Core Viewpoint - The iShares AAA CLO Active ETF (CLOA) offers investors access to a diversified portfolio of high-quality, AAA-rated collateralized loan obligations (CLOs), aiming to provide attractive income while maintaining a strong credit profile [2][3]. Group 1: Investment Strategy and Portfolio - CLOA invests primarily in AAA-rated CLO tranches, maintaining at least 80% allocation to these securities, focusing on U.S. dollar-denominated CLOs to provide high-quality credit exposure and income generation [3]. - The fund employs an active management strategy, leveraging BlackRock's expertise in credit markets to select and manage CLO exposures [2][3]. Group 2: Performance and Positioning - As of January 8, 2026, CLOA shares were priced at $51.80, reflecting a total return increase of 5.4% over the past year, although it underperformed the S&P 500 by 13.76 percentage points [4]. - Inspirion Wealth Advisors established a new position in CLOA, acquiring 499,926 shares valued at approximately $25.87 million, indicating a growing interest in this ETF [5]. Group 3: Yield and Investor Appeal - The ETF, created in January 2023, currently yields over 5% with monthly dividend distributions, making it attractive for income-focused investors seeking low volatility [6]. - The fund's AAA-rated loans and regular payouts are positioned as reliable income sources, appealing to investors looking for a safe investment option [6]. Group 4: Context within Other Holdings - CLOA complements Inspirion's other top holdings, such as the Vanguard High Dividend Yield Index Fund and the Vanguard Growth Index Fund, providing a mix of stability and income generation [7].

As the dollar weakens and the migration to international equities continues, investors might still be on the fence when it comes to getting exposure. In other instances, they've done the research and have the confidence to dive right in. In both cases, the actively managed Fidelity Fundamental Developed International ETF (FFDI) is worthy of consideration. Fidelity Investments® is an independent company unaffiliated with VettaFi LLC ("VettaFi†). These articles do not form any kind of legal partnership, age ...

Last month saw the Federal Reserve cut interest rates for the second time, with capital markets prognosticating on just how aggressive the central bank will be in 2026. This uncertainty could cause investors to wonder how to extract income in this rate-cutting cycle. The answer could be left to the experts using an actively managed ETF: the Fidelity Tactical Bond ETF (FTBD). While the goal of FTBD is practical — to seek a high level of income — its methodology is tactical. The fund positions investors in a ...

Core Insights - The article emphasizes the importance of diversification in investment portfolios, suggesting that exchange-traded funds (ETFs) are an effective way to achieve this with limited capital [1][2]. Group 1: ETFs and Diversification - ETFs provide instant diversification by holding baskets of stocks, with approximately 4,300 available on U.S. exchanges [2]. - The Dimensional International Value ETF (DFIV) is highlighted as a strong option for international exposure, requiring only a $500 initial investment [3][16]. - DFIV is actively managed, with a 16% annual turnover in holdings, compared to lower turnover rates in passively managed funds [6][10]. Group 2: Fund Composition and Performance - DFIV focuses on large foreign companies in developed nations, excluding emerging markets, and aims to invest in undervalued companies [7]. - The fund's current holdings include 541 stocks, with significant allocations in Japan (21.7%), the U.K. (12.9%), Canada (11.3%), and Germany (9%) [8]. - DFIV has delivered a total return of 40% this year, outperforming both passive funds and the S&P 500 [10]. Group 3: Costs and Benefits - The expense ratio for DFIV is 0.27%, which is higher than that of comparable passive ETFs, but the annual cost on a $500 investment is relatively low at $1.35 [12]. - DFIV offers a dividend yield of 3.1%, providing income that can be reinvested or used for other expenses [14]. - Consistent investment, even as little as $50 per month, can significantly grow an initial investment over time, illustrating the potential of long-term investing with DFIV [15][16].

Core Insights - The article discusses the shift in investment strategy from cash to bonds, suggesting that bonds may offer better returns in the current rate-cutting environment [1][4] - Historical data indicates that during previous rate-cutting cycles, fixed income securities have outperformed cash, supporting the case for bonds [3][4] Bond Market Dynamics - In 2022, the Federal Reserve's aggressive rate hikes led to increased yields, prompting investors to flock to money market funds, which created opportunities for purchasing bonds at attractive prices [2] - As bonds approach maturity, their prices tend to rise, and with the Fed cutting rates, fixed income securities are expected to provide price appreciation alongside coupon payments, potentially exceeding declining money market yields [3][4] Active Management in ETFs - Active management is deemed essential in the current market due to the complexities of the bond market and the potential downward pressure on yields during a rate-cutting cycle [5][6] - Thornburg offers actively managed funds, such as the Thornburg Core Plus Bond ETF (TPLS) and the Thornburg Multi Sector Bond ETF (TMB), which aim to maximize income opportunities through high-quality bond portfolios and diverse fixed income assets [7][8]

Core Insights - Uncertainty in the U.S. economy is expected to persist, prompting advisors and investors to diversify away from U.S. equities [1] - International equities are increasingly favored for diversification and can yield returns similar to U.S. equities [2] - Active management is essential for navigating the complexities of international investing, allowing for better asset allocation and opportunity identification [2] Group 1: International Equity Investment - Many investors are broadening their international equity exposure for diversification and return potential [2] - International equities introduce various economic and geopolitical risks, necessitating careful asset allocation [2] - Active management can enhance the ability to navigate different countries and sectors, optimizing investment opportunities [2] Group 2: MFS Active International ETF (MFSI) - MFSI is an actively managed fund focused on capital appreciation through international equities [3] - The fund emphasizes fundamental analysis and seeks high-quality, attractively valued companies [3] - MFSI has achieved a year-to-date NAV increase of 21.44% as of September 30, 2025, indicating strong performance [3]

