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]

Core Insights - Investor interest in international equities is expected to persist following the Federal Reserve's second rate cut of the year, with recommendations for actively managed funds like MFS Active International ETF (MFSI) [1][2] - Additional rate cuts are anticipated, although the certainty of a December cut is not guaranteed, reflecting differing opinions among Federal Reserve members regarding future interest rate policies [2][3] Group 1: Federal Reserve and Interest Rates - The Federal Reserve is likely to implement more rate cuts in 2026, which may encourage investors to explore international opportunities [3] - Chairman Powell highlighted the presence of dissenting views within the Fed regarding the direction of interest rate policy, indicating uncertainty in future decisions [2][3] Group 2: Investment Strategy and Fund Characteristics - MFSI aims to create a well-diversified portfolio focused on equities that exhibit a growth-at-a-reasonable-price style, emphasizing quality and potential for strong growth [5] - MFSI's sector weightings as of October 31, 2025, show a focus on financials (23.5%), industrials (16.5%), and information technology (16.3%), providing U.S. investors with opportunities beyond domestic markets [6] Group 3: Currency Impact on International Investing - A weakening U.S. dollar, driven by further rate cuts, could enhance the investment profile for international equities, as local currency strength often correlates with the performance of international economies [7] - The divergence between the strength of international equities and the weakness of the U.S. dollar is expected to continue, positioning MFSI to capitalize on this trend [8]

Core Insights - MFS has launched two new actively managed ETFs: MFS Blended Research Core Equity ETF (BRCE) and MFS Blended Research International Equity ETF (BRIE) [1][2] - The new ETFs aim to provide clients with more choices in active, fully transparent investment options, leveraging MFS' 25 years of experience in Blended Research strategies [2][7] MFS Blended Research Core Equity ETF (BRCE) - BRCE has an expense ratio of 24 basis points and focuses on generating capital appreciation through an active core equity strategy [3] - The launch of BRCE is timely, given the current macroeconomic uncertainty, as many investors seek actively managed ETFs to navigate the U.S. equity market [4] MFS Blended Research International Equity ETF (BRIE) - BRIE targets international markets with a net expense ratio of 34 basis points, also aiming for capital appreciation [5] - The fund's strategy includes a bottom-up approach that combines quantitative research with fundamental analysis, aiming to outperform the MSCI All Country World (ex-US) Index [5][6] Investment Strategy and Differentiation - Both ETFs are characterized by MFS' proprietary blend of quantitative and fundamental signals, which is expected to provide differentiated return potential for investors [7] - MFS emphasizes the unique and transparent integration of independent research perspectives as a competitive edge for these ETFs [7]

Core Insights - Uncertainty in the U.S. economy is expected to persist, prompting advisors and investors to diversify away from U.S. equities [1] - International equities are increasingly favored for diversification and can yield returns similar to U.S. equities [2] - Active management is essential for navigating the complexities of international investing, allowing for better asset allocation and opportunity identification [2] Group 1: International Equity Investment - Many investors are broadening their international equity exposure for diversification and return potential [2] - International equities introduce various economic and geopolitical risks, necessitating careful asset allocation [2] - Active management can enhance the ability to navigate different countries and sectors, optimizing investment opportunities [2] Group 2: MFS Active International ETF (MFSI) - MFSI is an actively managed fund focused on capital appreciation through international equities [3] - The fund emphasizes fundamental analysis and seeks high-quality, attractively valued companies [3] - MFSI has achieved a year-to-date NAV increase of 21.44% as of September 30, 2025, indicating strong performance [3]

Group 1 - TMX VettaFi participates in a weekly podcast discussing new and trending ETFs, emphasizing the importance of understanding how a new ETF fits into a broader portfolio [1] - The three largest U.S. listed ETFs tracking the S&P 500 collectively manage $2 trillion in assets, while the Invesco QQQ Trust and Invesco NASDAQ 100 ETF manage over $400 billion [2] - The Vanguard FTSE Developed Markets ETF and iShares Core MSCI EAFE ETF are among the largest internationally focused ETFs, managing more than $325 billion [3] Group 2 - The MFS Active International ETF, launched in late 2024, has gained popularity and now manages $430 million, with 22% of its assets in emerging markets [5] - AI thematic ETFs have gained traction, with major U.S. companies investing heavily in AI, and stocks like Apple and Microsoft being heavily owned by QQQ and QQQM [6] - The ROBO Global Artificial Intelligence ETF has a limited 21% overlap with Nasdaq 100 ETFs, indicating diverse holdings in the AI sector [7]