Todd Rosenbluth

If geopolitical developments lead to a risk-on environment, Bitcoin and crypto in general would benefit and could see inflows into major crypto ETFs such as iShares, Fidelity, Grayscale, and CoinShares products. This is conditional on a resolution that boosts risk appetite.

Investors are combining interest in crypto with a love for income, leading to inflows into the NEOS Bitcoin High Income ETF, which uses options to generate income. This product is attracting flows even as the broader crypto category sees net outflows, suggesting demand for yield-enhanced Bitcoin exposure.

Thematic AI ETFs offer cross-sector exposure to artificial intelligence (impacting tech, utilities, industrials) and are increasingly being used by advisers as a 5% overweight alternative instead of narrow technology sector ETFs like the Technology Select Sector SPDR.

The market is broadening out from mega-cap tech leadership, with small caps significantly outperforming. The S&P Small Cap Index has beaten the S&P Large Cap Index by over 1000 basis points this year, driven by strength in industrials and energy names.

Higher-quality small-cap companies with strong free cash flow are outperforming the broader small-cap index. The VictoryShares Small Cap Free Cash Flow ETF (SFLO) has been helped in the past month by energy, industrials, and technology stocks, showing free cash flow is a key differentiating factor this year and in July.

The CoinShares Altcoins ETF (DIME) provides actively managed exposure to cryptocurrency assets outside the top two (Bitcoin and Ether). As new tokens emerge and become exciting, the ETF adds exposure to them, offering a way for investors to gain broad-based altcoin exposure in a single fund.

Investors are turning to active fixed income managers due to uncertainty about the Federal Reserve's path, and proven asset managers like PIMCO, DoubleLine, BlackRock, T. Rowe Price, and Fidelity are seeing success and growing supply in their active fixed income ETF lineups. This uncertainty drives demand for active management expertise, leading to increased asset flows and product innovation from these established firms. These asset management companies are positioned to benefit from the sustained trend of growth and adoption in the active fixed income ETF segment. A sharp reduction in market uncertainty or a clear, stable Fed policy path could diminish the perceived value of active management.

Investors are turning to active fixed income managers due to uncertainty about the Federal Reserve's path, and proven asset managers like PIMCO, DoubleLine, BlackRock, T. Rowe Price, and Fidelity are seeing success and growing supply in their active fixed income ETF lineups. This uncertainty drives demand for active management expertise, leading to increased asset flows and product innovation from these established firms. These asset management companies are positioned to benefit from the sustained trend of growth and adoption in the active fixed income ETF segment. A sharp reduction in market uncertainty or a clear, stable Fed policy path could diminish the perceived value of active management.