ETFs

PGIM Introduces Two Active Muni ETFs

Published

7 months ago

28 June, 2024

PGIM, the investment management arm of Prudential Financial (NYSE: PRU), has launched two new actively managed ETFs: PGIM Ultra Short Municipal Bond ETF (PUSH) and PGIM Municipal Income Opportunities ETF (PMIO). These ETFs aim to provide total return through current income and capital appreciation by investing at least 80% of their portfolios in municipal bonds exempt from federal income taxes. PUSH focuses on short-term, investment-grade muni bonds and has a low 0.15% expense ratio, while PMIO offers more flexibility with credit and duration risk, investing 70% in investment-grade and up to 30% in high-yield muni bonds, with a 0.25% expense ratio.

Positive

Launch of two new actively managed ETFs: PUSH and PMIO.

PUSH has a low 0.15% expense ratio, making it the cheapest active ETF in its category.

PMIO offers flexible investment across credit qualities, maturities, sectors, and states.

Negative

PUSH limits high-yield muni debt to 10%, which may restrict higher returns.

PMIO’s 0.25% expense ratio is higher compared to some passive ETFs.

PGIM’s launch of two new actively managed municipal bond ETFs, PUSH and PMIO, is noteworthy for several reasons. Municipal bond ETFs are known for their tax efficiency, particularly appealing to high-net-worth individuals seeking to minimize federal income taxes on investment income. From a financial perspective, the low net expense ratios of 0.15% for PUSH and 0.25% for PMIO are competitive within their respective categories, likely to attract cost-conscious investors.

PUSH targets a short duration of two years or less, making it an attractive option for conservative investors or those looking for an alternative to traditional cash management strategies. The success of PGIM’s previous ultra-short bond ETF (PULS) suggests that there is a market for such products.

PMIO, on the other hand, offers a more flexible approach, allowing for investments in both investment-grade and high-yield municipal bonds with a duration range of two to eight years. This flexibility can potentially provide higher returns but also comes with increased risk, making it suitable for more aggressive investors.

Overall, the introduction of these ETFs aligns with current investor demand for tax-efficient, actively managed investment solutions. However, the performance of these funds will depend heavily on the skill of the portfolio managers and the prevailing market conditions.

The two new ETFs from PGIM are entering a growing market for municipal bond ETFs, which have become increasingly popular as investors seek tax-advantaged income streams. The municipal bond market itself is generally considered low risk, with defaults being relatively rare compared to corporate bonds. However, the attractiveness of muni bonds can fluctuate with changes in interest rates and tax policies.

PGIM’s decision to offer both a conservative option (PUSH) and a more aggressive option (PMIO) allows them to capture a broader audience. The differentiation between a short-duration focus and a more flexible credit risk approach caters to varying risk appetites, offering more tailored investment choices.

Moreover, the competitive expense ratios position these ETFs favorably against existing options. For retail investors, understanding the expense ratio is crucial, as lower fees can significantly impact long-term returns.

In summary, PGIM’s strategic entry into the muni bond ETF space seems well-timed and designed to meet diverse investor needs, although actual adoption will depend on execution and market conditions.

06/28/2024 – 08:47 AM

New fixed income ETFs build on success of $7B PGIM Ultra Short Bond ETF (PULS) and PGIM’s existing retail municipal bond strategies1

NEWARK, N.J.–(BUSINESS WIRE)–
PGIM,2 the $1.34 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU), has launched two new actively managed exchange-traded funds (ETFs) — the PGIM Ultra Short Municipal Bond ETF (PUSH) and the PGIM Municipal Income Opportunities ETF (PMIO) — on the NYSE Arca.

Stuart Parker, President and CEO, PGIM Investments (Photo: Business Wire)

Both ETFs seek total return through a combination of current income and capital appreciation by investing at least 80% of their respective portfolios in municipal (“muni”) obligations whose income is exempt from federal income taxes. The ETFs are subadvised by PGIM Fixed Income, a top-10 U.S. active fixed income manager with $821 billion in assets under management.3

“In addition to their diversification benefits, muni bond ETFs offer an attractive opportunity for investors, particularly high-net-worth investors, who may be looking to maximize tax efficiency within their portfolios,” said Stuart Parker, president and CEO of PGIM Investments. “We are thrilled to further expand PGIM Fixed Income’s actively managed muni bond offerings in the retail market.”

