Core Viewpoint - The sentiment is shifting towards a bullish outlook on small-cap stocks, driven by recent Federal Reserve actions and economic indicators suggesting a stable economy rather than a weak one [1][2][3]. Economic Indicators - The GDP growth forecast for Q3 is mid to low 3% and is expected to be in the low 2% range for Q4 and mid-2% for the following year, indicating a stable economic environment [3][4]. Federal Reserve Actions - The Federal Reserve has reduced the policy rate by 75 basis points since September and 175 basis points since the previous September, positioning the Fed to monitor economic developments closely [4]. Small-Cap Market Insights - There is a belief that despite some Russell 2000 stocks being unprofitable, there are significant opportunities in the small-cap sector, particularly in profitable companies [6][7]. - The outlook for earnings in the Russell 2000 is projected to be in the mid to high teens, outperforming the S&P 500 [7]. Market Dynamics - The current market environment is characterized by a shift where previously lagging stocks, including small caps, are beginning to gain momentum, which is seen as a positive sign for future leadership in the market [11]. - Increased M&A activity in the small-cap space is noted, with strategic buyers becoming more active, particularly in healthcare and technology sectors [12].

Core Insights - The trend of increasing interest in active management is expected to continue into 2026, with Goldman Sachs and MFS Investment Management leading the charge in the active ETF market [1][2] Demand Drivers and Active Management Benefits - Active ETFs provide portfolio managers with the flexibility to adjust holdings based on current market conditions, making them suitable for various market environments [3] - Investors are drawn to the benefits of active management while also appreciating the structural advantages of ETFs, especially in uncertain macroeconomic conditions [3] - Active management is seen as a risk mitigation strategy, allowing managers to avoid underperforming assets [5] Cost and Accessibility - Misconceptions about the cost of active strategies are being addressed, with efforts from firms like Goldman Sachs to reduce fees, making active ETFs more competitive with passive options [4] - The overall ETF marketplace is experiencing a reduction in fees for active funds, enhancing their accessibility [4] Investor Education and Awareness - There is a growing demand for investor education regarding active ETFs, with investors seeking to understand the range of products available [6] - Increased awareness of the benefits of active ETFs is contributing to their adoption [6] MFS Active ETF Offerings - MFS offers a variety of active ETFs across different asset classes, with core equities being the most popular choice among investors [7] - Recent additions to MFS's active ETF lineup include the MFS Blended Research Core Equity ETF (BRCE) and the MFS Blended Research International Equity ETF (BRIE), which utilize a disciplined, bottom-up investment approach [8] Goldman Sachs Active ETF Offerings - Goldman Sachs has developed its own suite of active ETFs, including the Goldman Sachs Small Cap Core ETF (GSC), which is positioned for potential growth as the market shifts [10] - The Goldman Sachs Ultra Short Bond ETF (GSST) is gaining traction for its ability to lock in yields amid changing interest rates, while the Goldman Sachs Corporate Bond ETF (GIGL) is benefiting from tighter credit spreads [11] - The Goldman Sachs MSCI World Private Equity Return Tracker ETF (GTPE) aims to deliver private-equity-like returns through public equities, addressing investor interest in private credit [11][12]

On this episode of the "ETF of the Week†podcast, VettaFi's Head of Research, Todd Rosenbluth, discussed the Goldman Sachs Corporate Bond ETF (GIGL) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF. Chuck Jaffe: One fund, on point for today. The expert to talk about it. Welcome to the ETF of the Week! Yes, this is the ETF of the Week, where we examine trending, new, newsworthy, unique, and intriguing exchange-traded fund ...

