Latest news with #JulieGunts
Yahoo
23-07-2025
- Business
- Yahoo
US equities lead 2025 ETF flows: A closer look at global trends
US equity exchange-traded funds (ETFs) have pulled in $191 billion so far this year, while international equity flows have reached $81 billion, according to AllianceBernstein. Julie Gunts, AllianceBernstein global head of ETF strategy and partnerships, joins Market Catalysts to discuss where flows are heading next. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. US equity ETFs have seen $191 billion in inflows this year, representing about 60% of total ETF inflows overall, and international equities have had $81 billion in inflows. That's close to the total for all of 2024. As investors weigh continued trade uncertainty, where will the flows go next? Will we see continued trends? Want to bring in Julie Goltz Alliance Bernstein, global head of ETF strategy and partnerships for this week's ETF report brought to you by Invesco QQQ. Julie, thank you so much for being here. Thanks for having me. So, I guess it's not a surprise that international has seen big flows. That's what we've seen been seeing and talking about. We look writ large. Where is some of that concentrated? And do you expect that to continue? Yeah, I think if you look at, you know, the international flows, it's really driven by performance year to date. So, you know, US equities while a volatile first half of the year ended up, you know, 6% for the S&P 500. If you look at the breakdown of international, European equities, in US dollar terms, returned almost 25%. And so I think, you know, ETF flows are to some extent chasing those returns, but I think you know, also expected future returns. And so if you look at the returns in Europe, um, it's driven by industrials, so a lot of the defense companies as Europe is increasing their defense spending and also, you know, infrastructure. European fiscal spending is expected to continue, and their companies set up to benefit from that. We've also seen financials really lead with, you know, the ECB cutting rate, and you know, that benefiting banks and then utilities. Utilities are immune to tariffs, are immune to FX risk, and so have been performing well. On the flip side in Europe, the underperformers consumer discretionary, which is not surprising. Those are global companies impacted by US consumer and potential tariff risk. And outside of International, where are you seeing kind of interesting demand trends? Yeah, I mean, we're really seeing demand for emerging market ETFs as well, especially on the active side. So Alliance Bernstein is an active ETF issuer. There aren't that many true fundamental emerging market ETFs out there. Um, and so we're seeing demand for that asset class as, you know, fundamental investing really matters in emerging markets. Um, and so continue to see growth there as well. That makes sense. Um, you guys only introduced your ETF business what, three years ago? Yep. Yeah, I mean it's just been amazing to watch the growth of the industry. How have you guys sort of managed to grab assets in market share? What do you feel like is your angle? Sure. Yes, so we we launched our first ETFs in September of 2020 2022. So coming up on our three-year mark and have about $8 billion in AUM, and we're really seeing growth, you know, our ETFs are driven by our research, our investment capabilities. And so, you know, long-term investors, you know, looking for active investment strategies. And we've also seen, you know, areas of the market, our municipal bond brand is really strong, and so we have a suite of tax aware ETFs. We've also have, you know, a suite of buffered ETFs that have surpassed a billion dollars. And so taking, you know, unique solutions or different types of investment outcomes and packaging them in ETFs for our clients. Whether it comes to you guys or the industry writ large, the, you know, pace of record flows that we just continue to see year after year after year, anything that's going to slow that down or is it just going to keep going? I think it's going to continue to accelerate. Like, so far year to date, we've seen over $600 billion in ETF flows in in the US. Interestingly, active is almost 40% of that, yet still 10% of the AUM. Um, and you know, investors like the ETF vehicle. There's the transparency, the daily liquidity, the tax efficiency. And so as you know, more money is put to work, either from cash on the sidelines or mutual fund single stock investments, ETFs are a really easy option and efficient options for people to get exposure to the marketplace. You know, I know you've also been you mentioned in the break you've been traveling internationally. What's the ETF industry and demand like outside of the US? You know, this year we also have seen, you know, real growth in global