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 world's largest corporate holder of Bitcoin, Strategy (formerly MicroStrategy), is facing significant challenges due to the ongoing crypto market crash, impacting both institutional and retail investors [1] - Short-seller Jim Chanos has closed his short positions on MSTR, citing a decline in the multiple-to-net-asset-value (mNAV) from 2.5x in December 2024 to 1.16x currently, with expectations that it may eventually reach 1.0x [2][3] - JPMorgan has warned that leading equity indices, including the MSCI USA Index, may delist Strategy due to its digital asset treasury model, which could affect its eligibility for traditional stock indexes [4] Group 2 - Michael Saylor, co-founder and executive chairman of MicroStrategy, maintains that index classification does not affect the company's operations or self-perception, despite Wall Street's negative view [5] - Institutional trust in Strategy as a Bitcoin proxy has been declining, with major asset managers trimming their holdings by $5.38 billion in Q3 2025 [6][7] - Institutional holdings in MSTR decreased from $36.32 billion at the end of Q2 to $30.94 billion at the close of Q3, representing a drop of approximately 15% [7]

Core Viewpoint - The article discusses the potential adjustments investors and advisors may consider for their portfolios in 2026, particularly regarding fixed income assets and the implications of interest rate changes by the Federal Reserve [1][2]. Group 1: Interest Rate Expectations - Expectations for a December interest rate cut by the Federal Reserve have diminished, but there is speculation that Fed Chair Jerome Powell may seek new employment in 2026, potentially leading to more accommodative monetary policy [2]. - A significant reduction in interest rates could reduce the attractiveness of short duration bonds [2]. Group 2: Investment Opportunities in Short Duration Bonds - The Neuberger Berman Short Duration Income ETF (NBSD) has shown a year-to-date return of 5.48% and has a weighted average duration of 1.88 years, indicating low sensitivity to Federal Reserve actions [3]. - The NBSD ETF has a 30-day SEC yield of 4.90%, which is notable given its low duration and minimal credit risk, while still benefiting from declining rates [6]. Group 3: Advantages of Short-Term Bonds - Short-term bonds are favored for their ability to generate current income with relatively low risk, making them suitable for many investors' portfolios [5]. - Although longer duration bonds typically provide more income due to higher rate risk, short-term bonds can still play a critical role in providing current income and reducing overall portfolio risk [8]. Group 4: Market Performance Insights - Short-term bonds tend to perform best during periods of declining interest rates and low inflation, although they do not benefit as much from downward trends in interest rates compared to longer-duration bonds [7]. - Over the past decade, short-term bond categories had lower returns but fared better than longer-duration categories during the bond market downturn in 2022 [7].

Core Insights - November has been a volatile month for the S&P 500, with the index down approximately 3.7%, causing investor uncertainty about the economy's near-term direction. However, upgraded growth forecasts from institutions, driven by strong earnings growth and productivity gains from AI adoption, suggest a more positive economic outlook [1][4][7] Economic Outlook - Rising expectations for a Federal Reserve rate cut in December, along with optimism for a rebound in the AI sector, contribute to an improving economic outlook [2][3] - Morgan Stanley projects the S&P 500 to reach 7,800 by the end of 2026, representing an increase of about 18.13% from current levels, supported by strong earnings growth and productivity boosts from AI [4] - UBS forecasts the S&P 500 to reach 7,500 by the end of next year, bolstered by strong corporate earnings and resilience in the tech sector [5] Market Activity - U.S. equity funds have seen inflows for five consecutive weeks, with a net inflow of $4.36 billion in the week ending November 19, nearly four times the previous week's inflow of approximately $965 million, as investors focus on strong third-quarter earnings [6] Investment Opportunities - Investors are encouraged to explore growth ETFs that offer exposure to high-growth potential stocks, particularly during market uptrends [8] - Several growth-focused ETFs are highlighted, including: - Vanguard Growth ETF (VUG) with an asset base of $196.85 billion, gaining 25.54% over the past year [9][10] - iShares Russell 1000 Growth ETF (IWF) with an asset base of $121.09 billion, gaining 25.30% over the past year [11][12] - iShares S&P 500 Growth ETF (IVW) with an asset base of $64.71 billion, gaining 26.67% over the past year [13][14] - SPDR Portfolio S&P 500 Growth ETF (SPYG) with an asset base of $43.67 billion, gaining 26.84% over the past year [14][15] - iShares Core S&P U.S. Growth ETF (IUSG) with an asset base of $25.25 billion, gaining 25.63% over the past year [16]

