And welcome back to halftime with your we have your ETF edge. We're seeing two big pushes in the industry this week getting very different receptions. Let's jump right into it.Joining me now is independent ETF expert Dave Natig. Dave, thanks for joining us. Thanks for having me.All right, let's start off first. I get back to those two big players diving into the active management arena. We got billionaire investor Ron Baron launching his own fund and lowcost king Vanguard filing for a new fundamentals fund ...

Core Insights - The Invesco Russell 2000 Dynamic Multifactor ETF (OMFS) aims to provide broad exposure to the Small Cap Blend segment of the US equity market and has assets exceeding $240.27 million [1] Group 1: Investment Potential - Small cap companies, defined as those with market capitalizations below $2 billion, present high potential but also come with increased risk [2] - Blend ETFs typically include a mix of growth and value stocks, offering diversified investment opportunities [2] Group 2: Costs and Performance - OMFS has an annual operating expense ratio of 0.39% and a 12-month trailing dividend yield of 1.26%, which is competitive within its peer group [3] - The ETF has increased by approximately 5.52% year-to-date and 10.72% over the past year, with a trading range between $33.88 and $43.90 in the last 52 weeks [7] Group 3: Sector Exposure and Holdings - The ETF's largest allocation is to the Financials sector, comprising about 27.7% of the portfolio, followed by Industrials and Information Technology [4] - The top 10 holdings represent about 5.58% of total assets, with Hims & Hers Health Inc (HIMS) accounting for approximately 0.7% [5] Group 4: Risk and Diversification - OMFS seeks to match the performance of the Russell 2000 Invesco Dynamic Multifactor Index, which includes 2,000 small-cap companies [6] - The ETF has a beta of 1.07 and a standard deviation of 21.09% over the trailing three-year period, indicating effective diversification of company-specific risk with around 1465 holdings [7] Group 5: Alternatives - OMFS holds a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors interested in the Small Cap Blend market segment [8] - Other alternatives include the Vanguard Small-Cap ETF (VB) and iShares Core S&P Small-Cap ETF (IJR), which have significantly larger asset bases and lower expense ratios [9] Group 6: Market Trends - Passively managed ETFs are gaining popularity among both institutional and retail investors due to their low costs, transparency, and tax efficiency, making them suitable for long-term investment strategies [10]

Group 1: Core Insights - The WisdomTree Emerging Markets SmallCap Dividend ETF (DGS) was launched on October 30, 2007, and offers broad exposure to the emerging markets category [1] - DGS has amassed over $1.62 billion in assets, making it one of the larger ETFs in the Broad Emerging Market ETFs segment [5] - The fund seeks to match the performance of the WisdomTree Emerging Markets SmallCap Dividend Index, which is fundamentally weighted and focuses on small-cap stocks [6] Group 2: Cost and Performance - DGS has an annual operating expense ratio of 0.58%, which is competitive within its peer group [7] - The 12-month trailing dividend yield for DGS is 2.69% [7] - Year-to-date, DGS has increased by approximately 16.32%, and it is up about 9.01% over the last 12 months as of August 20, 2025 [11] Group 3: Holdings and Diversification - The top 10 holdings of DGS account for approximately 99.15% of its total assets under management [9] - The fund holds about 1,082 stocks, effectively diversifying company-specific risk [11] - The US Dollar constitutes about 63.85% of total assets, with significant exposure to the Indonesian Rupiah and Indian Rupee [8] Group 4: Alternatives - Other ETFs in the emerging markets space include Vanguard FTSE Emerging Markets ETF (VWO) and iShares Core MSCI Emerging Markets ETF (IEMG), with VWO having $96.05 billion and IEMG $101.53 billion in assets [13] - VWO has a lower expense ratio of 0.07%, while IEMG charges 0.09% [13]

Core Viewpoint - The Vanguard S&P 500 Value ETF (VOOV) is a prominent option for investors seeking broad exposure to the Large Cap Value segment of the US equity market, with significant assets under management and low expense ratios [1][4]. Group 1: Fund Overview - VOOV was launched on September 9, 2010, and has accumulated over $5.65 billion in assets, positioning it as one of the larger ETFs in its category [1]. - The ETF is passively managed and aims to replicate the performance of the S&P 500 Value Index, which focuses on large capitalization value stocks [7]. Group 2: Large Cap Value Characteristics - Large cap companies typically have market capitalizations exceeding $10 billion, offering more stability and predictable cash flows compared to mid and small cap companies [2]. - Value stocks, characterized by lower price-to-earnings and price-to-book ratios, have historically outperformed growth stocks in most markets, although they may lag during strong bull markets [3]. Group 3: Costs and Performance - The ETF has an annual operating expense ratio of 0.07%, making it one of the least expensive options available, with a 12-month trailing dividend yield of 1.96% [4]. - As of August 20, 2025, VOOV has gained approximately 6.62% year-to-date and 7.51% over the past year, with a trading range between $162.65 and $199.29 in the last 52 weeks [7]. Group 4: Sector Exposure and Holdings - The ETF's largest sector allocation is to Information Technology, comprising about 24.8% of the portfolio, followed by Financials and Healthcare [5]. - Microsoft Corp (MSFT) is the largest individual holding at approximately 7.28% of total assets, with the top 10 holdings representing about 21.41% of total assets under management [6]. Group 5: Risk and Alternatives - VOOV has a beta of 0.88 and a standard deviation of 14.66% over the trailing three-year period, indicating a medium risk profile [8]. - Alternatives to VOOV include the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV), which have larger asset bases and slightly lower expense ratios [10].

