Displaying items by tag: ETFs

Midcap stocks are emerging as a compelling option for investors seeking balance in the current U.S. market environment, offering a middle ground between the stability of large-caps and the growth potential—but higher volatility—of small-caps. 

Midcaps, by contrast, combine growth opportunities with resiliency and adaptability, making them well-suited for uncertain conditions in 2025. One core strategy gaining traction is the BNY Mellon US Mid Cap Core Equity ETF (BKMC), which tracks the Solactive GBS United States 400 Index TR. 

BKMC delivers broad diversification by investing in 400 midcap companies, including REITs, with no single holding exceeding 1% of portfolio weight. As of July 31, 2025, the ETF has returned nearly 12% over the prior three months, underscoring midcaps’ potential to deliver both near-term performance and long-term stability.

Finsum: While large-caps provide scale to weather tariff and policy headwinds, they face concentration risks and reduced flexibility, whereas small-caps remain vulnerable to inflation and Federal Reserve policy shifts.

Defined outcome exchange-traded funds (ETFs), particularly buffer strategies, have grown in popularity as investors seek ways to manage volatility and reduce downside risk in uncertain markets. These ETFs cap upside potential in exchange for a defined buffer against losses, typically over a 12-month period, allowing investors to stay invested while limiting risk exposure. 

While the trade-off of reduced upside may not appeal to long-term growth investors, recent innovations such as bitcoin-protected ETFs have expanded the reach of these products, offering cautious entry points into riskier assets. 

The market for defined outcome ETFs has expanded rapidly, now exceeding 400 funds with more than $70 billion in assets and $8 billion in net inflows year-to-date. Innovator and First Trust dominate the space, accounting for more than 90% of assets under management, though new entrants like AllianzIM and Calamos are gaining ground with differentiated strategies. 

Finsum: Defined outcome ETFs have evolved from a niche product into a mainstream risk management tool, reflecting rising investor demand and ongoing product innovation.

Infrastructure is emerging as a core allocation for advisors, and BlackRock is seizing the moment with the launch of its first active infrastructure ETF, the iShares Infrastructure Active ETF (BILT). The fund builds on BlackRock’s $10 billion passive infrastructure ETF lineup and the firm’s $183 billion infrastructure footprint, bolstered by its 2023 acquisition of Global Infrastructure Partners. 

Managed by Balfe Morrison, BILT takes an active approach that aims to capture alpha in sectors such as utilities, transportation, energy, and data infrastructure, all of which are seeing heightened demand from AI adoption, digital growth, and shifting supply chains. 

At inception, utilities make up the largest allocation, followed by transportation and oil and gas, with about two-thirds of exposure focused on North America and select opportunities in Europe and Asia. With yields around 3%, infrastructure provides the income and downside protection investors expect, but Morrison stresses that BILT also offers meaningful potential for capital appreciation. 

Finsum: For advisors, the ETF offers diversification, inflation hedging, and exposure to long-term global trends, making infrastructure more relevant than ever in retirement and income-focused portfolios.

Artificial intelligence has remained one of the most resilient sectors in U.S. equities, with companies like Nvidia and Microsoft benefiting from rising adoption even as other sectors faced volatility. 

With trade war and inflation concerns beginning to ease, analysts suggest AI growth could strengthen further, making direct exposure an appealing option for investors. ETFs provide one way to access this theme, but careful due diligence is essential in selecting strategies with the best long-term potential. 

The Alger AI Enablers & Adopters ETF (ALAI) differentiates itself by using bottom-up research and active management to uncover overlooked AI innovators. Its proprietary framework emphasizes companies showing high unit volume growth or positive lifecycle changes, positioning the fund to potentially outperform passive AI ETFs. 

Finsum: Investor interest is already growing—FactSet data shows ALAI attracted $40 million in net flows in July 2025, signaling strong confidence in its approach.

Global equity ETFs are gaining attention as investors seek cost-effective exposure to international stocks, even as 2025’s first half brought mixed results amid resilient earnings, easing inflation, and rising geopolitical risks. 

European-domiciled global large-cap blend ETFs pulled in €30 billion between January and May, reflecting a surge in popularity over the past year. Morningstar analysts screened 152 funds in this category, identifying 16 passively managed ETFs with Silver Medalist Ratings based on their high long-term performance potential. 

Among the largest are the iShares Core MSCI World UCITS ETF (EUNL), Vanguard FTSE All-World UCITS ETF (VWRL), and Xtrackers MSCI World UCITS ETF (XDWL), all of which delivered solid one-year returns despite modest year-to-date declines. These ETFs track broad global benchmarks and, in some cases, outperformed them slightly over the past year. 

Finsum: For investors looking to diversify beyond U.S. markets, these highly rated global funds offer a straightforward, low-cost entry point.