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Yahoo
07-08-2025
- Business
- Yahoo
Gold ETF Sales Skyrocket Amid Price Surge
Amid geopolitical uncertainty, there is a silver lining for gold. Investors have been pouring money into the precious metal's ETFs this year at a rapid clip, with nearly $21 billion flowing into US-domiciled products through July, data from Morningstar Direct show. Demand hasn't even come close to that level since 2020, when the Covid-19 pandemic prompted a rush to gold. The asset is a safe haven, and there are several big reasons investors are looking for that this year, observers say. To start, the price of gold is up this year by nearly 29%. Invest in Gold Thor Metals Group: Best Overall Gold IRA Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase American Hartford Gold: #1 Precious Metals Dealer in the Nation 'Gold's a speculative asset, so the main driver of price and interest is the safe-haven demand amid geopolitical and economic uncertainty,' said Bryan Armour, director of ETF and passive strategies research for North America at Morningstar Research Services. READ ALSO: Active ETFs Are Booming in Europe. US Managers Want In and SEC, Congress Want Regulations to Oversee AI Experiments Tariffs, the Dollar and Central Banks President Donald Trump's announcement and enactment of high tariffs on numerous global trading partners led to a spike in gold ETF sales, said Aakash Doshi, head of gold strategy at State Street Investment Management. Globally, net sales have been positive for the past six of seven months and 10 of the past 13, he noted. 'The gold market rally that began 18 months ago — it started the year off with a bang,' he said. 'Now it's more of a wait-and-see mode … The big driver has been a weaker dollar.' US retrenchment has investors looking for an alternative to the dollar, with gold being snapped up as a reserve by central banks, he said. Data from Morningstar Direct show that US gold ETF demand has fluctuated over the past couple of years: While close to $21 billion has gone into them this year through July, just $1.7 billion flowed in on a net basis in 2024, and $4.4 billion flowed out in 2023, compared with net negative sales of $3.2 billion in 2022 and $12.4 billion in 2021. Amid the 2020 pandemic, $30.4 billion flowed into them. Net assets in US gold ETFs reached about $179 billion in July, with more than half of that in one fund, SPDR Gold Shares (GLD). Gold Bugs, Beware: Portfolio construction is not one-size-fits-all, Doshi said, but many investors can benefit from a 3% to 10% allocation to gold in the long term. It is a diversifier and has low correlation to the stock market, but that doesn't mean it's negatively correlated, Armour said. And for those considering gold or digital assets as a hedge, there is room for both, Doshi said. 'You're seeing an environment with gold on your left tail and Bitcoin on your right tail.' This post first appeared on The Daily Upside. To receive exclusive news and analysis of the rapidly evolving ETF landscape, built for advisors and capital allocators, subscribe to our free ETF Upside newsletter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
02-07-2025
- Business
- Business Insider
Over 900 ETFs were launched in the last year. Here are 9 of the most innovative.
