📈 BlackRock will take that all-time high, thanks

And don't mind if ETFs do too | Ferrari, unplugged |

Hi Reader, here's what you need to know for June 15th in 3:07 minutes.

🌎 Open banking is completely redefining the way the world pays. So join Plaid’s Head of UK for our The Digital Banking Revolution event, and get the jump on where transactions are going next. Grab your ticket

Today's big stories

  1. The amount of money invested in exchange-traded funds topped $9 trillion last month, and investment giant BlackRock is loving it
  2. There are three assets you need to build a medium-term portfolio that'll never lose you money – Read Now
  3. Ferrari’s planning to spend big on electric vehicles, but investment bank Goldman Sachs isn’t impressed

Funds And Games

Funds And Games

What’s Going On Here?

Investors are having the time of their lives: fresh data out on Monday showed the amount of money invested in exchange-traded funds (ETFs) hit a record high in May.

What Does This Mean?

ETF investments topped $9 trillion for the first time last month, according to consultancy ETFGI. And thanks to rising demand for both bond ETFs and environmentally focused ones, BlackRock – the world’s biggest provider of ETFs – said it's expecting that number to hit $15 trillion by 2025.

That suits the investment giant just fine: the amount of money its ETF business looks after hit its own all-time high of $3 trillion last month. Not that there’s any guarantee of surging profits, mind you: BlackRock’s noticed that Vanguard – the world’s second-biggest ETF provider – brought almost $40 billion more into its ETF business this year, and now the two are in an all-out price war (tweet this).

Why Should I Care?

The bigger picture: Active vs. passive.
According to BlackRock, ETFs – which have historically passively tracked an index – account for just 3% of assets held in stock and bond markets globally. A much higher percentage is in more expensive active funds, whose managers research and invest in stocks and bonds they think will perform well. But those managers are under increasing pressure to meet in the middle and offer active ETFs, whose growing popularity could help them fend off BlackRock and Vanguard.

Zooming out: Short sellers vs. retail investors.
Speaking of which, new data out on Monday showed US active investment managers have gradually been reversing their short positions – that is, bets that certain stocks will fall – over the past year. That might have something to do with the constant government and central bank support, which has only been pushing stocks in one direction for the last 12 months. Or it might be in response to the GameStop saga, which left short-sellers with bruised pride and profits alike.

Copy to share story: https://www.finimize.com/wp/news/funds-and-games/

🙋 Ask a question

2. Analyst Take

How To Build A Fool-Proof Medium-Term Portfolio

What’s Going On Here?

Stocks have historically made up the core of most medium-term portfolios.

And there are good reasons for that: they’ve historically generated high returns, plenty of cheap ETFs track them, and they’re the asset class investors are most familiar with.

But while stocks are a good starting point, too much focus on them is risky.

So you’ll want to add in a couple of other assets that, together, ensure the same returns on average without all the risk.

That’s today’s Insight: the extra assets you need to build a medium-term portfolio that’ll never lose you money.

Read or listen to the Insight here

SPONSORED BY GRAYSCALE

The no-nonsense way to invest in bitcoin

You might think you’ve missed the boat on bitcoin. Not quite.

With Grayscale, you’ll find an efficient way to introduce cryptocurrency into your portfolio: no wallets, no private keys, no separate accounts.

Nope, just the world’s largest bitcoin trust, accessible from your brokerage account like any other stock, bond or exchange-traded fund.

Throw in a dedicated Knowledge Center – where you’ll be able to make sense of bitcoin’s value, how to use bitcoin to hedge, and much more – and you’re all set to start your crypto origin story.

Find out more about the Grayscale Bitcoin Trust today.

Learn More

When you support our sponsors, you support us. Thanks for that.

Green Turismo

Green Turismo

What’s Going On Here?

Goldman Sachs changed its recommendation on Ferrari’s stock from a buy to a sell on Monday, and the Italian car company’s eco-friendly ambitions might be the reason it runs out of juice.

What Does This Mean?

Ferrari’s negotiating a new stretch of track at the moment: the legendarily gas-guzzling auto giant recently announced the development of its first-ever all-electric vehicle (EV) and appointed a new, tech-savvy CEO. But according to Goldman Sachs, this shift in focus could be costly for investors in the short term.

The investment bank agrees a push toward EVs is important for Ferrari’s future, but it reckons the costs involved – an extra $50 million a year of spending between now and 2030 – will put a significant dent in the company’s profitability. In a rare reversal of fortunes, that prompted Goldman to downgrade its recommendation for Ferrari’s shares straight to a sell.

Why Should I Care?

The bigger picture: Ferrari isn’t alone.
The EV transition has made carmakers some of the highest-spending companies out there right now: they’ve collectively spent more on research and development over the last decade than they’ve made in profit, according to Bloomberg. And all that new tech won’t necessarily pay off: Jaguar Land Rover-owner Tata Motors, for example, recently wrote off over $1 billion worth of previous research spending.

For markets: Beware electric shocks.
The combined global market value of carmakers’ stocks doubled to more than $2 trillion in 2020, despite a stall in overall car sales. But investment firm Research Affiliates thinks shareholders are deluding themselves: almost all automakers’ stock prices have benefited from exciting EV developments, even though many are direct competitors. That means some of them are bound to lose out. Investors got a sharp reminder of that on Monday: electric truck maker Lordstown Motor's shares slumped after its top two executives resigned, days after the firm warned it was on the verge of running out of cash.

Copy to share story: https://www.finimize.com/wp/news/green-turismo/

🙋 Ask a question

💬 Quote of the day

“One never notices what has been done. One can only see what remains to be done.”

