The year is almost done and there are clear winners when looking at asset classes: Bitcoin, the magnificent 7 and gold. But there is also a clear winner in terms of vehicles used to invest, and that is the ETF. For the first time since its creation, US listed ETFs have surpassed the $10Tn mark. The bulk of the money is still in passive equity strategies, such as S&P and Nasdaq trackers, but money is also pouring into other indexes and other asset classes. Bitcoin ETFs have atracted $40bn, wich in absolute terms is a big number, but small relative to the total, but we need to consider they have been alive for less than a year. Now active ETFs are entering the scene with its flexible approach to active management. In a market that has gone up non stop over the last 15 years with the exception of 2018 and 2022, passive ETFs have offered an unbeatable strategy that requires little work. If we have a more volatile, range bound market over the next few years, will passive ETFs keep its attractiveness, or will they rotate into active ones?
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