Core Insights - Major asset managers are achieving significant milestones in their ETF businesses amid record inflows, with Capital Group's ETFs reaching $100 billion in assets under management [2] - BlackRock's iShares and Vanguard remain the dominant players in the ETF market, holding $3.9 trillion and $3.7 trillion respectively, while newer entrants like T. Rowe Price are gaining traction [2] Industry Trends - Approximately $1.1 trillion has flowed into US ETFs in 2023 through October, surpassing total inflows for all of 2024, with $378 billion specifically directed towards active ETFs [3] - Total assets in the ETF market have exceeded $13 trillion, indicating robust growth and demand for exchange-traded funds [3] Company Developments - Capital Group has focused on core-style products while other niche issuers have introduced leveraged and thematic funds, with a notable increase in model portfolios for active ETFs [3] - As of March, Capital Group became the third-largest provider of active ETF model portfolios, managing $61 billion, following Wilshire and BlackRock [3] Additional Milestones - Invesco is nearing $800 billion across its 240 US ETFs, while Goldman Sachs has surpassed $50 billion with its 45 US ETFs, and T. Rowe Price has exceeded $20 billion with its 24 ETFs [5]

Group 1 - Joseph Shaposhnik believes that many investors have lost faith in actively managed funds, which he considers "broken" but fixable [1][2] - Shaposhnik launched the Rainwater Equity ETF RW this summer, with a significant contribution from Bill Miller, a renowned value investor [3] - His experience at TCW highlighted that predictable-growth businesses tend to outperform, leading him to focus on companies with recurring revenue [4] Group 2 - The fund's strategy includes investing in companies with secured revenue through subscriptions or contracts, which supports management's growth investments [5] - Major holdings include Microsoft, which benefits from its Office 365 subscription model, and Broadcom, which has seen a 46% stock gain this year due to new AI customers and large orders [5][6] - GE Aerospace is identified as a top pick, benefiting from its dominant position in commercial aerospace propulsion and expected steady growth in the sector [6][7] Group 3 - Larry Culp, CEO of GE Aerospace, is recognized for his strong leadership and track record, which is expected to drive the company's turnaround [7] - GE Aerospace is viewed as a pure-play investment in the long-term growth of commercial aerospace and defense, with projected free cash flow and earnings growth of 20% over an extended period [7]