Core Insights - Baillie Gifford, a prominent mutual fund manager, has filed for its first US exchange-traded funds (ETFs), marking a significant shift in its investment strategy as the industry increasingly favors ETFs over mutual funds [2][4] Group 1: Company Developments - The firm manages $264 billion globally and is launching a suite of five actively managed ETFs that will incorporate assets from existing mutual funds [2] - Jamie McGregor has been hired to lead the ETF initiative, bringing experience from Goldman Sachs' ETF Accelerator program [2] - Baillie Gifford's US assets under management total $116 billion, and the new funds will focus on various strategies including Emerging Markets and International Alpha [5] Group 2: Market Context - The move to ETFs comes at a time when the SEC is set to approve dual-share-class requests, which could enhance the competitive landscape for asset managers [4] - Despite the growing popularity of ETFs, there remains a limited selection for investors seeking active, long-term growth strategies, with only 11 out of 235 international large cap equity ETFs offering such options [3] Group 3: Challenges and Considerations - The firm faces hurdles in rolling out ETF share classes, including the need to improve performance and invest in distribution and marketing to drive sales [5] - New entrants to the ETF market must expand their capabilities, either by hiring staff and investing in technology or collaborating with third-party trusts [6] - The distribution landscape for new ETFs is uncertain, as broker-dealers may be slow to approve them for their platforms [6]

Core Viewpoint - Emerald Advisers is launching the F/m Emerald Special Situations ETF (NASDAQ:SPIT), which aims to target companies undergoing significant transformations, diverging from traditional benchmark-focused ETFs [2][5]. Group 1: ETF Characteristics - SPIT is designed for investors seeking unique opportunities that avoid crowded strategies and mega-cap concentration [3]. - The fund managers are not limited by sector or geography, allowing them to invest in companies where the market may be temporarily confused [3][5]. - The ETF is compared to a "gas pedal" within a portfolio, providing true diversification beyond existing holdings [4]. Group 2: Market Context - The launch of SPIT comes at a time when passive ETFs are experiencing record inflows and market concentration risks are at multi-decade highs, highlighting the need for active management [5]. - This ETF represents the second collaboration between Emerald Advisers and F/m Investments, following the introduction of the F/m Emerald Life Sciences Innovation ETF (NASDAQ:LFSC) [5].

Core Insights - The article discusses the high-quality development activities of public funds in Beijing, emphasizing the themes of the new era, new funds, and new value [1] Group 1 - The focus is on the formation of MACD golden cross signals, indicating a positive trend in certain stocks [1]

Group 1 - The ongoing significance of Liberation Day continues to influence market concerns from a forward-looking perspective [1]

Core Insights - Small-cap investing is gaining interest as a way to refresh portfolios amid market uncertainty, providing exposure to undervalued companies and mitigating concentration risk [1][3] - An active management approach to small-caps can enhance performance and identify firms best positioned for growth [4] Small-Cap Market Outlook - Small-cap firms are expected to have a stronger end to 2025 and a potentially rewarding start to 2026, aided by lower borrowing costs from recent rate cuts [2] - U.S. investors face concentration risk in megacap tech stocks, making small firms an attractive alternative with potential upside despite inflation and economic slowdown [3] Active Management Benefits - Active management can leverage fundamental research to identify small-cap firms that are likely to outperform in uncertain market conditions [4] Investment Options - The T. Rowe Price Small-Mid Cap ETF (TMSL) is highlighted as a viable investment option, charging a 55 basis point fee and focusing on growth or value characteristics through a bottom-up approach [5] - TMSL has achieved a year-to-date return of 9.1%, outperforming its category average of 6.9% and FactSet Segment average of 6% [5]

