Posted by: Tom McKeon on January 25, 2017
In this edition of PremiumPoints: Looking ahead to 2017, ETFs lap the field and Managing Portfolios in the Post-Truth World.
Review and Outlook 2017
US Stocks had a banner year after a tepid first quarter, with the MSCI US Broad Market index gaining 12.67% for the year. US Small caps gained more than 20%.That contrasts with the MSCI Developed Markets Index posting a paltry 1.51% return for the year. US equity markets rallied after the election, yet they were the only asset class at the party.
ETFs Gain Market Share
etfgi.com reports that Exchange Traded Funds & Products (ETFs/ETPs) gathered record inflows of $389 billion US in 2016, and assets reached a new high of $3.546 trillion US. The exhibit below from Wealth Management magazine with Morningstar data show just how powerful this secular trend is. Vanguard is the clear leader.
Managing Portfolios in the Post-Truth World
Much has been made of the fake news phenomenon in the aftermath of the Presidential election. Once upon a time, only newspaper titans like William Randolph Hearst could pervert the truth with the megaphone of his publishing empire. Not any more.