Latest news with #MatthewBartolini
Yahoo
10-07-2025
- Business
- Yahoo
JPMorgan Files to Launch Money Market ETF
Money doesn't grow on trees — it grows in money markets, a resource that JPMorgan plans to help ETF investors access more easily as markets seek shelter from increasing volatility. The bank applied last month for SEC approval of the actively managed JPMorgan 100% US Treasury Securities Money Market ETF, which would invest exclusively in Treasury bills, bonds and notes, according to the filing. The move, along with recent money market ETF launches by Schwab and BlackRock, shows how issuers are capitalizing on investors' appetite for lower-risk options amid geopolitical uncertainty and ETF hype. Still, inflows have yet to match the rapidity of recent money market ETF launches, according to Matthew Bartolini, State Street's head of Americas ETF research. 'They're really new,' Bartolini said. 'With any new thing, you want to see how it does, how its performance is, and if the use case is valuable enough to rotate from what you're doing right now.' READ ALSO: What's Inside the SEC's Latest Crypto ETF Guidance and State Street's PRIV Lands First Daily Inflows in Months Money market funds — which invest in short-term, low-risk securities like US Treasury bills, municipal debt or corporate bonds — have been around as long as ETFs have existed. JPMorgan's Prime Money Market Fund (VMVXX), a mutual fund that invests in both US government securities and debt issued by American and foreign corporations, began trading in 1993. Money market ETFs let clients who want an all-ETF portfolio include a cash management vehicle in it. 'That same client could have been like, 'Well, for my cash purposes, I'll hold an ultra-short, active strategy.' There've been those options, just not within a money market wrapper,' Bartolini said. 'With that money market wrapper, you might get different clients to use it who prefer money markets for their cash sweep vehicle.' Other big players in the money market fund space include: Vanguard's Federal Money Market Fund (VMFXX), which invests in cash and short-term securities issued by the US government and is up 2.2% year-to-date; Schwab's Value Advantage Money Fund (SWVXX), which invests in US and foreign entity-issued short-term securities and is up 2% year-to-date; And Invesco's Government Money Market Fund (INAXX), which invests in cash, government securities and repurchase agreements. It's up 1.7% year-to-date. A Sea Change. The recent launches are also representative of what experts describe as a shift toward mutual fund strategies being used in ETFs. Bartolini said JPMorgan's move is unsurprising given the recent boom in other structured note products, like buffer ETFs. 'This is another proof point of the ETF industry maturing,' he said, 'and entering into different markets for investors to utilize strategies typically confined to mutual funds.' 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
Yahoo
07-07-2025
- Business
- Yahoo
Investors piled into non-US ETFs at the second-fastest pace ever in June. These are the 2 types of funds they're buying most.
Non-US stock ETFs saw over $20 billion in inflows in June, a near-record high. The surge in non-US stock investments is driven by global investors fleeing US markets. Trump's tariffs and tax policies have weakened the US dollar, boosting non-US stocks. The rise in "sell America" chatter this year seems to have been matched by investor appetite for non-US stocks. Flows into non-US exchange-traded funds hit more than $20 billion in June, the second-highest monthly amount ever, according to data from State Street. The flows into non-US stocks accounted for 45% of all flows, significantly higher than the rolling 12-month average of around 17%. The breadth of flows into non-US-focused funds was also wide. "80% of non-US equity ETFs had inflows in June — above the normal hit rate of 74%," Matthew Bartolini, head of Americas ETF research at the firm, said in a June 30 note. "Comparatively, only 53% of US equity exposures had inflows in June versus their usual 59% monthly hit rate." Flows into two types of non-US ETFs were particularly high: developed market funds and emerging market funds. $12.5 billion went into developed-market funds, while $6.8 billion flowed into the latter. Examples of funds with exposure to these trades might include the iShares Core MSCI EAFE ETF (IEFA), the SPDR Portfolio Developed World ex-US ETF (SPDW), the Avantis Emerging Markets Equity ETF (AVEM), and the Vanguard Emerging Markets Stock Index Fund ETF (VWO). The heightened flows into international stocks aren't much of a surprise. Global investors have been on edge about US assets in recent months as the Trump administration placed near-universal tariffs on imported goods, a move which tanked the US dollar, sent bond yields soaring, and caused soaring volatility in stocks. In recent weeks, investor concerns about Trump's "Big, Beautiful Bill" and its impact on the federal debt and budget deficit have further fueled the "sell America" sentiment. Trump's "policies raise the question of how long US asset exceptionalism can last and place more pressure on Fed policymakers to ease while creating a stronger impulse for non-US central banks to offer stimulus — adding liquidity and supporting growth in those regions," Bartolini wrote. Read the original article on Business Insider
Business Insider
07-07-2025
- Business
- Business Insider
Investors piled into non-US ETFs at the second-fastest pace ever in June. These are the 2 types of funds they're buying most.
