Market Trends & Strategic Acquisitions - Goldman Sachs Asset Management (GSAM) recognizes the growing trend and client demand for active ETFs, particularly in the defined outcome space [2][3][6] - GSAM acquired Innovator Capital Management to accelerate its growth in the defined outcome ETF market [3][4] - The defined outcome ETF market is projected to grow significantly, potentially increasing by 4 to 5 times over the next five years [7] Product Focus & Investor Needs - Defined outcome ETFs address specific investor needs, such as income generation, downside protection, and growth [6] - These ETFs provide equity exposure with built-in downside protection, fitting into a "risk-aware growth" investment strategy [10] - Investors are increasingly using defined outcome ETFs in their portfolios as part of a critical path of innovation [7] Cost & Operational Efficiency - ETFs offer operational ease and scalability, allowing for consistent portfolio construction across multiple clients [12] - ETF costs are becoming more reasonable and competitive with separately managed accounts (SMAs) that use option overlays [12][13] - The ETF wrapper provides benefits such as intraday liquidity and transparency, enhancing investor comfort [16] Adoption & Usage - Independent registered investment advisors (RIAs) are showing increased interest in actively managed ETFs that target specific outcomes [18][19] - Defined outcome buffer products are used alongside other strategies like covered calls or trend-following equities to manage risk [20] - These products help clients maintain discipline and conviction during market downturns, improving long-term investment success [21][22]

ETF Market Trends & Inflows - ETF net inflows have topped $1 trillion for the second consecutive year and are on pace for a new record year [1][2] - The growth is attributed to transparency, liquidity, tax efficiency, and innovation within the ETF wrapper, including options-based strategies [3][6] - Demand for growth-type exposure, particularly in AI and innovation, is driving inflows [5] - Actively managed ETFs are attracting more investors, accounting for approximately 37% of inflows compared to 26% in 2024, due to the accessibility of sophisticated strategies [13] Top ETF Inflows & Market Sentiment - Top inflows this week were into BBEU (a large-cap European stock ETF), GLD (gold ETF), and BNDX (Vanguard Total Bond ETF) [7] - The shift towards European equities and bonds may be due to tariff concerns and government shutdown fears, prompting investors to seek safer, more stable markets and fixed income exposure [8][9] ETF Innovation & Investment Strategies - Sophisticated options-based approaches within ETFs are giving investors access to solutions they haven't had historically [4][6] - Horizon's "Why Not" digital frontier ETF offers a one-stop-shop solution for exposure to growth, AI, crypto, and quantum, with dynamic weightings [10][11] - Actively managed ETFs allow for layering crypto exposure on top of stock baskets using options and other approaches [15]

Group 1 - The Putnam Focused Large Cap Value ETF (NYSEARCA: PVAL) is an actively managed product aimed at generating alpha [1] - The ETF is backed by Putnam Investments, which is a subsidiary of Franklin Templeton [1]