The active ETF market split along strategy lines in 2025, with discretionary equity funds gaining 3.3% market share while systematic equity funds lost 1.1%, according to Morningstar data shared by Ben Johnson, head of client solutions and asset management at the firm. The divergence shows not all active strategies performed equally, with the T. Rowe Price Capital Appreciation Equity ETF (TCAF) capturing $2.59 billion in one-year flows and delivering a 14.3% return, according to ETF Database, highlighting di ...

Core Insights - Foreign equities performed well in 2025, driven by trends outside the U.S. and tariff-related uncertainty, leading U.S. investors to seek ex-U.S. offerings [1] - The same trends are expected to continue into 2026, prompting renewed interest in foreign equities [1] Company Insights - T. Rowe Price has launched the Active Core International Equity ETF (TACN), which charges a zero basis point fee until January 30, 2027, and 0.2% thereafter [2] - TACN combines quantitative research with fundamental analysis, aiming to maintain disciplined risk controls, making it a robust long-term active solution for foreign equities allocations [4] Industry Insights - Active ETFs are gaining popularity among investors for their flexibility and fundamental analysis capabilities [3] - The current market conditions, including a declining dollar and inflation uncertainty, present significant opportunities in ex-U.S. equities, making TACN's active core approach appealing for portfolio refreshment [6]

Core Viewpoint - The article discusses the concentration risk associated with megacap tech firms in the S&P 500 and suggests that investors consider the Goldman Sachs Future Tech Leaders Equity ETF (GTEK) as a potential investment option for 2026, which focuses on innovative companies outside the concentrated group [1]. Group 1: ETF Performance and Signals - GTEK's price recently rose above its 50 and 200-day Simple Moving Averages (SMAs), which is traditionally viewed as a buy signal, with a price of $40.21 as of December 26th [2]. - The fund has shown momentum without entering "Overbought" territory, indicating potential for continued performance [2]. Group 2: Fund Strategy and Characteristics - GTEK charges 75 basis points and employs an active management approach, targeting next-generation disruptors rather than tracking an index [3]. - The ETF excludes companies with market caps over $100 billion and invests in sectors beyond information technology, including healthcare and direct marketing retail, using fundamental metrics to assess quality and growth [4]. Group 3: Historical Returns and Future Outlook - GTEK has returned 24.4% year-to-date, outperforming its ETF Database Category average, and has achieved a 24.7% return over the last three years [5]. - The active focus on innovative firms outside the typical megacap tech companies positions GTEK as a strong candidate for investors looking to enhance their tech allocations in the near future [5].

It's the talk of the market ‑' has the rapid ascent of AI technologies overly inflated stock market valuations? Ask five investors and one may get five different opinions. Still, the answer has significant bearing on how market watchers look at 2026. Recent insight from T. Rowe Price explored the topic – and how investors can chart a course through it. See more: What Do Investors Do With the November Jobs Report? Tim Murray. T. Rowe Price capital markets strategist, penned a research piece asking whether th ...

2025 is drawing to a close, and investors have plenty to look back on. Active ETF performance and proliferation was once again an important theme, and as the category matures, its standout performers ... ...

Core Insights - T. Rowe Price has launched two new ETFs: the T. Rowe Price Active Core U.S. Equity ETF (TACU) and the T. Rowe Price Active Core International Equity ETF (TACN), which aim to blend passive indexing with active management strategies [1][3] - Both ETFs will waive fees for the first 13 months, with TACU and TACN charging 0.14% and 0.20% respectively after the waiver period [5] ETF Details - TACU focuses on U.S. large-cap stocks with approximately 550-650 holdings, while TACN targets international stocks with a portfolio of about 400-500 holdings [2][6] - The launch of these ETFs expands T. Rowe Price's ETF suite to 30, including 20 equity ETFs and 10 fixed income ETFs [6] Management Strategy - The Active Core ETFs leverage T. Rowe Price's active management expertise and quantitative research to provide investors with potential for benchmark outperformance while maintaining disciplined risk controls [4][7] - The combination of low-cost, low-tracking-error portfolios aims to enhance core equity holdings for investors [7]

