Latest news with #portfolioDiversification
Argaam
10 hours ago
- Business
- Argaam
Chinese investors show growing interest in Saudi market: CSOP
CEO of China's CSOP Asset Management Chen Ding said that Chinese investors are showing growing interest in the Saudi market. This reflects an increasing desire to diversify portfolios beyond traditional markets, especially given the limited overseas investment quotas in China under the QDI program.
Yahoo
07-06-2025
- Business
- Yahoo
Investing £5k of savings can generate a passive income of…
Buying dividend shares is a rapid and simple way to start earning a passive income. As with every investment, there are risks involved. But such threats can be managed through prudent decision-making and portfolio diversification. And when done well, the subsequent income stream can be quite lucrative, especially in the long run. So let's say an investor has £5,000 of capital sitting in a savings account. How much passive income can this money generate overnight and over the long term? The amount generated depends on which dividend stocks an investor decides to buy. Most tend to stick with simple index tracker funds. And right now, the FTSE 100 index offers a respectable 3.4% yield. That means, overnight, a £5,000 could generate a passive income of £170 a year. Obviously, that's not a groundbreaking sum, especially since many savings accounts offer similar returns right now at much lower levels of risk. However, there's also capital gains to take into consideration. And when combined with the dividend yield, the FTSE 100's historically generated close to an 8% annualised return for investors. Let's assume this trend continues over the next decade. What does this mean for an investor's passive income if they decide to reinvest any dividends between now and 2035? Without any additional capital, the original £5,000 will have grown to around £11,100. And if the yield's still 3.4%, that means the passive income stream will reach £377.40. That's a notable improvement. But what if we can do even better? Instead of relying on an index fund, investors can take matters into their own hands and invest in individual stocks directly. And right now, there are plenty of FTSE 100 constituents offering significantly higher yields. Take Aviva (LSE:AV.) as an example to consider. Today, the insurance giant already offers a more impressive payout with a 5.9% yield. So a £5,000 investment would instantly unlock an annual passive income of £295. But those who hopped on the bandwagon just five years ago are already earning considerably more. Following the appointment of CEO Dame Amanda Blanc in 2020, the company has undergone a significant transformation. It divested its non-core business ventures, raising over £8bn while simultaneously streamlining operations. Pairing this increase in efficiency with boosted activity within the annuity market, courtesy of higher interest rates, shareholders have been immensely rewarded. The Aviva share price has more than doubled, turning a £5,000 investment into £10,400. And at the same time, dividends were hiked by an average of 18% a year, turning an already substantial 5.3% yield at the time into a 12.2% payout. As such, a £5,000 initial investment in 2019 is now generating a passive income of £1,268.80. Sadly, Aviva shares aren't guaranteed to replicate this success between now and 2030. The company's still attempting to digest its £3.7bn acquisition of Direct Line Group. And with the UK government flirting with new mandates to force pension funds to invest more in UK assets, compliance-related costs of evolving regulation could create new headaches that impede performance. Nevertheless, Aviva serves as a good example of how stock picking opens the door to potentially superior returns in the long run. The post Investing £5k of savings can generate a passive income of… appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
National Post
12-05-2025
- Business
- National Post
State Street Global Advisors Research Examines Investors' Risk Awareness Amid Market Volatility
Article content Article content BOSTON — State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today released its ETFs in Focus Study: Risk Management Attitudes & Behaviors and its ETF Impact Report 2025-2026. Article content The study is part of State Street Global Advisors ETF Impact series, which was created to explore the evolving role of ETFs in portfolio construction, risk perceptions, and investor behavior. Conducted annually since 2022, this applied research provides deep insights into the ETF landscape, identifying key trends shaping portfolio decisions. Article content Market conditions have forced investors to adapt quickly and remain versatile during a time of extreme volatility. This new research examines how investors are managing risk, navigating uncertainty, and adapting to macroeconomic and market shifts. It also examines the more prominent role alternative investments are playing in portfolios, especially among financial advisors seeking to reduce clients' exposure to public markets and diversify portfolios. Article content 'As the market absorbs tariff impacts and ongoing uncertainty, questions around risk, diversification, and access to liquid, flexible investment tools are front and center,' said Anna Paglia, chief business officer at State Street Global Advisors. 'Our research addresses key questions about portfolio resilience.' Article content The ETFs in Focus study found that just prior to the president's tariff announcement which sent markets tumbling, just over half (55%) of investors say they felt informed about the risk to their portfolios. Article content Furthermore, despite all the talk about inflation, the study found that even before Liberation Day, tariffs and trade wars were perceived to be the greatest risk to portfolios in the coming 12-18 months among all investor types surveyed: self-directed, hybrid and advised. Self-directed investors were the most worried at 47%, followed by advised at 44% and hybrid at 37%. Fear over unexpected inflation was more subdued compared to fear over tariffs, with 33% of self-directed investors showing concern about rising prices, and 35% of hybrid and advised. Article content The study also confirms what research in recent years has shown: investors still see ETFs as essential portfolio building blocks during times of volatility. That sentiment is strongest among individual investors with more than $250,000 in investable assets: 65% agree that ETFs help improve overall performance — a significant jump from 59% in 2022. The uptick in the percentage of investors who believe ETFs make them a better investor is also