New ETF launches continue to outpace fund closures. In 2021, there were 2,692 ETFs on the market; by the end of 2025, that figure had climbed to nearly 5,000 ETF strategies, according to the latest edition of Cerulli Edge—U.S. Product Development Edition.
According to the report, active ETFs dominated the new product landscape, with 953 strategies launched in 2025, representing 84% of all new ETFs introduced during the year. That total surpassed the 797 ETFs launched in 2021 and was more than triple the 308 active strategies introduced that same year. Looking ahead, 83% of ETF issuers intend to launch at least one active ETF in 2026, while 94% are either currently developing (87%) or planning to develop (7%) transparent active ETF solutions.
“The overall ETF ecosystem remains strong, with product development supported by significant inflows into the ETF structure and broad adoption across asset classes. In fact, 2025 marked the third consecutive year of record-breaking ETF launches. At the same time, the rapid rollout of a wide range of high-demand solutions increases the risk of a wave of fund closures,” said Kevin Lyons, Senior Analyst at Cerulli Associates.
Liquidating Funds That Fail to Gain Traction
According to the study, as providers invest more heavily in product development, they are also becoming quicker to liquidate strategies that fail to gain traction, reallocating resources to launch new offerings and remain competitive.
Most ETF closures have involved smaller products with less than $50 million in assets under management (AUM)—funds that failed to attract interest from advisors and end investors and lacked a clear catalyst for future growth.
Cerulli notes that since 2021, more than 85% of ETF closures have occurred among these smaller products, reaching a peak of 92% in 2025. The firm also points out that the population of small-scale products is driven primarily by defined outcome, leveraged, and option income strategies, which together account for nearly one-third of all small-scale ETFs.
“Although closures may increase as new product development accelerates, this is unlikely to slow the overall growth of the ETF industry,” Lyons said.
Cerulli also found that 94% of ETF issuers expect to close two or fewer transparent active ETFs this year, while all respondents anticipate closing two or fewer market-cap-weighted passive ETFs. By contrast, 87% of ETF issuers plan to launch at least one transparent active ETF, with 39% aiming to introduce six or more, while 30% intend to launch at least one market-cap-weighted passive product.
“These findings demonstrate that product development remains the industry’s primary focus. ETF issuers are concentrating far more on launching new products than on shutting down existing ones,” Lyons concluded.
The U.S. exchange-traded fund (ETF) industry reached a major milestone in May, setting a new record with $15.69 trillion in total assets under management, surpassing the previous high of $14.87 trillion recorded a month earlier, according to the latest report from ETFGI. The new record was driven by a wave of capital allocations during the month, with investors contributing a record $837.35 billion in cumulative net inflows year to date.
In May alone, the U.S. ETF market experienced robust asset growth, attracting $189.01 billion in net new capital. This monthly inflow pushed year-to-date net inflows to an unprecedented level. The $837.35 billion gathered during the first five months of 2026 surpassed all previous records, far exceeding the $443.32 billion recorded over the same period in 2025.
This momentum underscores the sustained investor appetite for ETFs. The U.S. industry has now recorded 49 consecutive months of positive net inflows, highlighting investors’ continued preference for the liquidity, transparency and tax efficiency that exchange-traded funds inherently provide. Total industry assets have increased 16.8% since the start of the year, rising from $13.43 trillion at the end of 2025.
This growth has unfolded against a supportive backdrop for global equities. International stock markets demonstrated notable resilience during the volatile first half of the year, with the S&P 500 advancing 5.26% in May, bringing its year-to-date gain to an impressive 11.27%.
At the end of May, the U.S. ETF market comprised 5,283 individual products, managed by 488 asset managers and listed across three national exchanges. iShares and Vanguard remain locked in a virtual tie for leadership of the passive investment market. iShares retained the top spot with a 28.9% market share, while Vanguard followed closely at 28.6%. State Street Global Advisors remained in third place with a 13.2% share of the overall market.
Vanguard stood out in attracting new organic capital, gathering $54.4 billion in net inflows during May and increasing its year-to-date total to $233.8 billion. Both figures place Vanguard ahead of iShares, which attracted $34.3 billion in May and $155.9 billion year to date. State Street SPDR recorded an average daily trading volume of $59.8 billion. However, its net inflows were more modest, with $10.7 billion in May and $54.3 billion year to date.
Strong equity market performance led equity ETFs to attract the vast majority of new capital, with $78.62 billion in net inflows during May. This pushed year-to-date equity ETF inflows to $378.22 billion, significantly higher than the $148.51 billion recorded during the same period a year earlier.
Fixed income strategies also saw robust demand as investors sought income and diversification. Bond ETFs attracted $41.50 billion in net inflows during May, bringing year-to-date fixed income inflows to $151.55 billion, well above the $93.67 billion recorded by the same point in 2025.
Commodity ETFs, meanwhile, posted modest net inflows of $47.9 million during the month. Despite this slight gain, the category remains in negative territory for the year, with cumulative net outflows of $2.99 billion. This marks a sharp contrast with the $14.18 billion in net inflows recorded over the same period in 2025.
