Fidelity’s Ryan McKee on Recent ETF Trends, Active Management, & Portfolio Construction
Mar 4, 2025
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Ryan McKee, Head of Emerging Product Specialists at Fidelity Investments, delves into the latest ETF trends and the shift towards active management. Roxanna Islam from VettaFi shares her insights on a new private credit ETF and Nvidia's impact on semiconductor investments. They discuss record inflows into ETFs and how these reflect evolving investor preferences. The conversation also touches on cryptocurrency ETFs, drawing attention to regulatory challenges and market adaptations, making it a must-listen for finance enthusiasts.
Fidelity's Ryan McKee emphasizes the substantial shift towards active ETFs, with these representing 48% of total inflows in 2025.
Innovations like options-based products and model portfolio solutions are reshaping portfolio construction strategies for advisors and investors.
Deep dives
Emerging Trends in ETF Flows
The podcast highlights significant trends in exchange-traded fund (ETF) flows, revealing that Fidelity Investments has seen notable interest in active ETFs, which have constituted a large percentage of recent inflows. In 2025, active ETFs accounted for about 48% of total inflows, showing a strong shifting interest from passive to active investment strategies among investors. This trend is partly attributable to the need for advisors to navigate a growing array of ETF products, as the industry witnessed 72 new ETF launches in January, primarily in the active category. The growth in active ETFs indicates that advisors and investors are increasingly recognizing the benefits and unique capabilities they offer, such as tax efficiency and intraday trading flexibility.
Innovations and Opportunities in ETFs
The podcast discusses various innovations in the ETF space that are reshaping how investors approach portfolio construction. Fidelity's integration of options-based products into its ETF offerings exemplifies this trend, allowing advisors and investors to access complex strategies that were previously challenging to implement. Additionally, the rise of model portfolio solutions showcases a growing demand for streamlined investment management, where advisors can outsource complex decisions while still retaining oversight. These innovations ensure that ETFs continue to evolve, offering increasingly tailored solutions to meet diverse investment needs.
The Role of Semiconductor ETFs
The discussion shifts to semiconductor ETFs, particularly in light of developments surrounding major companies like NVIDIA, which has become a significant factor in the sector's performance. Many investors are turning to semiconductor ETFs as a means of diversifying their exposure due to concerns about NVIDIA's overvaluation and performance fluctuations. The podcast compares leading ETFs in this category, highlighting how different weighting methodologies impact exposure to stocks like NVIDIA. As investors seek to manage risk while capitalizing on sector opportunities, understanding the distinctions among these ETFs becomes increasingly important for effective portfolio management.
Navigating the Crypto ETF Landscape
Crypto ETFs are another focal point of the podcast, emphasizing the volatile dynamics influencing cryptocurrency markets this year. Despite significant price drops earlier in the year, developments such as the potential introduction of a strategic crypto reserve have spurred renewed interest in the space. The podcast notes that regulatory shifts, including the SEC's easing of litigation against major crypto players, may pave the way for new ETF approvals in this category. As the landscape evolves, investors are encouraged to remain aware of the broader implications these changes could have on the demand for various crypto-related ETFs.
Fidelity’s Ryan McKee highlights recent ETF trends, discusses key considerations with active management, and shares insights into advisor portfolio construction. VettaFi’s Roxanna Islam weighs in on a groundbreaking private credit ETF, Nvidia’s influence on semiconductor ETFs, and the latest surrounding crypto ETF filings.
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