The surge of new active ETFs in the market coincides with an increasingly uncertain investing environment as we approach the end of 2025. Recent interest rate cuts, for instance, may compel investors to reassess their portfolios. This uncertainty further underscores the importance of active management, particularly for international exposure.<\/p>\n
Beyond interest rate policies, geopolitical risks and inflation remain significant concerns. A discussion about the markets would be incomplete without addressing tariffs. Businesses most affected by tariffs are likely to evaluate the current landscape carefully before making operational decisions.<\/p>\n
\u201cI think businesses are perhaps sitting on the sidelines a bit more, waiting for clarity regarding investment CapEx and similar decisions,\u201d noted Adam Sparkman, client portfolio manager at Thornburg Investment Management. He participated in a roundtable discussion<\/a> alongside fellow portfolio managers Josh Rubin and Phil Gronniger, focusing on current market trends. \u201cWith the Fed’s stance and the future of inflation, the uncertainty surrounding when we might see rate cuts is significant. This level of forward uncertainty is causing at least an equal amount of concern.\u201d<\/p>\n The prevailing uncertainty in U.S. equities is driving interest toward international equities, as U.S. investors seek to diversify and reduce their home country bias. The recent strength in U.S. equities has largely been fueled by technology-driven companies capitalizing on the AI trend. Interestingly, artificial intelligence is also playing a role in boosting international equities.<\/p>\n \u201cWe know that the U.S. market has been primarily driven by tech over the last decade,\u201d Rubin explained. \u201cInternational markets faced headwinds from this trend, as they have a larger proportion of financials compared to tech. Now, however, international and U.S. markets are on more even footing. Both markets are seeing their two largest sectors perform well, rather than one facing headwinds while the other benefits from tailwinds.\u201d<\/p>\n Given the various dynamics influencing international markets, active management is crucial when selecting an ETF for international exposure. Investors should consider funds like the Thornburg International Equity ETF (TXUE)<\/a><\/strong> and the Thornburg International Growth Fund ETF (TXUG)<\/a><\/strong>.<\/p>\n Both funds leverage the expertise and experience of Thornburg\u2019s investment management team to navigate the complexities of international markets. TXUE serves as an excellent choice for core international equities exposure, while TXUG adds a growth component to that exposure.<\/p>\n2 Active International Funds<\/h2>\n
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