Core Insights - The shift in focus from domestic tech investments to international investing is gaining momentum due to the high concentration of U.S. equities, where the top ten stocks account for 40% of the index [1] Group 1: International Investment Opportunities - International markets represent approximately 35% of global benchmarks, yet the average private client portfolio only allocates about 5% to these markets [3] - Over 70% of investable equities are located outside the U.S., often trading at 20-year valuation lows, presenting a significant opportunity for diversification [3] Group 2: Investment Strategies - The panel highlighted the risks associated with market-cap weighting in international indexes, suggesting that passive investment strategies may lead to exposure to stagnant "museum stocks" [4] - Active or factor-based ETFs are recommended to capture growth in emerging markets like India and Japan [4] Group 3: Managing Risks - Currency volatility is a concern for international investments, but currency-hedged ETFs can help mitigate overall portfolio risk [5] - The panel emphasized that international investing should be viewed as a form of insurance rather than merely a performance chase [5] Group 4: ETF Offerings - American Century offers several ETFs for international exposure, including the American Century Quality Diversified International ETF (QINT), Avantis International Small Cap Equity ETF (AVDS), and Avantis Emerging Markets Equity ETF (AVEM) [5] - Franklin Templeton's international ETF lineup includes the Franklin International Dividend Booster Index ETF (XIDV), Franklin International Core Dividend Tilt Index ETF (DIVI), and Franklin International Low Volatility High Dividend Index ETF (LVHI) [6]

ETF Market Trends - Global ETF industry reaches $19 trillion [2] - ETF inflows totaled $42 billion in the last week, doubling the year's pace, exceeding last year's record by $100 billion with five weeks remaining, reaching over $12 trillion year-to-date [3] - Vanguard leads with $120 billion inflows year-to-date, a record, and the company's inflows are at $350 billion year-to-date, also a record [4] - Money market funds represent almost half of the entire ETF industry, reaching $45 trillion, with $700 billion inflows this year [6] Active vs Passive Management - Investors show a stronger preference for active management in the ETF vehicle [9] - Active funds are outperforming the S&P by about 5% [13] - Capita Group manages over $32 trillion in assets, with about $2 trillion in retirement portfolios [16] Company Strategy & Innovation - Capita Group has crossed $100 billion in assets under management in the active ETF space [8] - Capita Group focuses on transparent active management [33] - State Street is launching mutual fund share classes off of its ETFs [31] Risks and Opportunities - Bitcoin ETF holders have moved only 4% of assets out, with 96% remaining [5] - A bearish ETF, around since 2011, is up 6% this year [37][38] - The HTG ETF is approximately 20% in cash [47]

Group 1 - The global ETF industry is valued at $19 trillion, with a significant influx of capital into ETFs, totaling $42 billion in the last week alone, which is double the pace of the year [2][3] - Vanguard is leading the way in ETF inflows, with $120 billion this year, contributing to a record $350 billion for the company [4] - Money market funds are gaining traction, with $4.5 trillion in assets, and they represent almost half of the entire ETF industry [6][7] Group 2 - Capital Group has crossed $100 billion in assets under management in the active ETF space, driven by investor demand for high-quality active management [8][10] - There is a growing preference for active management in ETFs, particularly in the U.S. equity market, where active funds are showing value [10][12] - Capital Group manages over $3.2 trillion in assets, with a significant portion in retirement portfolios, indicating a strong focus on long-term investment strategies [16][17] Group 3 - State Street Investment Management is exploring the impact of dual share classes in the ETF industry, aiming to launch mutual fund share classes of existing ETFs [29][31] - The company is also focused on retail demand for private assets, emphasizing the importance of liquidity and income in the private credit market [27][28] - There are concerns about the industry's preparedness for an influx of new ETFs and the associated market-making challenges [22][23]