The tax-smart case for active ETFs

ETFs have evolved beyond passive investing, with active strategies now available across equities, fixed income, and other asset classes. Brad Feeley and Steve Doroian discuss the growth of active ETFs, potential cost and tax-efficiency benefits, and the importance of evaluating after-tax returns.They also explore fourth-quarter planning considerations, including potential tax-loss harvesting opportunities in fixed income and reviewing equity mutual funds ahead of year-end capital-gain distributions, while emphasizing the importance of considering each client’s circumstances.Why are active ETFs gaining traction with advisors?Brad: Active ETFs combine an active investment approach with the ETF structure, offering potential cost and tax-efficiency benefits. As the market has matured, advisors can compare strategies based on investment approach, cost, track record, and after-tax results – not simply active versus passive.How can advisors use ETFs in fourth-quarter tax planning?Steve: Advisors may want to review fixed-income holdings for tax-loss-harvesting opportunities and examine equity mutual funds ahead of potential year-end capital-gain distributions. These decisions should reflect each client’s objectives and circumstances, with appropriate input from a tax professional.

In this episode, host John Bryson is joined by Matt Miskin and Emily Roland, co-chief investment strategists at Manulife Investment Management, to discuss the forces shaping global markets as investors enter the fourth quarter.They examine the strength and concentration of economic and technology-driven growth, potential opportunities in healthcare, industrials, and international equities, and the value emerging in high-quality fixed income. Matt and Emily also explain why a balanced 60/40 portfolio remains relevant as investors look ahead to 2027.What should investors know about the sustainability of technology and AI-related market leadership?Emily: Technology and semiconductor earnings remain strong, but investors should also look for opportunities beyond AI. Healthcare, industrials, international equities and bonds may help provide greater diversification.Where are you seeing the greatest opportunities in fixed income?Matt: High-quality corporate and municipal bonds offer attractive yields, with municipal bonds providing particularly compelling relative value after their recent selloff. Multi-asset strategies may also help investors manage duration and diversify portfolios.

In this episode, host John Bryson explores how infrastructure is shifting from a defensive allocation to a strategic way to access major secular trends – —especially AI-driven power demand and electrification.Guest Tom Levering, portfolio manager and global industry analyst at Wellington Management, discusses where opportunities reside across the value chain, public vs. private markets, and how advisers can incorporate infrastructure in portfolios.Where are we in the AI-related infrastructure buildout, and where do you see opportunity?Tom: We’re in the very early days of the infrastructure build-out for artificial intelligence, with its power infrastructure being the lowest- risk part of the value chain. And that’s where we see the opportunity.For an advisor evaluating infrastructure today, how should they think about it in a portfolio?Tom: One thing that hasn’t changed about publicly listed infrastructure is that it’s potentially very good at providing risk mitigation to portfolios – lower beta, lower volatility versus equities it’s really that growth and the risk mitigation from regulatory protections that make it attractive at this time.

The college journey is one of the most significant milestones for families. In this episode, John Bryson is joined by Nancy and Gail to share insights on financial planning, admissions decisions, family dynamics, and managing the emotional transition.Together, they discuss the wide range of decisions and emotions families have to navigate, and offer practical strategies advisors can use to support clients. Here’s a snippet of the conversation.How can advisors help parents through the college admission process?Nancy: Meet with families early, when kids are young, to come up with a college savings plan. Then meet with them again as college approaches to set a realistic budget with the family, including the details of where that money is coming from. Advisors can also help families be clear with their children about the college budget, so they can visit appropriately priced schools and get excited about them.What are practical ways advisors can support families in the first few months of college?Gail: The most valuable thing an advisor can do isn't necessarily to have a financial answer ready. It’s about noticing this new development. If a client is talking about a child who just left for school, it’s worth asking further, “How’s that adjustment going for you?” and “What does this next chapter look like for you, not just for your child?” This isn't about solving anything. You just need to be one of the people in their life who notices.

