Trump Wants an MBS Buying Binge. This ETF Could Benefit.ETF Trends is now VettaFi. Read More --In a bid to drive mortgage rates down and foster more home buying among younger people, President Trump recently proposed a plan to purchase $200 billion worth of mortgage-backed securities (MBS).There ETFs for that, which makes sense given the sheer scope of the MBS market. However, passively-managed funds dominate most of the legacy funds in the MBS ETF category. That's fine for investors prioritizing low fees a ...

Goldman Sachs Asset Management's Global co-head of Third-Party Wealth and Chief Transformation Officer Bryon Lake tells Bloomberg that investor demand is increasingly focused on outcomes, particularly yield and downside protection. He says buffered and income-oriented ETFs remain a key growth area. Lake also outlines Goldman's broader ETF strategy, which emphasizes active management, technology, and data-driven investing across public and private markets. He joined the discussion on "Bloomberg ETF IQ" with ...

The floodgates aren’t closing anytime soon. Active management has become one of the dominant growth engines in the ETF market, and that was highlighted by a record number of fund launches last year. Issuers brought nearly 1,000 active ETFs to market, shattering the prior record of 584 in 2024, according to Morningstar. The surge came with casualties, however: A record 146 active ETFs shut down. Still, despite shorter lifespans than passive funds, asset managers show no signs of pulling back, betting that ...

Analyst Update Data as of December 31, 2025 Federated Hermes, Inc. 1 25-30006 Forward-looking information This presentation is provided as of the date on the cover and contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Statements that do not relate strictly to historical or current facts are forward-looking, including those related to product performance, the potential for busine ...

Core Insights - The U.S. stock market achieved its third consecutive year of double-digit returns in 2025, primarily driven by technology stocks, but is currently trading at high valuations and extreme concentration levels [4][9] - The Davis Opportunity Fund (DOF) outperformed the S&P 1500 Index with a return of +22.02% compared to the index's +17.02% in 2025, indicating strong performance driven by selective investment choices [8][9] - Active management is recommended in the current market environment to navigate high valuations and to capitalize on opportunities in well-chosen equities [5][19] Market Performance - The S&P 1500 Index is trading at a forward price-to-earnings (P/E) multiple of nearly 26 times, indicating high valuation levels [4] - The index is more concentrated than it has been in nearly three decades, with a significant portion of its value tied to a few megacap technology companies [4] Investment Strategy - The company advocates for a shift from passive index exposure to actively managed equity portfolios, emphasizing the importance of selective security choices and rational diversification [5][19] - The portfolio of DOF consists of 47 holdings compared to the S&P 1500 Index's 1,506, with a forward P/E ratio of 14.3x, significantly lower than the index's 25.6x [10] Sector Focus - The fund's investments include healthcare services, technology shares, and financial services, with a focus on companies that exhibit financial strength and competitive advantages [11][12][14] - Key holdings in healthcare include UnitedHealth, Viatris, and Quest Diagnostics, which are expected to benefit from the expanding U.S. healthcare market [12][13] Technology Investments - The fund holds positions in major technology companies such as Meta Platforms, Alphabet, and Amazon, while also investing in semiconductor firms like Applied Materials that offer strong value [14] - The strategy includes trimming positions in the "Magnificent 7" based on valuation considerations [14][22] Financial Sector - Capital One Financial is highlighted as a core holding, trading at a forward P/E of 13-14x, which is attractive compared to many technology firms [15][16] - The company is noted for its strong consumer finance division and significant AI-related patents, positioning it for future growth [16] Unique Opportunities - The portfolio includes special situations like Wesco International, which has outperformed the benchmark due to strong business fundamentals [17] - Investments in energy and commodities, such as Coterra and Teck Resources, reflect a strategic interest in sectors critical to electrification trends [18] Future Outlook - The company believes that the current market environment presents opportunities for active management to outperform passive strategies, especially given the valuation bubble in major indexes [19] - There is a call to reconsider surplus cash allocations in light of potential falling interest rates and the attractiveness of equities [19]