Core Insights - The MFS Blended Research Core Equity ETF (BRCE) and MFS Blended Research International Equity ETF (BRIE) combine quantitative and fundamental research methodologies to enhance investment strategies [1] - BRCE targets U.S. equities with the S&P 500 as its benchmark, while BRIE focuses on international equities compared to the MSCI All Country World (ex-US) Index [1] - Both ETFs are designed to work together, with BRCE providing core U.S. equity exposure and BRIE offering international diversification [1] Fund Characteristics - BRCE has a low expense ratio of 0.24%, while BRIE has a slightly higher expense ratio of 0.34% [1] - Both funds utilize a disciplined, active management approach, leveraging the MFS team's extensive industry experience averaging over 21 years [1] - The blended approach aims to capture opportunities that may be overlooked by either quantitative or fundamental research alone [1] Market Context - Current market conditions include high valuations in the U.S. tech sector, geopolitical tensions, and interest rate policy uncertainties, making active management crucial [1] - The MFS team is equipped to identify and adjust for both systematic and idiosyncratic risks in today's market landscape [1] - The integration of quantitative and fundamental signals is presented as a unique investment edge for these ETFs, appealing to benchmark-sensitive investors [1]

Core Insights - The article emphasizes the importance of active management in fixed income investments, especially in the current macroeconomic environment where inflation is subsiding and interest rates are being cut [1][3][6] Group 1: Evolution of Fixed Income - Fixed income markets have evolved significantly since 2022, influenced by aggressive interest rate hikes from the Federal Reserve to combat inflation, which led to declines in both equities and bonds [2][3] - The current environment presents opportunities for investors to re-enter the bond market, but they should consider active management strategies to maximize potential returns [3][4] Group 2: Active Management Advantages - Active management allows portfolio managers to identify unique income opportunities and adapt to changing market conditions, making active ETFs suitable for various economic scenarios [4][6] - The Vanguard Multi-Sector Income Bond ETF (VGMS) is highlighted as a potential investment for those seeking to diversify income sources through an active strategy, incorporating corporate and international bonds [5] Group 3: Market Dynamics - Factors affecting the equities market, such as tariffs and geopolitical issues, also impact fixed income markets, underscoring the need for expertise in navigating these complexities [6]

Core Insights - Active management is essential in CLO investing, providing structural protections and mitigating credit risk while enhancing yields compared to traditional corporate bonds [1][2][4]. Investment Opportunities - VanEck has launched two CLO ETFs: VanEck CLO ETF (CLOI) with a 30-day SEC yield of 5.43% and VanEck AABB CLO ETF (CLOB) with a yield of 6.59% as of 10/31/2025, offering access to investment-grade floating-rate CLOs and mezzanine tranches [4]. Market Dynamics - CLOs may strengthen core bond portfolios and provide broader access to the asset class, offering a yield advantage over similarly rated investment-grade corporates while reducing duration risk [6]. - Manager expertise, strong security selection, and tranche analysis are critical for performance dispersion in CLOs, emphasizing the importance of active management [6]. - Investors are increasingly attentive to credit concerns specific to companies like First Brands and Tricolor, indicating that careful security selection, especially in mezzanine tranches, can help mitigate risks [6].

Core Insights - The article emphasizes the advantages of active management in the real estate investment trust (REIT) sector, suggesting that it can outperform passive strategies over the long term [1] Group 1: ALPS Active REIT ETF - The ALPS Active REIT ETF, which will celebrate its five-year anniversary in February, is highlighted as a viable option for investors, especially given the current strong balance sheets and positive trends in funds from operations (FFO) metrics within the real estate sector [2] - The ETF offers a solid dividend yield of 3.12% and provides flexibility through active management, which can help investors identify which areas of the real estate sector are attracting professional asset allocators [3] Group 2: Sector Exposure - The ALPS ETF has a significant allocation of 19.48% to healthcare REITs, marking it as the second-largest subgroup weight within the ETF [4] - Telecommunications is noted as the most overweight sector, with investments at 135% of its index weight, while the office sector has shifted from underweight to overweight for the first time since early 2020 [5] - The ETF's largest subgroup exposure is to specialized REITs, which includes data center landlords, indicating a connection to the AI trade [6] Group 3: Shifts in Real Estate Management - Active real estate managers are increasingly shifting their focus towards lodging and retail landlords, both of which are represented in the ALPS ETF, with retail REITs making up 14% of the portfolio [7] - The lodging/resorts sector has nearly reached parity with its index weight, now at 99%, while retail and industrial sectors remain underweight at 76% and 80% of their index shares, respectively [8]

