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]

Nov 19, 2025 10:00 AM Eastern Standard Time Northern Trust 2026 Global Investment Outlook: Continued Economic Resilience, with Increasing Market Risks Share Diverging Performance Within Asset Classes Bolsters Case for Active Management CHICAGO & LONDON--(BUSINESS WIRE)--Northern Trust Asset Management, a leading global investment management firm with $1.4 trillion in assets under management as of September 30, 2025, expects the global economy in 2026 to continue to grow by maintaining momentum and avoiding ...

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]

"While the Fed continues to have access to various data sources, such as direct conversations with businesses in its local districts, the available picture of the economy's health was murkier than usual due to the government shutdown,†Thornburg portfolio manager and managing director Lon Erickson said in a recent market insight report. "Powell will likely downplay any impact, as market confidence in decision-making is important, but any mistake could trigger volatility.†Prior to the second rate cut, the F ...

Active ETFs pulled in nearly $400 billion in net inflows during 2025. That has industry veterans calling the adoption "remarkable.†It signals a fundamental shift in how investors access professional money management. The surge comes as passive strategies collected about $750 billion, meaning active ETFs captured more than one-third of total industry inflows this year, according to Paul Baiocchi, head of fund sales and strategy at SS&C ALPS Advisors, during November 11's episode of ETF Prime. What makes the ...

Core Insights - Fixed income ETFs experienced record inflows of $51 billion in October, indicating strong interest despite market uncertainty [1] - The U.S. Federal Reserve has implemented two rate cuts this year, with potential for another before year-end, prompting fixed income investors to consider active management strategies [2] - Active ETFs provide flexibility in uncertain markets, allowing investors to adapt to systematic risks such as changing interest rates [3] Active Management Advantages - Active portfolio managers can navigate the complexities of bond markets, adjusting portfolios to align with current market conditions [4] - Active funds serve as flexible, all-weather solutions, enabling tailored investment strategies to meet specific objectives [4] Investment Options - The Thornburg Core Plus Bond ETF (TPLS) is recommended for those seeking core exposure, offering more flexibility than passive index funds [6] - The Thornburg Multi Sector Bond ETF (TMB) is suggested for income diversification, combining active management to enhance income in a rate-cutting environment [7] Educational Resources - A recent webinar featuring Thornburg's Head of Fixed Income discussed the advantages of active ETFs in the context of lower interest rates [8]

Company Information - Fidelity Brokerage Services LLC is a member of NYSE and SIPC [1] Contact Information - The company's address is 900 Salem Street, Smithfield, RI 02917 [1]

Company Overview - Federated Hermes manages $871.2 billion in assets [12, 14] - The company's total revenue for Q3 2025 was $469.4 million [15] - Federated Hermes has $2.9 billion in financial strength and flexibility [10] - The company manages $652.8 billion in liquidity assets [10, 19] Asset Allocation - Long-term managed assets total $218.4 billion, including $94.7 billion in equity, $101.8 billion in fixed income, and $19.0 billion in alternative/private markets [12] - Liquidity assets make up a significant portion of the AUM, totaling $652.8 billion [19] - U.S Financial Intermediaries account for 68% of total assets under management, U.S Institutional accounts for 25%, and International accounts for 7% [31] Financial Performance - Q3 2025 earnings per share were $1.34 [22] - The company declared a dividend of $0.34 [22] - Total revenue less distribution expense was $356 million in Q3 2025, compared to $159 million in Q3 2013 [27] Asset Growth - Equity assets increased by $5.7 billion, or 6%, from $89.0 billion at 06/30/2025 [22] - Fixed-income assets increased by $3.1 billion, or 3%, from $98.7 billion at 06/30/2025 [24] - Liquidity assets increased by $18.4 billion, or 3%, from $634.4 billion at 06/30/2025 [24]

Core Insights - Emerging markets debt is highly suitable for active management due to its responsiveness to various scenarios such as geopolitical events, credit defaults, interest rate fluctuations, and currency volatility [1][2]. Group 1: Active Management Benefits - The Neuberger Berman Emerging Markets Debt Hard Currency ETF (NEMD) is an actively managed fund that can navigate the complexities of the emerging markets bond market, which is often challenging for passive funds [2][3]. - NEMD's active management allows it to avoid including potentially risky issuers in its portfolio, unlike passive funds that may be exposed to dubious entities [3]. Group 2: Economic Resilience - Not all emerging economies are equally resilient; some, like Argentina, have histories of default, while others maintain stronger fiscal positions [3][5]. - Countries with deeper local investor bases have shown greater resilience to global economic shocks over the past 15 years, although an overreliance on a narrow group of domestic investors can pose risks [6]. Group 3: Market Dynamics - Active strategies like NEMD can identify which emerging markets are better positioned to absorb new issuances, benefiting investors by aligning with more stable markets [5]. - The International Monetary Fund (IMF) notes that large developing economies have expanded borrowing through local issuance, while others rely on shorter maturity financing and foreign currency debt [4].

Core Insights - Active management and stock picking may be making a comeback after nearly 30 years of passive investing dominance, driven by higher interest rates, increased stock dispersion, and heightened market volatility [2][4] - The shift towards active management is seen as essential for outperforming the market, with financial advisors recognizing the importance of investment management despite the rise of automated solutions [3][4] Group 1: Market Conditions - Current market conditions are favorable for active investors, with T. Rowe Price highlighting that the combination of higher interest rates and greater stock dispersion provides key ingredients for potential outperformance [2] - Active management is becoming increasingly relevant as passive investing can lead to "diworsification," where overly broad diversification negatively impacts returns [2] Group 2: Advisor Strategies - Financial advisors are beginning to realize that investment management remains crucial, even as many have shifted focus to financial planning and model portfolios [3][4] - Many advisors are now outsourcing portfolio construction, but some, like Kimberly Abmeyer, are achieving significant outperformance through targeted stock selection, with her clients' portfolios outperforming the S&P 500 by 10% this year [4] Group 3: Model Portfolios - Assets in model portfolios reached nearly $8 trillion in April 2023, indicating a strong trend towards this investment strategy [6] - Over 80% of fee-based advisors utilize model portfolios for at least some of their client assets, reflecting the growing acceptance of this approach in wealth management [6]