FINSUM + Magnifi: Here's How ESG Flows Really Work
(February 2021)
When the average investor conceptualizes an ESG investment they are picturing diverting funds to a growing new wind energy company or a carbon-neutral delivery service. The reality is that technology companies comprise a bulk of ESG investment, and not because they are green in an intuitive sense but because they have little need to pollute. Here is an example of how that plays out: Asia captured 83.33% of emerging market ESG investment because of its heavy tech weighting. Taiwan Semiconductor Manufacturing, Tencent, and Samsung are the big tech companies generating returns for Asian EM ETFs over other regions.
Read more
FINSUM + Magnifi: Why the Pandemic is a Big Boost to Robotics ETFs
(February 2021)
If you were to design a tailwind for the robotics sector, what would it look like. Perhaps a pandemic that causes social distancing and makes it unsafe for too many humans to congregate in one place, such as a manufacturing facility. It is from this lens that advisors would be wise to view robotics. Remember that robotics is not limited to physical machines, but also artificial intelligence, which means the huge surge in digital communications/computing that has occurred alongside the pandemic doubly boosts this sector. One great ETF to check out is the Global X Robotics & Artificial Intelligence ETF (BOTZ). The fund provides exposure to companies formally involved in robotics, but also artificial intelligence, including businesses involved with industrial robotics, automation, non-industrial robots, and autonomous vehicles.
Read more
FINSUM + Magnifi: Why eSports ETFs May Be a Good Buy
(February 2021)
Thematic ETFs have been one of the market’s bright spots over the last couple of years. For evidence of this, look no further than ARK etfs, who has seen their AUM rise 1000% on huge inflows driven by the success of the holdings in their ETFs. So what might be the next big area? ESports is a good place to take a look. While the average advisor might not play too many videogames, eSports is a fast growing and hugely popular area for the Millennial and Gen Z generations. Take a look at Global X’s Video Games and Esports ETF (ticker: HERO), which invests in companies in the eSports space, ranging from video game production companies to businesses which facilitate the streaming of eSports play/competition.Read more
FINSUM + Magnifi: The Best ETFs for Buying Into the Ecommerce Surge
(January 2021)
One year ago you could have easily said that brick and mortar retail was effectively dead, or at least had a very bleak future as ecommerce was taking market share quarter after quarter. Taking a look around today, it is hard to imagine ecommerce could have stronger demand behind it. Understanding that, it seems like it might be a great time to buy into ecommerce, as demand for online shopping seems likely to continue for the foreseeable future (including after the pandemic). Many ecommerce ETFs had a great year in 2020 and there are numerous interesting takes on the how to invest in the sector. Some ETFs to check out include the ProShares Long Online/Short Stores ETF (CLIX), Amplify’s Online Retail ETF (IBUY), and the Global X E-commerce ETF (EBIZ).
Source: CNBC
FINSUM + Magnifi: Why it is a Good Time to Buy into Cloud Computing
(January 2021)
If you dig under the handful of headlines that have driven financial media during the pandemic, you will find a sub-narrative that is just as potent and more specific. That narrative has to do with cloud computing. For anyone that has been paying attention, cloud computing has experienced massive growth during the pandemic, as the second wave of digitalization ushered in by COVID has pushed cloud computing capacity ever higher for tech companies. Much of the headlines around this center on cloud computing leader Amazon, whose web services division help powered the hyperbolic growth Zoom was able to achieve during the pandemic, for example.
Read more
Blending a Finance Background with the Latest Tech Stack: A Conversation with Magnifi CPO Tom Van Horn
Blending a Finance Background with the Latest Tech Stack: A Conversation with Magnifi CPO Tom Van Horn
Read more
FINSUM + Magnifi: Would an Apple Car Disrupt Autos like the iPhone Did to Tech?
(January 2021)
The Apple Car (capital C!) has been hyped all over the internet over the last year, and investors seem to be frothing over the idea. The company has a long history of disruption—first it was computers, then phones—so many are excited by the prospects of an Apple Car. It may be a long way off, but its effects on the market would likely be felt years before its release. JP Morgan recently did a deep dive into what an Apple Car would mean for the market. One key point they made is that Apple is unlikely to build its own cars in its own plants. Rather, it would likely outsource manufacturing to existing car companies, much like it does with its iPhone. This would generally be positive for the industry as it would spread the wealth around rather than Apple just stealing all market share from existing players.
Read more
FINSUM + Magnifi: Funds That Enable You To Invest in Diversity
(September 2020)
At its heart, ESG investing is about risk mitigation. While morality is at the heart of the endeavor, ESG is an attractive investment for some people because it may screen out some risks while earning good returns. While climate change gets the bulk of attention within ESG, diversity is an increasingly important component in 2020. So how can investors specifically invest in companies who are making advances in the area of diversity? Here are three ETFs to consider. The first is the SPDR SSGA Gender Diversity ETF (ticker: SHE); secondly is the Pax Ellevate Global Women’s Leadership Fund (PXWEX). Both funds focus on companies with gender-diverse leadership teams and policies that support the empowerment of women in the workplace. Another fund, focused on racial diversity is the Impact Shares NAACP Minority Empowerment ETF (NACP), which invests in companies that are taking real action to fight for racial justice.
Read more
FINSUM + Magnifi: This Major Bank Just Warned Investors to Dump Big Tech Stocks
(September 2020)
With the decline in big tech stocks a month ago and increasing breadth across indexes in the last couple of weeks, there has been increasing concern about the risks associated with tech megacaps. Worries about holding FAAMG have lost some of their potency with investors. That is a mistake, according to Societe Generale, who has just warned investors it is time to cash in their chips on those stocks. SocGen reminds investors that by the end of August, technology comprised 64% of the S&P 500, close to the 70% reached in the early 2000s tech bubble. They argue that with the economy healing and potential increases for regulation in the sector, it is time to look elsewhere.
Read more
FINSUM + Magnifi: These Tech Stocks are Still Worth Buying
(September 2020)
As a whole, the tech sector has performed splendidly during COVID. It is not just FAAMG either, numerous names across the board have seen big jumps. Investors are nervous about such high valuations, but some of the stocks’ underlying businesses justify the growth and even deserve more investment. One place to look is in advertising, which KeyBanc Capital Markets considers a “second derivative” to e-commerce growth. Accordingly, Facebook, Pinterest, and Snap seem like good buys and continued 20-30% growth looks likely. Content plays also look promising, for example Roku, which has under-appreciated monetization channels.
Read more