Core Insights - Emerging markets debt is highly suitable for active management due to its responsiveness to various scenarios such as geopolitical events, credit defaults, interest rate fluctuations, and currency volatility [1][2]. Group 1: Active Management Benefits - The Neuberger Berman Emerging Markets Debt Hard Currency ETF (NEMD) is an actively managed fund that can navigate the complexities of the emerging markets bond market, which is often challenging for passive funds [2][3]. - NEMD's active management allows it to avoid including potentially risky issuers in its portfolio, unlike passive funds that may be exposed to dubious entities [3]. Group 2: Economic Resilience - Not all emerging economies are equally resilient; some, like Argentina, have histories of default, while others maintain stronger fiscal positions [3][5]. - Countries with deeper local investor bases have shown greater resilience to global economic shocks over the past 15 years, although an overreliance on a narrow group of domestic investors can pose risks [6]. Group 3: Market Dynamics - Active strategies like NEMD can identify which emerging markets are better positioned to absorb new issuances, benefiting investors by aligning with more stable markets [5]. - The International Monetary Fund (IMF) notes that large developing economies have expanded borrowing through local issuance, while others rely on shorter maturity financing and foreign currency debt [4].

Group 1 - The total ETF flows have exceeded $855 billion year to date, indicating strong investor interest in exchange-traded funds [1] - The Vanguard Growth Index Fund ETF, which focuses on large-cap stocks, experienced the highest inflows this week, followed by the Vanguard Small Cap Fund and the Vanguard Small Cap Value ETF [1] - Small-cap stocks reached a new all-time high, reflecting significant investment in Vanguard products [2] Group 2 - There is substantial capacity for investors to reinvest in the emerging markets debt (EMD) space, which has been underowned for several years [3] - Emerging markets are expected to grow at stronger rates with better fundamental and fiscal dynamics, making them an attractive investment opportunity [3] - The NEMD emerging markets debt hard currency ETF, launched in August, has underperformed compared to the broader market since its inception [3]

We're tracking ETF flows that are now over $855 billion year to date. We're also tracking the moves above and below the 30-day moving averages for the popular index funds, the SPY and the triple Q's buying, we're going to show you in a second, surged at the end of the week. This week, the Vanguard Growth Index Fund ETF ticker Bug that focuses on large cap stocks, saw the top inflows, followed by the Vanguard Small Cap Fund, ticker VB, and the the VBR, Vanguard Small Cap Value ETF.Of course, small caps hit a ...