Top Five Articles from April: Active Equity, Robos, and ETFs



1. The Active Equity Renaissance: The Rise and Fall of MPT

After the mud settles, nearly nothing of recent portfolio principle (MPT) will stay, assert C. Thomas Howard and Jason Voss, CFA. The three pillars on which MPT rests have been toppled, and it’s time to transfer on. There is another strategy to view securities markets, their actions, and their contributors: behavioral finance.

2. What’s Next for Robo-Advisers?

The way forward for the funding administration trade is on-line and advisers will render themselves out of date in the event that they don’t determine the best way to add worth past simply overseeing portfolios, Randy Cass, CFA, informed delegates on the CFA Institute European Investment Conference. The excellent news is that advisers who can add worth for his or her purchasers are safe. Lauren Foster explains.

3. To Compete with Robos, Advisers Must Become Financial Physicians

Can robo-advisers substitute human advisers? Not if the objective of the connection is to extend purchasers’ well-being, says Meir Statman. Why? Because that requires human interplay. Lauren Foster outlines Statman’s presentation from the CFA Institute Wealth Management Conference.

4. Keep ETFs Weird

The ETF has been on the forefront of three main funding phenomena over the previous twenty years, and consequently, has had a constructive impact on the funding world, says Tadas Viskanta. The fantastic thing about the ETF trade is its embrace of latest concepts and methods. Tamping down on that may solely serve to make the funding world a much less fascinating place. So let’s “Keep ETFs Weird.”

5. The Active Equity Renaissance: New Frontiers of Risk

One fashionable portfolio principle (MPT) pillar that’s unquestionably damaged is the usage of volatility, particularly customary deviation, as a measure of danger, Jason Voss, CFA, and C. Thomas Howard write on this version of The Active Equity Renaissance sequence. This preliminary error in MPT’s growth is a significant contributor to energetic funding administration underperformance.

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All posts are the opinion of the creator. As such, they shouldn’t be construed as funding recommendation, nor do the opinions expressed essentially mirror the views of CFA Institute or the creator’s employer.

Image credit score: ©Getty Images/retrorocket

Susan Hoover, JD

Susan Hoover is presently the editor of Connexions, the CFA Society Leader e-newsletter. Previously, she was the digital editor, Enterprising Investor weblog, CFA Institute for 2 years. Prior to CFA Institute, Hoover labored for McCallum & Kudravetz, PC, and the U.S. Department of the Navy in actual property and labor regulation. Hoover earned the CFA Institute Investment Foundations™ Certificate and holds a BA diploma from Lehigh University and a JD diploma from the Washington College of Law, American University.


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