Active vs. Passive ETF Flows, State Street on ETF Industy's Future

Group 1 - The global ETF industry is valued at $19 trillion, with a significant influx of capital into ETFs, totaling $42 billion in the last week alone, which is double the pace of the year [2][3] - Vanguard is leading the way in ETF inflows, with $120 billion this year, contributing to a record $350 billion for the company [4] - Money market funds are gaining traction, with $4.5 trillion in assets, and they represent almost half of the entire ETF industry [6][7] Group 2 - Capital Group has crossed $100 billion in assets under management in the active ETF space, driven by investor demand for high-quality active management [8][10] - There is a growing preference for active management in ETFs, particularly in the U.S. equity market, where active funds are showing value [10][12] - Capital Group manages over $3.2 trillion in assets, with a significant portion in retirement portfolios, indicating a strong focus on long-term investment strategies [16][17] Group 3 - State Street Investment Management is exploring the impact of dual share classes in the ETF industry, aiming to launch mutual fund share classes of existing ETFs [29][31] - The company is also focused on retail demand for private assets, emphasizing the importance of liquidity and income in the private credit market [27][28] - There are concerns about the industry's preparedness for an influx of new ETFs and the associated market-making challenges [22][23]