Group 1 - Vanguard is highlighted as a top pick among exchange traded fund (ETF) providers for investors [1]

SCARLET: WELCOME TO "ETF IQ." I AM SCARLET FU. KATIE: AND I AM KATIE GREIFELD. SCARLET: KATIE: LET'S GET TO THE BIGGEST STORIES RIGHT NOW.STOCKS WAVERING AS THEY PREPARE FOR NVIDIA EARNINGS AND THE DELAYED JOBS REPORT SET TO BE RELEASED LATER THIS WEEK. SCARLET: WE WILL SPEAK TO JOHN MAIER OF JPMORGAN ASSET MANAGEMENT ON THE FOURTH QUARTER GUIDANCE ON ETF'S. KATIE: PROJECT GRAYSCALE TESTS THE MARKETS AS IT FILES.ALL THAT AND MORE COMING UP. ERIC BALCHUNAS IS HERE WITH US NOW LOOKING AT THE FLOWS. WHAT HAVE ...

Market Overview - Stocks are wavering as investors prepare for NVIDIA earnings and a delayed jobs report set to be released later this week [1] - ETF investors are showing resilience despite market fears, with Vanguard expected to take in more money than any ETF issuer has historically [2][3] Treasury and Fixed Income Trends - There is a consistent bid into Treasuries, with half of the flows this year directed towards actively managed fixed income ETFs as the Federal Reserve reduces rates [5][6] - Investors are diversifying from ultrashort to longer-duration bonds, anticipating further rate cuts [6][11] - Municipal bonds are attracting significant interest, with one actively managed ETF in the muni space holding about $10 billion in assets [7] High-Yield ETF Insights - Approximately 90% of high-yield ETF assets are currently in passive vehicles, indicating a bias towards passive investment strategies [12][13] - The shift towards active management is gaining traction, with 40% of overall fixed income flows moving to active strategies this year [15] Grayscale and IPO Developments - Grayscale has filed for an IPO, managing about $35 billion in assets across 40 products tied to over 45 tokens [23][24] - The firm has experienced revenue drops due to outflows, which significantly impact their financial performance [24][25] - Despite the current bear market in crypto, there is a strong desire among issuers to launch products quickly to capitalize on potential market recoveries [27][28] Thematic ETF Performance - The Psychedelics ETF, which invests in healthcare and biotech companies developing alternative treatments, has seen significant volatility and a decline in assets [31][32] - The ETF's performance is closely tied to public perception and acceptance of psychedelic treatments, which are gaining traction in clinical trials [34][36]

Core Insights - The Schwab U.S. Broad Market ETF (SCHB) and the Vanguard Total Stock Market ETF (VTI) are nearly interchangeable for most investors, with matched expense ratios, dividend yields, and performance, but VTI has a larger size and slightly broader diversification [2][9] Cost & Size Comparison - Both SCHB and VTI have an expense ratio of 0.03% and a dividend yield of 1.14%. As of November 17, 2025, SCHB has an AUM of $37.35 billion while VTI has $2.02 trillion [4][5] Performance & Risk Metrics - Over the past five years, SCHB experienced a maximum drawdown of -25.40% while VTI had a drawdown of -25.36%. A $1,000 investment would have grown to $1,785 in SCHB and $1,779 in VTI [6] Portfolio Composition - VTI includes 3,529 stocks and has a sector allocation typical of the U.S. market, with technology at 34%, financial services at 13%, and consumer cyclicals at 11%. The largest holdings are Nvidia, Microsoft, and Apple, each under 10% of total assets [7] - SCHB holds 2,435 stocks with a nearly identical sector mix and top holdings that mirror VTI's, avoiding major tilts and unusual constraints [8] Overall Comparison - Both SCHB and VTI charge identical ultra-low fees and have matching dividend yields. VTI holds more stocks and is significantly larger, but their recent returns and risk metrics are nearly indistinguishable [9][10]

Core Insights - The U.S. stock market is increasingly dominated by large tech companies, with the S&P 500 now representing 84% of total U.S. market capitalization, up from 75-80% in previous years [3] - Nvidia and Microsoft, the two most valuable U.S. companies, have a combined market cap equivalent to approximately 3,000 companies outside the S&P 500 with market caps over $250 million [4] - Vanguard's Total Stock Market ETF is the largest publicly traded fund globally, with over $2 trillion in net assets, surpassing the Vanguard S&P 500 ETF [5] Fund Comparisons - Both the Vanguard S&P 500 ETF and the Vanguard Total Stock Market ETF have an expense ratio of 0.03%, making them the lowest-cost options available [8] - The Total Stock Market ETF holds 3,529 stocks compared to 504 in the S&P 500 ETF, providing greater diversification [9] - The S&P 500 ETF is suitable for investors seeking simplicity, while the Total Stock Market ETF may be better for those wanting exposure to smaller stocks outside the S&P 500 [10]

Core Insights - Major asset managers are achieving significant milestones in their ETF businesses amid record inflows, with Capital Group's ETFs reaching $100 billion in assets under management [2] - BlackRock's iShares and Vanguard remain the dominant players in the ETF market, holding $3.9 trillion and $3.7 trillion respectively, while newer entrants like T. Rowe Price are gaining traction [2] Industry Trends - Approximately $1.1 trillion has flowed into US ETFs in 2023 through October, surpassing total inflows for all of 2024, with $378 billion specifically directed towards active ETFs [3] - Total assets in the ETF market have exceeded $13 trillion, indicating robust growth and demand for exchange-traded funds [3] Company Developments - Capital Group has focused on core-style products while other niche issuers have introduced leveraged and thematic funds, with a notable increase in model portfolios for active ETFs [3] - As of March, Capital Group became the third-largest provider of active ETF model portfolios, managing $61 billion, following Wilshire and BlackRock [3] Additional Milestones - Invesco is nearing $800 billion across its 240 US ETFs, while Goldman Sachs has surpassed $50 billion with its 45 US ETFs, and T. Rowe Price has exceeded $20 billion with its 24 ETFs [5]