Core Insights - The current market environment is characterized by geopolitical tensions, easing monetary policy, and high levels of cash reserves, creating uncertainty and potential investment opportunities [1][2][3] - Approximately $7 trillion in cash is currently sitting on the sidelines, representing one of the highest levels in decades, which presents a significant opportunity for active managers to attract capital [3] - Investors are increasingly considering reallocating funds into international equities, as the U.S. equity market is trading at a premium compared to international markets, indicating potential for substantial returns [5] Market Conditions - The easing monetary policy is expected to apply downward pressure on the dollar, which could enhance the attractiveness of international equities [4] - Many investors have been hesitant to participate in the markets due to lofty valuations, particularly in large tech stocks driven by AI themes [2] Investment Opportunities - Active management is essential when navigating international markets due to their unique risks and opportunities, including tariffs [5] - Thornburg's actively managed funds, such as the Thornburg International Equity ETF (TXUE) and Thornburg International Growth Fund ETF (TXUG), are positioned to capitalize on these opportunities [6]

Core Insights - Investors are increasingly favoring low-fee exchange-traded funds (ETFs), which have captured nearly half of all inflows this year despite representing only 8% of all ETFs [2][3] - Low-fee funds, particularly index trackers, have consistently outperformed actively managed funds, which have struggled to beat their benchmarks [2][4] - The average expense ratio for equity and bond mutual funds has significantly decreased, with a 62% drop for equity funds and a 55% drop for bond funds from 1996 to 2024 [5] ETF Performance and Trends - BlackRock's iShares and Vanguard's S&P 500 ETFs are leading in terms of assets under management (AUM), with Vanguard's ETF having a fee of just 0.03% and being the largest in AUM [3][4] - The performance of actively managed funds varies based on strategy, with growth-oriented managers having a better chance of beating benchmarks compared to value managers [4] Fee Structure and Market Dynamics - The pressure to maintain low fees has led to a general decline in expense ratios across the industry, with index equity ETFs seeing a decrease to an average of 0.14% [5] - The dominance of mega-cap stocks in recent market returns has made it challenging for active managers to outperform, as a small number of stocks have driven most index returns [3][4]

Core Insights - The U.S. Federal Reserve has implemented its first interest rate cut of the year, prompting investors to reevaluate their fixed income portfolios in light of potential future monetary policy changes [1] - Despite anticipated rate cuts, the bond market still presents attractive income opportunities, particularly as uncertainty around tariffs and geopolitical risks persists, making bonds a suitable option to mitigate equity market volatility [2] Market Commentary - With bond yields at historically attractive levels compared to low equity dividend yields, demand for bonds is expected to remain strong, potentially reshaping portfolio allocation strategies for the future [3] - The long-term impact of rate cuts on the return environment remains uncertain, emphasizing the importance of adaptability for long-term investors in a landscape of structurally higher rates [3] Active Management - Active ETFs have seen greater success than passive counterparts in new fund launches this year, highlighting the necessity of active management in the current market uncertainty [4] - Active fixed income funds are becoming increasingly competitive regarding expense ratios, with the Vanguard Core Bond ETF (VCRB) being a notable option due to its low 0.10% expense ratio [4] Fund Characteristics - The Vanguard Core Bond ETF (VCRB) utilizes the portfolio management expertise of the Vanguard Fixed Income Group, allowing for customized holdings based on market conditions [5] - To address credit risk in the current uncertain market, VCRB provides diversified exposure to the U.S. investment-grade bond market and expands its investment scope to include mortgage-backed and corporate securities, leveraging active management to seek yield opportunities [6]

Core Insights - Global stocks are outperforming US stocks despite US markets reaching all-time highs, indicating a complex market dynamic [3][4] - The long-term performance of US stocks remains strong, suggesting that short-term underperformance should not deter investors [5][6] - Increased interest from American investors in international stocks is evident, with a significant portion of the population participating in stock investments [6] Global Stock Performance - The Vanguard FTSE All-World Ex-US Index Fund (VEU) serves as a benchmark for global stocks, showing that while US stocks may lag temporarily, they have a strong historical lead [4][5] - International stocks often provide higher dividend yields compared to US firms, with Canadian stocks yielding 2.6% compared to the S&P 500's 1.2% [7] Investment Strategies - Active management is recommended for international stocks to avoid poor-quality companies and those in unstable regions [10] - Three high-yield closed-end funds (CEFs) are highlighted for their performance and ability to provide dividends exceeding 8% [11] Fund Analysis - The Calamos Global Dynamic Income Fund (CHW) offers an 8.1% annualized yield, combining convertible bonds with stock-like upside [12][13] - The LMP Capital & Income Fund (SCD) provides a 9.3% annualized yield, focusing on a mix of income-producing assets and capital-gains stocks [14][15] - The Virtus NFJ Dividend Value Fund (NFJ) generates a 9.3% dividend while blending American and foreign firms, utilizing a covered-call strategy for additional income [16][17] Market Trends - Discounts on these funds have narrowed recently, indicating increased investor interest and potential for share price appreciation [18]