Jason Appleson, PGIM Fixed Income head of Municipal Bonds and co-portfolio manager of the new ETFs, comments, “These new products allow ETF investors to tap into PGIM Fixed Income’s muni expertise. The PGIM Ultra Short Municipal Bond ETF (PUSH) is ideal for investors looking to deploy cash into a more conservative strategy while benefiting from tax efficiencies provided by the municipal markets. The PGIM Municipal Income Opportunities ETF (PMIO) is designed to have more credit and duration risk flexibility, allowing us to select opportunities within the muni market.”

PGIM Ultra Short Municipal Bond ETF (PUSH)

PUSH is PGIM’s second ultra short ETF strategy, following the success of the $7 billion PGIM Ultra Short Bond ETF (PULS), and offering an additional alternative to traditional cash management strategies. The ETF seeks to primarily invest in investment-grade muni bonds and up to 10% in high yield muni debt obligations. PUSH seeks to maintain a weighted average portfolio duration of two years or less.

With a 0.15% net expense ratio, PUSH is the lowest-cost active ETF in the Morningstar Short Muni category.4

PGIM Municipal Income Opportunities ETF (PMIO)

PMIO is a dynamic income opportunities strategy, investing at least 70% of its portfolio in investment-grade muni debt obligations and up to 30% in high yield muni debt obligations. The ETF seeks to maintain a weighted average portfolio duration of two to eight years. PGIM’s flexible approach allows the ETF to allocate across credit qualities, maturities, sectors and states based on where the portfolio management team sees what it believes to be the most attractive opportunities. PMIO has a net expense ratio of 0.25%.

Learn more about PGIM’s suite of 42 ETFs which spans fixed income, equity, and multi-asset class solutions.

ABOUT PGIM INVESTMENTS

PGIM Investments LLC and its affiliates offer more than 100 funds globally across a broad spectrum of asset classes and investment styles. All products draw on PGIM’s globally diversified investment platform that encompasses the expertise of managers across fixed income, equities, alternatives, and real estate.

ABOUT PGIM FIXED INCOME

PGIM Fixed Income, with $821 billion in assets under management as of March 31, 2024, is a global asset manager offering active solutions across all fixed income markets. The company has offices in Newark, N.J., London, Amsterdam, Zurich, Munich, Singapore, Hong Kong, and Tokyo. For more information, visit pgimfixedincome.com.

ABOUT PGIM

PGIM is the global asset management business of Prudential Financial, Inc. (PFI). PFI has a history that dates back over 145 years and through more than 30 market cycles. With 41 offices in 19 different countries (as of March 31, 2024), our more than 1,450 investment professionals are located in key financial centers around the world.

Our firm comprises multi-managers that collaborate with each other and specialize in a particular asset class with a focused investment approach. This gives our clients diversified solutions with global depth and scale across public and private asset classes, including fixed income, equities, real estate, private credit, and other alternatives. As a leading global asset manager with $1.34 trillion in assets under management (as of March 31, 2024), PGIM is built on a foundation of strength, stability, and disciplined risk management.

For more information, visit pgim.com.

Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom, or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information, please visit news.prudential.com.

1 Source: PGIM Investments, AUM as of June 21, 2024.

2 The term PGIM as used in this announcement includes PGIM Investments LLC, an indirect, wholly owned subsidiary of Prudential Financial, Inc.