Are there too many ETFs? Over 900 new funds have been launched in the last 12 months alone, and investors have a dizzying array of choices when it comes to style, theme, and asset class. In a sea of ETFs, there are standouts, though. Building on our list of ETF Innovators last year, we set out to highlight some funds that we think provide a unique proposition in an increasingly saturated ETF landscape. To make sure we didn't miss any, Morningstar Direct sent us a list of every new fund that has hit the market in the last year — all 908 of them. We also solicited a few recommendations from industry experts. The selection process here was subjective and unscientific, and the final list doesn't imply that there aren't other innovative or interesting new funds out there. But generally, these are the funds that caught our eye the most. Strong performance and large AUMs amassed over a short time counted for bonus points. Below are nine funds launched over the last year that we think stand out in a crowded market. The top five holdings and AUM for each as of late June are also included. Transatlantic Defense ETF BI Geopolitical tensions are arguably as fraught as they've been since the Cold War, and with Russia continuing its grinding war in Ukraine and voicing other expansionary ambitions, many European member nations of the North Atlantic Treaty Organization are ramping up defense spending at President Trump's request. That made October 2024 a great time to launch a NATO-focused defense-stock fund. Since hitting the market, it's up 41%. Ticker: NATO AUM: $36.9 million Westwood LBRTY Global Equity ETF BI Staying on geopolitics, the folks at Westwood are convinced that stocks do better in democratically run countries. That's due to factors like higher economic and social stability, greater liquidity levels, and a stronger rule of law, the firm says. The fund is structured based on the TOBAM LBRTY Index, and its top allocation by far is the US at 76% of its holdings, followed by Canada, the UK, France, and Japan. Notable countries left off the list include China and Russia. Since its launch in February, the fund is up 9.4%. Ticker: BFRE AUM: $2.6 million iShares Texas Equity ETF BI Don't mess with Texas. Invest in Texas. At first, I had to chuckle at the concept of investing in a single state. But having spent time in Austin, if there's one state whose residents are most likely to let their state pride inform even their investing approach, it's Texas. As of now, it's the only state with a stock-focused ETF. The fund's pitch is compelling, though: Texas is full of incredible companies across a diverse range of industries, from oil and tech to autos and financials. GMO Beyond China ETF BI With Trump's track record of trade wars with China, and as labor costs rise there relative to its neighbors, asset management heavyweight GMO launched its Beyond China strategy last year. Eighty percent of its holdings are in firms in Southeast and East Asia that GMO believes will get a boost from supply chain realignment. While there are other ex-China funds, this one focuses exclusively on the reshoring theme. Since launching in mid-February — six weeks before Trump's "Liberation Day" tariffs announcement — the fund is up 8.6%. Ticker: BCHI Atlas America Fund BI Roubini, known for his bearish forecasts on markets and the economy, dove into the asset management industry last year with his America Atlas Fund. The NYU professor's thesis behind the fund was that longer-term bonds no longer act as a hedge to stock-market downside with inflation pushing up long-dated yields, and investors needed an alternative. To act as that alternative, USAF leans into gold and short-term Treasuries. Since its inception in November, it's up about 4.5%. Ticker: USAF AUM: $17.4 million BondBloxx Private Credit CLO ETF BI The merits of investing in private credit for retail investors can be debated, as it carries greater liquidity risk than public assets. But for those who really wanted in on the hot new trade, BondBloxx was the first to make the asset class available in ETF form, making the product truly innovative. Ticker: PCMM AUM: $129.9 million VistaShares Target 15 Berkshire Select Income ETF BI The fund offers an easy way to gain exposure to Warren Buffett's highest-conviction picks by investing in the top 20 companies held by Berkshire Hathaway, as well as the company itself. But perhaps more interesting is the impressive 15% annual return it looks to deliver through generating income from selling options on its holdings. Ticker: OMAH Tema Electrification ETF BI Tema and its founder Maurits Pot have been on the ETF forefront of many cutting edge industries and investing trends. They had the only pure-play GLP-1 fund (HRTS)on the market right as the Ozempic craze was heating up. They also launched the American Reshoring ETF in 2023, just in time for Tariff-man 2.0. Now, the firm is back at it with its Tema Electrification ETF, just as demand for energy is skyrocketing amid a major AI investment boom. The fund will look to capitalize on rising demand for things like data centers, nuclear energy, and electric grid updates. Ticker: VOLT AUM: $97.9 million Fundstrat Granny Shots US Large Cap ETF BI Along with Roubini, Tom Lee was another well-known name to step into the ETF space. So far, Lee is off to a roaring start, with his fund up 9% since November. The name of the fund is a nod to its uniqueness — a "granny shot" is an unconventional but supposedly more accurate way to shoot a free-throw, and that's the approach Lee aims to take with his fund. To do so, he has a couple of baskets of long-term themes and short-term themes. The four long-term themes he invests in are energy and cybersecurity, easing monetary conditions, growing Millennial influence, and growing demand for labor. Holdings in this category have to fit into two of the themes. The three short-term themes include companies that benefit from seasonality, from a recovering manufacturing activity, and those that fit the fund's preference for large-cap growth.
