Invesco has operated a de facto monopoly on the Nasdaq 100 for decades, but the walls are finally closing in. BlackRock has filed for a direct competitor under the ticker $IQQ, joined by State Street in an aggressive bid to cannibalize the $376bn currently anchored in the Invesco QQQ Trust. For years, Invesco’s dominance was protected by a lack of institutional-grade alternatives; that era is ending as the world's largest asset managers weaponize their scale to fragment the trade.
Investors are piling back into cash alternatives as markets have whipsawed since the start of the US-Iran conflict, led by short-term Treasury and ultra short bond ETFs. In March alone, ultrashort bond ETFs raked in about $25 billion, more than double what the category attracted in February, and six times what it pulled in during January. The figure represents nearly a quarter of the $104 billion total ETF flows.
The move highlights a shift in how investors are choosing to navigate market stress.
Vincent Linsley at ISS Market Intelligence warns that a major demographic shift is coming. The baby boomer generation, including many long-serving advisors, will reach retirement age by 2030. At the same time, the number of advisors in the full-service brokerage channel has barely grown for over 20 years. This raises the risk of an advice gap, particularly for mass-market clients with smaller portfolios.
Larry Sprung at Mitlin Financial keeps a simple but powerful philosophy at the center of his practice: align investments with clients’ goals, risk tolerance, and what actually brings them joy. “It’s really not about the money,” he says. “It’s really about what the money brings to them.”
Municipal Bond ETFs are having a moment, to put it mildly as investor demand surged in 2025 and into 2026. According to a Morningstar report, January inflows into the category were their second highest on record, at over $15 billion. In February, investors added nearly $11 billion to municipal bond funds, one of the strongest categories by flows that month. So what’s behind the momentum? A potent combination of strong performance, rising supply, and an evolving investor base.
Markets sit in a “show-me” mode, demanding proof before committing. Jason Katz at UBS describes it as a “proven guilty before proven innocent” environment. The Middle East conflict has grown more complex, and the administration’s focus on the economy and stock market adds pressure for an off-ramp ahead of midterms. “The market is sort of in idle mode and can literally have this binary short-term reaction in either direction,” he says.
Markets feel unsettled with limited clarity as the Middle East conflict dominates sentiment. Wes Ashton at Harbourfront Wealth Management says the situation is the main force moving prices right now. Positive news on a potential ceasefire has triggered quick rallies, but the overall direction remains uncertain.
The push to bring private markets into the ETF wrapper is gaining momentum as a growing number of investors seek private investment opportunities. And with the number of publicly listed companies declining and private markets expanding, asset managers are looking for ways to bridge that gap for retail investors.
Small-cap valuations remain attractive despite recent outperformance, sitting near 25-year lows relative to large caps. Nathan Moser, senior portfolio manager at Impax Asset Management, highlights the opportunity as stronger earnings growth materializes through the year. "There's still very attractive" relative value, he says.
2025 proved challenging for UK fund managers on a net sales basis, but gross sales reached record levels, signaling strong opportunity and money in motion. Benjamin Reed-Hurwitz at ISS Market Intelligence notes that while the industry saw net outflows, 55% of participating managers actually improved sales year-over-year. "Gross sales really represents the opportunity that any one manager can win," he says.
Income-focused ETFs are rapidly gaining interest from investors as they search for yield in a macroeconomic environment practically defined by uncertainty. Flows into derivative-based income ETFs have outpaced traditional dividend strategies in recent years; equity-based options income ETFs have exploded into a $150 billion category by the start of this year.
The demand reflects a broader shift in how investors think about income.
Nicholas Wealth expands its income-focused ETF lineup with two new funds: the Nicholas Nuclear Income ETF (NUKX) and Nicholas Defense and Rare Earth Income ETF (WEPN), both listed on the NYSE.
NUKX targets the nuclear energy ecosystem, while WEPN focuses on defense industries and companies in rare earth elements and critical materials supply chains.