Core Insights - Sprott Asset Management USA, Inc. announced that its Sprott Active Gold & Silver Miners ETF (GBUG) reached $100 million in assets under management as of September 22, 2025, just over seven months after its inception on February 19, 2025 [1][2]. Company Overview - Sprott Asset Management USA, Inc. is a subsidiary of Sprott Inc., focusing on precious metals and critical materials investments, with a belief that their in-depth knowledge and experience differentiate them from generalists [4]. - The company operates from multiple locations, including Toronto, New York, Connecticut, and California, and is listed on the New York Stock Exchange and the Toronto Stock Exchange [4][5]. Investment Strategy - GBUG is an actively managed ETF that aims for long-term capital appreciation by investing in shares of companies involved in gold and silver mining, exploration, and development, as well as royalty and streaming companies [1][3]. - The investment strategy of GBUG is described as value-oriented and contrarian, leveraging the expertise of a team with over a century of relevant experience in the mining industry [3]. Market Performance - Gold and silver mining stocks have recently outperformed due to a surge in physical bullion prices, contributing to the rapid growth of GBUG [2]. - The wide dispersion of performance among gold and silver miners enhances the value of active management, according to Sprott's executives [3].

Core Insights - The Federal Reserve has initiated the first rate cut of the year, with potential for more cuts before the end of 2025, prompting fixed income investors to adjust their portfolios for the changing interest rate environment [1] - A steeper yield curve is emerging as short-term rates decline, necessitating a re-strategization of portfolios to accommodate both short-term and long-term changes [2] Active ETFs Advantages - Active ETFs provide diversified exposure and flexibility in uncertain markets, allowing portfolio managers to adjust holdings based on market conditions, unlike passive funds that are tied to market value weight indexes [3][6] - The Thornburg Core Plus Bond ETF (TPLS) offers core exposure with added flexibility compared to passive funds [7] - The Thornburg Multi Sector Bond ETF (TMB) provides income diversification and active management, making it suitable for a rate-cutting environment [8] Market Dynamics - Cash and shorter-dated securities face reinvestment risk as yields fall, while longer-dated bonds may experience volatility due to various economic factors [3] - Investors are encouraged to avoid closely tracking the Fed's movements and instead leverage active ETFs to navigate the new macro environment of lower rates [4] Portfolio Management - Portfolio managers can adjust ETF holdings to capture upside or mitigate downside risk, particularly in a yield-focused fund [5] - The complexity of bond markets necessitates active management to achieve market objectives and maximize income opportunities [5]

Group 1 - The rise of new active ETFs is occurring amid an uncertain investing environment as 2025 approaches, with recent rate cuts prompting investors to reassess their portfolios, thereby supporting the case for active management in international exposure [1] - Geopolitical risks and inflation are significant concerns for the market, alongside the impact of tariffs on businesses, which will influence operational decisions [2] - U.S. investors are increasingly interested in international equities to diversify and reduce home country bias due to uncertainty in U.S. equities, which have been primarily driven by technology stocks capitalizing on the AI theme [3][4] Group 2 - Active management is essential for selecting ETFs for international exposure given the various dynamics affecting international markets, with specific funds like Thornburg International Equity ETF (TXUE) and Thornburg International Growth Fund ETF (TXUG) recommended for investors [5]

Core Insights - The Russell 2000 Index has shown only modest gains since the Federal Reserve lowered interest rates, indicating that investors may need to be patient for significant returns from smaller stocks [1] - The Neuberger Berman Small-Mid Cap ETF (NBSM) offers a blend of small and mid-cap stocks, potentially appealing to investors due to midcaps' historically lower volatility and superior return profiles [2][5] - NBSM is actively managed, which can be advantageous in the SMID-cap market where many companies are underappreciated and mispriced, allowing active managers to add value [3][4] Investment Strategy - Active management in the SMID space focuses on identifying quality companies while avoiding fundamentally flawed firms, which is challenging with broad-based small-cap indexes [4] - Approximately 50% of companies in the Russell 2000 are unprofitable and highly leveraged, making them sensitive to interest rate changes; NBSM's focus on quality can mitigate this risk [5] - NBSM is underweight in the healthcare sector, which is often reliant on low borrowing costs, and overweight in industrial stocks, suggesting potential benefits from increased defense and infrastructure spending [6] Market Outlook - Rate cuts could positively impact smaller stocks, with analysts projecting the small-cap index could rise by as much as 20% in the next 12 months, compared to an 11% increase expected for the S&P 500 [7]

Core Insights - The VettaFi Q3 Fixed Income Symposium occurred shortly after the Federal Reserve's first rate cut of the year, indicating a potentially favorable environment for investors [1] Group 1 - The timing of the symposium may provide insights into investor strategies following the recent monetary policy changes [1]