Few trends have influenced markets more this year than the AI buildout, evolving policy expectations, and uncertainty in energy markets. On this timely episode with host John Bryson, Matt and Emily share their latest insights on what's ahead for investors. They explain why economic growth and corporate earnings have remained resilient, and how equities and bonds are responding to the Fed’s evolving policy stance. The conversation also explores what’s ahead and how investors can position their portfolios. Read a snippet of the discussion below and listen to the full podcast for more insights. 1 What’s driving the momentum in global economic growth? Matt: The U.S. remained the engine of global growth, and countries selling into the U.S. benefited as well. Asia, particularly the semiconductor sector, saw strong support from this demand. The question is whether it's sustainable. That’s harder to answer because many of these factors were one-time catalysts that boosted growth in the U.S. and, by extension, global growth. 2 How can investors position their portfolios for what's ahead? Emily: We think about portfolio construction as a bag of golf clubs, and making sure to use all the tools available. Equities are like your driver; they help you deal with inflation. Historically, stocks tend to perform reasonably well when inflation runs between 2% and 4%. We’re also seeing one of the strongest earnings seasons in modern history, which helps preserve purchasing power if inflation begins to reaccelerate, although that's not our base case. Bonds haven't been getting much attention because the economy has performed better than expected. But if growth begins to slow, they could play a much more important role. Matt: Investors shouldn't become too attached to any single outcome. The key is building a portfolio that can navigate multiple scenarios. In fixed income, we continue to favor corporate credit. Corporate bonds should perform reasonably well if growth remains solid. We’re positioned slightly below benchmark duration while maintaining exposure to areas such as high yield.

As investors navigate a volatile market shaped by geopolitical uncertainty, host John Bryson welcomes Jeff to discuss what it all means for bond investors. Jeff shares his thoughts on the U.S. economic outlook, examining opportunities along the yield curve, and why fixed income may be increasingly attractive. Here’s a snippet of the conversation. 1 What does the current macro environment mean for investors? Jeff: The macro environment is going to be positive for the U.S. economy. Inflation has picked up a little, but growth remains strong. The unemployment rate has remained fairly steady, and overall employment looks better than it did last year. By the end of the year, we're not really going to see much change in interest rates. However, there's going to be a lot of uncertainty, especially on front-end rates. With inflation running a little bit higher, there will be some concern. 2 How should investors think of corporate fundamentals? Jeff: First, fundamentals are very strong. Profit margins remain near peak levels. Interest coverage ratios—the amount a company earns relative to the interest it has to pay—remain high. Secondly, while spreads are tight, yields remain near the highest levels in credit markets in almost 20 years. 3 How can investors approach fixed income going forward? Investors need to look forward rather than backward. Many people remain focused on the experience of 2022 and are staying short, which can expose them to reinvestment risk a few years down the road if cash yields move lower. The second point is to avoid focusing too heavily on short-term market movements. Markets can move around quite a bit. Looking out 12 to 18 months and maintaining an intermediate- to longer-term perspective can help eliminate some of the noise from portfolios.

As equity markets continue to gain momentum following a March drawdown, host John Bryson welcomes Matt to help investors make sense of the market and economy, and how to navigate an uneasy rally. Matt shares his perspective on the drivers behind stronger-than-expected corporate earnings, portfolio concentration risks in AI, and attractive opportunities for diversification. Here’s a snippet of the conversation. 1 What’s driving stronger performance in U.S. equity earnings? Matt: The strength is largely driven by AI-led investment. Technology capex is accelerating rapidly, benefiting from both strong pricing power and high demand tied to data center buildouts. That demand is also lifting industrials, which are building the infrastructure, and utilities, which are supplying the power. At the same time, strong equity markets are supporting the financial sector, particularly wealth management, as higher asset values drive increased activity and revenues. Finally, corporate profit margins remain near historic highs. 2 How can investors diversify to reduce portfolio concentration in AI? Matt: We have to use asset allocation more than just style or manager selection. However, manager selection—active management—is one lever. Another is alternatives; infrastructure-related equities and long/short strategies can help reduce overall portfolio beta and provide diversification beyond traditional index exposure. Fixed income is also starting to look more compelling. In an environment where equities may appear stretched or concentrated, bonds provide a reasonable place to generate income while waiting for better entry points. 3 Where are you seeing other opportunities right now? Matt: Mortgage-backed securities and investment-grade corporates in the core to core-plus space. There’s a modest credit bias, but the emphasis remains on quality. In corporates, single-A-rated bonds are particularly attractive. We’re also being mindful of interest rate risk—staying away from the long end of the curve, where yields have risen, and volatility has increased.

