in 2016, J.P. Morgan's strategies for retirement and PFI white paper lists independent lending solutions.

What were 14 of the 15 most heavily traded issues on the stock market in 2016? They weren't stocks, but ETFs, according to a MarketWatch article. Total ETF volume rose 17 percent over the course of 2016 and was up 50 percent from 2015. The SPDR S&P 500 ETF Trust was the most traded security, with an average daily volume of about 90 million shares. That greatly overshadowed the movement of Bank of America Corp., the most traded stock, which averaged a daily volume of about 20 million shares and was only No. 13 on the most traded issue list. ETFs traditionally are considered long-term, passive investments, but at this rate, they are starting to look more and more like short-term options for investors.

J.P. Morgan's Strategies for Improved Retirement Savings

J.P. Morgan Asset Management expects declining returns across most asset classes over the next 10 to 15 years. Combined with longer life spans, it’s getting even harder for clients to save for a secure retirement, but J.P. Morgan says in a new report that the workplace – where employee and employer objectives, payroll and benefit systems, communication, education and incentive programs all come together – is still the most effective venue to address the challenge. In a new report, the firm recommended three strategies to improve investors’ chances for success in a tougher environment. The most obvious is to encourage plan participants to start saving more and start early. J.P. Morgan also recommended diversification strategies that can improve expected returns while also mitigating risk, such as allocating to high yield debt and emerging market equity along with real estate. Finally, J.P. Morgan encouraged active management to help generate more alpha.

Independence Doesn't Mean a Lack of Loan Offerings

Many wirehouse advisors believe—and are told by their firms—that they won’t have access to the same rates and quality of loans if they go independent. But advisors can still serve their clients’ lending needs in the independent world, argues PFI Advisors, which helps breakaway teams establish their own RIAs. “Independent advisors can tap the expertise of multiple custodians, third-party banks, and mortgage specialists to find comparable yet sophisticated offerings for their client base,” PFI says in a recent white paper. Financial institutions are developing innovative lending products in an open-architecture manner to help advisors implement their recommendations. The white paper points to independent lending solutions, such as TriState Bank; private banks, such as Pershing Advisor Solutions, which can provide a one-stop shop option; and hybrid solutions, such as Raymond James.

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