Finally, actively managed ETFs attracted $75.95 billion in net inflows during May. This strong pace lifted year-to-date inflows into active strategies to a record $329.09 billion, compared with $177.01 billion during the corresponding period in 2025.
Women and younger collectors are reshaping the global art market, according to The Art Basel and UBS Survey of Global Collecting 2025. The report, prepared by economist Clare McAndrew, founder of Arts Economics, provides an updated picture of the trends, motivations and behaviors of high-net-worth individuals investing in art.
Conducted in collaboration with UBS, the survey is based on responses from 3,100 high-net-worth collectors during the first half of 2025 across ten key markets: the United States, the United Kingdom, mainland China, Hong Kong, France, Switzerland, Germany, Japan, Brazil and Singapore. It examines everything from purchasing preferences and event attendance to relationships with artists and galleries.
Women take center stage—and embrace more risk
Against a backdrop of global economic uncertainty, the report finds that women are not only maintaining their presence in the market but are also taking on higher levels of risk in their collecting decisions.
As Clare McAndrew, founder of Arts Economics and the report’s author, explains: “At a time of increasing global economic uncertainty, this survey offers a valuable opportunity to examine how collectors are adapting to risk, with a particular focus on gender differences. Contrary to the common stereotype that women are more risk-averse than men, the findings show that, in the context of collecting, women are equally aware of potential risks but are often more willing to take them in practice by acquiring works across a broader range of non-traditional media and actively supporting emerging or lesser-known artists. Women also collected and spent more on works by female artists, a trend that is equally evident among younger collectors. As wealth continues to shift both vertically and horizontally in the years ahead, these trends are likely to encourage greater balance and diversity in future collecting.”
In 2024, women’s average spending on art and antiques was 46% higher than that of men. In mainland China, female collectors led spending, with figures more than double those of their male counterparts. Their collections also contain a higher proportion of works by female artists and demonstrate a strong openness to emerging talent.
More art in portfolios and greater diversity in buying habits
The report shows that high-net-worth individuals increased the share of their wealth allocated to art in 2025, with the average rising to 20% of total wealth, up from 15% the previous year. Among ultra-high-net-worth individuals with more than $50 million in assets, the average allocation reached 28%.
The study also highlights a diversification of purchasing channels and formats. Although paintings remain the most commonly acquired medium, attendance at art fairs continues to grow, with 58% of collectors purchasing through them, while digital platforms are gaining momentum: 51% of collectors bought works via Instagram, and direct purchases from artists doubled compared with the previous year. Two out of every three collectors acquired works by artists they had discovered within the previous 18 months.
Younger generations redefine collecting
Millennials and Generation Z are driving a generational shift in collecting habits.
Millennials lead spending on decorative arts, design and jewelry, reflecting interests more closely tied to lifestyle. Generation Z, meanwhile, dominates categories such as collectible handbags, sneakers and luxury assets, with average spending on sneakers nearly five times higher than that of other generations.
Within the fine arts market, younger collectors distinguish themselves by exploring a wider range of media, from digital art—where Generation Z is the most active—to photography and works on paper, which are particularly favored by millennials.
Family tradition and philanthropy
Despite the market’s dynamism, family legacy remains a cornerstone of collecting: nearly 90% of younger collectors who inherited artworks chose to keep them. Overall, 80% of respondents plan to pass their collections on to their children or spouses.
At the same time, philanthropy is becoming increasingly important. One-quarter of collectors plan to donate part of their collections, reflecting a broader desire to connect wealth with social and cultural causes.
Brazil strengthens its position
The report also highlights Brazil’s growing importance in the global art market.
“The Art Basel and UBS Survey of Global Collecting 2025 reveals how collectors are becoming more engaged, connected and active. Brazil stands out in particular for its strong appetite for established artists and its leadership in art fair participation. With 72% of high-net-worth collectors planning to acquire works over the next 12 months and 69% intending to attend more art events in 2026, the country continues to demonstrate both maturity and momentum. These indicators reinforce its importance within the global collecting landscape,” said Valéria Milani, Head of Sales at UBS MFO Consenso.
Cautious optimism in the art market
Despite a slight decline in purchase intentions—from 43% in 2024 to 40% in 2025—84% of collectors remain optimistic about the short-term outlook for the art market. Meanwhile, selling intentions have fallen to 25%, suggesting a more stable, long-term approach to collecting.
“The great wealth transfer is influencing not only financial flows but also collector engagement. As younger generations and more women take responsibility for managing wealth, their collecting decisions increasingly reflect personal values and social awareness. Many are drawn to works that speak to identity, community and purpose. This shift points to a more thoughtful, values-driven approach to collecting that connects wealth with creativity and meaning in ways that resonate with today’s world,” said Paul Donovan, Chief Economist at UBS Global Wealth Management.
A market in transformation
For Noah Horowitz, CEO of Art Basel: “The Art Basel and UBS Survey of Global Collecting 2025 provides a fascinating snapshot of how our field is evolving in 2025. Millennials and Generation Z are approaching the market with new behaviors, tastes and modes of engagement, while the growing influence of women collectors and support for female artists are having a significant impact on the trade. We also see younger collectors expanding their interests beyond traditional categories into digital art, design and lifestyle objects, purchasing works through an increasing variety of channels. These valuable insights help guide our efforts to support galleries and their artists, cultivate new generations of collectors and expand the global art ecosystem.”
