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Yahoo
28-06-2025
- Business
- Yahoo
Dwindling IPOs Reward Investors With Return Bonanza
Entering 2025, it was the year of IPOs … until it wasn't. Firms grew timid about dipping their toes into public waters as markets sputtered amid tariff threats. But less has turned out to be more. In fact, 2025 could end up being the year of IPOs doing well, even if some firms were hesitant to come out of their private shells. New data compiled by Bloomberg found that shares in companies to debut on US exchanges this year have climbed by a weighted average of 53% — the S&P 500 is up 4.4%, so, in the words of Larry David, pretty, pretty good. Now, to see if it inspires the wave of listings investors were hoping for. READ ALSO: After Reclaiming 'World's Most Valuable Company' Crown, Nvidia Gilds the Tiara and Kraken Launches Crypto's Attempt at a Venmo-Killer Before the champagne-popping, the hard truth: IPOs are still down. Bloomberg counted 33 of them so far, down from 41 in the first half of 2024 (excluding SPACs and small listings that raked in under $50 million). But the performances of stablecoin fintech Circle, up more than 585% since listing earlier this month, and cloud computing company CoreWeave, up more than 300% since listing in March, have offered assurances that, despite this year's Olympic hurdle run of risks, investor appetite for new opportunities is resilient. There are signs in some sectors that a trickle-down effect could be on the way, although that may take time: On the fintech front, investment management company Wealthfront filed for an IPO earlier this week, following rival Chime's $864 million debut in its initial public offering earlier this month. This activity suggests a warming trend in the fintech public offering market. Potential billion-dollar fintechs Klarna and Plaid have both signaled they are readying IPOs, having previously been spooked by market uncertainty. On the digital health front, two notable care providers have gone in opposite directions: Hinge Health is up 13.8% since its debut in May, while Omada Health has tumbled 22% since its listing earlier this month. The IPO calendar for the rest of 2025 remains relatively light, and analysts don't expect digital health listings to pick up, but fintech and crypto firms could be inclined to file — in fact, crypto exchange Gemini filed earlier this month, with many expecting Circle's success to embolden others in the sector to follow. We're Number One: The 53% average returns on newly listed US companies bested the 45% in Asia, 38% in Europe and 7% in the Middle East, according to Bloomberg's calculations. This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-06-2025
- Business
- Yahoo
Consumer Goods Giants Slim Down to Spur Growth
For US consumer giants, smaller is better. Procter & Gamble, the maker of Tide laundry detergent and other household goods, announced a restructuring plan last week that includes cutting 7,000 people from its workforce and potentially exiting certain product categories over the next two years. READ ALSO: Ripped Job Market Swipes Left on New Grads and Wall Street's Elite Get Serious About Debt Alarmism 'We are evolving into the next phase of our organization design with a program that we have just announced today,' P&G executives said at a Deutsche Bank conference in Paris. 'The strategy is inherently dynamic. It adapts to the changing needs of consumers, customers, society, and the geopolitical dynamics around us.' Scale for scale's sake appears to have become passé, with conglomerates jockeying for market share with a more focused brand identity than in the past: Kimberly-Clark, the maker of Huggies diapers, said on Thursday it would sell a majority stake in its international tissue business to Brazilian paper company Suzano, which agreed to pay $1.73 billion in cash for 51% of the unit. The deal is expected to close next year. General Mills, the maker of Cheerios, completed the sale of its Canadian yogurt business to Sodiaal in January and received regulatory approval last week to offload its US yogurt unit to Lactalis. The companies plan to close the transaction later this month. J.M. Smucker Co., the maker of Folgers, finalized its sale of Cloverhill, Big Texas, and private-label products to JTM Foods in March. Some 400 employees are part of the transaction. Those brands in the baked goods category were under Hostess Brands, which was acquired in 2023. Unilever, the maker of Dove soap and Hellmann's mustard, is selling plant-based food brand The Vegetarian Butcher as part of its plans to slim its portfolio. It is in the process of spinning off its ice cream business, including Ben & Jerry's and Talenti; the company announced last year that it would cut 7,500 jobs to simplify operations. Newly appointed CEO Fernando Fernandez said he was focused on 'portfolio quality over portfolio scale' during his first earnings call as chief in April. Breakups Pay Up: Shedding misaligned businesses can help boost growth, according to PwC. The Big 4 accounting firm's analysis of US divestitures from 1998 to 2017 found that sellers tended to show higher growth in earnings before interest, taxes, depreciation, and amortization (Ebitda) in the years following a transaction. Record levels of US corporate cash and the dry powder sitting at private equity firms may also be inspiration enough for yard sales. This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter.
Yahoo
06-06-2025
- Business
- Yahoo
Countries Fight Over Periodic Table as China Hoards Rare Earths
Quick geology lesson: There are 17 types of rare earths, and they're used as the building blocks in cars, semiconductors, missiles, drones, and more. China mines 70% and processes 90% of the world's supply. China's massive rock collection has become one of its most important bargaining chips, and as the country tightens its grip on rare earths exports, the global supply chain is showing cracks. This week, world leaders raised the alarm, with EU trade officials emphasizing yesterday the bloc's urgent need to reduce its dependence on rare earths from China. READ ALSO: US Service Economy Suffers Unexpected Trade War Blow and Unshackled Wells Fargo Fights to Regain Momentum Lost in Penalty Box When POTUS Trump raised global import tariffs in April, China said, 'Bet,' and rolled out retaliatory restrictions on seven kinds of rare earths and the magnets made from them. At the same time, China cracked down on illegal smuggling of the valuable elements that had made previous export curbs less effective. Last year, China halted exports of three rare minerals critical for making computer chips, EV batteries, and military weapons systems. Now, auto manufacturing seems to be the first major industry feeling the effects of its mineral deficiency: Ford temporarily stopped churning out SUVs at a Chicago plant last week because of a shortage of magnets, which are used not only in electric vehicle power systems but also in various components of gas-powered cars, such as power windows and headlights. Finance chief Sherry House said yesterday that restrictions are putting stress on Ford's system. Mercedes-Benz's production chief noted that it's chatting with suppliers about building up reserves, while BMW said its supply chain has been disrupted but its factories are still running. China's passing out a limited number of export permits, but experts say it's not enough to keep production running smoothly. For now, the auto industry has a stockpile of magnets to fall back on, but it's only expected to last a few months at most. Digging Deep: The US has spent hundreds of millions of dollars to bring rare earth production stateside since 2020, but it's still in the early stages of building the complicated supply chain (rare earths require more than 100 steps to process). In the meantime, US officials are pushing for access to Ukraine's rare earths, while automakers are trying to develop parts that require fewer or no rare earths. Trump and Chinese President Xi Jinping are expected to have a discussion this week that'll highlight export restrictions. It could be a tad awkward after Trump posted on social media that Xi is 'VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH.' This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter.