Report Industry Investment Rating No relevant content provided. Core View of the Report - Last week, 16 new products were issued in the US, with a relatively large number of single - stock products and digital currency products. The Defined Duration series ETFs issued by Discipline Funds use a stock - bond hybrid form to anchor the target duration [1][6]. - In the past week, the inflow of US ETFs continued to exceed $30 billion, with a large inflow into stock products. Bitcoin ETFs continued to experience outflows, while the capital flow of gold ETFs remained stable [1][10]. - This year, raw material - related products in US industry - themed products have led the gains, with many products rising by more than 60% [1][16]. - In September 2025, the total amount of non - money public funds in the US was $23.47 trillion, an increase of $0.49 trillion compared to August. Last week, the outflow of US domestic stock funds returned to around $20 billion, and bond products returned to inflows [1][19]. Summary by Directory 1. US ETF Innovation Products - 16 new products were issued last week, including single - stock products (mostly 2 - times leveraged products covering semiconductor, supply - chain, fuel - cell and other companies), municipal bond - related ETFs, strategy ETFs, and digital currency index products [6][7]. - Discipline Funds issued the Defined Duration series ETFs, which use a stock - bond hybrid form to anchor the target duration and aim to obtain more stable returns within a given time frame by evaluating stock duration through valuation indicators and combining with matching bond portfolios [1][9]. 2. US ETF Dynamics 2.1 US ETF Fund Flows - In the past week, the inflow of US ETFs exceeded $30 billion, with a large inflow into stock products. Bitcoin ETFs continued to experience outflows. Vanguard's S&P 500 ETF ranked first in inflows, while State Street's products had the largest outflows. Each S&P 500 ETF has alternated in inflows in recent weeks. BlackRock's Bitcoin and Ethereum ETFs were among the top ten in outflows [1][10]. - The capital flow of gold ETFs remained stable last week, and the capital of the Nasdaq 100 ETF has fluctuated significantly recently [15]. 2.2 US ETF Performance - This year, raw material - related products in US industry - themed products have led the gains. In addition to gold and silver mining, copper mines, rare earths, and other metals have all performed well, with many products rising by more than 60% [1][16]. 3. Recent Fund Flows of US Ordinary Public Funds - In September 2025, the total amount of non - money public funds in the US was $23.47 trillion, an increase of $0.49 trillion compared to August. The S&P 500 rose 3.53% in September, and the scale of US domestic stock products increased by 2.13%, with an increase in redemption pressure that month. - According to weekly statistics, last week, the outflow of US domestic stock funds returned to around $20 billion, and bond products returned to inflows [19].

Core Insights - The article discusses the balance between investing in individual stocks versus index funds, emphasizing that while individual stocks can be appealing, they are generally more volatile and risky [1][6][18] Group 1: Individual Stock Investment - A significant portion of low- and moderate-income Americans, 54%, are investing in capital markets, with a preference for individual stocks over mutual funds and ETFs [3] - Investment experts recommend starting small when investing in individual stocks, suggesting that only a small percentage of a portfolio should be allocated to them, especially for retirement savings [5][6][7] - It is advised to avoid overconcentration in any single stock, with a guideline that no single position should account for more than 5% to 10% of the overall portfolio value [9][10] Group 2: Diversification Strategies - Diversification is crucial, meaning holding different types of assets across various sectors and markets, which can mitigate risks associated with individual stocks [12][13] - Experts suggest that investors should own at least 25 diversified stocks to spread risk, while others recommend focusing on 5 to 10 stocks with a strong track record [14][15] - The article highlights that many individual stocks may underperform, and it is the few successful investments that will drive overall returns [20] Group 3: Market Performance Expectations - The article notes that actively managed funds often underperform the market, and this trend applies to amateur stock pickers as well [17][18] - Investors should not expect to consistently beat the market by selecting individual stocks, as many will not perform well [19][20]

Group 1 - International stocks are expected to outperform U.S. equities in 2025 due to a weaker U.S. dollar and proactive interest rate cuts by other nations' central banks [2] - Retail investors who missed the international stock rally in 2025 may find opportunities in the small-cap segment for 2026 [3] - The Vanguard FTSE All-World ex-US Small-Cap ETF has shown significant performance, up 26.2% year to date, compared to U.S. small-cap funds which are up only 11% and 5% [5] Group 2 - The Vanguard FTSE All-World ex-US Small-Cap ETF trades at 12 times forward earnings, offering value compared to 15 for large-cap equivalents and 27 for large-cap domestic stocks, with faster earnings growth in international small-caps [6] - This ETF provides diversification benefits, with a correlation of just 0.4 to the S&P 500 Growth index, making it a suitable option for investors heavily exposed to domestic technology stocks [7] - The ETF offers broad exposure to an overlooked asset class, enhancing portfolio diversification beyond expectations [8]

Core Insights - The Vanguard High Dividend Yield ETF (VYM) is a notable $67 billion fund with a low expense ratio of 0.06% [1] Group 1: Fund Characteristics - VYM is one of only five U.S. Large-Cap Value ETFs, highlighting its unique position in the market [1] - The fund is analyzed by The Sunday Investor, who has a strong analytical background and has developed a proprietary ETF Rankings system [1] Group 2: ETF Rankings System - The Sunday Investor's ETF Rankings system evaluates nearly 1,000 ETFs based on various factors including costs, liquidity, risk, size, value, dividends, growth, quality, momentum, and sentiment [1] - The system provides an easy-to-understand composite score ranging from 1 to 10 for each ETF [1]