Active management also empowers managers to assess individual issuers more closely than passive funds do. As Fed uncertainty grows, that can help active funds stand out if the Fed fails to properly navigate either its mandate or political pressure. Managers can leverage their experience, fundamental research, and active adaptability to make portfolios more resilient. Looking ahead to 2026, then, investors may want to consider active ETFs to add those attributes to their portfolios. For more news, informatio ...

By Niket Nishant, Kanchana Chakravarty and Joel Jose Jan 5 (Reuters) - Global investors will actively seek opportunities this year in undervalued pockets of financial markets as growing concerns over an AI bubble push traders to look beyond highly valued technology stocks, according to several analysts. U.S. stocks were volatile in 2025, plunging to near bear market territory in April following President Donald Trump's sweeping tariffs before eventually ​rebounding to record highs. The upward momentum ...

Core Insights - Foreign equities have shown significant performance amidst challenges like tariff issues and a declining dollar, providing diversification and substantial returns for investors [1] - The T. Rowe Price International Equity Research ETF (TIER) launched in June with a focus on differentiating itself from other foreign equities ETFs through an active investment strategy [2] Fund Performance and Strategy - TIER charges a competitive fee of 38 basis points and has achieved a return of 11.7% since its inception according to YCharts data [3] - The ETF's portfolio mirrors the geographical and sector exposures of the MSCI ACWI (ex USA) Index, but utilizes T. Rowe Price's fundamental research to enhance its allocations and aims to outperform the index through rigorous security analysis [4] Active Management Advantages - The active management approach of TIER allows it to adapt to macro trends and events, which is particularly beneficial in foreign markets where information access may be limited [5] - The unique bottom-up process of TIER positions it well for future opportunities in foreign markets, especially as the landscape may require more detailed analysis to identify potential investments [6]

See more: Will 2025 See International Equities ETFs Perform Once Again? Such a turn of events can be read as momentum for a given investment, and TMSL may have a case. Charging only 55 basis points, TMSL has performed well so far in 2025. The ETF has returned 12.7% YTD per ETF Database. That beat the fund's ETF Database Category average of 7% in that time frame. It has particularly shined, however, over the last three-year period. The strategy returned 45.2% over the last three years according to YCharts da ...

Core Insights - Inflation remains a persistent challenge for consumers and the stock market, particularly since the pandemic, influencing economic and political narratives [1] - The Federal Reserve's rate cuts and the limited availability of official inflation data have increased inflation risk for investors [1] Active ETFs - Active ETFs provide flexibility and a focus on fundamental research, which can help navigate macroeconomic uncertainties [2] - These ETFs utilize fundamental metrics like cash flow and profitability to identify resilient investment opportunities [2] - Active ETFs can adjust their investments more readily than passive funds, allowing for strategic responses to market changes [2] Inflation-Sensitive Investments - Certain active ETFs target sectors that benefit from rising inflation, focusing on input goods that typically see price increases [3] - A specific example is the T. Rowe Price Natural Resources ETF (TURF), which charges a 44 basis point fee and invests in global companies within key supply chains [4] - The lack of official inflation data may complicate market analysis, but active ETFs can provide flexibility and potential outperformance [4]

Core Insights - The current market environment is characterized as a "golden age of active investing," driven by mispricings and opportunities in smaller market cap securities and international stocks [10][14][61] - There is a significant disparity in market capitalization among the largest companies, with some reaching valuations of over $4 trillion, while smaller companies like American Airlines have market caps around $15 billion [12][13] - The focus on free cash flow yields is emphasized, with many large-cap tech companies exhibiting low yields compared to smaller or undervalued companies [19][90] Market Trends - Active investing has gained traction since 2020, largely due to the dominance of large-cap technology companies and the distortions caused by passive investing [10][11] - International markets, particularly in Europe, have shown strong performance, with the Italian ETF up 52.7% this year, indicating opportunities outside the U.S. [14][57] - The S&P 500's P/E ratio is currently around 31, which, while high, is not unprecedented compared to historical peaks [35][36] Investment Strategies - The strategy of being contrarian is highlighted, suggesting that investors should look for mispriced opportunities and consider free cash flow yields as a critical metric for investment decisions [9][89] - REITs, particularly Realty Income, are suggested as potentially undervalued due to a long period of underperformance, setting the stage for future gains [32][34] - The importance of starting valuation is reiterated, with a focus on companies that have high free cash flow yields as attractive investment opportunities [94] Valuation Metrics - Price-to-sales ratios are discussed as a key valuation metric, with many companies trading at multiples significantly above historical norms, indicating potential overvaluation [45][46] - The current market environment shows a bifurcation where some stocks are highly valued while others remain undervalued, suggesting a need for careful selection [47][61] Macro Economic Factors - The U.S. dollar's performance is noted as a significant factor influencing market dynamics, with a weaker dollar benefiting international investments and commodities [85][86] - The potential for interest rate cuts by the Federal Reserve is anticipated, which could impact various sectors differently, particularly those reliant on economic growth [68][71]