With greater diversity across generations, gender and values, global art collecting is entering a new phase in which creativity, sustainability and personal identity are becoming the new drivers of cultural value.
The 2026 FIFA World Cup will not only mark a historic milestone with its expansion to 48 teams and its joint hosting by three nations—the United States, Mexico and Canada. It could also become the sporting event that cements the convergence of the digital financial industry and the entertainment economy, driving the mass adoption of electronic payments, digital wallets, tokenization and new forms of retail investing.
The tournament, which FIFA itself expects to be the most profitable in its history, is projected to generate approximately $13 billion in revenue for the governing body and more than $40 billion in global economic impact, according to estimates compiled by various international analysts.
Beyond tourism and traditional consumer spending, however, the 2026 World Cup arrives at a time when the digital financial ecosystem is far more mature than it was during Qatar 2022. The widespread adoption of digital wallets, instant payment systems and investment platforms has significantly expanded the opportunities to monetize the relationship between fans and sports organizations.
From the traditional fan to the digital financial consumer
Today’s fan no longer simply buys tickets or official merchandise. They participate in loyalty programs, acquire digital assets, interact through mobile applications and use financial tools that barely existed a decade ago.
The digitalization of the fan experience creates an opportunity for fintech companies, payment processors, investment platforms and wealth managers to bring financial services to millions of people who have historically had limited engagement with the formal financial system.
This trend is particularly relevant in Latin America, where, according to the World Bank, financial inclusion gaps remain significant, even as smartphone penetration and digital payments continue to grow at rates well above those of traditional banking services.
Fan tokens evolve into a new sports economy
One of the fastest-growing segments is fan tokens—blockchain-based digital assets that allow supporters to participate in polls, earn rewards and access exclusive experiences.
According to DataIntelo, a global market research and consulting firm, the global fan token market reached a value of $3.8 billion in 2025 and could grow to $18.6 billion by 2034, representing a compound annual growth rate of approximately 19.3%. More than 170 sports organizations have already launched fan token initiatives, while the ecosystem now includes around 28 million active wallets.
Academic research also suggests these instruments are generating meaningful levels of engagement. A study conducted by European researchers found that fan token polls attract an average of roughly 4,000 participants and engage nearly half of all token holders.
The experience of the 2022 FIFA World Cup in Qatar also demonstrated the close relationship between sporting events and the financial performance of these assets. Researchers found that fan token returns generally increased ahead of the tournament, while match results triggered significant fluctuations in both prices and trading volumes.
The World Cup as a catalyst for digital payments
The 2026 edition will also serve as a stress test for digital payment infrastructure. Millions of international visitors will make cross-border transactions, hotel reservations, online purchases and mobile payments, reinforcing the importance of digital wallets and fintech platforms.
The scale of the event is expected to benefit companies operating payment networks, remittance services, foreign exchange providers, digital banks and mobility applications—industries that have become indirect beneficiaries of the expanding sports economy.
At the same time, the rise in digital transactions brings greater fraud risks. Specialists at Check Point Research have already warned of an increase in fake websites, fraudulent applications and scams involving cryptocurrencies and counterfeit World Cup tickets, highlighting the growing need for stronger financial education and cybersecurity.
Wealth management and retail investing: a new frontier
For the wealth management industry and retail investment platforms, the World Cup represents an opportunity to introduce concepts such as diversification, thematic investing and the digital economy to a new generation of users.
Sport is increasingly becoming an economic asset in its own right. The convergence of blockchain technology, digital payments and community participation is creating new models in which fans evolve from passive consumers into active participants in financial ecosystems connected to their favorite teams and brands.
In that sense, the 2026 World Cup may be remembered not only as the tournament with the largest number of participating teams and the biggest global audience, but also as the event that accelerated the transformation of the traditional sports fan into a new kind of participant: the digital financial consumer.
Flexstone Partners (Flexstone), a global private markets investment manager with $12 billion in assets under management (AUM) and an affiliate of Natixis Investment Managers, has announced that it has reached an agreement to acquire Glouston Capital Partners (Glouston), a Boston-based private equity secondary markets manager with more than $3.4 billion in assets under management.
According to the firms, the combined platform will manage more than $15 billion in assets across primary, secondary and co-investment strategies, serving institutional investors across North America, Europe and Asia. The combined entity brings together two highly complementary businesses: Flexstone’s global primary and co-investment platform and Glouston’s North American secondary market capabilities, which operate largely in different geographies with minimal strategic overlap. Glouston’s experienced team, strong General Partner (GP) relationships and disciplined approach to the North American middle market will significantly strengthen Flexstone’s secondary platform and enhance its ability to meet the evolving needs of institutional investors.
“Flexstone Partners is delighted to welcome the experienced Glouston Capital Partners team as we embark on this new phase of growth. Glouston brings a complementary middle-market investment philosophy and a long track record of disciplined execution. Their expertise in the secondary market is a natural fit with our culture and broadens the range of private capital strategies Flexstone can offer investors through our platform,” said Eric Deram, Managing Partner and Chief Executive Officer of Flexstone Partners.