The rise in "sell America" chatter this year seems to have been matched by investor appetite for non-US stocks. Flows into non-US exchange-traded funds hit more than $20 billion in June, the second-highest monthly amount ever, according to data from State Street. The flows into non-US stocks accounted for 45% of all flows, significantly higher than the rolling 12-month average of around 17%. The breadth of flows into non-US-focused funds was also wide. "80% of non-US equity ETFs had inflows in June — above the normal hit rate of 74%," Matthew Bartolini, head of Americas ETF research at the firm, said in a June 30 note. "Comparatively, only 53% of US equity exposures had inflows in June versus their usual 59% monthly hit rate." Flows into two types of non-US ETFs were particularly high: developed market funds and emerging market funds. $12.5 billion went into developed-market funds, while $6.8 billion flowed into the latter. Examples of funds with exposure to these trades might include the iShares Core MSCI EAFE ETF (IEFA), the SPDR Portfolio Developed World ex-US ETF (SPDW), the Avantis Emerging Markets Equity ETF (AVEM), and the Vanguard Emerging Markets Stock Index Fund ETF (VWO). The heightened flows into international stocks aren't much of a surprise. Global investors have been on edge about US assets in recent months as the Trump administration placed near-universal tariffs on imported goods, a move which tanked the US dollar, sent bond yields soaring, and caused soaring volatility in stocks. In recent weeks, investor concerns about Trump's "Big, Beautiful Bill" and its impact on the federal debt and budget deficit have further fueled the "sell America" sentiment. Trump's "policies raise the question of how long US asset exceptionalism can last and place more pressure on Fed policymakers to ease while creating a stronger impulse for non-US central banks to offer stimulus — adding liquidity and supporting growth in those regions," Bartolini wrote.
Yahoo
17-06-2025
- Business
- Yahoo
Investing Playbook for H2 2025: Quality, AI, and Gold
(1:00) - Breaking Down The Current Market Performance: Should Investors Stay Optimistic? (4:15) - Is Now A Good Time To Take On More Risk In Your Portfolio? (6:35) - Market Themes Investors Should Keep Their Eyes On (9:50) - How Should You Look To Invest Into AI As The Industry Broaden? (14:45) - Diversifying Your Portfolio In The Current Market Environment (18:30) - Key Takeaways From The Most Recent ETF Inflows (21:25) - Episode Roundup: QUS, QUAL, XNTK, QQQE, XAR, ITA, GLD, IAUM Podcast@ In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors. We discuss the market outlook and the best investment strategies for the second half of 2025. We're now approaching the midpoint of a year that began with great optimism for U.S. stocks. Economic fundamentals looked strong, the AI trade was booming, and the incoming U.S. administration was viewed as pro-growth and investor-friendly. According to State Street's mid-year outlook, there's still reason for optimism despite ongoing policy-related uncertainty. Progress on the Trump administration's pro-growth agenda, looser monetary policy, continued strong earnings growth, more attractive valuations, and a lower likelihood of recession all contribute to a favorable environment for risk assets in the second half of the year. However, risks remain elevated. Matt recommends building equity portfolios that can withstand macroeconomic uncertainty by focusing on high-quality companies, increasing global diversification, and positioning for long-term structural trends such as expanding AI adoption and rising defense spending. The SPDR MSCI USA StrategicFactors ETF QUS follows a multi-factor strategy that blends quality, value, and low volatility. The iShares MSCI USA Quality Factor ETF QUAL targets profitable U.S. companies with low leverage and consistent earnings growth over time. Apple AAPL, Microsoft MSFT, and NVIDIA NVDA are among the top holdings in both ETFs. As the economic benefits of AI spread beyond the 'Magnificent 7,' ETFs such as the SPDR NYSE Technology ETF XNTK and the Direxion NASDAQ-100 Equal Weighted Index Shares QQQE are worth considering. With bonds no longer providing the same diversification benefits they once did, adding alternatives like gold can be a prudent move. The SPDR Gold Trust GLD remains the most popular gold ETF, while lower-cost options such as the SPDR Gold MiniShares Trust GLDM and the iShares Gold Trust Micro IAUM may be more appealing for long-term investors. Tune in to the podcast to learn more. Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@ Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR Gold Shares (GLD): ETF Research Reports iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports SPDR Gold MiniShares Trust (GLDM): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research 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
CNBC
06-06-2025
- Business
- CNBC
How investors can use these high-yielding assets to diversify their portfolios