Core Viewpoint - The First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT) is a smart beta ETF designed to provide broad exposure to the large-cap growth segment of the market, focusing on non-technology sectors of the NASDAQ-100 Index [1][5]. Fund Overview - QQXT was launched on February 8, 2007, and has accumulated over $1.11 billion in assets, making it an average-sized ETF in its category [1][5]. - The fund is managed by First Trust Advisors and aims to match the performance of the NASDAQ-100 Ex-Tech Sector Index, which is an equal-weighted index of non-technology securities from the NASDAQ-100 [5][6]. Cost and Expenses - The annual operating expense ratio for QQXT is 0.60%, which is considered relatively high compared to other ETFs in the space [7]. - The fund has a 12-month trailing dividend yield of 0.73% [7]. Sector Exposure and Holdings - The fund has a significant allocation of 19.4% to the Industrials sector, with Healthcare and Consumer Discretionary also being prominent sectors [8]. - The top three holdings include Old Dominion Freight Line, Inc. (1.89% of total assets), Paypal Holdings, Inc., and Honeywell International Inc., with the top 10 holdings accounting for approximately 18.65% of total assets [9]. Performance Metrics - Year-to-date, QQXT has increased by approximately 6.69%, and it was up about 9.72% over the last 12 months as of August 20, 2025 [10]. - The fund has traded between $84.34 and $101.22 in the past 52 weeks, with a beta of 0.93 and a standard deviation of 15.98% over the trailing three-year period, indicating medium risk [10]. Alternatives - Other ETFs in the large-cap growth segment include Vanguard Growth ETF (VUG) with $183.46 billion in assets and an expense ratio of 0.04%, and Invesco QQQ (QQQ) with $366.75 billion in assets and an expense ratio of 0.20% [11]. - Investors seeking lower-cost options may consider traditional market cap weighted ETFs that aim to match the returns of the large-cap growth segment [12].

Core Viewpoint - The Vanguard Utilities ETF is identified as a favorable investment option amidst a crowded market of ETFs, particularly for those looking to invest $1,000 now [7]. Group 1: ETF Performance and Selection - Vanguard offers a wide range of 97 ETFs, which can be overwhelming for investors [1]. - The top-performing Vanguard ETFs this year are primarily international funds, with the Vanguard International High Yield Dividend ETF and Vanguard FTSE Europe ETF leading the list [3]. - Many of Vanguard's best-performing ETFs have high valuations, with the Vanguard S&P 500 ETF's price-to-earnings (P/E) ratio at 27.6, significantly above the historical average of 16.1 [5]. Group 2: Vanguard Utilities ETF Analysis - The Vanguard Utilities ETF (VPU) owns 69 U.S. utility stocks, including major companies like NextEra Energy and Duke Energy, and has shown a year-to-date performance increase of around 15% [8]. - The P/E ratio of the Vanguard Utilities ETF is 21.4, which is lower than the S&P 500's earnings multiple, indicating a more favorable valuation [9]. - The ETF is expected to perform well if the stock market continues to rise, particularly due to the increasing demand for power from data centers supporting artificial intelligence [10]. Group 3: Economic Considerations - In the event of a stock market downturn, utility stocks are typically seen as safe havens, with most utilities having low exposure to tariff impacts [11]. - The Vanguard Utilities ETF is considered a "happy medium" investment, likely to perform better than many equity ETFs during economic downturns while potentially offering lower returns compared to other Vanguard ETFs in a strengthening economy [12].

Core Viewpoint - The article discusses the recent developments in the U.S. ETF market, highlighting the launch of innovative leveraged products and the flow of funds into various ETFs, particularly in the digital currency sector. Group 1: New ETF Products - A total of 13 new ETFs were launched in the U.S. last week, with a notable number of leveraged inverse products [1] - Leverage Shares introduced a new series of "accelerated" products that provide 2x returns on stock increases and 1x on decreases, with a monthly cap on returns, linked to companies like Tesla, Nvidia, MicroStrategy, Coinbase, and Palantir [2] - ProShares launched a 2x leveraged product linked to the top 30 stocks in the Nasdaq 100 index [2] - Harbor and Invesco collaborated to issue a stock enhancement product that combines 75% passive index investment with 75% trend-following futures strategies [2] Group 2: ETF Fund Flows - The inflow of funds into digital currency ETFs has increased significantly, with the Nasdaq 100 ETF seeing the highest inflow of $50.89 billion [3][5] - The top inflows included the iShares Ethereum Trust ETF with $23.17 billion and ARK Innovation ETF with $12.66 billion, while several leveraged ETFs experienced outflows [6] - Over the past two weeks, the overall fund flow in major U.S. ETFs showed a net inflow of $189.35 billion, despite some fluctuations in individual products [7] Group 3: ETF Performance - The ARK Innovation ETF (ARKK) outperformed other technology ETFs with a year-to-date return of over 35%, while the VanEck Semiconductor ETF gained over 20% [8] - The overall technology sector has shown a growth of more than 10% this year, with various ETFs reflecting this trend [8][9]

