Core Insights - Actively managed ETFs, especially in the fixed income category, are experiencing rapid growth in the ETF market [1] - This growth is driven by advisors shifting from higher-fee mutual funds to ETFs and the conversion of popular mutual funds into ETF structures [1]

Core Insights - The current market environment is characterized by geopolitical tensions, easing monetary policy, and high levels of cash reserves, creating uncertainty and potential investment opportunities [1][2][3] - Approximately $7 trillion in cash is currently sitting on the sidelines, representing one of the highest levels in decades, which presents a significant opportunity for active managers to attract capital [3] - Investors are increasingly considering reallocating funds into international equities, as the U.S. equity market is trading at a premium compared to international markets, indicating potential for substantial returns [5] Market Conditions - The easing monetary policy is expected to apply downward pressure on the dollar, which could enhance the attractiveness of international equities [4] - Many investors have been hesitant to participate in the markets due to lofty valuations, particularly in large tech stocks driven by AI themes [2] Investment Opportunities - Active management is essential when navigating international markets due to their unique risks and opportunities, including tariffs [5] - Thornburg's actively managed funds, such as the Thornburg International Equity ETF (TXUE) and Thornburg International Growth Fund ETF (TXUG), are positioned to capitalize on these opportunities [6]

Core Insights - The ETF conference in Las Vegas highlights the growing focus on practice management among asset managers and investment advisors, with approximately 35% of the content dedicated to this area [2] ETF Flows and Trends - Year-to-date ETF flows have been volatile, with significant inflows into equities and fixed income, particularly ultrashort funds, while precious metal funds have seen lower inflows despite high gold prices [3][5] - Passive index funds continue to dominate equity inflows, accounting for about half of the total, while there are signs of outflows in large cap growth funds, indicating potential nervousness among tech momentum investors [4] - Fixed income inflows are nearly on par with equity inflows, driven by market volatility and an aging population seeking safer investments [5][6] Private Equity and Credit - There is a strong demand for private equity and private credit within ETF structures, but challenges remain in providing these assets in an ETF wrapper due to liquidity mismatches [10][11] - The recent launch of the SPDR SSGA Apollo IG Public & Private Credit ETF (PRIV) received modest demand, indicating a cautious approach from investors [10] Actively Managed ETFs - Actively managed ETFs represent less than 10% of the total ETF market but have attracted nearly 30% of new cash inflows this year, showcasing their growing popularity [13] - Products focused on option income and buffered strategies are gaining traction, appealing to investors seeking regular income and downside protection [14][15] Leveraged and Inverse ETFs - Leveraged and inverse ETFs have increased from about 2% to 7% of total ETF assets, with a notable shift towards single stock ETFs focused on high volatility tech stocks [16][17] - Year-to-date flows for single stock leveraged/inverse ETFs reached $6.5 billion, indicating strong interest in this segment [18] ETF Share Classes of Mutual Funds - The expiration of Vanguard's patent has led to increased interest from other firms to offer ETF share classes of mutual funds, with around 50 firms awaiting SEC approval [21] - Industry experts anticipate rapid SEC approval, which could enhance tax efficiency and benefit fund shareholders [22]