Fed Served with DOJ Subpoenas, Performance of ‘OTGL’ ETF | ETF IQ 1/12/2026

Summary

Bloomberg ETF IQ discusses early-2026 ETF flows, the outlook for non-U.S. and small-cap equities, the RAFI fundamental indexing approach, and Latin America opportunities. Rob Arnott argues the U.S. bull market is aging and favors cheaper non-U.S. and small-cap exposure, while Mauricio Alvarez makes the case for Latin America and Andean markets. The show also covers Vanguard's fee strategy, a proposed Venezuela exposure ETF, and Eric Balchunas' OTGL watch pick.

• Eric Balchunas reviews strong early-January ETF flows, with VOO and IVV leading and SPY seeing seasonal outflows.
• Rob Arnott says the U.S. bull market is aging, non-U.S. markets are cheap relative to the U.S., and small caps trade at a deep discount with faster growth.
• Arnott explains RAFI fundamental indexing and its value tilt, arguing it avoids cap-weighted index flip-flops.
• Mauricio Alvarez says Latin America remains cheap and could benefit from a pro-market political shift.
• Alvarez highlights Chile, Peru and Colombia as overlooked Andean opportunities.
• Eric Balchunas puts OTGL, an actively managed Latin America ETF, on watch for 2026.
• The show also discusses Vanguard's fee increases, a proposed Venezuela ETF, and Fed independence commentary.