– Marie Curie (a Polish and French physicist and chemist)
Tweet this

SPONSORED BY ROOTINE

Unlock your full potential

If you want to feel and perform your best every day, it’s important to have the right nutrients.

And because you’re unique, multivitamins work best when they’re custom formulated for you.

With Rootine, that’s within reach. You’ll have access to personalized cellular nutrition and biohacking tools to take your performance to the next level.

Rootine’s AI uses a blood test, DNA analysis, and lifestyle quiz to create an accurate nutrient formula just for you. And we mean accurate: Rootine makes over 700 trillion different versions.

More energy, less stress, better focus: sounds like a recipe for success to us.

Harness the power of precision nutrition for yourself: upgrade to Rootine today.

Try Rootine

When you support our sponsors, you support us. Thanks for that.

🎯 On Our radar

  1. Because sometimes stocks aren’t enough. Retail investors are flocking to this emerging alternative investing platform.*
  2. Going to the gym? Phone a friend. Why working out with others is so powerful.
  3. The Zoom effect. How the pandemic made plastic surgery popular.
  4. Who needs SpaceX anyway? Fantastic meteorites and where to find them.
  5. It’s all about the novelty. Why quirky people are attractive.

When you support our sponsors, you support us. Thanks for that.

❤️ Share with a friendYour Referrals: 0

Thanks for reading Reader. If you liked today's brief, we'd love for you to share it with a friend. If they sign up on your unique link, you’ll earn some sweet swag.

Share your unique link:

https://finimize.com/invite/?kid=177ZWC

You stay classy, Reader 😉

We’d love to hear your thoughts. Give feedback

Want to advertise with us too? Get in touch

Image Credits:

Image credits: Hurst Photo, LittleDogKorat - Shutterstock | JL IMAGES, Johnnie Rik - Shutterstock

Preferences:

Update your email or change preferences

View in browser

Unsubscribe from all Finimize Emails

😴

Crafted by Finimize Ltd. | Third Floor, 1 New Fetter Lane, London, EC4A 1AN, UK.

All content provided by Finimize Ltd. is for informational and educational purposes only and is not meant to represent trade or investment recommendations. You signed up to this mailing list at finimize.com or through one of our partners. © Finimize 2021

View Online

Older messages

🔧 Tesla builds a money-making machine

Sunday, June 13, 2021

Didi gets fitter, happier, more productive | Tesla bros get overexcited | Finimize Hi Reader, here's what you need to know for June 14th in 3:07 minutes. 💰 Decentralized finance, or DeFi, has

🤷‍♂️ What's going on with meme stocks?

Thursday, June 10, 2021

Less lulz, more wtf | Sleep tight, don't let inflation bite | TOGETHER WITH Hi Reader, here's what you need to know for June 11th in 3:07 minutes. 💰 Decentralized finance, or DeFi, has

😍 Hedge funds' new favorite stock

Wednesday, June 9, 2021

Inflation goes global | Inditex mixes and matches | TOGETHER WITH Hi Reader, here's what you need to know for June 10th in 3:12 minutes. 🐦 Join us live on Twitter Spaces at 6pm UK time / 1pm NY

🤐 ETFs are overrated

Tuesday, June 8, 2021

The vapes of wrath | The stock pickers of wrath | TOGETHER WITH Hi Reader, here's what you need to know for June 9th in 3:03 minutes. 🚽 Grocery stores have done well out of the pandemic, and not

🍀 Big Tech's luck runs out

Monday, June 7, 2021

You don't get to 2.9 billion friends without making a few enemies | Janet chimes in | TOGETHER WITH Hi Reader, here's what you need to know for June 8th in 3:11 minutes. 💯 When you're an

Weekly Wrapup: Bills and Gambles

Saturday, July 24, 2021

Finshots Weekly Wrapup: Bills and Gambles In this week's wrapup we talk about the Monsoon Session of Parliament, Reliance's acquisition of Just Dial, the new drone regulations, and finally

Dangerous games

Friday, July 23, 2021

Bloomberg After a yearlong delay due to Covid-19, and some scandals and high profile resignations, the 2020 Tokyo Olympics are finally underway. The Games, the first ever without spectators, promise to

FTT Update: This Newsletter Requires Vaccination

Friday, July 23, 2021

​ ​ Hi all, Julie here. Happy Summer Friday all! Jordan and I close on our new home IN ONE WEEK! Ahhh! Keep us in your prayers as we hope that all goes well with that as well as the move itself. In the

Not Your Parents’ Mutual Funds: How Gen Z Is Investing

Friday, July 23, 2021

Why you should worry about the next crypto crash July 23, 2021 So much for babysitting or busing tables. Today's young adults are using the internet to make money, and not chump change either.

Ever Grande

Friday, July 23, 2021

Plus: Simply not Fintechery, Circle, Equity Research, Finally ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Taking Strategy Seriously

Friday, July 23, 2021

Plus! Errata, Streaming as Instant Gratification; Batteries; Shrinking Analyst Teams; Diffident Voters; Oil; Recapitalized ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Prices for Used Cars Are Soaring, and That Could Cost Drivers Who Aren’t Even Looking to Buy

Friday, July 23, 2021

The amount you receive if your car is a total loss may fall short of its replacement cost. July 23, 2021 INSURANCE Prices for Used Cars Are Soaring, and That Could Cost Drivers Who Aren't Even

Litigation Finance

Friday, July 23, 2021

Plus: Stress Tests, Revolut, Tink/Visa ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The Long Slow Short

Friday, July 23, 2021

Plus: Robinhood/Distressed Investing, Banker Hours, Compound Treasury ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

What is Robinhood?

Friday, July 23, 2021

Plus: Buy Now Pay Later, M&A, Weather ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