3 Morningstar Direct, as of April 30, 2024. Includes all active taxable and tax-exempt U.S. Open-End Funds and ETFs.

4 Source: Morningstar as of June 24, 2024.

PGIM Ultra Short Municipal Bond ETF Fund Risk

Risks of investing in the fund include but are not limited to the following: ETFs may trade at a premium or discount to net asset value or lack an active trading market, may be less liquid and may be subject to brokerage commission or other charges. The Fund may be subject to authorized participant concentration risk, since the Fund has a limited number of intermediaries that act as authorized participants and none of these authorized participants are or will be obligated to engage in creation or redemption transactions. To the extent that these intermediaries exit the business or are unable to or choose not to proceed with creation and/or redemption orders with respect to the Fund and no other authorized participant creates or redeems, shares of the Fund may trade at a discount to NAV and possibly face trading halts and/or delisting. The Fund is subject to debt obligations risk: debt obligations are subject to credit risk, market risk and interest rate risk and may also be subject to call and redemption risk, which is the risk that the issue may call a bond held by the Fund before maturity and the Fund may not be able to reinvest at the same rate; and municipal bonds and notes risk, where the Fund’s holdings, share price, yield and total return may fluctuate in response to bond market movements and municipal bond market movements. The Fund may purchase municipal bonds that are insured to attempt to reduce credit risk, but does not provide protection against market fluctuations. Municipal lease obligations are typically not subject to the same voter approval and debt limits as other municipal securities, may be less secure as they are not obligations of the issuers, and may not have an active market. High yield (“junk”) bonds are subject to greater credit and market risks. Variable and floating rate bonds are subject to credit, market and interest rate risks, may have a limited market, and may be subject to extended settlement periods. Zero coupon bonds may experience greater volatility due to changes in interest rates. The Fund is subject to new/small fund risk given the fund’s recently commenced operations and limited operating history. Derivatives may carry market, credit and liquidity risks. Unlike other ETFs, the fund is subject to cash transaction risk as it may effect creation and redemptions in cash or partially cash so that the Fund may be less tax-efficient than an investment in an ETF that distributes portfolio securities in-kind. All or a portion of the Fund’s dividends may be taken in account in determining the federal alternative minimum tax for individuals and may have other tax consequences. There is no guarantee the Fund’s objective will be achieved. Risks are more fully explained in the fund’s prospectus.

PGIM Municipal Income Opportunities ETF Fund Risk

Risks of investing in the fund include but are not limited to the following: ETFs may trade at a premium or discount to net asset value or lack an active trading market, may be less liquid and may be subject to brokerage commission or other charges. The Fund may be subject to authorized participant concentration risk, since the Fund has a limited number of intermediaries that act as authorized participants and none of these authorized participants are or will be obligated to engage in creation or redemption transactions. To the extent that these intermediaries exit the business or are unable to or choose not to proceed with creation and/or redemption orders with respect to the Fund and no other authorized participant creates or redeems, shares of the Fund may trade at a discount to NAV and possibly face trading halts and/or delisting. The Fund is subject to debt obligations risk: debt obligations are subject to credit risk, market risk and interest rate risk and may also be subject to call and redemption risk, which is the risk that the issue may call a bond held by the Fund before maturity and the Fund may not be able to reinvest at the same rate; and municipal bonds and notes risk, where the Fund’s holdings, share price, yield and total return may fluctuate in response to bond market movements and municipal bond market movements. The Fund may purchase municipal bonds that are insured to attempt to reduce credit risk, but does not provide protection against market fluctuations. Municipal lease obligations are typically not subject to the same voter approval and debt limits as other municipal securities, may be less secure as they are not obligations of the issuers, and may not have an active market. Fixed Income investments are subject to credit, market, prepayment and interest rate risks, and their value will decline as interest rates rise. High yield (“junk”) bonds are subject to greater credit and market risks. Variable and floating rate bonds are subject to credit, market and interest rate risks, may have a limited market, and may be subject to extended settlement periods. Zero coupon bonds may experience greater volatility due to changes in interest rates. The Fund is subject to new/small fund risk given the fund’s recently commenced operations and limited operating history. Derivatives may carry market, credit and liquidity risks. Unlike other ETFs, the fund is subject to cash transaction risk as it may effect creation and redemptions in cash or partially cash so that the Fund may be less tax-efficient than an investment in an ETF that distributes portfolio securities in-kind. All or a portion of the Fund’s dividends may be taken in account in determining the federal alternative minimum tax for individuals and may have other tax consequences. There is no guarantee the Fund’s objective will be achieved. Risks are more fully explained in the fund’s prospectus.

Consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus and summary prospectus contain this and other information about the fund. Contact your financial professional for a prospectus and summary prospectus. Read them carefully before investing.

Investing in exchange traded funds (ETFs) involves risks. Some ETFs have more risk than others. The investment return and principal value will fluctuate, and shares when sold may be worth more or less than the original cost, and it is possible to lose money.

The Funds are actively managed ETFs and thus do not seek to replicate the performance of a specified index. ETF shares are not individually redeemable from the Funds. Shares may only be redeemed directly from the Fund by Authorized Participants in Creation Units.

Fixed income investments are subject to credit, market, and interest rate risks (including duration risk and prepayment risk), and their value will decline as interest rates rise; call and redemption risk, where the issuer may call a bond held by the Funds for redemption before it matures and the Funds may lose income; liquidity risk, which exists when particular investments are difficult to sell; and emerging markets risk, which exposes the Funds to greater volatility and price declines.

Investment products are distributed by Prudential Investment Management Services LLC, member FINRA and SIPC. PGIM Investments is a registered investment advisor and investment manager. PGIM Fixed Income is an affiliate of PGIM and Prudential Financial company. © 2024 Prudential Financial, Inc. and its related entities. PGIM, PGIM Investments, PGIM Fixed Income and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

Investment products are not insured by the FDIC or any federal government agency, may lose value, and are not a deposit of or guaranteed by any bank or any bank affiliate.

1081173-00001-00

CONNECT WITH US:

Visit pgim.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20240628741017/en/

MEDIA CONTACT

Kylie Scott

+1 973 902 2503

kylie.scott@pgim.com

Source: PGIM

FAQ

What are the new ETFs launched by PGIM?

PGIM has launched two new ETFs: PGIM Ultra Short Municipal Bond ETF (PUSH) and PGIM Municipal Income Opportunities ETF (PMIO).

What is the ticker symbol for PGIM Ultra Short Municipal Bond ETF?

The ticker symbol for PGIM Ultra Short Municipal Bond ETF is PUSH.

What is the expense ratio of PGIM Ultra Short Municipal Bond ETF (PUSH)?

The expense ratio of PGIM Ultra Short Municipal Bond ETF (PUSH) is 0.15%.

How much of the PGIM Municipal Income Opportunities ETF (PMIO) is invested in high-yield muni bonds?

Up to 30% of the PGIM Municipal Income Opportunities ETF (PMIO) is invested in high-yield muni bonds.

On which stock exchange are the new PGIM ETFs listed?

The new PGIM ETFs are listed on the NYSE Arca.

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ETFs

Missed the Bull Market Resumption? 3 ETFs to Help You Build Wealth for Decades

Published

6 months ago

14 July, 2024

FinCrypto Staff

The market’s rebound from the 2022 bear market was not only unexpected. It was also bigger than expected. S&P 500 The stock price is up 60% from the bear market low, despite no clear signs at the time that such a rally was in the works. Chances are you missed at least part of this current rally.

If so, don’t be discouraged: you’re in good company. You’re also far from financially ruined. While you can’t go back and make up for the missed opportunity, for long-term investors, the growth potential is much greater.

If you want to make sure you don’t miss the next big bull run, you might want to tweak your strategy a bit. This time around, you might try buying fewer stocks and focusing more on exchange traded funds (or ETFs), which are often easier to hold when things get tough for the overall market.

With that in mind, here’s a closer look at three very different ETFs to consider buying that could – collectively – complement your portfolio brilliantly.

Let’s start with the basics: dividend growth

Most investors naturally favor growth, choosing growth stocks to achieve that goal. And the strategy usually works. However, most long-term investors may not realize that they can get the same type of net return with boring dividend stocks like the ones held in the portfolio. Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) which reflects the S&P US Dividend Growth Index.

As the name suggests, this Vanguard fund and its underlying index hold stocks that not only pay consistent dividends, but also have a history of consistently increasing dividends. To be included in the S&P US Dividend Growers Index, a company must have increased its dividend every year for at least the past 10 years. In most cases, however, they have been doing so for much longer.

