Nick Peters-Golden

With U.S. elections done, investors now can consider the impact of the coming administration’s policies. Should a new Trump administration implement wide-ranging tariffs, it would have similarly broad implications for the U.S. economy. Many firms would likely face increased supply costs cutting into their bottom lines. What’s more, specifically-targeted tariffs, aimed at sectors like chips, could impact important segments like tech. In that case, a quality investing approach could help investors prepare.

Tired of elections coverage? You're not alone. Market narratives focused on the election may have distracted from further rate cuts this year.

The market narrative has moved on from the election to the season’s latest rate cut. Now, with the year in its final stages and investors looking to reshuffle portfolios, surprising equity segments may be rising into view. Midcaps, for example, may be positioned well between small- and large-cap offerings. The rate environment may be better poised for those firms than smaller names, with large caps perhaps overweighted.

The Fed has cut rates once again, bringing the total number of cuts in the fall to 75 basis points (bps). The cuts arrive as the economy continues to march steadily towards a soft landing. With the election in the rearview, many investors may be looking at different ways to layer equity exposure. Indeed, many are already invested in major market-tracking passive funds. That’s where active value and growth ETFs come in, offering a pair of tools for rate cuts past and future.

With the election mostly settled, many investors may now be looking to make moves in their portfolios. Should the ostensible President-elect follow through on his policy initiatives, investors may want to be prepared with strategies to adapt. Moreover, this year, potential further rate cuts could position markets to start strong in 2025. That’s where a blue chip ETF like TCHP comes in, with an appealing active approach.

The ETF universe has gained yet another $1 billion AUM member, with QGRO the latest to join the club. The American Century U.S. Quality Growth ETF (QGRO ) passed $1 billion last week per YCharts data. That milestone comes after the ETF entered 2024 at just about $670 million in AUM. With a month and a half left in the year, the quality growth ETF could be set for more.

Markets have responded very positively to last week’s U.S. election result, lifting the S&P 500 (SPX) to a multi-year high. Per YCharts, the key market index has surged to almost 6000, having entered 2024 at around 4740. That rolling market surge could be poised to continue even towards the new year, but it may not be as straightforward as owning SPX. Indeed, it may be worth considering how active investing can help investors get the most juice out of the market rally, while watching out for downside.

Bitcoin surpassed a record over the last few days, spurred on by results from the U.S. Presidential election. A crypto-friendly Trump administration has boosted the outlook for the space in a way that could still be underrated. Recent survey data from CoinShares highlighted growing concern from potential investors about crypto regulations. If that is addressed, the space could be poised for significant growth.

ETFs have exploded in popularity over the last several years. Since the ETF rule’s onset in 2019, no launches have proliferated and assets have accrued at a growing pace. Amid ETFs’ rise to relevance, the vehicle’s trademark flexibility has also fostered creative new strategies and use cases. Consider zero fee funds, for example. Zero fee strategies had existed in mutual funds, before, but are also available in the ETF wrapper. Zero fee ETFs seem too be good to be true, then, given the wrapper’s other advantages. Are they?

Yet another rate cut has come and gone, and even with somewhat steady inflation reads, further cuts may be in the pipeline. Debt-heavy areas like tech stand to benefit, but for those already heavily exposed to big tech names, looking elsewhere may appeal. Biotech presents a subcategory that offers growth and innovation, but with exposure to healthcare that limits its reliance on AI advancements. The biotech ETF SBIO, for example, has surged over the last three months likely due to rate cuts.