Core Insights - The equity market in 2025 has been challenging, with expectations that 2026 will follow suit, yet there are still attractive investment opportunities available for informed investors [1] U.S. Equity Market - Valuations in the S&P 500 are high compared to historical standards, necessitating an understanding of the underlying causes to identify strong investment opportunities [2] - The "Magnificent Seven" companies have significantly contributed to the valuation increase, benefiting from trends in cloud computing and artificial intelligence [3] - Corporate profits have risen due to lower net interest expenses, and large-cap companies have effectively passed inflationary costs onto consumers [4] - The ability to sustain growth, defend margins, and maintain pricing power should be assessed at the company level as market conditions evolve [5] - The MFS Active Growth ETF (MFSG) targets high-quality U.S. companies with competitive advantages and pricing power, utilizing a bottom-up approach for active management [6] European Equity Market - European equity valuations are currently more attractive, driven by factors such as increased German fiscal spending and rate cuts from the European Central Bank [7] - European companies with a domestic revenue focus have shown strong performance, with the financial sector being a key driver, as banks remain profitable despite rate cuts and limited tariff exposure [8] - The MFS Active International ETF (MFSI) offers a diversified approach to international exposure, focusing on high-conviction portfolios with a quality tilt [9] - MFSI's strategy emphasizes stocks trading at discounts to their projected value, aiming for alpha generation through selective high-quality stock investments [10] - As of October 31, 2025, MFSI has allocated over 36.51% of its assets to European companies, with 11.60% specifically in the United Kingdom, allowing for a diversified investment in the European market [11]

Because an active fund like MFSG uses a hands-on approach to select its holdings, it allows for: There are myriad options to choose from in an expanding active ETF market. MFSG discerns itself from its peers by tapping into the education and experience of MFS portfolio managers who are supported by its global investment platform of more than 50 equity research analysts spread across eight global offices. Investment decisions are made through a mix of engagement, diversity, collaboration, and integrated rese ...