Core Insights - The global economy is expected to continue growing in 2026, avoiding recession despite ongoing risks, supported by strong fundamentals in equities and a new inflation regime affecting fixed income investors [1][3][4] - Active management is emphasized due to structural divergence within asset classes, with a preference for equities over bonds [2][3] Global Economic Outlook - Resilience in the global economy is noted, with supportive policies and lower interest rates expected to enhance economic momentum [3] - Real GDP growth is projected to remain under 2% globally, with the U.S. and Canada leading at an estimated annual growth of 1.5% [4] Asset Class Highlights - **U.S. Equities**: Strong fundamentals support equities, but stretched valuations and narrow leadership indicate a need for selectivity [3] - **Treasury Inflation-Protected Securities (TIPS)**: Inflation is expected to remain above average at about 3%, making TIPS a compelling hedge [3] - **Global Bonds**: Diversification through global government bonds is recommended as reliance on U.S. Treasurys is outdated [3] - **Private Assets**: The private credit landscape is evolving, with a shift towards more complex strategies due to tight spreads [3] - **Real Assets**: Infrastructure investments are highlighted as beneficiaries of long-term trends in technology and energy transition, providing resilience against inflation [3]

Core Insights - Vanguard is expanding its active ETF offerings with the launch of three new equity funds, increasing its active equity lineup to eight funds, reflecting a strategic shift to meet current market demands for active management [1][4][8] Active Equity ETFs - The new funds include the Vanguard Wellington U.S. Value Active ETF (VUSV), Vanguard Wellington U.S. Growth Active ETF (VUSG), and Vanguard Wellington Dividend Growth Active ETF (VDIG), all advised by Wellington Management [1][4] - VUSV focuses on value investing with an expense ratio of 0.30%, VUSG targets growth with an expense ratio of 0.35%, and VDIG emphasizes dividend growth with an expense ratio of 0.40% [11] Active Fixed Income ETFs - Vanguard is also enhancing its active fixed income offerings, launching four new funds this year, bringing the total to nine active fixed income funds [3] Management Expertise - The new active funds leverage Vanguard's 50 years of active management experience and the long-standing partnership with Wellington Management, which has been in place since 1928 [5][6] Investment Strategy - The active management strategy allows portfolio managers to adjust holdings based on market conditions, aiming to optimize returns while managing risks [5][7] - The new funds are designed to work together, providing investors with a diversified portfolio through a mix of different investment styles [8]

Core Insights - Fixed income investors are adapting to a changing interest rate environment as the Fed has implemented its second rate cut of the year, leading to a shift in investment strategies towards active management to maximize income [1][2] Group 1: Federal Reserve Actions - The Fed is facing mixed signals regarding the economy, with persistent inflation and signs of economic slowdown, creating uncertainty in capital markets [2] - Recent communications from the Fed have been less transparent, with Chair Powell aiming to reset market expectations for potential rate cuts in December [4][3] - Current predictions indicate a greater than 60% likelihood of further rate cuts by the Fed, although outcomes remain uncertain [3] Group 2: Investment Strategies - Fixed income investors are exploring alternative income sources beyond traditional bonds due to the shift in interest rate policy [5] - The Thornburg Multi Sector Bond ETF (TMB) is highlighted as an actively managed fund that can adapt to various fixed income markets, providing a diversified income stream regardless of the Fed's rate decisions [6] - Active management is emphasized as a crucial strategy for investors seeking to navigate the current uncertain rate environment effectively [5][6]