Core Insights - The "Magnificent Seven" companies continue to dominate market performance, but recent turbulence raises questions about their ability to deliver [1] - T. Rowe Price's analysis suggests that market leadership may broaden beyond these tech giants, indicating potential opportunities for active investing strategies [2][3] Market Leadership - The spread of earnings growth between the Tech+ and extech sectors of the S&P 500 Index is at its narrowest since Q1 2023, suggesting a potential shift in market dynamics [3] - Active investing strategies could allow investors to capitalize on companies positioned for growth across various sectors, not just technology [3] Investment Strategies - The T. Rowe Price U.S. Equity Research ETF (TSPA) exemplifies an active ETF that utilizes fundamental research to guide investment decisions, charging a competitive fee of 34 basis points [4] - Active ETFs may provide a viable option for investors looking to prepare for a broader set of market opportunities [4]

Market Overview - The tech sector experienced a significant selloff, with approximately $500 billion lost from chip stocks, leading to a mixed performance in major indexes [3][4][5] - The NASDAQ composite rebounded by 0.51%, while the S&P 500 rose by 0.31% [3] - Bitcoin prices dipped below $100,000 but have shown a 10% increase since the start of the year [5] Technology Sector Insights - Active management in ETFs is gaining traction as investors seek to navigate volatility in the tech sector [6][8] - The focus on technology remains strong, with an emphasis on productivity gains and free cash flow generation [16][22] - Companies are exploring various themes within technology, including semiconductor manufacturing and data center infrastructure [19][23] Fast Casual Dining Trends - Cava has reduced its full-year sales growth forecast from 6-8% to 3-4% due to macroeconomic pressures affecting younger consumers [31][32] - The company has seen a decline in visit frequency among the 25-35 age demographic, attributed to rising costs and economic challenges [32][35] - Despite challenges, Cava reported a 20% year-over-year revenue growth and a 67% growth on a two-year basis [38] McDonald's Performance - McDonald's reported US store sales that exceeded forecasts for the second consecutive quarter, focusing on value offerings amid a challenging environment [57][59] - The company has implemented promotional strategies, including a $5 meal deal, to attract customers [58][60] - Analysts predict increased promotional activity across the restaurant industry as brands compete for market share [63][64] Analyst Calls and Stock Movements - Super Micro reported weaker-than-expected results, leading to an 8% drop in shares, but some analysts view this as a buying opportunity [53] - Pinterest's stock fell after an earnings miss and a weaker forecast, prompting price target cuts from multiple firms [54] - Yum Brands saw a price target increase following better-than-expected results, with potential plans to sell its Pizza Hut segment [56]

You have some interesting things to say about how to be an active investor. >> First step is to figure out what kind of loss can you live with. Second step is to take your portfolio and look at it backwards.How did that portfolio perform in Q1 2025. How about 2022. How about 2008.We're sitting with one referral young lady in her 70s. She's been to over 70 countries. I'm like, I want to follow you right wherever you go.Her account, she did not recognize was off 70% in 2008. Now, the market, as you probably r ...

Financial Performance - Federated Hermes reported earnings per diluted share (EPS) of $1.34 for Q3 2025, an increase from $1.06 in Q3 2024, with net income rising to $104.1 million from $87.5 million year-over-year [1][21]. - Revenue for Q3 2025 increased by $61.0 million or 15% compared to Q3 2024, primarily due to higher average money market and equity assets [8][11]. - Operating expenses rose by $43.3 million or 15% in Q3 2025, driven by increased distribution expenses and fluctuations in foreign currency exchange rates [9][11]. Asset Management - Total managed assets reached a record $871.2 billion as of September 30, 2025, up $70.7 billion or 9% from $800.5 billion a year earlier [2][16]. - Money market assets also hit a record of $652.8 billion, increasing by $59.8 billion or 10% from $593.0 billion year-over-year [7][16]. - Equity assets grew to $94.7 billion, up $11.1 billion or 13% from the previous year, while fixed-income assets reached a record $101.8 billion, up $1.6 billion or 2% [4][5][16]. Fund Performance - The company experienced record net sales of equity funds in Q3 2025, with strong interest in its MDT equity and alternative quantitative investment offerings [3][16]. - Top-selling equity funds included the Federated Hermes MDT Mid Cap Growth Fund and the Federated Hermes MDT Large Cap Growth Fund [4]. - Fixed-income funds that performed well included the Federated Hermes Ultrashort Bond Fund and the Federated Hermes Sustainable Global Investment Grade Credit Fund [5]. Dividends and Shareholder Returns - The board of directors declared a dividend of $0.34 per share, payable on November 14, 2025, to shareholders of record as of November 7, 2025 [3][21]. - The company repurchased 20,808 shares of its class B common stock during Q3 2025 due to employee restricted stock forfeitures [3].