Core Insights - Westaim Corporation has appointed Andrew Rabinowitz as President and General Counsel of Arena Investors Group Holdings, following a strategic transaction with CC Capital to integrate Arena and Ceres Life into a unified insurance and asset management platform [1][4]. Company Overview - Westaim is an integrated insurance and alternative asset management company with two primary operating businesses: Ceres Life and Arena [4]. - Ceres Life is a cloud-native, scalable annuity insurance company focused on providing accessible annuity products [5][10]. - Arena, founded in 2015, is a global institutional asset manager with approximately $4.5 billion in assets under management as of September 30, 2025, specializing in credit and asset-oriented investments [7][9]. Leadership and Strategy - Andrew Rabinowitz brings over 30 years of experience in asset management, previously serving as Senior Partner and General Counsel at 26North and Co-CEO at K2 Integrity [3]. - His role will involve expanding AIGH's multi-strategy alternative asset management business and its insurance platform, Arena Life & Annuities Solutions (ALAS) [2][4]. - The leadership team at Westaim and Arena believes Rabinowitz's experience will enhance operations and drive growth [4][3]. Market Position and Growth Potential - AIGH is positioned to grow rapidly by sourcing high-quality, long-duration assets that meet the needs of alternative credit investors and insurers [4]. - The integration of Arena and Ceres Life aims to unlock the benefits of a unique insurance and asset management platform, enhancing the overall value proposition for clients [4].

Lawrence Fuller has been managing portfolios for individual investors for 30 years, starting his career at Merrill Lynch in 1993 and working in the same capacity with several other Wall Street firms before realizing his long-term goal of complete independence when he founded Fuller Asset Management. He also manages the Focused Growth portfolio on the new fintech platform called Dub, which is the first copy-trading platform approved by securities regulators in the US, allowing retail investors to copy the po ...

Core Insights - Japan's largest asset management firms are preparing to launch the country's first cryptocurrency investment trusts as regulatory changes are anticipated [1][9] - The Financial Services Agency (FSA) plans to reclassify cryptocurrencies under the Financial Instruments and Exchange Act by 2026, allowing their inclusion in investment trusts [4][9] - A tax overhaul is being considered, which would lower the financial income tax on crypto gains from a maximum of 55% to 20% [5] Industry Developments - A survey indicates that major players like Daiwa Asset Management, Asset Management One, Amova, and Mitsubishi UFJ are exploring crypto trust products [3] - SBI Global Asset Management aims to launch Bitcoin and Ethereum ETFs and multi-asset crypto trusts, targeting ¥5 trillion ($32 billion) in assets under management within three years [6][9] - Other firms, including Nomura Asset Management and Daiwa Asset Management, are building internal capacities and strategies in anticipation of regulatory changes [8] Regulatory Changes - Current regulations prevent cryptocurrencies from being included in investment trusts due to restrictions in the Act on Investment Trusts and Investment Corporations [4] - The FSA's reclassification of crypto is expected to provide the same investor protections as stocks and bonds, facilitating the establishment of crypto investment trusts [4][5] - The anticipated legislative changes are seen as a way to activate household capital and encourage investment [7]

Core Viewpoint - Many ETFs, after 10 years and with assets under $100 million, are struggling to survive and may soon be discontinued, while the iShares S&P 500 ETF has recently gained significant assets, indicating a shift in investor interest [1] Group 1 - A considerable number of ETFs are on the verge of being phased out due to low asset levels, highlighting a trend of consolidation in the ETF market [1] - The iShares S&P 500 ETF, previously not well-known, has seen a notable increase in assets, suggesting a growing preference among investors for established funds [1]

Crypto Investment - Japan's major asset managers are considering offering crypto investment options [1] - This consideration is happening ahead of major rule changes in Japan [1]

Core Insights - Bitcoin exchange-traded funds (ETFs) are experiencing significant outflows, with November seeing $3.5 billion withdrawn, nearing the previous record of $3.6 billion in February [2] - The outflows are indicative of a broader decline in the crypto market, with Bitcoin set for its worst monthly performance since the 2022 collapse [3] - The dynamics of Bitcoin ETFs have created a feedback loop where inflows and outflows directly impact Bitcoin prices, with a $1 billion withdrawal leading to an approximate 3.4% price drop [5] Group 1: Market Performance - Bitcoin's price fell to a low of $80,553 before recovering slightly, trading at $85,951, which represents an 8% decline year-to-date [4] - The current outflows from Bitcoin ETFs confirm that the initial market euphoria has dissipated, as noted by industry analysts [3] Group 2: ETF Dynamics - Spot Bitcoin ETFs have become crucial in shaping market sentiment and capital flow within the crypto space since their introduction in January 2024 [4] - Analysts suggest that continued outflows may occur as market volatility increases, with some outflows attributed to hedge funds unwinding specific trading strategies [6]