Core Viewpoint - JPMorgan Chase & Co. reported earnings that exceeded expectations for the fourth quarter, yet its shares declined nearly 4%, indicating a cautious sentiment among investors regarding the bank's performance and broader market conditions [1]. Financial Performance - JPMorgan reported a profit of $13.03 billion, or $4.63 per share, which is a 7% decrease from the previous year, primarily due to a $2.2 billion charge from acquiring the Apple Card business from Goldman Sachs. Adjusted earnings, excluding this charge, were $5.23 per share, surpassing the consensus estimate of $5.00 [2]. - The bank's revenue reached $46.77 billion, exceeding the estimated $46.20 billion. Notably, equities trading revenue surged by 40% to $2.9 billion, approximately $350 million above expectations, driven by strong performance in hedge fund services. However, investment banking fees fell by 5% to $2.3 billion, about $210 million below estimates [3]. Market Outlook - Despite the mixed results for the quarter, the overall outlook for banks remains positive. CEO Jamie Dimon described the U.S. economy as resilient but warned that markets may not fully recognize potential risks, including geopolitical complexities, persistent inflation, and high asset prices [4]. Investment Strategy - The earnings beat was insufficient to boost shares due to disappointing investment banking revenue, highlighting the risks associated with heavy concentration in mega-cap banks. This situation suggests potential advantages in maintaining smaller positions in large banks while diversifying exposure across other financial entities. For instance, the T. Rowe Price Financials ETF (TFNS) holds JPMorgan at 4.9% of its assets, significantly lower than the 11.2% weighting in the S&P 500 Financial Index [5]. - TFNS balances its smaller stake in JPMorgan with larger investments in other financial institutions, including Berkshire Hathaway at 8.98%, Visa at 7.2%, and Mastercard at 5.4%. Additionally, it holds Bank of America at 4.9%, Citigroup at 4.2%, Goldman Sachs at 4%, and Capital One Financial at 3.5% [6]. Fund Management - Portfolio managers Matthew Snowling and Gregory Locraft utilize fundamental research to select stocks, employing both value and growth strategies. The fund invests at least 80% of its assets in financial companies, including banks, insurance firms, payment processors, and capital markets companies. TFNS was launched on June 11, 2025, with a 0.44% expense ratio and has achieved a return of 7.91% over the past three months, managing $12.6 million in assets [7].

On this episode of the "ETF of the Week†podcast, VettaFi's Head of Research, Todd Rosenbluth, discussed the T. Rowe Price US Equity Research ETF (TSPA) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF. Yes, this is the ETF of the Week, where we get the latest take from Todd Rosenbluth, the head of research at VettaFi. And at VettaFi.com, you'll find all the tools you need to make yourself a smarter, savvier investor in ...

Core Insights - The JPMorgan Active Bond ETF (JBND) has attracted $5.4 billion since its launch in October 2023, primarily due to its ability to outperform in volatile markets [2][8] - The fund faces challenges as corporate bond spreads have compressed to their tightest levels in two decades, which may impact future performance [3][8] Fund Performance and Strategy - JBND has a portfolio turnover rate of 89%, indicating aggressive repositioning by managers in response to compressed spreads [4][8] - The fund is expected to generate around 5% returns from investment-grade bond coupons this year, emphasizing the importance of active sector selection [4] Yield and Income Generation - JBND offers a yield of 4.4% generated from bond coupons, distinguishing itself from other income ETFs that rely on options strategies [6][8] - The fund allocates approximately 30% to securitized products, such as agency mortgage-backed securities and asset-backed securities, to enhance yield while maintaining investment-grade quality [7][8] Market Risks - Rising Treasury yields pose a significant risk for JBND holders, with projections indicating that 10-year yields could reach 4.35% [5] - The fund's six-year duration means it is sensitive to interest rate movements, which will be crucial for determining the effectiveness of its active management strategy [5]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Insights - The Avantis U.S. Small Cap Value ETF (AVUV) has crossed $20 billion in assets under management, reflecting strong investor interest in small-cap value strategies [3][4] - The ETF is positioned to benefit from a potential market rotation away from large-cap growth stocks, especially as the Federal Reserve is expected to cut interest rates [5][10] - AVUV employs a strategic, active management approach with a diversified portfolio of over 700 holdings and low turnover, focusing on high-quality, undervalued companies [11][12] Fund Performance and Strategy - Despite a challenging year for small-caps, AVUV has maintained a strong track record, consistently performing close to the top quartile of its peer group [13] - The fund's expense ratio is relatively low at 25 basis points, making it an attractive option for investors seeking exposure to small-cap value [5][14] - The active management style of AVUV is characterized as "active-lighter," allowing for strategic adjustments without frequent trading [12] Market Outlook - There is optimism that small-cap value stocks could perform well as the new year approaches, particularly if market conditions favor smaller companies [9][10] - The potential for increased merger activity in 2026 could further enhance the attractiveness of small-cap investments [10] - Historical data suggests that small-caps may offer better long-term returns compared to large-caps, especially as they are currently trading at a discount to their historical levels [8][6]