Artificial intelligence giant Anthropic plans to give individual investors a chance to buy shares of the company when it goes public as early as this month. It anticipates allocating a portion of IPO shares to brokerage customers of Charles Schwab, Fidelity, Robinhood Financial (including its TradePMR unit), SoFi, and Morgan Stanley's E*Trade, according to a Nov. 2 regulatory filing. However, a sharp market selloff led by AI stocks this week has some investors questioning if the IPO will take place as planned.
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Charles Schwab to launch more ETFs. Charles Schwab's asset-management unit sees room to further expand its lineup of 34 proprietary exchange-traded funds. Omar Aguilar, head of the company's asset management business, seeks to round out Schwab's ETF lineup with active fixed income and dividend strategies. The expansion plans come as the U.S. ETF industry drew in more than $1.5 trillion in new assets during the first nine months of the year.
Plan for more client spending on health. Advisors know that clients will need to spend a lot on healthcare and medical expenses as they age. Fidelity put the number at $185,500 for retirees today, but that figure doesn't touch the amounts that younger clients will spend throughout adulthood to maintain, monitor, and improve their health, writes Joseph Coughlin, the founder of the Massachusetts Institute of Technology's AgeLab. He suggests advisors create three "health portfolios" as part of financial plans to realistically cover a lifetime of health spending.
Market selloff hits financial stocks. Individual investors dumped financial stocks on Thursday, dragging down shares of major brokerage firms and banks such as Robinhood, Webull, Goldman Sachs, and Morgan Stanley. Analysts say a broad market selloff would mean less asset growth and could slow the investment banking dealmaking that has boosted bank revenue.
Financial advisor jumps from Merrill to J.P. Morgan. J.P. Morgan Wealth Management has recruited a Los Angeles financial advisor from Merrill Lynch, where she oversaw $940 million in client assets. Tiffany Yu, based in the Century City neighborhood, joined J.P. Morgan on Oct. 30. She is the second high-profile woman J.P. Morgan has recently hired away from Merrill.
Wealth managers weigh in on tokenization. Tokenization of financial assets -- where stocks, bonds, funds, and even cash will be recorded as digital tokens on a blockchain, rather than in brokers' ledgers -- could mean fast settlement, trading around the clock, fractional ownership, easier access to U.S. markets for overseas investors, and new ways to borrow against holdings. But the hype may be ahead of reality. For this week's Barron's Advisor Big Q, we asked five wealth managers: Is tokenization a big deal for investors? They said yes and explained why.
Write to advisor.editors@barrons.com
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