Core Insights - Investors have two main pathways for core bond exposure through ETFs: passive options that track an index and active options that leverage portfolio managers' capabilities [1] Passive Alternatives - The Vanguard Total Bond Market Index Fund ETF Shares (BND) offers low expense ratios at three basis points and tracks the Bloomberg Barclays U.S. Aggregate Float Adjusted Index, providing broad exposure to investment-grade debt in the U.S. [2] - BND is primarily exposed to U.S. government debt, making benchmark Treasuries the majority of the fund's holdings, which may limit diversification [3] - The newly launched Vanguard Core-Plus Bond Index ETF (BNDP) tracks the Bloomberg U.S. Universal Float Adjusted Index, including U.S. government, investment-grade corporate, securitized, high yield corporate, and emerging market debt, aiming to provide core bond exposure with higher yield potential [4] Active Alternatives - The Vanguard Core-Plus Bond ETF (VPLS) offers active management, allowing portfolio managers to identify income opportunities and adapt to changing market conditions, making it suitable for various economic environments [5] - VPLS maintains exposure to U.S. Treasuries while also investing in mortgage-backed, corporate securities, and emerging market debt to enhance yield [6] - Active ETFs like VPLS are supported by the expertise of the Vanguard Fixed Income Group, which is beneficial in navigating current macroeconomic conditions [7]

ETF Market Overview - The ETF market has seen net inflows of over $855 billion this year and is on pace for another $1 trillion year [1][2] - ETFs are attractive to investors due to their liquidity, cost efficiency, and transparency [2] Emerging Markets Debt (EMD) - EMD ETFs experienced flat flows for the year but have seen a reversal with approximately $20 billion in inflows in the last four and a half months, following over three years of sustained outflows [3] - The macro backdrop for emerging markets is considered benign, supporting potential investment [4] - A weaker USD and the Fed initiating a rate hiking cycle have historically been supportive of EMD [5] Active vs Passive EMD ETFs - Historically, around 70% of actively managed EMD funds have outperformed passive ones over the last 10 years [7] - Newberger Berman has an active ETF hard currency sovereign vehicle [7] EMD Market Dynamics - Approximately $150 billion, representing 15-16% of all assets in dedicated vehicles, had left the EMD asset class until April of this year, indicating substantial capacity for investors to re-enter the space [8] - Emerging markets are growing at stronger rates with better fundamental and fiscal dynamics, including lower public debt to GDP ratios compared to developed markets [9] - Mexico's public debt to GDP is expected to be around 55% in 2026 [9]

We're seeing some pressure on Nvidia, right. Obviously, a lot of retail investors, a lot of institutional investors hold this company. Yeah.Did you expect these US trying to trade trade talks to actually have a market impact. Because I talked to a lot of traders. They said, "No, not really. It's kind of a non-event." Yeah, that'd be something I think gets shrugged off right away, but we'll we'll see as it develops whether or not it does get shrugged off or we head back to those all-time highs or this is mat ...

And welcome back to halftime with your we have your ETF edge. We're seeing two big pushes in the industry this week getting very different receptions. Let's jump right into it.Joining me now is independent ETF expert Dave Natig. Dave, thanks for joining us. Thanks for having me.All right, let's start off first. I get back to those two big players diving into the active management arena. We got billionaire investor Ron Baron launching his own fund and lowcost king Vanguard filing for a new fundamentals fund ...

Core Insights - Concerns are raised regarding the high concentration levels in broad-based indices, particularly in mega-cap driven and market cap-weighted passive ETFs, with a specific emphasis on the S&P 500 [1] - The analyst expresses more comfort with technology indices compared to broader indices [1] - The focus is on equity valuation, market trends, and portfolio optimization to identify high-growth investment opportunities [1] Analyst Background - The analyst has over 20 years of experience in quantitative research, financial modeling, and risk management [1] - Previous experience includes a role as Vice President at Barclays, leading teams in model validation, stress testing, and regulatory finance [1] - The analyst collaborates with a research partner to produce high-quality, data-driven insights, emphasizing rigorous risk management and long-term value creation [1] Research Focus - There is a particular interest in macroeconomic trends, corporate earnings, and financial statement analysis [1] - The aim is to provide actionable ideas for investors looking to outperform the market [1]

ETF Market Trends - Year-to-date net ETF inflows have topped $645 billion [1] - Active ETFs accounted for approximately 25% of flows in June, while passive ETFs accounted for 75%, indicating active ETFs are gaining ground [3] - Over the last 12 months, US equities have seen approximately five times the inflows of international equities, but in the last month, international equity has overtaken US equity [4] Investment Opportunities - Non-US investments have benefited from a tailwind due to the dollar, with a difference of around 10% between hedged and unhedged returns [7] - Small caps have not been favored in the US, but have performed well in non-US developed markets and emerging markets over the last five years [7][8] - American Century suggests considering international developed small cap strategies like ABDV and ABDS, with ABDV recently surpassing $10 billion in total assets under management [11] - Small cap companies with good valuations and profitability have historically been some of the best performers long term in US, non-US developed markets, and emerging markets [14] Market Outlook - Optimism surrounds potential trade deals, which is viewed as a positive factor [6] - Uncertainty in the current trade environment may create niche opportunities for small cap companies [15][16] - Diversification through exposure to smaller companies can provide opportunities often overlooked by large-cap focused strategies [13]