About the transaction
The investment and management teams at Flexstone will remain unchanged, ensuring continuity for clients while adding deep middle-market secondary expertise. Glouston’s investment strategy and investment team will also remain intact following the closing of the transaction. Glouston’s six partners will continue to manage the secondary business from Boston, applying the same investment process and criteria that have historically defined the firm’s investment approach.
“This partnership represents a natural evolution for Glouston Capital Partners. Flexstone’s global platform, complementary GP relationships and strong distribution network will allow us to expand our reach while maintaining the investment discipline and team-based decision-making that our Limited Partners (LPs) value. We are excited to join forces and continue building a leading secondary platform with the resources and scale needed to compete effectively in today’s market,” said Red Barrett, Senior Managing Partner at Glouston Capital Partners.
As part of the transaction, Glouston’s partners will reinvest a significant portion of their equity ownership in the combined entity and will become Managing Partners of Flexstone, ensuring strong alignment of interests. Flexstone’s partners will also make an additional capital investment alongside the Glouston team.
Expanding the private markets offering
According to Philippe Setbon, Chief Executive Officer of Natixis Investment Managers, investor demand for large-scale, high-quality private markets solutions continues to grow. “Private assets are a core pillar of Natixis Investment Managers’ long-term growth strategy, with Flexstone Partners playing a key role. Glouston Capital Partners’ experienced team, strong institutional relationships and differentiated middle-market strategy are an excellent complement to Flexstone’s private equity business. This integrated platform is uniquely positioned to meet clients’ evolving needs in one of the fastest-growing segments of private markets,” Setbon said.
The combined platform will operate from five offices—New York, Boston, Paris, Geneva and Singapore—and will include 37 investment professionals. Flexstone will continue to manage its primary and co-investment strategies across private equity, private debt, infrastructure and real estate, serving an institutional Limited Partner (LP) client base primarily located in Europe and Asia.
Glouston will lead the combined firm’s secondary investment strategy and U.S. distribution, while Flexstone’s secondary investment team—comprising three professionals in Europe and one in New York—will join forces with Glouston’s investment leadership team. Following the closing of the transaction, Glouston’s strategies will be marketed under the Flexstone Partners brand. The Glouston team will continue operating from Boston as part of Flexstone’s expanded global platform. Existing fund structures, LP agreements and investment mandates will remain unchanged following the rebranding.
In 1988, Jonathan Steinberg, CEO of WisdomTree, acquired The Penny Stock Journal, a broadsheet newspaper dedicated to the lowest-quality stocks. “Everything they covered was destined to go bankrupt—it was basically a marketing scam. I thought I could do something better,” he recalled during INSITE26, BNY’s annual conference in Denver. He transformed it into Individual Investor, hired analysts, and began producing independent research for retail investors. In 1997, he published his first article about ETFs when the vehicle held just $40 billion in assets and only three products existed. “I was struck by the leap forward that the ETF represented as a structure,” he said.
What surprised him most, however, was the industry’s slow pace of adoption. The first ETFs had launched in 1993, yet by 1997 no additional products had come to market. It took another seven years before the next wave arrived. “Asset managers and distribution platforms were extraordinarily slow to evolve,” he said. That inertia created an opportunity: exactly twenty years ago, WisdomTree launched its first 20 ETFs. Today the firm manages $170 billion in assets but competes with firms overseeing between $1 trillion and $14 trillion. “As CEO of a smaller asset manager, I try to make the right decisions with the least amount of information possible, always trying to stay one step ahead,” he explained.
His assessment of today’s investment landscape was unequivocal: “This is a golden age for investing. Fees have fallen, investment vehicles have become more sophisticated. Today, even the smallest investor can have a better experience than the wealthiest person in the world could have had 20 years ago.”
The question he asked himself seven years ago
Seven years ago, before tokenization had become an industry-wide discussion, Steinberg posed a question internally that would shape WisdomTree’s long-term strategy: “What could do to ETFs what ETFs did to mutual funds?” The answer led him to act long before a consensus had formed.
“I knew that if I started when this conversation became mainstream, it would already be too late for a small boutique manager like WisdomTree,” he said.
The decision required an uncomfortable leap. “I had to do something that made me extremely uncomfortable: make a strategic investment in a startup that had built a tokenization platform and a regulatory framework for its tokens—in other words, a programmable wrapper.”
That platform was eventually acquired by the Depository Trust & Clearing Corporation (DTCC), but WisdomTree retained its own version and continued developing it. Today, the firm has $1 billion in tokenized assets and the world’s largest portfolio of tokenized real-world assets. Its latest milestone is a money market fund that operates and settles 24/7 on blockchain.
“It is the first real-world asset that behaves on-chain like a native crypto asset,” Steinberg said.
Two weeks ago, the firm filed with regulators to launch tokenized ETFs under the same framework.
For the financial intermediaries attending the conference, however, his message was one of tactical patience.
“For now, this is irrelevant to you—seriously. Your opportunity lies in the regulated exchange-traded markets, and that opportunity is enormous.”
Tokenization, he argued, belongs to the next generation of clients.
