THE VIEW
A divided Fed held rates steady on Wednesday and markets closed modestly higher, but the bigger story for asset gatherers is that ETF demand keeps running hot. ICI estimates $45.82 billion of net ETF issuance for the week ended October 21, led by equity funds, while bond ETF issuance cooled from the prior week. With December hike odds climbing, advisors are revisiting duration and income sleeves, which is where distribution conversations should focus now.
Fed holds rates steady in a 10-2 vote, with two officials favoring a hike
Rate-path uncertainty keeps advisors focused on duration, income and cash alternatives, the categories most exposed to the December decision.
Stocks close higher and the 10-year yield nears 5.04% after the Fed decision
Traders now see an 85% chance of a December hike per CME FedWatch, a backdrop that shapes fixed income product pitches this quarter.
ICI: ETFs saw $45.82 billion of estimated net issuance for the week ended October 21
Equity ETFs took in $35.36 billion while bond ETF issuance fell to $9.57 billion from $19.04 billion, a shift issuers should track in their own flow data.
SPY outflows offset by IVV and SOXX inflows in the October 23 session
Daily rotation between core S&P 500 wrappers shows how fee and liquidity preferences move large sums between near-identical products.
Fed holds, yield curve steepens as Big Tech earnings diverge
A steeper curve with oil above $100 sets up demand for inflation-aware and real-asset strategies in advisor models.