Core Insights - The Fidelity Municipal Bond Opportunities ETF (FMUB) is highlighted as a potential source of yields for fixed income investors while maintaining strong credit fundamentals [1] - FMUB benefits from active management, allowing portfolio managers to adjust holdings to optimize yield and mitigate risks [2] - The performance of FMUB and its related mutual funds has shown resilience even during challenging market conditions, particularly in 2022 [3] Performance and Management - The muni-national long category faced challenges, but performance improved in September, with FMUB and its mutual fund counterparts demonstrating strong results [3] - Skilled management teams using advanced tools have consistently outperformed peers in both favorable and adverse muni markets, a strategy reflected in FMUB [4] Credit Quality and Yield - Munis are positioned between corporate bonds and Treasuries in terms of credit quality, with improved fundamentals making them attractive for balancing credit risk and yield [5] - FMUB primarily holds investment-grade debt but can include lower-quality securities to enhance yield [5] Tax Benefits and Cost Efficiency - The primary attraction of munis is their tax-free income at the federal level, with some state-specific bonds also offering tax advantages [6] - FMUB has a low expense ratio of 30 basis points, making it a cost-effective option among its peers [6]

Acquisition Overview - Goldman Sachs is set to acquire Innovator Capital Management for $2 billion, aimed at expanding its ETF lineup [2] - Innovator manages $28 billion in assets across 159 defined outcome ETFs as of September 30 [2] Strategic Importance - The acquisition is expected to enhance access to modern investment products and improve client experience with sophisticated strategies [3] - Defined outcome ETFs are highlighted as a critical part of the rapidly growing ETF market, which has $1.6 trillion in global active ETF assets under management [3] Product Features - Defined outcome ETFs utilize derivatives and options-based strategies to offer specific objectives such as principal downside protection and yield enhancement [4] Recent Developments - This acquisition follows Goldman's announcement of acquiring Industry Ventures, a venture capital platform managing $7 billion, indicating a broader strategy to enhance its investment capabilities [4][5]

Core Insights - Goldman Sachs has announced the acquisition of Innovator Capital Management, adding $28 billion in assets under supervision (AUS) through 159 defined outcome ETFs as of September 2025 [1][5] - The acquisition aims to enhance Goldman Sachs' active ETF offerings amid increasing interest in active management strategies [1][2] - Defined outcome ETFs have shown significant growth, with a 66% compound annual growth rate (CAGR) since 2020, contributing to the overall active ETF market growth of 47% CAGR [3] Company Strategy - Bryon Lake, chief transformation officer at Goldman Sachs Asset Management, emphasized the early stage of innovation in the defined outcome space and the growth opportunities it presents [2] - The addition of Innovator's product range is expected to be a key catalyst for Goldman Sachs, particularly in appealing to advisors focused on risk mitigation for clients [2][5] - The acquisition positions Goldman Sachs among the top ten active ETF managers globally, managing over 215 ETF strategies and more than $75 billion in global AUS [5] Market Trends - The global active ETF market has reached approximately $1.6 trillion in assets under management (AUM) [3] - Defined outcome ETFs, such as the Innovator U.S. Equity Power Buffer ETF – January (PJAN), utilize derivatives and options-based strategies to provide downside protection and enhanced yields for investors [4]

Core Insights - MFS has launched two new actively managed ETFs: MFS Blended Research Core Equity ETF (BRCE) and MFS Blended Research International Equity ETF (BRIE) [1][2] - The new ETFs aim to provide clients with more choices in active, fully transparent investment options, leveraging MFS' 25 years of experience in Blended Research strategies [2][7] MFS Blended Research Core Equity ETF (BRCE) - BRCE has an expense ratio of 24 basis points and focuses on generating capital appreciation through an active core equity strategy [3] - The launch of BRCE is timely, given the current macroeconomic uncertainty, as many investors seek actively managed ETFs to navigate the U.S. equity market [4] MFS Blended Research International Equity ETF (BRIE) - BRIE targets international markets with a net expense ratio of 34 basis points, also aiming for capital appreciation [5] - The fund's strategy includes a bottom-up approach that combines quantitative research with fundamental analysis, aiming to outperform the MSCI All Country World (ex-US) Index [5][6] Investment Strategy and Differentiation - Both ETFs are characterized by MFS' proprietary blend of quantitative and fundamental signals, which is expected to provide differentiated return potential for investors [7] - MFS emphasizes the unique and transparent integration of independent research perspectives as a competitive edge for these ETFs [7]