![]() The reconciliation law passed by congressional Democrats in 2022 allows Medicare to negotiate for lower prices for a certain subset of drugs.Īs implemented by the federal government, the Centers for Medicare and Medicaid Services develops an initial offer and drugmakers can submit a counteroffer. “By coercing Merck to provide its drug products at government-set prices, the Program takes property for public use without just compensation in violation of the Fifth Amendment,” Robert Josephson, Merck’s executive director of global media relations, said in a statement. District Court for the District of Columbia, argues that the negotiation program is “extortion” and violates the Fifth Amendment by not paying the company “just compensation” for its products. sued the federal government Tuesday, seeking an injunction against parts of last year's reconciliation law that allow the Health and Human Services Department to negotiate for lower prices on drugs. kick or blockable-launch move works just as well to serve the example. “The distribution is huge, and Goldman has that distribution.Drugmaker Merck & Co. Id like to point out that Barrel Roll Kick and Forearm Smash share the same. Goldman has that as well,” Balchunas said. ![]() “JEPI taking in money despite being down and lagging I think shows JPMorgan’s distribution power. However, the bank’s powerful distribution network will likely help the new funds accumulate assets from Goldman’s clients. ![]() While it’s clear that Goldman is among those trying to carve out a foothold in that arena, last week’s filings are “pretty late,” said Bloomberg Intelligence’s Eric Balchunas. That’s fueled an arms race for dominance among heavyweight issuers including Dimensional Fund Advisors and Morgan Stanley. Actively managed strategies have accounted for roughly 27% of the $167 billion that’s been shoveled into US ETFs in 2023, a record share. JEPI and JEPQ’s blockbuster inflows have paced a boom in the active ETF space broadly. “Right now they’re happy for that yield and that bit of protection, but now that markets are ripping higher it’s going to get attention and we’re potentially going to see a rotation out.” “We’re on the precipice, that tipping point when people are going to wake up to that underperformance,” Valerie Grimba, director of Global ETF sales and strategy at RBC Capital Markets, said on Bloomberg Television’s ETF IQ. JEPQ is in second place with a $2.1 billion haul. JEPI, which became the largest actively managed ETF this year, has pulled in nearly $9.2 billion in 2023 - the most of any active strategy. Still, money continues to flood into the funds. While JEPQ has fared better with a 22% gain, that compares to a 33% return for the Nasdaq 100. JEPI has climbed roughly 4% on a total return basis this year, falling behind the S&P 500’s 13% advance. “The problem with copycats is they’re typically late to the party – and that feels like the case with these new filings.” That type of monstrous success is always going to attract copycats,” said Geraci. “Despite fairly sizeable underperformance this year, JEPI has still attracted over $9 billion in new money – it’s simply a machine. ![]() That market backdrop bodes poorly for copycat products, according to Nate Geraci, president of advisory firm The ETF Store. With the central bank nearing the end of its hiking cycle and stocks pushing further into bull-market territory amid the buzz around artificial intelligence, the ETFs have lagged big benchmarks such as the S&P 500 and Nasdaq 100 this year. ![]() While an aggressive Federal Reserve spurred a hunt-for-income that funneled billions into JEPI and JEPQ over the past year, industry analysts warn that the tide is starting to turn. The trio of proposed ETFs closely resemble two of JPMorgan’s blockbuster funds: the $26.7 billion JPMorgan Equity Premium Income ETF (ticker JEPI) and the $3.4 billion JPMorgan Nasdaq Equity Premium Income ETF (JEPQ). applied for two similar income-focused funds that would also employ call-writing strategies. It lands a week after Goldman Sachs Group Inc. REX Shares filed an application with US regulators Thursday for the REX FANG Equity Premium Income ETF (ticker FEPI), which would track and sell call options on the largest tech stocks. Smoky Air Returning to NYC, US Northeast After a Brief Reprieve There’s More Trouble Coming for Regional Banks Jeff Bezos Has Gained $10 on Mystery Purchase of One Amazon ShareĬrypto Weekend Slump Compounds Jitters of Investors Already on Edge Odey Sacked From His Hedge Fund Firm After Assault Allegations (Bloomberg) - Asset managers looking to replicate the success of JPMorgan’s biggest actively-managed exchange-traded funds will likely have to do it without the same market tailwind the ETFs enjoyed. ![]()
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