✈️ A US-approved ETF landed in Europe

Europe's latest ETF launch, surprisingly cool US inflation, and ways to celebrate the last days of summer | [Finimize](   TOGETHER WITH     Hi {NAME}, here's what you need to know for September 12th in 3:13 minutes.   ⏱️ Time certainly is money. So join us for [Five Portfolio Hacks For Busy Investors]( at 5pm today to discover how to make the most of your free hours. [Grab your free ticket]( Today's big stories - US inflation cooled by slightly more than expected last month, reaching its lowest level since early 2021 - This tool can help you figure out which way stocks are headed next – [Read Now]( - After years of regulatory hurdles, a popular type of ETF just launched in Europe for the first time Wealth-Preservation [Wealth-Preservation] What’s going on here? Wednesday’s US inflation reading was the [lowest]( since early 2021 – but, accustomed to disappointment, investors still focused on the negatives. What does this mean? Consumer prices in the US were 2.5% higher this August than last – a touch below what economists were forecasting and a nice step down from July’s 2.9% pace. But investors must have left their rose-tinted glasses behind. They seemed to focus on the unexpected pickup in monthly “core inflation”, which strips out volatile food and energy prices. Economists had expected the measure to flatline, and the surprise may be why investors initially dipped out of the S&P 500. Why should I care? The bigger picture: Nothing’s ever simple. Remember, the Federal Reserve (Fed) has two main jobs: to keep price increases under control and the labor market in check. So now that inflation is slowly edging closer to its 2% target, the central bank is focusing on recent signs of weakness in the jobs market. The latest report showed that over the last three months, the pace of hiring in the US [slowed]( to its lowest level since the start of the pandemic in 2020. That explains why the Fed’s widely expected to lower interest rates by 0.25 percentage points next week, with some traders predicting a chunkier 0.5 percentage point trim. Zooming out: Bottom of the barrel. The US and China are the world’s biggest consumers of oil – so with their economies in less than fighting strength, the price of the slippery stuff has slumped over the past month. Just this week, oil prices hit their lowest level since December 2021 after OPEC – the group of the biggest oil-producing countries – lowered its demand forecast for the second time in two months. That’s a concern for the cartel, sure, but it bodes well for central banks: lower energy prices could help take the remaining sting out of inflation. You might also like: [The indicator flashing warning signs for the job market and economy.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Wealth-Preservation&utm_campaign=daily-global-12-09-2024&utm_source=email) Analyst Take The Relative Strength Index Can Tell You Who’s Driving The Price: Buyers Or Sellers [The Relative Strength Index Can Tell You Who’s Driving The Price: Buyers Or Sellers]( By Jonathan Hobbs, CFA, Analyst When markets are volatile (like they’ve been lately), you just want to know where the [momentum]( is pointing. And the [relative strength index]( (RSI) can be really handy for that. As the name suggests, this indicator compares the relative strength of buyers and sellers – to tell you which side is driving the [overall trend](. It’s no wonder the [pros]( keep an eye on it. So that’s today’s Insight: [the relative strength index and how to know where the market’s headed next](. [Read or listen to the Insight here]( SPONSORED BY DIREXION Shrink your screen time without missing out on market moves When it comes to betting on the markets, being in the know is crucial. After all, you can’t top them by relying on funds that track them. So if you’re feeling ambitious and risk-tolerant, you might want to consider Direxion’s range of Leveraged and Inverse ETFs. You can bet on a price falling with [Inverse ETFs](, multiply your trade with [Leveraged ETFs](, or back a certain high-risk stock with [Single Stock Daily Leveraged and Inverse ETFs](. But if you’re making your own active trades, you need to constantly keep a beady eye on your positions. Luckily, you can now minimize your screen time with [Direxion’s ETF alerts]( – they'll give you a nudge when the markets are on the move, allowing you to respond right when you need to. So to stay in the know with news that comes to you, [sign up for Direxion’s ETF alerts](. And give your eyes a rest. [Find Out More]( An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. [Click here to obtain a Fund’s prospectus and summary prospectus]( or call 866-476-7523. A Fund’s prospectus and summary prospectus should be read carefully before investing. Leveraged and Inverse ETFs pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk and who actively manage their investments. Direxion Shares ETF Risks — An investment in the ETFs involves risk, including the possible loss of principal. The ETFs are non-diversified and include risks associated with concentration that results from an ETF’s investments in a particular industry, sector or company, which can increase volatility. The leveraged and inverse ETF utilize derivatives, such as futures contracts and swaps which are subject to market risks that may cause their price to fluctuate over time. The leveraged and inverse ETFs do not attempt to, and should not be expected to, provide returns which are a multiple of the return of their respective index or underlying security for periods other than a single day. The leveraged and inverse ETFs may also subject to leverage, correlation, daily compounding, market volatility and risks specific to an industry, sector or company. The non-leveraged ETFs are subject to certain risks, including imperfect index correlation and market price variance, which may decrease performance. The non-leveraged ETFs may invest in a relatively small number of issuers and, as a result, be subject to greater risk of loss with respect to its portfolio securities. The non-leveraged ETFs may experience greater fluctuation in its net asset value as compared to other investments. The non-leveraged ETFs may be appropriate for investors with a long-term investment time horizon, who primarily seek capital growth, and who are able to tolerate periods of prolonged price declines. Please read each ETF’s prospectus for a more complete description of the investment risks. There is no guarantee that an ETF will achieve its investment objective. Distributor: ALPS Distributors, Inc. Finimize is unaffiliated with Direxion or ALPS Distributors, Inc. When you support our sponsors, you support us. Thanks for that. If you want your brand featured here, [get in touch.]( Clo And Behold [Clo And Behold] What’s going on here? Europe’s first-ever exchange-traded fund (ETF) for collateralized loan obligations (CLOs) [dropped]( this week, to the delight of many wide-eyed investors. What does this mean? Think of CLOs as a sort of smoothie – just less delicious than Erewhon’s famous lineup. Banks whip together a mix of different loans, portion them into batches with different risk levels, and serve them up to thirsty investors. The loans are often issued to private equity-backed companies with less-than-perfect credit ratings. And they typically have a “floating” rate, where the interest those companies pay changes based on what rates are doing in the overall economy. Now, ETFs based on CLOs have been storming the US: already this year, they’ve attracted five times the investment they saw in all of 2022. But because Europe has stricter regulations, the Fair Oaks AAA CLO ETF (FAAA) – known for its high-quality risk ratings – was only just deemed worthy of becoming the region’s first CLO fund. Why should I care? For markets: Safety first. The FAAA fund only holds “AAA-rated” loan obligations – the type that haven’t seen a default since they debuted in 1999. And while the riskier CLOs hand out the thickest returns, the safer ones still seem to have an edge over rival assets. So far this year, European AAA CLOs have delivered returns of 3.6%, compared to a measly 0.6% from investment-grade bonds. The bigger picture: That’s so yesterday. The timing of this launch isn’t exactly ideal. Interest rates are on the slide in Europe, which could take the shine off CLOs. See, their payouts increase as interest rates rise, and vice versa. That’s not the case for fixed rate bonds: their value increases as rates drop, so they could win investors’ attention in a falling-rate climate. So if you’re considering CLOs, you’ll need to decide whether the market has already factored in lower rates. If not, you might be burned by yesterday’s news. You might also like: [The downside of owning the world’s highest-yielding ETFs.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Clo And Behold&utm_campaign=daily-global-12-09-2024&utm_source=email) 💬 Quote of the day "Don't judge each day by the harvest you reap but by the seeds that you plant." – Robert Louis Stevenson (Scottish novelist and essayist) [Tweet this]( 🚀 Get the inside scoop from the biggest leaders in finance Are you in financial services or fintech? We've got something for you. Introducing our [new monthly newsletter]( featuring top insights from leaders at UBS, Citi, BlackRock, Revolut, and more. Get actionable advice on marketing, product building, and leadership in financial services. This week: [Finimize VP Max Rothery interviews Alex Craddock](, Global CMO at Citi and former CMO at BlackRock and Hewlett-Packard. 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