Nick Peters-Golden

What’s the story in bonds looking to next year? Gauging how much duration to add to a portfolio certainly remains a key challenge. While dropping rates have certainly bolstered the case for adding longer duration, inflation could stick around and keep rates steady next year. What’s more, there are scenarios where rates may “rise” again should those cuts exacerbate inflationary government policies. Active investing in fixed income offers solutions, with the active short-duration ETF TBUX an option for those wanting an adaptable, focused strategy.

ETFs offer all kinds of benefits, from tax efficiency to transparency, but perhaps their greatest benefit stems from their ability to serve as building blocks. Sector ETFs, for example, can help investors create an equity allocation that matches their own investment theses about certain sectors. One could heavily lean into tech to get the most out of that key sector while adding steady utility names in a utilities ETF. The key, however, is to rebalance those sectors when the market shifts or, for example, a new year arrives.

With 2025 hours away, many investors are likely finalizing their plans for the new year. ETFs, and active ETFs, specifically, have had a very strong 2024, and look primed to continue that momentum into 2025. Of course, as much as the end of one year provides an opportunity to look ahead, it also offers the opportunity to reflect. New Year’s resolutions can help turn insight into action, so here are three New Year’s resolutions for active investors to consider.

What kind of investment ideas are best positioned for a strong 2025? The stock market remains a hot place to invest, with the S&P 500 wrapping up a firey 2024. While equities still offer strong opportunities and momentum, a quality ETF approach could be a strong option to lead the way into 2025. One such fund, the ALPS O’Shares US Small-Cap Quality ETF (OUSM), takes a particular approach to quality, via dividends, that could make for a particularly solid option in 2025.

As 2024 draws to a close, investors can look back on a strong performance for U.S. stocks and look to 2025 with excitement. Of course, amid that positivity lies doubt. Concentration risk in U.S. stocks, specifically in areas like tech, looms over potential further positivity. At the same time, valuations remain particularly elevated. Those factors and potential positives abroad may speak to the case for emerging markets investing. The emerging markets ETF AVEM, specifically, can offer an appealing opportunity.

Will 2025 be the year of crypto? It’ll be hard to beat 2024, but the possibility is there for a strong follow up. With a new administration set to support the crypto industry with potential deregulation, choosing the right crypto ETF could prove an important task. One such fund, the Coinshares Valkyrie Bitcoin Fund (BRRR), could present an appealing option therein, offering a straightforward exposure to a possible crypto spring for Bitcoin.

One of 2024’s more significant stories, data center construction boomed amid a blockbuster year for AI. AI is not likely to go away anytime soon and with Federal deregulation of areas like crypto likely amid broader positive macro trends, data center construction could continue to grow. Of course, with risks also present, finding the right route stands out as a key goal. The active ETF REIT targets U.S. REITs that meet its standards and, with its flexibility, could appeal therein.

With the end of the year on the horizon, investors often reflect on insights from the market’s performance. Three ETFs from Fidelity Investments can offer some notable takeaways as they are likely to end 2024 as the firm’s top ETF performers. The trio’s focus on large cap firms speaks to the overall story of the year. The way the Fidelity ETFs invested in those firms, however, is what stood out.

A new year means tax season is just around the corner. While it may be too late to really impact last year’s tax bill, 2025’s tax bill has just begun. Those who want to avoid as significant a tax impact as they saw in 2024 may want to prepare now by adjusting their portfolios. Fixed income, for one, offers both yield and opportunities to reduce tax burdens, with a tax-friendly ETF like TAXF a notable example.

2025 has arrived, and with it come myriad opportunities and risks. While investors should spend significant amounts of time analyzing opportunities and parsing the various risks facing portfolios, adding current income could also help mitigate the impact of volatility. Following a strong year for active ETFs in 2024, 2025 could provide a strong platform for an active equity income ETF to help.