As investors look to adapt portfolios to a more complex and uneven equity market, host John Bryson is joined by Josh to discuss how global long/short equity strategies can support portfolios in volatile times. Josh shares his perspective on why volatility and dispersion can create attractive opportunities for active investors, and how long/short strategies may help manage downside risk while seeking market like returns. The conversation explores the role of active security selection and its suitability to the current environment as investors adapt to shifting market conditions. Here are some highlights from the conversation: 1 What role can global long/short strategies play in a portfolio? Josh: We think about a global long/short strategy as a return driver. We’re trying to generate market-like returns, or better. The benchmark is the MSCI World Index, and we're targeting returns of roughly 8%-12% over a full cycle. Over time, the strategy should generate returns but behave differently. And in years when the rest of a portfolio struggles, it should perform well. 2 Why does this strategy suit the current market environment? Josh: We’re in a longer-term inflation cycle that began during the pandemic, driven by government deficits and spending. From 2023 through 2025, inflation was settling, and we focused more on taking long positions. Coming into this year, valuations became richer, and short opportunities increased. We’re more aggressive on the short side now, particularly with emerging credit risks. On the long side, we like some tech companies tied to data center buildouts, memory companies, and metals and mining.

As investors assess both the opportunities and challenges in private credit, host John Bryson is joined by David T. Vincent, CFA, CAIA, Co-Head, Alternatives Intermediary Distribution at Manulife Investment Management, to discuss how the market has evolved and what investors should consider as they look beyond traditional asset classes. David shares his perspective on the growth of private credit and investor concerns around liquidity and concentration. The conversation also explores asset based finance and hard asset strategies, highlighting the questions investors can ask to better understand risk, structure, and portfolio fit. 1 What’s happening in private credit today? There’s growing recognition that many alternative strategies are concentrated in floating rate loans to private companies. This creates exposure to corporate credit and interest rates. With rates declining and uncertainty around inflation, recession risk, and consumer spending, investors are reassessing that exposure. What we’re seeing now is that advisors and investors are looking for additional strategies that complement private credit by offering similar return potential with different risk profiles. 2 How would you address concerns of a potential bubble in private credit? When people see the rapid growth in private credit assets, it raises the question of whether the space is in a bubble. What we’re really seeing is a shift in lending from banks to alternative lenders. While it can feel like sudden growth, it’s largely a shift in who provides capital. Private credit should grow alongside the economy, especially as more companies remain private longer. 3 What alternative strategies may investors be overlooking right now? The most interest right now is in hard asset strategies. These tend to benefit from inflation, supply chain disruptions, and tariffs. There is a concept often referred to as hard assets with low obsolescence, meaning long lived, tangible assets such as buildings or airplanes. These assets have intrinsic value. In a default, they can often be leased, sold, or repurposed.

As markets navigate energy supply disruptions and mixed economic data, Matt and Emily join the podcast to provide a timely, broad market update. They share their perspectives on how oil supply shocks are affecting markets, how energy dynamics are influencing inflation and growth expectations, and where they see potential opportunities across equities, fixed income, and alternatives. 1 What’s driving the markets at this moment? Matt: We’re experiencing a historic oil supply shock. The Strait of Hormuz—which accounts for about 20% of the global oil supply—has been shut off. We’re seeing prices ratchet higher and energy supplies rationed globally. This has created an inflation shock across global markets, with hawkish comments from central banks globally leaning toward a higher-inflation environment. That caused bond yields to rise and hurt equities. While supply disruption remains, energy remains the biggest risk and a driver of volatility. 2 How do energy prices affect the broader economic outlook? Emily: Central banks globally have discussed tighter policy without downgrading growth expectations. The recent U.S. Federal Reserve’s Summary of Economic Projections showed slightly higher GDP forecasts and no increase in unemployment rate estimates. We think higher inflation does punish growth and, eventually, expect a slower-growth story. Currently, the U.S. economy is holding up, but cracks are forming in the labor market. We think, ultimately, there’s a lid on inflation due to weakening demand. 3 Where do you see opportunities in this environment? Matt: One of the sectors we like is non-U.S. industrials, supported by defense spending. If the dollar strengthens further, we prefer U.S. equities—particularly mid-cap and mid-cap value, which are relatively cheap and higher quality. Emily: We also like infrastructure, long short equity strategies, and multi alternative approaches. Infrastructure offers defensive characteristics and benefits from AI driven power demand.