“It’s like the internet. We don’t really know how it works—it simply exists, integrated into everything we do. What will happen is that BNY, other financial institutions, and WisdomTree will bring financial services onto blockchain.”
Farmland instead of BlackRock or Blackstone
While many competitors rushed into private credit, WisdomTree chose a different path: farmland.
“We went into farmland, where there isn’t a BlackRock or a Blackstone,” Steinberg said.
Today, WisdomTree is the third-largest owner of farmland in the United States, managing 180,000 acres through an evergreen “one-and-twenty” structure.
“Our competitors are the Mormon Church, Bill Gates, and family farmers—not BlackRock or Blackstone. It’s a much better business.”
More broadly, Steinberg challenged the prevailing narrative around private markets.
“Most investors give up liquidity and transparency far too easily. And high fees can corrupt investment advice.”
He openly questioned recommendations that investors allocate as much as 30% of their portfolios to private assets.
“That sounds like a lot.”
He was equally skeptical of proposals to incorporate private assets into 401(k) retirement plans.
“I think that’s aggressive. I don’t agree with that approach.”
The ETF as the future wrapper for private assets
WisdomTree’s alternative approach is to bring private assets into the ETF structure itself.
“While my competitors are putting private credit into interval funds, we’re going to put private assets into ETFs.”
Whereas interval funds may hold up to 90% of their assets in illiquid investments, WisdomTree’s proposed structure would cap private exposure at 15%, while eliminating K-1 tax forms, paperwork, lock-up periods, and investment minimums or maximums.
Before the end of the first quarter next year, the firm expects to launch ETFs providing exposure to both farmland and venture capital.
For Steinberg, the rationale is straightforward.
“I don’t want to be the last person buying SpaceX. A tremendous amount of value creation happens before companies ever reach the public markets.”
He also sees clear historical parallels.
“I often ask why the mutual fund industry was so slow to adopt ETFs. Part of it was transparency—portfolio managers didn’t want to disclose their holdings—but fees also played a major role. They were earning high fees, and that made them resistant to adopting what would ultimately have been a better experience for clients.”
Over the past 24 months, roughly 120 mutual fund companies launched their first ETF in 2025 or 2026.
“I’m amazed they literally waited until 2026,” he said.
His guiding principle—and the one he encouraged advisors in the audience to embrace—is simple:
“How do I genuinely help my client achieve the life they ultimately want? That means truly putting yourself in their shoes, rather than placing yourself above them.”
Against a backdrop of tight credit spreads, strong demand for fixed income, and the growing role of artificial intelligence as an investment driver, Christopher Hult, portfolio manager of the CT (Lux) Credit Opportunities Fund at Columbia Threadneedle Investments, discusses the key opportunities and risks he currently sees in credit markets. Hult maintains a defensive positioning focused on high-quality issuers, identifies the automotive sector as one of the market’s most vulnerable areas, and argues that active management is particularly valuable in today’s volatile environment. He also examines how AI-driven capital spending is reshaping corporate financing needs, highlights opportunities in the utilities sector, and shares his views on the evolution of private credit.
How do you view valuations today? Where do you see the most attractive opportunities?
Credit valuations have been elevated for some time, but we believe they are fully justified. Corporate fundamentals remain strong, earnings growth has been impressive, and the macroeconomic backdrop has consistently delivered positive growth. Demand for credit is insatiable.
One consequence of tighter spreads is reduced dispersion in returns. The additional compensation available for more cyclical issuers has narrowed considerably. Spreads may remain tight for an extended period, so we do not want to position ourselves aggressively against the market. However, because we are no longer being adequately compensated for taking cyclical or lower-quality credit risk, we maintain a defensive bias focused on higher-quality issuers.
Is there a sector that appears particularly vulnerable?
The automotive sector. This year the industry is facing a changing regulatory environment as governments roll back some of their commitments related to electric vehicles and climate policy. As a result, what was already a significant capital expenditure cycle is being extended.
Manufacturers must now maintain expensive parallel investment programs: continuing to develop electric vehicle platforms, battery systems, and software while also investing in traditional internal combustion engines and hybrid technologies. This prevents the capital efficiency gains that would come from focusing on a single technology.
At the same time, competition from Chinese manufacturers is putting additional pressure on margins. Given these dynamics, we prefer to remain underweight the sector.
Following the sharp interest rate hikes of 2022, global fixed income has staged a strong recovery with attractive real yields. Is this still a favorable environment for buy-and-hold portfolios? How are your clients positioning their portfolios?
All-in yields remain attractive across fixed income markets, and we continue to see strong interest from a broad range of investors.
That said, we expect market volatility to persist. This is an environment that requires careful investing and agile decision-making, which strengthens the case for active management.
We believe the term premium has not yet fully adjusted, so we favor shorter maturities while looking for opportunities to increase inflation protection.
Fixed income investors have been closely watching the wave of AI-related bond issuance. Do you find these hyperscaler bond offerings attractive? How are you gaining AI exposure through fixed income investments?
As artificial intelligence applications continue to proliferate, the race to build the infrastructure supporting them has triggered one of the largest capital investment cycles in recent history.