Yahoo
29-05-2025
- Business
- Yahoo
American Century's Head of ETF Solutions to Depart
American Century is losing its head of ETF solutions, Rene Casis, who joined the firm just before it launched its first exchange-traded fund in 2018. In regulatory filings late last week, the company disclosed that Casis will soon no longer be a portfolio manager on 11 ETFs. An American Century spokesperson confirmed in an email that Casis will leave the company in about three weeks to 'pursue another opportunity' and that a search is underway for a successor. 'His last day managing portfolios is June 11,' the spokesperson said. 'He remains with the firm until June 20 to assist as needed.' This story was originally published on The Daily Upside. To receive exclusive news and analysis of the rapidly evolving ETF landscape, built for advisors and capital allocators, subscribe to our free ETF Upside newsletter. With about $60 billion in assets among its 47 ETFs, American Century is not one of the biggest players in the industry, though still among the top 20 ETF issuers broadly. But the company has made a niche in actively managed ETFs, with a focus on semitransparent ETFs, which disclose their holdings quarterly, rather than daily, and show a proxy basket of securities to give investors a rough idea about the portfolios. Through its Avantis Investors subsidiary, American Century is among the four biggest active ETF issuers by assets. Casis, who has been with the firm as it built out its active and semitransparent ETF business, is a portfolio manager on several products with that structure. While six of the 11 ETFs he is on have two portfolio managers, others have larger teams. The largest ETFs that Casis helps manage include: US Quality Growth ETF — $1.5 billion, team of two managers Quality Diversified International ETF — $326 million, two managers Focused Dynamic Growth ETF — $284 million, four managers Focused Large Cap Value ETF — $253 million, five managers Moving On: All but one of the nine $1-billion-plus ETFs in the company's line are managed by, and branded under, its Avantis Investors subsidiary. Casis is not part of that unit. 'Generally we have a constructive view of the ETF business under American Century,' said Hyunmin Kim, an analyst on Morningstar's multi-asset strategies research team. 'Avantis is a bright spot.' The post American Century's Head of ETF Solutions to Depart appeared first on The Daily Upside. Sign in to access your portfolio
Yahoo
29-05-2025
- Business
- Yahoo
Vanguard's 2 New Muni ETFs Have an Advantage Over Mutual Funds
Who wants some beta? Vanguard rounded out its municipal bond fund suite last week with a pair of passively managed tax-exempt funds: the Long-Term Tax-Exempt Bond and New York Tax-Exempt Bond ETFs. The strategies are new, not replicating existing mutual funds from the company's extensive product line. There are, however, two active mutual funds in the same category, the Admiral shares of which charge 9 basis points — the same fee charged by the passive ETFs. But there is still a draw for index-level returns, or beta. 'Some clients just want the beta,' along with the low cost and ease of operation with an ETF, said Perryne Desai, senior fixed income product manager for the two new funds. 'Now that bonds are actually yielding something and they are a safe harbor … there is no better time to be in fixed income. There's no better time to be in munis.' This story was originally published on The Daily Upside. To receive exclusive news and analysis of the rapidly evolving ETF landscape, built for advisors and capital allocators, subscribe to our free ETF Upside newsletter. Vanguard has been building out its muni bond ETF line for two years, Jeff DeMaso, editor of The Independent Vanguard Adviser, said in a statement about the launch. With the additions, Vanguard has two dozen muni mutual funds and ETFs. The two new products 'won't turn heads but are practical additions to Vanguard's roster,' DeMaso said. And they don't necessarily offer a cost advantage over two existing active mutual funds, unless one takes into account the $50,000 minimum needed for Vanguard's Admiral shares — the Investor shares, which have a $3,000 minimum, charge 17 basis points for the Long-Term and 14 for the New York version. 'If you are willing to own a mutual fund (over an ETF), you can get Vanguard's active management for free,' DeMaso said. 'That's a good deal in my book.' Some of the details about the active funds: The Long-Term Tax-Exempt Fund, at $16.9 billion, has trailing returns of 0.26% over a year, 2.9% over three years, and 0.76% over five years, data from Morningstar show. The New York Long-Term Tax-Exempt Fund, at $5.1 billion, returned 0.28% over a year, 3.04% over three years, and 0.73% over five. Better for the Beta: The new ETFs are managed by Vanguard's fixed income group, whose track record in active management benefits the index team, Desai said, citing the example of the nearly 10-year-old Tax-Exempt Bond ETF, which has a beta of 0.97, according to Morningstar. 'Our tracking error is pretty darn tight, and in municipals, that's difficult to accomplish.' The post Vanguard's 2 New Muni ETFs Have an Advantage Over Mutual Funds appeared first on The Daily Upside.
