Latest news with #AllianceBernstein
Yahoo
3 hours ago
- 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
Bloomberg
a day ago
- Business
- Bloomberg
AT1 Yield Hunters Are Skewing the Arcane Math of Risky Bank Debt
A relentless hunt for yield is messing up the intricate bond math in the riskiest type of bank debt. Investors of all stripes are piling into new Additional Tier 1 debt, lured by some of the highest yields among existing bonds, and demand is far outstripping the flood of fresh sales. The problem, according to veterans like AllianceBernstein and NinetyOne is that the new buyers are focusing too much on the high coupons. While that may work for other markets, it doesn't for AT1s.
Yahoo
15-07-2025
- Business
- Yahoo
June inflation: One key point that tariffs are overshadowing
The June CPI report shows that inflation is continuing to rise. Many on Wall Street have been focusing on the impact tariffs will have on inflation, but StoneX senior adviser Jon Hilsenrath thinks they may be overlooking another important point. He is joined by AllianceBernstein chief economist Eric Winograd to discuss the data. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. 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
New York Times
14-07-2025
- Business
- New York Times
New Tariff Threats Risk Big Blow to U.S. Economy
President Trump has had little reason to scale back his global trade war ambitions with inflation subdued, unemployment stable and U.S. stock markets back to record highs. But the latest escalation, including 30 percent levies on the European Union, could deliver a much more painful blow to the United States. If the tariffs go into effect on Aug. 1, it could unleash the sort of devastation to consumers and businesses that economists have long worried about and Mr. Trump has mostly avoided. Their fear stems from the specter of a stagflationary shock, in which inflation intensifies as growth stalls. 'The higher that tariffs end up being, the more stagflationary it will be,' said Eric Winograd, an economist at the investment firm AllianceBernstein. Tariffs have already had an impact on the economy in a number of ways, and the levies now threatened against the European Union risk causing even more painful disruptions, given that the bloc and the United States are each other's largest trading partners. Ursula von der Leyen, the president of the European Commission, said in a statement that Mr. Trump's latest tariffs 'would disrupt essential trans-Atlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic.' So far, businesses have been able to mitigate some of the impact of Mr. Trump's levies. To get ahead of the tariffs, they stockpiled products earlier this year, causing imports to surge before later crashing down. Americans have grown less confident about the economy as uncertainty surrounding Mr. Trump's policies have frozen businesses in place. Want all of The Times? Subscribe.
Observer
13-07-2025
- Business
- Observer
For investors UK is now ‘an attractive place to be'
The chief executive of James Henderson – a British-American global asset management group headquartered in London – Ali Dibadj, has said international investors are 'starting to take notice' of investment opportunities in the UK, adding to the growing chorus of senior finance executives who are bullish about British assets. The company offers a range of financial products to individuals, intermediary advisors and institutional investors globally, under the trade name Janus Henderson – the groups holding company. 'There is an enormous opportunity, not just for investors to invest in the UK, but to open up the UK to investors around the world.' Dibadj said. 'The UK has a stable political backdrop and has solid foundations for growth – a UK consumer that is in real wage growth and has built up savings since covid, businesses that have been conservative in their borrowings, and banks that have re-built their balance sheets since the global financial crisis.' Dibadj, who joined Janus Henderson in 2022 from Alliance Bernstein, added that a likely lower interest rate environment in the UK and a stock market that trades at a 'significant valuation discount' to those elsewhere in the world were among other reasons to be optimistic. 'A stable political backdrop and a modestly growing economy at a very reasonable valuation is a solid place to be,' said the 50-year-old. 'International investors are starting to take notice and there has been an uptick in inflows to UK equities from overseas.' UK-focused funds have posted considerable outflows following Brexit and several bouts of political upheaval, but the pace of withdrawals has slowed in recent months. Data from Calastone showed net outflows of £449m from UK equity funds in May were down to half the monthly average for the past three years. However, equity funds have only recorded one month of positive flows in the past four years. New York-based Dibadj is the latest high-profile investment executive to single out potential investment opportunities in the UK. In May, BlackRock CEO Larry Fink told The Times that the world's largest asset manager had been increasing investment in 'undervalued' UK assets. Fink said the $11.6m asset manager had added to its UK positions 'across the board' and claimed some of the negativity shown towards British companies 'was probably not warranted.' Buses go past the Bank of England building, in London, Britain. — Reuters 'I have more confidence in the UK economy today than I did a year ago,' Fink said. The 72-year-old pointed to the growth agenda fostered by the UK government. He highlighted in particular that the Competition and Markets Authority has sped up its decision-making. 'I don't know what's changed it but it's a good change,' Fink said. JPMorgan chief Jamie Dimon also recently backed the government's approach. He told Financial Times in April that 'there's much to like' about Labour's pro-growth agenda. Other investment leaders are pointing to renewed interest in European assets amid uncertainty following the introduction of trade tariffs by US president Donald Trump. Growth minded: Dibadj praised the UK government for 'real conviction' in pushing through market reforms that aim to spur growth and investment, such as the recent Mansion House Accord. This saw several of the UK's largest pension providers commit to allocating at least 10 per cent of their defined contribution assets to private markets by 2030. At least half of those asset will go to investments in the UK. 'There is a growth-minded government that has shown it will take action, a catalyst to kick start investment,' said Dibadj. 'That, combined with the opportunity that existing valuations present, are what makes the UK such an attractive proposition moving forward.'