notable, jumping to 62% from 54% last year. Article content Not all investors are alike when it comes to their preferred strategy for managing risk, but most are sticking to time-tested approaches that have been known to prevail in the long-term. While many are taking a more traditional approach in their asset allocation and making sure they're diversified, others are doing nothing, preferring not to make any sudden moves in anticipation of changing market conditions. Article content Overall, nearly half of all investors are managing risk in their portfolios by taking the traditional approach of 'avoiding high-risk investments' and/or 'diversification.' Over a third are also managing risk by 'holding cash or cash equivalents.' Article content The study reveals two clear strategies are emerging in how financial advisors are helping clients navigate perceived threats: the use of alternatives and the use of cash. Notably, just as many are likely to use alternative investment strategies as they are to hold cash amid the uncertainty. Article content When it comes to alternatives, half of financial advisors are 'allocating to alternative investments/strategies' to manage portfolio risk. And 79% 'plan to increase their allocation to alternative ETF strategies' over the next year or so. Since 2022, alternative ETF assets under management have grown from $27.58 billion to $148.81 billion by the end of 2024. 1 Article content When it comes to cash, nearly half (47%) are 'increasing allocation to cash or cash equivalents' and/or performing 'diversification across asset classes.' Article content The two drivers that rise to the top as having a significant influence on financial advisors' decision to incorporate or increase allocation of alternative investments/strategies into their clients' portfolios are 'reduce exposure to public markets' and 'alternative sources of return.' Article content This is not surprising as we see the acceptance of a 60/40 portfolio continue to wane. At the same time, alternatives are becoming less 'alternative,' as investors continue to look for asset classes and strategies that offer lower correlations, help diversify beyond stocks and bonds, and help manage risk. Article content In fact, one of the driving forces behind increased allocations to alternatives is investor demand. The study found that millennials, in particular, are pushing this trend forward with over two-thirds (69%) investing in alternatives compared to 56% of Gen X investors and 46% of Baby Boomers. Article content State Street Global Advisors also released today the ETF Impact Report 2025-2026 which explores emerging ETF trends shaping the industry. Article content Looking ahead at what's next for the future of ETFs, the report offers nine predictions that could spark ETF growth in 2025 and beyond, including: Article content The global ETF market takes in $2 trillion in 2025 Global gold fund assets under management will crack $500 billion by 2026 Global active fixed income ETF assets under management will hit $700 billion by the end of 2026 Bank loan and CLO ETF assets under management will overtake traditional high yield by 2026 AI will lead thematic ETFs to record flows in 2025 More AI-powered ETFs will run on blockchain Private and public markets will blur thanks to ETFs Alternative ETFs will go mainstream Multi-share-class innovation will reshape retirement Article content For an analysis of the trends behind these predictions, read the full ETF Impact Report 2025-2026. Article content Click here for an in-depth Q&A with State Street Global Advisors' Chief Business Officer: ETFs Unfiltered: Straight Talk on the Future of Investing with Anna Paglia. Article content Click here for Talk of the Trade: ETF Momentum and Macro Shifts, a Q&A with State Street Global Advisors' Chief Investment Officer Michael Arone and Head of SPDR Americas Research, Matthew Bartolini. Article content For over 30 years, State Street Global Advisors has led ETF innovation, shaping the evolution of index and active investing. The ETF Impact Series explores ETFs' evolving role in portfolio construction, risk perceptions, and investor behavior. Conducted biannually since 2022, this applied research delivers timely insights into the ETF landscape and key trends shaping portfolio decisions. Article content 2025 ETFs in Focus: Risk Management Attitudes & Behaviors builds on this foundation with a focused look at ETFs as tools for managing risk, conducted online from January through February 2025 by State Street Global Advisors Research Center in partnership with A2Bplanning and Prodege. Article content Data was collected from a nationally representative sample of 500 adults 18+ with investable assets (IA) of $25,000 or more who share or are solely responsible for household financial and investment decisions. Financial Advisors: Data was collected from 200 Financial Advisors with assets under management (AUM) of $25M or more, 90% with AUM of $50M or more. Article content For over four decades, State Street Global Advisors has served the world's governments, institutions, and financial advisors. With a rigorous, risk-aware approach built on research, analysis, and market-tested experience, and as pioneers in index and ETF investing, we are always inventing new ways to invest. As a result, we have become the world's fourth-largest asset manager* with US $4.67 trillion† under our care. Article content * Pensions & Investments Research Center, as of 12/31/23. † This figure is presented as of March 31, 2025 and includes ETF AUM of $1,553.58 billion USD of which approximately $106.42 billion USD in gold assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated. Please note all AUM is unaudited. 1 Morningstar Direct, as of February 28, 2025. Article content Important Risk Information Article content Investing involves risk including the risk of loss of principal. Article content The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA's express written consent. Article content All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. Article content The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor. Article content Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions. Article content Passively managed funds invest by sampling the index, holding a range of securities that, in the aggregate, approximates the full Index in terms of key risk factors and other characteristics. This may cause the fund to experience tracking errors relative to performance of the index. Article content ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns. Article content Article content Article content Article content Article content Article content