With interest rates still elevated, investors continue to find juicy yields in collateralized loan obligations. Some $4.7 trillion has flowed into CLO and bank loan exchange-traded funds since the start of the year, following 2024's record $25.6 billion in inflows , according to State Street. While investors fled the funds, along with many others, in April, the ETFs have bounced back. In May, $2 trillion in new money moved into bank loan and CLO ETFs, the ninth best month ever, State Street analyst Matthew Bartolini said in a May 31 note. CLOs are securitized pools of floating-rate loans to businesses and so their coupon payments shift alongside short-term interest rate changes. "That credit segment may continue to receive above-average inflows, given that sector's floating-rate profile and the Fed's 'wait-and-see' approach to rate cuts," Bartolini wrote. The Federal Reserve is set to meet on June 17-18 and is widely expected to hold interest rates steady, as it has been all year. Traders anticipate the next cut to come in September, according to the CME FedWatch Tool . Once the central bank starts to dial back rates, yields on CLOs are expected to gradually move down. Himani Trivedi, head of structured credit at Nuveen, said demand for the products has been steady up and down the capital structure, and expects that to continue. "There's not many floaters out there. So this has been a really good diversifier for investors," she said. "Given the volatility and potential for higher for longer, it still continues to see that flow come in, up and down the capital structure, for CLOs." Right now the Janus Henderson AAA CLO ETF (JAAA) has a 30-day SEC yield of 5.48% and a net expense ratio of 0.20%. It has $20.96 billion in assets under management as of Thursday. Some $4 billion has moved into the fund so far this year, according to FactSet. "With CLOs, you're getting a decent return," said John Kerschner, head of U.S. securitized products and a portfolio manager at Janus. "You're not taking outsized risk." JAAA YTD mountain Janus Henderson AAA CLO ETF year to date In fact, during the recent market dislocation, spreads on CLOs widened but had much less volatility than corporate credit or other parts of the bond market, he said. Liquidity was "incredible," he added. "It just showed that in these dislocations, instead of liquidity drying up, it actually gets better," Kerschner said. "There's more trading and that's what you want as an end investor." Picking up more yield Investors can pick up more yield as they move down in ratings, although those CLOs rated AAA are the first in line to get paid if the borrower declares bankruptcy. Nuveen launched its AA-BBB CLO ETF (NCLO) in December. It currently has a 6.4% 30-day SEC yield and 0.25% total expense ratio. It has collected $19 million in flows year to date, per FactSet, and has net assets of $89.4 million. NCLO YTD mountain Nuveen AA-BBB CLO ETF year to date While the ETF holds CLOs below AAA, they are still investment grade, Trivedi said. Assets with a rating of BBB- or higher by Standard & Poor's or Baa3 or better by Moody's, are considered investment grade and have a lower default risk compared to assets with lower ratings. Strong fundamentals have kept CLO defaults low, she noted. "They do provide a spread pick up, so where, even when the rates go down, you still have this additional carry," Trivedi said of those in the AA to BBB range. That carry is about 200 basis points over Secured Overnight Financing Rate (SOFR), which is the primary benchmark for CLOs, she added. "So even if SOFR was going down, against other fixed income instruments, you will get that extra credit spread for a minimal risk," she said. In addition, a recent analysis by VanEck found that over the past decade, A-rated CLOs outperformed AAA CLOs by 142 basis points a year. They also have lower volatility than investment-grade corporate bonds. BBB-rated CLOs topped AAAs by 147 basis points, the analysis found. The firm launched the VanEck AA-BBB CLO ETF (CLOB) last September. The fund invests primarily in the AA- to BB-rated tranches, has a 7.17% 30-day SEC yield and a 0.45% expense ratio. It has $116.39 million in total net assets, as of Thursday. Janus Henderson also has a lower-investment grade CLO product, the B-BBB CLO ETF (JBBB), launched in 2022. It has $1.33 billion in assets under management. The fund has seen outflows of $62 million year to date. CLOs in your portfolio While CLOs can be an attractive part of your income portfolio, investors should make sure they are diversified. When the Fed does start to cut rates, CLO yields will follow — and investors will need to make sure they also have some longer-dated bonds. Financial advisors and investment experts have been recommending intermediate-term duration assets for fixed-income investors. Janus Henderson's Kerschner likes to use AAA CLOs in more of a barbell approach, with the floating-rate assets on one end and longer duration agency mortgage-backed securities on the other. The firm's Mortgage-Backed Securities ETF (JMBS) has an effective duration of 7 years, a 5.11% 30-day SEC yield and 0.22% net expense ratio. That doesn't mean investors shouldn't have other assets in their fixed income portfolio, but he likes this barbell for at least over the next six to 12 months — and potentially longer. Nuveen sees CLOs as an excellent diversifier because they have a low correlation to most fixed-income assets. Because they are versatile, they can fill a variety of roles within the portfolio — including an alternative to short-duration bonds or a complement to high-yield bonds, the firm said in a rjecent note. Whether to stick with AAA-rated CLOs or the lower investment-grade assets depends on the investors time horizon, Trivedi explained. AAA-rated products can be seen more as a short-term cash investment, while the AA-BBB makes sense for a longer-term core investment, she said. "They can continue to get that coupon even when the rates go higher or lower," she said. "They're in a good safe spot."