We estimate cumulative investment needs between 2025 and 2030 will approach $6 trillion. This enormous buildout is creating unprecedented financing requirements. While the major technology companies generate significant operating cash flow, the scale of the investments required is leading them to explore multiple financing sources.
In the public credit markets, technology companies are issuing increasing amounts of debt, although index concentration and risk premiums are also rising. Given the hyperscalers’ high credit quality, the issuance itself is not a credit concern. The real question is whether the market is large enough to absorb the supply and what level of concession investors will require.
We entered this period underweight technology but have gradually increased our exposure over the past nine months, as sector spreads have repriced relative to the broader market. Even so, we will remain nimble and reduce exposure if we believe investors are no longer being adequately compensated for the continued supply likely to reach the market.
What other themes are you identifying within the investment grade fixed income universe?
The adoption of artificial intelligence technologies will affect many sectors, particularly electric utilities and power grids, given the rapidly growing demand for electricity generation. We see significant opportunities in this area.
Utilities’ capital investments generally translate into growth in their regulated asset base. This allows companies to earn higher regulated returns across their customer base under existing regulatory frameworks. As a result, their cash flow profiles should remain resilient regardless of how the AI industry ultimately develops.
In addition, utilities have the ability to issue hybrid debt, enabling them to raise capital while preserving their existing credit ratings. At the same time, the structural features of hybrid securities—including subordination, call optionality, and coupon deferral—offer higher yields, creating attractive investment opportunities.
We are also closely monitoring the rapid growth of private credit. Although public and private markets generally finance different segments of the economy, we remain alert to any spillover effects stemming from negative developments in private credit.
Ultimately, we do not believe private credit represents a systemic risk to the financial system, given banks’ limited exposure to leveraged private credit funds and the fact that the investor base is primarily institutional with long-term investment horizons.
Nevertheless, to mitigate potential contagion risks, we have made it standard practice to gradually take profits on our exposure to U.S. bank credit while identifying opportunities to rotate toward European financial institutions.
With inflation concerns rising due to the war with Iran and the disruption of shipping through the Strait of Hormuz, what is your macroeconomic outlook for the second half of 2026? What do you expect from the Fed and the ECB?
The European Central Bank has raised interest rates because inflation has moved above its target. This comes despite the fact that tighter monetary policy could further weaken growth prospects, which have already deteriorated due to the consequences of the conflict in the Persian Gulf.
The ECB hopes that this single rate increase will allow it to preserve its inflation-fighting credibility while buying time for the conflict to end and maritime traffic to return to normal.
Before the conflict, the ECB had become the envy of many developed-market central banks after successfully bringing inflation back to target while gradually lowering rates toward what it considered a neutral policy stance. However, if the conflict drags on, it may be forced into additional rate hikes as inflationary pressures increase.
Being constrained by a single policy mandate raises the risk of repeating the mistakes of 2008 and 2011, when rate hikes driven by higher energy prices ultimately had to be quickly reversed.
The Federal Reserve enjoys greater flexibility, partly because of its dual mandate of employment and inflation. Even so, the market is now pricing in a Fed rate hike before the end of the year.
The U.S. Department of the Treasury appointed BNY as the financial custodian for the Trump Accounts program on April 6, 2026, tasking the firm with managing the initiative’s national infrastructure. The program, BNY CEO Robin Vince explained, is based on a clear diagnosis: “Forty percent of Americans have no participation in the stock market. And in the world we live in, that’s a problem, because it means 40% of Americans have no connection to the country, to the capital markets, or to our capitalist system,” he said during the INSITE 2026 Summit.
The policy response, he added, is as simple as it is ambitious: “The idea is to give every American, from an early age, a stake in the capital markets, in the stock market, and the opportunity to build wealth and become part of the American Dream.”
The initiative has received support from both sides of the political spectrum as well as from Silicon Valley, where the concept originated. The Trump Accounts were created under the One Big Beautiful Bill Act and are structured as investment accounts for individuals under the age of 18.
Robert Vince, CEO of BNY
Who can open an account and how
All individuals under the age of 18 with a valid Social Security number are eligible to hold a Trump Account. Children born between January 1, 2025, and December 31, 2028, qualify for the federal government’s initial $1,000 contribution. Those born outside that window may also open an account, but without the seed contribution. Enrollment is available through TrumpAccounts.gov or by submitting IRS Form 4547. According to the program, accounts will begin accepting contributions on July 4, 2026.
Families and third parties may contribute up to $5,000 annually. Employers may contribute up to $2,500 per year within that same overall limit. BNY has also committed to matching the federal contribution for all employees with children, Vince said. Nvidia, Goldman Sachs, and Uber, among other companies, have likewise pledged to match the Treasury’s initial contribution for their employees’ children.
How the money is invested and what happens at age 18
The default investment is a broad U.S. equity ETF tracking the S&P 500, with management fees capped at 0.10% per year. During the accumulation phase, investments are limited exclusively to index funds or ETFs tracking broad U.S. equity indices. Cash holdings, money market funds, leverage, and investments outside broad U.S. equity indexes are not permitted.