Yahoo
13-06-2025
- Business
- Yahoo
AI Fund Assets Reach $38B on Record Chinese Inflows
Global assets in artificial intelligence and big data funds surged more than sevenfold over the past five years, reaching $38.1 billion by the end of 2025's first quarter, with AI ETFs dominating the U.S. market, according to a recent Morningstar Direct report. The artificial intelligence investment theme experienced record inflows in the first quarter, driven by Chinese investors responding to the breakthrough success of domestic AI startup DeepSeek. The Chinese company's efficient AI model demonstrated how advances could improve performance while reducing dependency on high-powered computing hardware, according to the report. The surge reflects growing investor interest in AI technologies following the late-2022 launch of ChatGPT 3.5, which marked a pivotal moment in AI adoption and sparked institutional and retail investor enthusiasm for the sector, Morningstar reports. However, the investment landscape has been marked by high volatility, with AI funds experiencing both dramatic growth and sharp declines as market sentiment shifts. The growth demonstrates how ETFs have become the preferred vehicle for AI investing in the U.S., contrasting with Europe, where actively managed mutual funds dominate, according to the Morningstar report. Unlike Europe, where AI funds are typically actively managed mutual funds, AI investing in the U.S. is overwhelmingly dominated by exchange-traded funds, according to Morningstar Direct. The ETF structure appeals to investors because of its lower cost, greater transparency and enhanced trading flexibility compared with traditional actively managed vehicles. U.S.-domiciled AI and big data fund assets grew 14-fold in just two years, reaching a record $5.5 billion by the end of May 2025. Despite this surge, the U.S. still accounts for only 15% of global AI fund assets, according to the report. The largest AI fund in the U.S. is the Global X Artificial Intelligence & Technology ETF (AIQ), which benefits from first-mover status as the region's inaugural AI-focused ETF. The rise of actively managed ETFs has also contributed to growth, with assets in actively managed thematic AI ETFs reaching $415 million, representing nearly 10% of total U.S.-domiciled AI fund assets, according to Morningstar Direct. The focused style of ETFs makes them suited for targeting granular exposures within the broader AI theme. The largest funds illustrate this diversity of options, according to the report. The so-called Magnificent Seven technology stocks dominate AI ETF holdings, creating structural challenges for fund managers. NVIDIA Corp. (NVDA) appeared in almost nine out of every 10 AI funds, while all seven companies were held by more than half of AI portfolios, according to Morningstar Research. The dominance presents a dilemma for ETF designers. Including these stocks results in overlap with core equity exposures, potentially reducing the appeal of AI ETFs as tactical investments. Excluding them introduces underperformance risk relative to peers, according to the report. The concentration highlights limited geographic diversification. Nearly all frequently held AI stocks globally are U.S.-listed, underscoring American leadership in the technology sector, according to Morningstar | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
AI Fund Assets Reach $38B on Record Chinese Inflows
Global assets in artificial intelligence and big data funds surged more than sevenfold over the past five years, reaching $38.1 billion by the end of 2025's first quarter, with AI ETFs dominating the U.S. market, according to a recent Morningstar Direct report. The artificial intelligence investment theme experienced record inflows in the first quarter, driven by Chinese investors responding to the breakthrough success of domestic AI startup DeepSeek. The Chinese company's efficient AI model demonstrated how advances could improve performance while reducing dependency on high-powered computing hardware, according to the report. The surge reflects growing investor interest in AI technologies following the late-2022 launch of ChatGPT 3.5, which marked a pivotal moment in AI adoption and sparked institutional and retail investor enthusiasm for the sector, Morningstar reports. However, the investment landscape has been marked by high volatility, with AI funds experiencing both dramatic growth and sharp declines as market sentiment shifts. The growth demonstrates how ETFs have become the preferred vehicle for AI investing in the U.S., contrasting with Europe, where actively managed mutual funds dominate, according to the Morningstar report. Unlike Europe, where AI funds are typically actively managed mutual funds, AI investing in the U.S. is overwhelmingly dominated by exchange-traded funds, according to Morningstar Direct. The ETF structure appeals to investors because of its lower cost, greater transparency and enhanced trading flexibility compared with traditional actively managed vehicles. U.S.