ETFs. And so global regulators, I think, are, you know, getting on board with that. This is a vehicle, you know, of the future. This is a more modern option for investors. And, you know, for example, I was just in Taiwan. AB is about to launch the first fixed income active ETF in Taiwan. Active ETFs were just allowed from a regulatory perspective earlier this year. And so different pockets of Asia, we're seeing similar trends, um, and in Europe as well. You know, ETFs continue to grow, both in the passive and the active space. Interesting, Julie. Thank you so much. Appreciate it. Thank you. Related Videos Hilton's upbeat Q2 earnings: Why this analyst is still Neutral Hasbro Q2 beat, MARA to raise $850M, Otis issues weak guidance GE Vernova, Thermo Fisher, Enphase Energy: Trending Tickers Japanese auto stocks are surging on Trump's tariff deal Effettua l'accesso per consultare il tuo portafoglio
Yahoo
15-05-2025
- Business
- Yahoo
ETF investors examine international exposure amid US volatility
The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) have erased year-to-date losses as investors reexamine their portfolio allocations to US equities. AllianceBernstein global head of ETF strategy and partnerships Julie Gunts joins Catalysts with Julie Hyman and Great Hill Capital chairman and managing member Thomas Hayes to take a closer look at flows in the ETF space. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. The S&P 500 and NASDAQ have erased their year-to-date losses as investors flock to US equities in the wake of a pause in steep tariffs between the US and China. Our next guest is ETF flows into international stocks at $7.4 billion. They're holding up even in the face of the US rally. Let's bring in Julie Guns, Alliance Bernstein, global head of ETF strategy and partnerships, for this week's ETF report brought to you by Invesco QQQ. Thanks for being here, Julie, appreciate it. Thanks for having me. So, we've talked a lot about this sort of balance between international and US, just generally in assets, but how's it played out through the lens of ETFs? Sure, so, over, you know, there's been a lot of volatility over the past few weeks. And I think, you know, April, even within, you know, this week, we've seen inflows into international ETFs. And so, you know, US still dominates. US large cap has been been the biggest flows, but I think people are are looking to international, both from a valuation perspective and and performance, and also to diversify their portfolios. Um, as, you know, trade and tariff risk, you know, has been muted for the time being, but I think we'll still be out there, um, as the year progresses. Yeah, it's it seems like international, you you want two things in play. Number one is a weaker dollar, so that's helped. I think, uh, XUS relative to the US is out performance of some 15, 16% year to date. So now people, this was a big theme for us coming into this year. How do you see that playing out in coming years? Because if you look at, you know, zoom out and look at the long-term data, these run in normal 10 to 15 year cycles. And we've had this zero interest rate policy, so large cap tech is outperformed last post Great Financial Crisis. That's over. We're we're in kind of a normalized interest rate environment. So do you see that as a favorable environment for the next handful of years for international relative to the US, or are you still keen US equities? I mean, I I think there's a place for both in portfolios. Um, I think international, you know, has the opportunity especially with, you know, if larger tariffs come into place, you know, maybe there's more of a a home bias in in European countries or other places throughout the world. Um, and so, you know, clients and and investors should probably diversify and have access to both, um, depending on how things play out. Uh, I want to ask about the active ETF landscape, which has been a big trend over the past few years. It's still a small little sliver of the overall ETF market, but it's been growing. Um, why are people so interested in it? And and where how big do you think that part is going to get? Yeah, I mean, active ETF flows, we've seen $380 billion net flows into ETFs this year in the US. And active ETFs have been 40% of those flows. So only 10% of the market, but 40% of the money in motion. And I think the benefits are you take these traditional active investments that were in maybe mutual fund rappers or or different things, and you give them the benefits of the ETF. So, you know, transparency, liquidity, um, intraday trading. And so you get the best of both worlds of active management and the ETF wrapper. And so I I think that trend will continue and and we'll continue to see the growth in in active ETFs. Julie, thanks so much for coming in. Appreciate it. Thanks.