The funds remain inaccessible until the beneficiary turns 18, at which point the account is automatically converted into a Traditional IRA (Individual Retirement Account). From then on, the standard IRA rules apply: withdrawals made before age 59½ are taxed as ordinary income and may be subject to a 10% early withdrawal penalty.
According to Vince, the program’s real strength lies in its long-term investment horizon. He illustrated the concept with a compound growth example: “If you put that money into the account and invest it in an index fund, and you assume the same returns the U.S. stock market has delivered over the past 30 years, those $2,000 become $40,000 over 30 years.” He went further: “If that family sets aside just $10 a week during those same 30 years, the $40,000 becomes $140,000 by the time that child turns 30. That’s real wealth creation. That’s real participation in the American Dream.”
BNY and Robinhood: partners behind the infrastructure
As the program’s financial agent, BNY will manage the national infrastructure while partnering with brokerage platform Robinhood to provide the program’s initial brokerage and custody services. Together, the two firms will develop the program’s application, allowing families to easily access and manage their accounts.
The appointment reflects BNY’s existing role within the U.S. financial system. The bank already manages much of the government’s critical financial infrastructure, settling all U.S. Treasury auctions while the Federal Reserve’s open market operations rely on its technology.
“We provide critical services to the U.S. government. This was an opportunity to take our technology, our capabilities, and truly serve the United States through this public policy initiative,” Vince said.
To conclude, Vince issued a direct challenge to the firms attending INSITE 2026: “Whether you’re a company of five people, 500 people, or 5,000 people, are you in a position to match the contribution for each of your employees’ children?” For BNY, administering the program is also a statement of purpose. “We’re incredibly proud to play this role as America’s bank,” he said.
Principal Asset Management announced the launch of Principal Fit, a new suite of fixed income exchange-traded funds (ETFs) consisting of four newly launched vehicles, as the firm looks to strengthen its capabilities in the asset class and provide investors with more targeted tools to navigate changing market conditions.
The new platform complements the Principal Investment Grade Corporate ETF (IG), giving the firm a lineup of five fixed income ETFs designed to support income generation, portfolio diversification, and positioning across different duration, inflation, and credit risk scenarios.
The launch comes at a time when fixed income markets are facing greater complexity due to interest rate expectations, inflationary pressures, and evolving credit spreads. As a result, institutional investors and financial advisors are increasingly seeking more specialized solutions that enable them to adjust portfolio allocations more efficiently.
“In today’s environment, broad exposure is often less effective than more targeted approaches,” said Michael Goosay, Global Head of Fixed Income and Chief Investment Officer at Principal Asset Management, noting that the new ETF family was designed to help investors make allocation decisions as market conditions evolve.
Exposure to specific segments
The new Principal Fit suite is structured to provide exposure to specific areas of the fixed income universe, allowing investors to combine strategies based on their views on inflation, interest rates, and credit quality.
Among the new products are:
Principal Inflation Protection ETF (RIZE), focused on inflation-sensitive securities and designed to help mitigate the impact of rising price levels.
Principal Securitized Debt ETF (WDE), providing access to the securitized debt and structured credit markets.
Principal Long Duration ETF (DWWN), designed for investors seeking exposure to longer-duration bonds and strategies linked to interest rate movements.
Principal CLO ETF (UUPP), focused on collateralized loan obligations (CLOs), offering exposure to floating-rate instruments through an income-oriented strategy.
The firm noted that the funds can be used individually or combined within a broader portfolio, depending on market conditions and each investor’s positioning needs.
Principal expands its ETF offering
With these launches, Principal Asset Management now offers 16 ETFs, managing approximately $10.4 billion in assets across its ETF platform.
The new funds trade on the Cboe BZX Exchange under the tickers UUPP, DWWN, WDE, and RIZE, while the Principal Investment Grade Corporate ETF continues to trade under the ticker IG.
The expansion of the platform reflects the growing importance of fixed income ETFs among wealth managers and institutional investors, a segment that has gained prominence in recent years as investors seek more liquid, transparent, and flexible vehicles to manage exposure to different market factors.
Against a backdrop of heightened macroeconomic uncertainty and changing global interest rate expectations, specialized fixed income strategies continue to gain traction, driving further innovation across the ETF industry.
Photo courtesyGiorgia Baistrocchi, Head of Investor Relations – Real Estate & Infrastructure at Pictet Alternative Advisors.
The traditional reasons for investing in real estate—durable income, inflation protection, diversification and low volatility—have been challenged during this cycle, unlike private equity, private credit and infrastructure, where valuations have become increasingly elevated.
According to Giorgia Baistrocchi, Head of Investor Relations – Real Estate & Infrastructure at Pictet Alternative Advisors, global real estate entered 2026 trading at a substantial discount relative to other risk assets such as listed equities and private credit, both of which have appreciated significantly. If that discount reflected structural deterioration, it would represent a value trap. Instead, she argues that it is largely technical in nature and creates “the clearest entry point in a generation.”
Transaction activity supports the thesis
According to her analysis, global real estate transaction volumes reached $873 billion in 2025, an increase of 11.7% versus 2024 and the second consecutive annual increase since the 2023 trough. Activity was concentrated in residential, prime office and industrial assets (Source: McKinsey / RCA-MSCI), suggesting that demand remains healthy.