The ETF’s current dividend yield of just under 1.8% isn’t exactly exciting. In fact, it’s so low that investors might wonder how this fund is keeping up with the broader market, let alone growth stocks. What’s being grossly underestimated here is the sheer magnitude of these stocks. dividend growthOver the past 10 years, its dividend per share has nearly doubled, and more than tripled from 15 years ago.

The reason is that solid dividend stocks generally outperform their non-dividend-paying counterparts. Calculations by mutual fund firm Hartford indicate that since 1973, S&P 500 stocks with a long history of dividend growth have averaged a single-digit annual return, compared with a much more modest 4.3% annual gain for non-dividend-paying stocks, and an average annual return of just 7.7% for an equal-weighted version of the S&P 500. The numbers confirm that there’s a lot to be said for reliable, consistent income.

The story continues

Then add capital appreciation through technology

That said, there’s no particular reason why your portfolio can’t also hold something a little more volatile than a dividend-focused holding. If you can stomach the volatility that’s sure to continue, take a stake in the Invesco QQQ Trust (NASDAQ: QQQ).

This Invesco ETF (often called the “cubes” or the triple-Q) is based on the Nasdaq-100 index. Typically, this index consists of 100 of the Nasdaq Composite IndexThe index is one of the largest non-financial indices at any given time. It is updated quarterly, although extreme imbalance situations may result in unplanned rebalancing of the index.

That’s not what makes this fund a must-have for many investors, though. It turns out that most high-growth tech companies choose to list their shares through the Nasdaq Sotck exchange rather than other exchanges like the New York Stock Exchange or the American Stock ExchangeNames like Apple, MicrosoftAnd Nvidia are not only Nasdaq-listed securities. They are also the top holdings of this ETF, with Amazon, Meta-platformsand Google’s parent company AlphabetThese are of course some of the highest-yielding stocks on the market in recent years.

This won’t always be the case. Just as companies like Nvidia and Apple have squeezed other names out of the index to make room for their stocks, these current names could also be replaced by other names (although it will likely be a while before that happens). It’s the proverbial life cycle of the market.

This shift, however, will likely be driven by technology companies that are offering revolutionary products and services. Owning a stake in the Invesco QQQ Trust is a simple, low-cost way to ensure you’re invested in at least most of their stocks at the perfect time.

Don’t forget indexing, but try a different approach

Finally, while Triple-Q and Vanguard Dividend Appreciation funds are smart ways to diversify your portfolio over the long term, the good old indexing strategy still works. In other words, rather than risk underperforming the market by trying to beat it, stick to tracking the long-term performance of a broad stock index.

Most investors will opt for something like the SPDR S&P 500 Exchange Traded Fund (NYSEMKT:SPY), which of course mirrors the large-cap S&P 500 index. And if you already own one, great: stick with it.

If and when you have some spare cash to put to good use, consider starting a mid-cap funds as the iShares Core S&P Mid-Cap ETF (NYSEMKT: IJH) instead. Why? Because you’ll likely get better results with this ETF than you will with large-cap index funds. Over the past 30 years, S&P 400 Mid-Cap Index significantly outperformed the S&P 500.

^MID Chart

The disparate degree of gains actually makes sense. While no one disputes the solid foundations on which most S&P 500 companies are built, they are in many ways victims of their own size: It’s hard to get bigger when you’re already big. This is in contrast to the mid-cap companies that make up the S&P 400 Mid Cap Index. These organizations have moved past their rocky, shaky early years and are just entering their era of high growth. Not all of them will survive this phase, but companies like Advanced microsystems And Super microcomputer Those that survive end up being incredibly rewarding to their patient shareholders.

Should You Invest $1,000 in iShares Trust – iShares Core S&P Mid-Cap ETF Right Now?

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The Motley Fool Stock Advisor analyst team has just identified what they believe to be the 10 best stocks Investors should buy now…and the iShares Trust – iShares Core S&P Mid-Cap ETF wasn’t one of them. The 10 stocks selected could generate monstrous returns in the years to come.

