Core Insights - The strength of international equities ETFs is a significant market story for 2025, driven by investor interest in diversifying away from U.S. stocks and A.I.-driven concentration risks [1][2] - The performance of international equities ETFs in 2026 remains uncertain, but factors such as a weakening dollar and favorable foreign market conditions may support continued investor interest [3][4] Group 1: Market Dynamics - Investors are increasingly seeking foreign diversification to mitigate risks associated with the U.S. stock market, including a shifting yield curve and a declining dollar [2][3] - Many foreign markets have been more effective in managing inflation and are ahead of the U.S. in cutting cycles, making them attractive to U.S. investors [4] Group 2: Investment Strategies - The international equities space is diverse, with varying outcomes across different markets, suggesting that some markets may underperform while individual firms may thrive [5] - Active international equities ETFs, such as the T. Rowe Price International Equity ETF (TOUS), leverage fundamental research to identify investment opportunities, potentially outperforming passive ETFs in 2026 [6]

Core Insights - The selection process for the next Chair of the Federal Reserve has concluded, with U.S. Treasury Secretary Becerra overseeing the final interviews of 11 candidates, narrowing it down to four main contenders for President Trump's decision [1][3]. Group 1: Candidate Evaluation - The interview process lasted approximately two hours, focusing on candidates' views on interest rate policies and strategies for exiting special monetary policies during financial crises [3]. - The leading candidates include former Fed Governor Kevin Warsh, current Governor Waller, White House economic advisor Kevin Hassett, and BlackRock's Chief Investment Officer for Global Fixed Income, Rick Rieder, with Rieder's performance standing out among external candidates [3]. - Warsh and Waller have publicly supported the reduction of the Fed's balance sheet, aligning with Secretary Becerra's reform direction, while Hassett's policy views are consistent with the administration [3]. Group 2: Implications of Leadership Change - The leadership transition at the Fed is occurring at a critical time, with market participants closely monitoring potential policy changes that may arise from the new Chair, particularly regarding discussions on central bank independence [3][4]. - Current Chair Jerome Powell's term will last until May 2026, marking an eight-year tenure, and this personnel change is expected to have significant implications for U.S. monetary policy and global financial markets [4].