The Weekly Skim for Investment Professionals & Financial Advisors
Issue WK3 - 1.14.19
The Registered Investment Advisor of the Future
In 2018, RIAs reported 18% average growth in assets, and 78% said they expect further asset growth in 2019. The top concern remains compliance and regulatory issues followed by their pricing model presentation.
RIAs clients asked about cannabis-related investing and ESG stocks more than cryptocurrencies. In addition, for alternative investments, real estate, and commodities outweighed crypto again.
In regards to RIA budgets, they plan to make the biggest investment in cybersecurity and performance reporting technology, see the chart below...
Key Takeaways
RIAs that focus on new areas of expertise (niches) will win in the long run
RIAs stay mostly bullish on equities for 2019
Health Care, Consumer Staples, and IT sectors will benefit most from the new Congress
The top 20 ETFs take in over 51% of inflows and the majority of those are traditional passive index ETFs and rightfully so, they belong in an investors portfolio. However, what if you're focused on a particular trend and you want to capitalize on it without single equity exposure? Look for some hidden gem ETFs with prevailing themes.
SEC Charges Two Robo-Advisors with Improper Disclosures
In December 2018, Wealthfront and Hedgeable were charged with failing to make the proper disclosures and misleading advertising. Moving forward, how will this change a client's mind about using a robo-advisor? The SEC has issued a bulletin through the Office of Investor Education and Advocacy that contains additional information about robo-advisors. Read more and educate your clients.
Bitcoin Price Predictions: 3 Reasons To Be Optimistic *As of Jan 14th the infamous coin traded at $3,530
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