Consider when Nvidia I made this list on April 15, 2005… if you had $1,000 invested at the time of our recommendation, you would have $791,929!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including portfolio construction advice, regular analyst updates, and two new stock picks each month. The Stock Advisor service offers more than quadrupled the return of the S&P 500 since 2002*.

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John Mackey, former CEO of Amazon’s Whole Foods Market, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. James Brumley has positions in Alphabet. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Specialized Funds – Vanguard Dividend Appreciation ETF. The Motley Fool recommends Nasdaq and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a position in Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Specialized Funds – Vanguard Dividend Appreciation ETF. The Motley Fool recommends Nasdaq and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. disclosure policy.

Missed the Bull Market Resumption? 3 ETFs to Help You Build Wealth for Decades was originally published by The Motley Fool

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ETFs

This Simple ETF Could Turn $500 a Month Into $1 Million

Published

6 months ago

14 July, 2024

FinCrypto Staff

This Simple ETF Could Turn $500 a Month Into $1 Million

This large-cap ETF offers investors the potential for above-market returns while minimizing risk.

It’s always inspiring to hear stories of people who invested in a company and made tons of money as the company grew and became successful. While these stories are a testament to the power of investing, they can also be misleading. That’s not because it doesn’t happen often, but because you don’t have to make a big splash on a single company to make a lot of money in the stock market.

Invest regularly in exchange traded funds (AND F) is a great way to build wealth. ETFs allow you to invest in dozens, hundreds, and sometimes thousands of companies in a single investment. For investors looking for an ETF that can help them become millionaires, look no further than the Vanguard Growth ETFs (VUG 0.61%).

A history of outperforming the market

Since its launch in January 2004, this ETF has outperformed the market (based on S&P 500 Back), with an average total return of around 11.6%. The returns are even more impressive when looking back over the past decade, with the ETF posting an average total return of around 15.7%.

Total VUG Performance Level data by YCharts

The ETF’s past success doesn’t mean it will continue on this path, but for the sake of illustration, let’s take a middle ground and assume it averages about 13% annual returns over the long term. Averaging those returns, monthly investments of $500 could top the $1 million mark in just over 25 years.

Assuming (emphasis on the word “assume”) that the ETF continues to generate an average total return of 15.7% over the past decade, investing $500 a month could get you past $1 million in about 23 years. At an annual return of 11.6%, that would take nearly 28 years.

There is no way to predict the future performance of the ETF, but the most important thing is the power of time and Compound profit. Earning $1 million by saving alone is a difficult and unachievable task for most people. However, it becomes much more achievable if you give yourself time and make regular investments, no matter how small.

So why choose the Vanguard Growth ETF?

This ETF can offer investors the best of both worlds. On the one hand, since it only contains large cap stocksIt offers more stability and less volatility than you typically find with smaller growth stocks. At the other end, the focus on growth means it is built with the goal of outperforming the market.

Investing involves a tradeoff between risk and return, and this ETF falls somewhere in the middle for the most part. That’s not just because it only contains large-cap stocks. It’s also because large-cap stocks are leading the way. Here are the ETF’s top 10 holdings:

Microsoft: 12.60%
Apple: 11.51%
Nvidia: 10.61%
Alphabet (both share classes): 7.54%
Amazon: 6.72%
Meta-platforms: 4.21%
Eli Lilly: 2.88%
You’re here: 1.98%
Visa: 1.72%

The Vanguard Growth ETF is not as diversified as other broad ETFs, with the top 10 holdings making up nearly 60% of the fund and the “The Magnificent Seven” with stocks accounting for about 55%. However, many of these companies (particularly mega-cap technology stocks) have been among the best performers in the stock market over the past decade and still have great growth opportunities ahead of them.

MSFT Total Return Level data by YCharts

Big tech stocks are expected to continue to see growth in areas such as cloud computing, artificial intelligenceand cybersecurity; Eli Lilly will benefit from advances in biotechnologyTesla is one of the leaders in electric vehicles, which are still in the early stages of development; and Visa is expected to be one of the forerunners as the world moves toward more digital payments.