-domiciled AI and big data fund assets grew 14-fold in just two years, reaching a record $5.5 billion by the end of May 2025. Despite this surge, the U.S. still accounts for only 15% of global AI fund assets, according to the report. The largest AI fund in the U.S. is the Global X Artificial Intelligence & Technology ETF (AIQ), which benefits from first-mover status as the region's inaugural AI-focused ETF. The rise of actively managed ETFs has also contributed to growth, with assets in actively managed thematic AI ETFs reaching $415 million, representing nearly 10% of total U.S.-domiciled AI fund assets, according to Morningstar Direct. The focused style of ETFs makes them suited for targeting granular exposures within the broader AI theme. The largest funds illustrate this diversity of options, according to the report. The so-called Magnificent Seven technology stocks dominate AI ETF holdings, creating structural challenges for fund managers. NVIDIA Corp. (NVDA) appeared in almost nine out of every 10 AI funds, while all seven companies were held by more than half of AI portfolios, according to Morningstar Research. The dominance presents a dilemma for ETF designers. Including these stocks results in overlap with core equity exposures, potentially reducing the appeal of AI ETFs as tactical investments. Excluding them introduces underperformance risk relative to peers, according to the report. The concentration highlights limited geographic diversification. Nearly all frequently held AI stocks globally are U.S.-listed, underscoring American leadership in the technology sector, according to Morningstar | © Copyright 2025 All rights reserved Sign in to access your portfolio
Yahoo
13-06-2025
- Business
- Yahoo
Latest ETF Flows Show the ‘TACO' Trade in Action
Recent ETF flows suggest the great U.S.-to-Europe rotation is already losing momentum, perhaps a sign of the TACO, or "Trump always chickens out," trade in action. Indeed, European ETF investors poured $3.3 billion into U.S. equities in the four weeks to June 6, surpassing European equivalents, which pulled in $2.2 billion, according to figures from Morningstar Direct. As the below chart illustrates, the U.S. exceptionalism trade peaked in late 2024 before a spectacular turnaround took hold in the early months of 2025. But recent flow momentum has swung back in favor of U.S. stocks. Rolling Three-month inflows into Europe-domiciled ETFs by region—Source: Morningstar Direct, ETF Stream The data swim against the prevailing narrative that a great rotation out of U.S. stocks is underway, with Europe one of the principal beneficiaries. Six months ago, such a turnaround was all but inconceivable. Indeed, almost all ETF issuers called for a continuation of U.S. exceptionalism in their 2025 outlooks, but the reversal has been spectacular this year as President Donald Trump's chaotic tariff announcements and profligate spending plans called economic growth into question and shined a spotlight on the deteriorating U.S. fiscal position. However, the latest positioning suggests investors are yet to call time on U.S. exceptionalism altogether, and the recent shift could be a sign of the TACO trade in action—an assumption that Trump always chickens out of his initial policy stance. "Relaxing signals in the trade dispute between China and the USA impacted the ETF market in May. Investors turned more towards the USA again," said Stefan Kuhn, head of ETF distribution Europe at Fidelity International. And looking to Europe, after a stellar run year to date, 'Investors are asking themselves how much upside potential European stocks still have,' he said. This article was originally published at sister publication ETF | © Copyright 2025 All rights reserved