“In fact, real estate is the only major private asset class whose weakness is being driven more by technical dislocations than by deteriorating fundamentals. That said, in an environment of higher interest rates and lower liquidity, discipline is essential because the truly investable universe has narrowed. The most attractive opportunities are no longer based on a broad macroeconomic recovery, and institutional investors are rebuilding exposure selectively rather than through passive allocations,” Baistrocchi says.
Four of the five forces that compressed valuations are fading
Baistrocchi argues that four of the five forces that have weighed on real estate valuations and liquidity over recent years are now coming to an end. For more than a decade, capitalization rates offered a substantial premium over the risk-free rate. With the U.S. 10-year Treasury yield now around 4.6%, that spread has largely disappeared, bringing the market back toward historical norms.
“In 2022, while listed portfolios declined sharply, private real estate valuations remained relatively stable. As equities and credit subsequently recovered, asset allocators facing redemption requests rebalanced portfolios by selling real estate—not because they were overweight, but because it was the most readily available illiquid asset to generate liquidity. Those were forced sales that should reverse as portfolio allocations normalize. In addition, the quarterly appraisal process typically used in private real estate smoothed volatility, causing valuations to continue adjusting downward while listed and credit markets had already recovered,” she explains.
Private credit displaced real estate
She also notes that real estate lost part of its appeal as an income-generating asset to private credit, an asset class that has now grown to approximately $2.2 trillion in senior floating-rate debt with lower sensitivity to changes in interest rates. For some managers, private credit now represents a larger share of assets under management than private equity.
However, she points out that private credit has recently faced redemption restrictions, valuation concerns and litigation involving retail-oriented vehicles, where secondary market discounts have reached as much as 35% relative to reported net asset values.
“As a result, investors have begun to reassess the value of the liquidity premium and the perceived liquidity advantage of private credit. Moreover, real estate and private credit were both marketed as independent sources of income, yet they share many of the same characteristics: they are illiquid assets, they can experience mismatches between liquidity and redemptions, and price discovery is often delayed,” she says.
In her view, the key difference is that much of the valuation adjustment has already taken place in real estate, whereas private credit is only beginning that process. Although she does not see systemic risk—default rates in direct lending remain below historical averages and current stress is largely concentrated in semi-liquid retail vehicles—she believes private credit now represents less competition for real estate allocations.
Infrastructure: the new competitor
Turning to infrastructure, Baistrocchi highlights that return dispersion among managers is significantly lower than in real estate. This reflects the sector’s long-duration regulated contracts, inflation-linked revenues and sovereign or quasi-sovereign counterparties.
“Infrastructure offers predictable income streams protected against inflation—the very value proposition that real estate has marketed for the past three decades,” she argues.
Data centers, energy transition assets, telecommunications towers, fiber networks, senior housing and student accommodation have become some of the most sought-after assets among infrastructure managers. Many institutional investors have even created dedicated strategic infrastructure allocations funded by reducing their real estate exposure.
Even so, she warns that infrastructure also shares some of the vulnerabilities currently emerging in private credit: illiquid assets, semi-liquid vehicles and potential gaps between official valuations and secondary market pricing.
“The question is whether the stability of infrastructure cash flows will be sufficient to protect against future liquidity mismatches and confidence shocks. For now, infrastructure represents a significant competitive force for real estate,” she says.
Selectivity has become essential
Finally, Baistrocchi argues that the source of real estate returns has fundamentally changed. In a higher-rate environment, returns can no longer rely on cap-rate compression, multiple expansion or inexpensive leverage.
“Today, the market values buildings more like operating businesses than bond-like income streams. Dispersion between assets continues to widen, making security selection more important than ever,” she says.
Against this backdrop, value-add strategies—income-producing assets requiring operational improvements, repositioning or redevelopment—accounted for 55% of global real estate fundraising during the first quarter of 2026, while opportunistic strategies declined.
In logistics, secular demand continues to be supported by resilient supply chains and reshoring trends, although speculative development has slowed considerably. Office remains far from a full recovery, but improving lending activity and opportunistic buyers targeting supply-constrained prime offices suggest selective opportunities are emerging.
Global investment volumes increased 15% year over year during the first quarter of 2026, led by North America (+19%), followed by Asia-Pacific (+15%) and Europe, the Middle East and Africa (+14%). By sector, investment remained concentrated in multifamily residential, industrial assets and prime offices.
Industrial accounted for 47% of global fundraising, while data centers stabilized at around 25%. North America attracted 65% of investment flows into the data center segment, up from 30% previously, reflecting growing investor demand for regional rather than global strategies.
Regarding capital structures, Baistrocchi sees the most compelling opportunities in recapitalizations, preferred equity and structured equity investments, as well as single-asset continuation vehicles.
“Preferred equity is particularly attractive for acquiring high-quality assets financed under a very different interest-rate environment. Recapitalization opportunities should continue expanding as the refinancing wall approaches. By contrast, passive core strategies—which prioritize stable, lower-risk assets—are in a weaker position because higher risk-free rates make it increasingly difficult for assets with limited upside potential to generate sufficient excess returns,” she concludes.
