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

Carson, Lido strengthen RIA networks with bicoastal deals
Carson, Lido strengthen RIA networks with bicoastal deals

Carson is expanding one of its relationships in Florida while Lido Advisors adds an $870 million practice in Silicon Valley.

Goldman gets shareholder backing on $80M executive bonus packages
Goldman gets shareholder backing on $80M executive bonus packages

The approval of the pay proposal, which handsomely compensates its CEO and president, bolsters claims that big payouts are a must in the war to retain leadership.

Integrated Partners, Kestra welcome multigenerational advisor teams
Integrated Partners, Kestra welcome multigenerational advisor teams

Integrated Partners is adding a husband-wife tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.