You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. Oddball Funds Gave Investors Fits “By “oddballs,” I mean funds that utilize approaches that aren’t tethered to the broad stock and bond markets. These types of funds boast high diversification potential and thus, in theory, could nicely complement one’s primary stock and bond allocations. But because they’re idiosyncratic, it’s also possible they could push investors’ buttons, nullifying whatever ...

Megacap tech firms and the other so-called AI "hyperscalers†have been key drivers of market performance this year. That has inspired much discussion about whether there is an "AI bubble†looming over portfolios. While investors and advisors can have their opinions about whether or not that is the case, another specter looms over the other side of the 60/40: AI company debt and AI bonds. See more: T. Rowe Price Leaders Talk TTEQ OpenAI Pickup According to reporting from the Wall Street Journal, AI hyperscaler ...

For years now, inflation has been a stubborn challenge for the consumer and for the stock market. Ever since the pandemic, inflationary pressures have defined both the economic and political narratives challenging investors. The Fed's decision to cut rates, combined with reduced availability of official inflation data, has heightened inflation risk for investors. These ETFs can help prepare for inflation uncertainty. In the months ahead, the lack of official inflation data may throw a wrench in many market ...

Core Insights - Asset and wealth management firms are focusing on AI-driven innovation, new products, and enhanced client experiences as primary growth drivers in the industry [2][3] Group 1: AI Integration - A significant shift from exploration to implementation of AI is observed, with 95% of firms believing AI will positively impact the industry and 96% agreeing it will enhance per-employee productivity [3][4] - AI is seen as most valuable in communications and messaging (30%), research (20%), marketing, sales, and content development (15%), and data synthesis (14%) [4] - 61% of firms expect AI to be a high strategic priority moving forward, an increase from 38% the previous year [4][7] Group 2: Product Innovation - The survey indicates a shift in product preferences, with active ETFs (72%), private markets/alternatives (60%), and separately managed accounts (51%) expected to see the strongest asset growth over the next two years [5][6] - 81% of wealth managers plan to support alternatives within model portfolios, indicating a commitment to tailored investment solutions [9] Group 3: Younger Investors - 87% of firms agree that younger investors require different products and service models, yet only 30% are actively adjusting their strategies to cater to this demographic [10] - The top challenges in serving younger investors include providing digital tools (42%), engaging through traditional channels (41%), and building long-term loyalty (35%) [10] Group 4: Workforce and Hiring Trends - Nearly half (48%) of firms expect to increase headcount over the next two years, with differing priorities between asset and wealth managers [11]

On top of the challenges of investing in low-information markets, those risks can potentially derail certain emerging market strategies. Passive funds, for example, must follow strict rules that can make foreign markets particularly bumpy. If, for example, a passive fund must have a certain allocation to small- or large-caps, and events take a toll on either segment more than the other, such passive funds can struggle. Looking at emerging market investing options? Ex-U.S. equities — emerging markets include ...

After another year of rapid growth, the U.S. ETF industry is evolving into price-based segments, each with distinct product offerings and market leaders. Net inflows into U.S. listed ETFs year-to-date in 2025 have already exceeded 2024’s annual inflow record of $1.2 trillion and are going into different price categories. Most assets in the low-cost (0%-0.25% net expense ratio) segment are currently in traditional beta ETFs (see Figure 1), while the medium- (0.26%-0.75%) and high-cost (>0.75%) segments are n ...

Active ETFs pulled in nearly $400 billion in net inflows during 2025. That has industry veterans calling the adoption "remarkable.†It signals a fundamental shift in how investors access professional money management. The surge comes as passive strategies collected about $750 billion, meaning active ETFs captured more than one-third of total industry inflows this year, according to Paul Baiocchi, head of fund sales and strategy at SS&C ALPS Advisors, during November 11's episode of ETF Prime. What makes the ...

Core Insights - The US ETF industry has reached a significant milestone of $13 trillion in assets, up from $5 trillion less than five years ago, indicating robust growth in the sector [2] - Active ETFs have also crossed $1 trillion in total assets under management, marking another record year for inflows [3][10] - Taxable bond active ETFs are leading in flows this year, with $110 billion in inflows, driven by a combination of effective active management and a surge in new product offerings [8][10] ETF Market Dynamics - Despite market volatility, ETF flows remain stable due to a diverse range of options available, including Treasury bill ETFs and inverse ETFs, which serve as trading tools [5][6] - The adoption of active ETFs has increased significantly, with over 600 active ETFs launched this year alone, reflecting a shift in investor preferences [9][10] - Tax efficiency is a primary driver for the adoption of active ETFs, with only 8% of active ETFs paying capital gains compared to 45% of mutual funds [11][12] Fixed Income ETFs - The ultrashort bond category is gaining traction as a risk-off strategy, appealing to investors seeking liquidity and stability [14] - Core plus and broader core active fixed income ETFs are also attracting interest, indicating a cautious outlook in the current rate environment [15] - The derivative income category has seen significant growth, with 85 new ETFs launched this year, designed to enhance income through underlying stock portfolios and options [16][17]

Everything is coming up ETFs. Last month marked the latest record for inflows to exchange-traded funds, continuing a trend that has pushed asset levels higher and encouraged numerous funds to add products to an ever-growing pile. US ETFs garnered $171 billion in new assets in October, lifting year-to-date net sales to more than $1.1 trillion, nearing the total inflows in all of 2024, according to a report late last week from State Street Investment Management’s Global Head of Research Strategists Matthew ...

Core Insights - Active ETFs have seen significant inflows in the first half of the year, nearly matching total inflows for all of 2024, indicating strong demand in the market [1] - Despite the surge in active ETF launches, 71% of ETF issuers report challenges in gaining shelf space at broker-dealers, highlighting a competitive and difficult distribution landscape [1] - The SEC is expected to approve a dual-share-class structure, prompting many fund shops to expedite their ETF offerings, reflecting a proactive approach to market demand [2] Industry Trends - Over 800 US ETFs were launched in the past year, with 86% being active products, and active products accounting for 37% of sales this year, showcasing a shift towards active management in the ETF space [4] - Nearly 90% of ETF issuers are currently focused on developing transparent active ETFs, indicating a trend towards transparency and active management strategies [4] - The influx of new products, including niche strategies, may lead to an increase in ETF closures as asset managers navigate market trends and their areas of expertise [3]