In the second quarter of 2026, alternative investments (“alternatives”) on average had positive, but muted returns, especially when compared to the double digit returns of equities in both domestic and global markets. As the U.S. sought to de-escalate the Iranian conflict and open the Strait of Hormuz, oil prices retreated while investor focus shifted back to the developments in artificial intelligence (AI). The Federal Reserve entered a new leadership era as Kevin Warsh succeeded Jerome Powell as Chair. There were some who expected the new Chair to acquiesce to calls from the White House and aggressively lower rates. Very quickly, that notion was dispelled. The Federal Reserve (the “Fed”) did not change interest rates at their June meeting, but they did signal inflation was a concern and this flipped market expectations from rate cuts to rate hikes. In response, short rates moved appreciably higher.

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In June, Space Exploration Technologies Corp. (SpaceX) successfully completed the largest initial public offering (IPO) in history, introducing roughly $75 billion worth of shares at an overall valuation near $1.77 trillion. 1 With other high-profile companies reportedly preparing to follow suit in the months ahead, an important question looms for investors: how should newly listed public equities be incorporated into investment portfolios? Amid the media hype that surrounds mega-IPOs, the empirical evidence on new listings reveals a distinct, and often counterintuitive pattern of risk and return. Below, we discuss these dynamics, highlighting how the First Trust US Equity Opportunities ETF (FPX) has sought to capitalize on them over the past couple of decades, as well as the First Trust International Equity Opportunities ETF (FPXI), which applies a similar approach to new listings domiciled outside the United States.

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Despite an ongoing war and shifting interest rate expectations, equity market performance favored small- and mid-cap stocks during the first half of 2026.  Bob Carey explains some of the reasons this shift has occurred and breaks down the risks and opportunities on the horizon.

• Net inflows for US-listed ETFs totaled $188.9 billion in June, bringing total ETF assets under management to $15.5 trillion. 
  
  
• Equity ETFs had net inflows totaling $136.0 billion in June, bringing trailing 12-months (TTM) net inflows to $1.28 trillion. Active equity ETFs accounted for $39.4 billion in net inflows in June, compared to $96.6 billion in net inflows for passive equity ETFs. Total AUM in actively managed equity ETFs was $1.19 trillion, accounting for 9.5% of all equity ETF assets ($12.5 trillion), as of 6/30/26. 
  
  
• Fixed income ETFs had net inflows totaling $55.7 billion in June, bringing TTM net inflows to $563.9 billion. Active fixed income ETFs accounted for $20.2 billion in net inflows in June, compared to $35.5 billion in net inflows for passive fixed income ETFs. Total AUM in actively managed fixed income ETFs were $603.5 billion, accounting for 23.4% of all fixed income ETF assets ($2.6 trillion), as of 6/30/26. 
  
  
• Commodities ETFs had net outflows totaling $6.0 billion in June, bringing TTM net inflows to $29.5 billion. Precious metals ETFs (-$5.9 billion) had the largest net outflows for the month, offset by inflows into Broad Commodity ETFs (+$0.3 billion) and Energy ETFs (+$0.3 billion). 

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Surging electricity demand from AI data centers and industrial reshoring is driving renewed interest in nuclear power.  After years of contraction, the industry may be poised for expansion and reacceleration.  In this episode, Bloomberg Intelligence’s Nikki Hsu and Gabriela Privetera help us unpack some of the opportunities and obstacles that could shape nuclear’s comeback.

At the end of 2022, the combined weight of the S&P 500 Index (the “Index”) health care, consumer staples, and utilities sectors represented 26% of the Index. These are the three sectors in the Index that traditionally exhibit defensive characteristics and lower volatility. As of June 30, 2026, just three and a half years later, those three sectors represent approximately 16% of the Index. An astonishing decline. This is despite positive returns for all three sectors over that time frame, albeit significantly trailing the large growth trade led by the technology sector. 

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With the ongoing IPO market activity, Dr. Josef Schuster joins the podcast to discuss his research on the unique performance dynamics that often follow new listings.

• Net inflows for US-listed ETFs totaled $187.8 billion in May, bringing total ETF assets under management to $15.4 trillion.
  
  
•  Equity ETFs had net inflows totaling $126.3 billion in May, bringing trailing 12-months (TTM) net inflows to $1.20 trillion. Active equity ETFs accounted for $39.7 billion in net inflows in May, compared to $86.6 billion in net inflows for passive equity ETFs. Total AUM in actively managed equity ETFs was $1.14 trillion, accounting for 9.3% of all equity ETF assets ($12.3 trillion), as of 5/31/26.
  
  
•  Fixed income ETFs had net inflows totaling $60.3 billion in May, bringing TTM net inflows to $539.8 billion. Active fixed income ETFs accounted for $20.1 billion in net inflows in May, compared to $40.1 billion in net inflows for passive fixed income ETFs. Total AUM in actively managed fixed income ETFs was $583.1 billion, accounting for 23.1% of all fixed income ETF assets ($2.5 trillion), as of 5/31/26.
  
  
•  Commodities ETFs had net inflows totaling $0.4 billion in May, bringing TTM net inflows to $42.1 billion. Precious metals ETFs (-$0.9 billion) had the largest net outflows for the month, offset by inflows into Broad Commodity ETFs ($0.9 billion) and Agricultural Commodity ETFs (+$0.4 billion).

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Mandeep Singh, global head of Technology Research at Bloomberg Intelligence, joins the podcast to provide an update on the growing impact of artificial intelligence and other cutting-edge innovations.

The Hot Hand, a book written by Ben Cohen in 2020, explores the Hot Hand in Basketball research paper written in 1985. The book discusses the existence of streaks and whether an athlete is actually in “the zone” when she seemingly can’t miss. We have all seen it and it seems obvious when a shooter is red hot. Get her the ball! Yet Cohen’s book and various studies describe streaks as simply the randomness of a large data set and not being in any zone at all. Say what you will about Cohen’s book and the evidence...to most of us, it is clear that the equity markets are in the zone!

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