ETF Market Trends & Flows - VOO (Vanguard S&P 500 ETF) took in $14.5 billion last week, while IVV (iShares Core S&P 500 ETF) experienced outflows of $22.6 billion [2] - BND (Vanguard Total Bond Market ETF) also saw inflows, indicating appetite for bonds [2] - QQQ (Invesco QQQ Trust) experienced outflows of $1.9 billion [3] - ETFs charging 10 basis points or less are receiving less than half of the flows so far this year, a shift from previous years [22] - Leveraged ETF trade volume is near a record [23] Active vs Passive ETFs - Active ETFs now represent 51% of the marketplace, overtaking passively managed strategies in terms of the number of products [4] - Active ETFs are capturing 40% of net flows despite representing only 10% of assets, and are the majority of new launches [17] - BlackRock is one of the largest holders of active ETFs and has about 27 active ETF providers in its model portfolios [18][19] Investment Strategies & Portfolio Allocation - BlackRock rebalanced portfolios, increasing active bets on the equity overweight, specifically on the active ETF side [7] - BlackRock maintains treasuries as part of the risk-off portion of its portfolio but has recently added international developed bonds [12] - BlackRock added a 1% to 2% allocation to IBIT (iShares Bitcoin Trust) in portfolios that invest in alternatives [20] - Commodities should have a constant allocation in a portfolio to hedge against inflation and geopolitical risk [35][36] Oil Market & Geopolitical Risks - The conflict between Iran and Israel has been boosting crude energy prices [33] - The Invesco DB Oil Fund (DBO) tracks futures contracts on WTI and mitigates negative roll yield, with $224 million in total assets and a 076% expense ratio [31] - Geopolitical risks, particularly related to Iran and Russia/Ukraine, highlight the importance of having commodities like DBO in a portfolio [39] European Market - European defense is a growing theme, with $11 billion invested in the area due to the situation with Russia, Ukraine, and increased defense spending [26] - Year-to-date, Europe is up 23% while the U S is up 3% [28]

Core Insights - J.P. Morgan Asset Management has launched the JPMorgan U.S. Research Enhanced Large Cap ETF (JUSA) on the New York Stock Exchange, aiming to provide consistent returns while offering exposure to U.S. equity [1][2] - The fund utilizes proprietary research and focuses on well-established, large-cap U.S. companies, reflecting J.P. Morgan's commitment to innovation and adapting proven strategies to meet investor needs [2][3] Company Overview - J.P. Morgan Asset Management manages $3.6 trillion in assets as of December 31, 2024, serving a diverse clientele including institutions, retail investors, and high net worth individuals globally [4] - JPMorgan Chase & Co. operates with $4.0 trillion in assets and $345 billion in stockholders' equity as of December 31, 2024, and is a leader in various financial services including investment banking and asset management [5] Fund Management - The JUSA fund is managed by experienced portfolio managers Ralph Zingone and Tim Snyder, who have been implementing the underlying strategy since 1988, showcasing a long-standing dedication to achieving consistent returns [3] - The fund is designed with a slightly lower active risk budget and a greater number of holdings, providing broader diversification for investors [3] Market Context - Since 2020, assets in active ETFs within traditional categories like Large Blend and Large Value have significantly increased, driven by the 2019 ETF Rule that simplified the regulatory process for ETF launches [2] - The establishment of 3-year performance track records and wider availability of these investment options has led to more investors choosing ETFs for equity exposure [2]