ETF investors bail on the financial sector

<i>Breakfast with Benjamin:</i>Finance-focused ETFs suffer huge outflows. What gives? Plus: Prudential Financial's spooky reinsurance bet, investing in obesity, private lawyers give corporate inversions a leg up, and location matters less when the house you're selling is haunted.
OCT 23, 2014
  • Investors do the math on low interest rates and turn tail on a popular financial sector ETF. More than $900 million pulled from XLF last week to mark the worst stretch since 2009. The prospects are not strong
  • Prudential Financial steps out on a limb by providing reinsurance on a $2.2 billion annuity portfolio at Legal & General Group in the U.K. The spooky part of the bet is that the reinsurance is guarding L&G against the risk that pension beneficiaries live longer than expected. I hate it when that happens. Prudential ran the numbers on longevity risks
  • Savvy investors tap into the obesity epidemic. Let's face it, diet fads are interesting, but the real money is made by betting that people will continue eating at McDonald's. Double down with a healthcare-sector ETF
  • Corporate inversions embrace the latest loophole in the form of government lawyers who go private. Where there is a will and a pile of money to be made, there is a lawyer ready to find the way. The incentive to invert is too tempting to ignore
  • Real estate nightmares: Trying to put a positive spin on a house that is haunted. 'Something looked not quite right'

Latest News

Private credit becoming 'big piece' of annuities, T. Rowe exec says
Private credit becoming 'big piece' of annuities, T. Rowe exec says

Goldman Sachs retirement survey finds 83% want guaranteed income, while the annuities providing that income increasingly hold private credit.

Zocks debuts Claude plugin with seven skills for financial advisors
Zocks debuts Claude plugin with seven skills for financial advisors

The AI meeting assistant's Advisor Intelligence plugin turns client conversation data into annual reviews, tax scans and attrition alerts.

Stifel settles massive $30 million complaint involving star broker’s sale of structured products
Stifel settles massive $30 million complaint involving star broker’s sale of structured products

Chuck Roberts and Stifel have been facing scrutiny due to sales of structured products and structured notes.

SEC floats CFP route to accredited investor status, fund rules refresh amid private market push
SEC floats CFP route to accredited investor status, fund rules refresh amid private market push

Among other updates, the proposals would let advisors to regulated funds earn performance fees and allow interval funds to offer monthly repurchases.

The Year Is 2046 and I’m a Financial Advisor 
The Year Is 2046 and I’m a Financial Advisor 

What will financial advice look like 20 years from now? Evan Vladem explores how AI may transform wealth management while reinforcing the enduring value of human guidance, trust, and empathy. 

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains