Davy Crockett famously said “You may all go to hell, and I will go to Texas.” Nasdaq seems to agree (at least with that last part).

The exchange operator announced Tuesday that it will set up a new regional headquarters in Dallas, with an expected opening by yearend, and is planning additional investments in Texas. The goal for the new site isn’t just about winning listings; it will also include part of Nasdaq’s corporate solutions and financial crime management technology businesses.

The move is just the latest development for the Lone Star State’s burgeoning “Y’all Street,” which is already set to become home to the New York Stock Exchange Texas (formerly NYSE Chicago), and the Texas Stock Exchange — an upstart exchange financed by names including BlackRock, Charles Schwab and Citadel.

Yippee Ki-Yay

Though a second US headquarters in Dallas is a new chapter for the New York-based Nasdaq, it’s had a presence in Texas for more than a decade, establishing an office in Irving in 2013. The decision to double down on the largest state in the US mainland comes as a result of Nasdaq’s growing reach in the South as well as the regions’ economic success:

• Today, Nasdaq generates more than $750 million in Texas and the Southeast region, and has about 800 clients in the state, including corporate issuers, financial institutions, and asset managers, according to the exchange operator.
• Texas is also home to more than 200 companies listed on the Nasdaq Composite Index, representing nearly $2 trillion in market cap as of December.

“Nasdaq is deeply ingrained in the fabric of the Texas economy,” Adena Friedman, chair and CEO of Nasdaq, said in a statement.

What’s So Great About Texas? Just like New York and California, Texas hosts businesses both big and small, and it has the benefits of a large and growing labor force, no corporate or personal income tax, and being a “right-to-work” state, meaning workers can’t be required to join a union as a condition of employment. Because of its business-friendly environment, Texas contains more Fortune 500 companies than any other state, including Hewlett Packard, Tesla, and Charles Schwab.

And if any of those names don’t impress you, even Chuck E. Cheese is based in Texas.

“America first” is a punchy slogan, but may not exactly be a trading strategy.

Last week’s dramatic rotation by investors out of US stocks and into international holdings pulled down the stock market, but may have been serendipitous for ETFs focused outside of the country. One firm, AllianceBernstein, filed with the SEC this week for an active emerging markets ETF. The filing comes just as global fund managers went underweight on US holdings by nearly 25%, representing the biggest drop in US equity allocation ever, according to a report from Bank of America.

Nobody Said It Was EAFE

AllianceBernstein’s ETF is another active fund dropping into a rising pile. And while the timing certainly seems to be spot on, the company has been planning it for some time, said Noel Archard, the company’s global head of ETFs. The forthcoming ETF is not a copy of any of the firm’s mutual funds, though AllianceBernstein includes a similar emerging markets strategy as a component of other funds.

“We wanted to make sure that what we were putting out there was very asset allocation-, very model-friendly,” Archard said. Among the company’s 17 active ETFs, there is one focused on world growth and an international low volatility strategy, he said. “Emerging markets was the next logical place to expand.”

AB has its own line of model portfolios, which currently are a mix of mutual funds and ETFs. Others, including Fidelity and Capital Group, have recently rolled out their own ETF-exclusive model portfolios. Of course, ETFs have been growing at the cost of mutual funds, favored by lower fees and tax efficiency. Active ETFs have grown quickly, but from a smaller base than the much larger passive category.

Passive Aggressive. There are 41 actively managed ETFs in the US focused on emerging markets, up from just 28 a year ago, representing about $22 billion, as of February, according to Morningstar Direct. But those are among more than 300 in a category dominated by passive funds, said Daniel Sotiroff, senior analyst in passive strategies research for North America at Morningstar Research Services:

• Net sales in actively managed emerging markets ETFs were $1.3 billion in the first two months of this year, up from less than $800 million in the first two months of 2024, a 65% increase, according to Morningstar Direct.
• Meanwhile, actively managed US equity ETFs, which have benefited from outflows from mutual funds, pulled in more than $20 billion and $12.5 billion during those time frames, marking a 63% boost.

It’s a tough space for active managers, as about 40% of emerging markets don’t allow the in-kind transactions that give ETFs their tax efficiency, he said. Any new ETFs also have to compete with passive incumbents like the $85 billion iShares Core MSCI Emerging Markets ETF and $84 billion Vanguard FTSE Emerging Markets ETF.

“This whole move into ETFs on the part of active managers is relatively new,” Sotiroff said. “It looks like it’s going to be a mountain to climb. You’ve got two giants in that area.”

Women are becoming the primary stakeholders in their families and that means they’re making major financial decisions — and inheriting large amounts of wealth — over the coming years.

In fact, total financial assets held by women in the US are expected to triple to $30 trillion in the decade through 2030, according to McKinsey & Co. The research found women live five years longer than their male counterparts, meaning wealth managed by men commonly passes to their surviving spouses — often women. Combined with increased labor force participation and the ongoing Great Wealth Transfer, the future of the financial services industry will be driven by women.

But, as women’s overall assets increase, so does their desire for tailored financial guidance. To best support female clients, advisors must account for gender-specific needs and priorities. For example, women are more inclined to risk aversion and charitable giving, and family dynamics play a much larger part in their decision making. Behavioral finance strategies that consider emotional, psychological and social influences are also key. By understanding the totality of the client’s behaviors, in both life and investing, advisors can provide personalized, well-rounded advice.

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