Group 1: Small-Cap Market Momentum - The small-cap space has shown momentum recently, with the iShares Russell 2000 ETF (IWM) gaining nearly 3% over the past week, outperforming the broad market fund (SPY) which gained 1% [1] - Anticipated Fed rate cuts are contributing to this momentum, with futures markets pricing in a 94% chance of a quarter-point cut at the next Fed meeting, up from 85% before the latest inflation data [2] - Small-cap companies, which typically have a higher debt burden at floating rates, will benefit from lower borrowing costs, aiding their expansion and profitability [3] Group 2: Valuation and Investment Opportunities - The Russell 2000 has underperformed the S&P 500 year-to-date, with a gain of just 1.5% compared to 9.6%, potentially providing an advantageous entry point for investors [4] - Small-caps are currently trading at a discount compared to large-caps, attracting institutional investors who are rotating out of crowded mega-cap trades into undervalued small-cap segments [5] Group 3: Business Sentiment and Economic Indicators - Optimism among small business owners increased in July, with the small business optimism index rising to 100.3, the highest since February and above the 52-year average of 98, indicating a stabilizing business environment [6] - Trends in reshoring and onshoring favor small-cap firms, as companies bring supply chains back to the U.S. amid global supply chain vulnerabilities [7] Group 4: M&A Activity and Market Dynamics - Dealmaking is increasing in sectors like healthcare, biotech, and tech services, with large-cap companies targeting small and mid-sized firms for growth, which historically favors small companies [8] - The broadening market breadth, where gains are spreading more evenly across the market, signals healthier market dynamics and could catalyze small-cap outperformance [10] Group 5: Investment Vehicles - Several ETFs in the small-cap space have a strong Zacks ETF Rank 1 (Strong Buy) or 2 (Buy), indicating potential outperformance in the coming weeks, including iShares Core S&P Small-Cap ETF (IJR) and Vanguard Small-Cap ETF (VB) [11]

Group 1: ETF Inflows and Performance - ETFs across various categories attracted $38 billion in capital last week, bringing year-to-date inflows to $730 billion [1] - U.S. equity ETFs led inflows with $13.3 billion, followed by fixed income ETFs at $10.6 billion and international ETFs at $8.8 billion [1] - Wall Street experienced its second consecutive week of gains, with the Dow Jones increasing by 1.7%, while the S&P 500 and Nasdaq Composite Index rose by 0.9% and 0.8%, respectively [2] Group 2: Consumer Sentiment and Retail Sales - U.S. consumer sentiment declined in August, with the University of Michigan's consumer sentiment index falling to 58.6 from 61.7, indicating renewed inflation concerns [3] - Retail sales increased by 0.5% in July, suggesting that consumer spending has stabilized after a significant drop earlier in the year [3] Group 3: Individual ETF Highlights - **Invesco QQQ Trust (QQQ)**: The top asset creator with $6.6 billion in inflows, tracking the Nasdaq 100 Index, has an AUM of $373.6 billion and charges 20 bps in annual fees [4] - **Vanguard S&P 500 ETF (VOO)**: Gathered $3 billion in inflows, tracking the S&P 500 Index with an AUM of $732 billion and charging 3 bps in annual fees [5] - **ARK Innovation ETF (ARKK)**: Accumulated $2.7 billion, focusing on companies benefiting from technological advancements, with an AUM of $10 billion and charging 75 bps in fees [6] - **iShares Ethereum Trust ETF (ETHA)**: Saw inflows of $2.2 billion, reflecting Ethereum's price performance, with an AUM of $15.9 billion and charging 25 bps in annual fees [7] - **Vanguard Intermediate-Term Corporate Bond ETF (VCIT)**: Accumulated $1.6 billion, following the Bloomberg U.S. 5–10 Year Corporate Bond Index, with an AUM of $55.8 billion and an expense ratio of 0.03% [8][9]

Airline Industry Bailouts - The airline bailouts were structured differently from those of automakers and banks, with less emphasis on recouping the funds [4][7] - The government's rationale for the airline bailouts was to save the industry, even if it meant sacrificing shareholders and management [5] - The Trump administration structured the airline bailouts in a way that was not intended to make the government whole [7] Investment Strategies and Market Trends - Veteran investor Ron Barrett is launching five actively managed ETFs focusing on small and midcap companies, financial stocks, and tech [8] - Vanguard is debuting its first actively managed US stock ETFs, marking a shift from its traditional approach [9] - Vanguard plans to roll out ETF versions of three existing mutual funds, focusing on growth stocks, value stocks, and dividend growth [10] - The creation of these actively managed ETFs is enabled by a change in regulations, allowing them to exist where previously only mutual funds were permitted [11] - Actively managed ETFs carry higher fees, which is a key driver for entering this business [12]