ETF concentration adds risk, especially if Microsoft, Apple or Nvidia is experiencing a slowdownBut these companies are well positioned to drive long-term growth despite any short-term setbacks that may arise. Consistent investments over time in the Vanguard Growth ETF should pay off for investors.

Randi Zuckerberg, former head of market development and spokesperson for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, Vanguard Index Funds-Vanguard Growth ETF, and Visa. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a position in shares of Apple and Microsoft. disclosure policy.

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ETFs

Ethereum ETFs Could Bring in $1 Billion a Month

Published

6 months ago

14 July, 2024

FinCrypto Staff

Kraken Executive: Ethereum ETFs Could Amass $1B Monthly

In a recent interview with Bloomberg, Kraken’s chief strategy officer Thomas Perfumo predicted that Ethereum ETFs could attract between $750 million and $1 billion in monthly investments.

“Market sentiment is being priced in. I think the market has priced in something like $750 million to $1 billion of net inflows into Ethereum ETF products each month,” Perfumo said.

In the interviewPerfumo noted that if inflows exceed expectations, it could provide strong support to the industry and potentially drive Ethereum to new record highs.

This creates positive support for the industry, if we go beyond that, note that Bitcoin was at a rate above $2.5 billion

He said

Moreover, the hype around Ethereum ETFs has already sparked some optimism among investors. After the SEC approved the 19b-4 filing, Ethereum’s price jumped 22%, attracting investment into crypto assets.

This price movement shows how sensitive the market is to regulatory changes and the growth potential once ETFs are approved.

Perfumo also highlighted other factors supporting current market sentiment, including the upcoming US elections and a potential interest rate cut by the Federal Reserve. Recent US CPI data suggests disinflation on a monthly and annual basis, with some traditional firms predicting rate cuts as early as September.

These broader economic factors, combined with developments in the crypto space, are shaping the overall market outlook.

Regarding Kraken’s strategy, Perfumo highlighted the exchange’s goal of driving cryptocurrency adoption through strategic initiatives. When asked about rumors of Kraken going public, he reiterated that the company’s intention is instead to broaden cryptocurrency adoption.

Read also : Invesco, Galaxy Cut Ether ETF Fees to 0.25% in Competitive Market

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ETFs

Kraken Executive Expects Ethereum ETF Launch to “Lift All Boats”

Published

6 months ago

14 July, 2024

FinCrypto Staff

Kraken exec expects Ethereum ETF launch to ‘lift all boats’

Kraken Chief Strategy Officer Thomas Perfumemo said: Ethereum ETFs (ETH) could help the crypto sector while commenting on political developments in the United States.

On July 12, Perfumo told Bloomberg that spot Ethereum ETFs would attract capital flows while drawing attention to crypto, noting:

“It’s a rising tide, which lifts the whole history of the boat.”

Perfumo further explained that the final value of Ethereum “depends on the Ethereum ETF.”

He said the cryptocurrency market is “pricing in” between $750 million and $1 billion in net inflows into Ethereum products on a monthly basis, which would imply that Ethereum could reach all-time highs between $4,000 and $5,000.

Perfumo also compared expectations to Bitcoin’s all-time high in March, which he called a “silent spike” that occurred without any evidence of millions of new investors entering the industry.

Political evolution

Perfumo also commented on political developments. At the beginning of the interview, he said that the results of the US elections “will set the tone for policymaking and the legislative agenda for the next four years.”

He also stressed the importance of legislative action and clarity and noted that recent developments show bipartisan support in Congress.

The House recently voted to pass the Financial Innovation and Technology for the 21st Century Act (FIT21) and attempted to repeal controversial SEC accounting rules with the Senate. However, the president Joe Biden Chosen to veto The resolution.

Perfume said:

“Even if you encounter obstacles at the executive level, [there’s] “There is still good progress to come.”

He added that the Republican Party appears “more pro-crypto.” [and] “more progressive” on the issue, noting Donald Trump plans to attend the Bitcoin Conference in Nashville.

Trump has also made numerous statements in support of pro-crypto policy, including at recent campaign events in Wisconsin And San Francisco.