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Investors poured over $1 trillion into exchange-traded funds (ETF) in 2024, with single-stock ETFs showing some of the highest annual returns.
Clough Capital President and CEO Vince Lorusso — whose firm manages the Clough Select Equity ETF (CBSE) — appears on Wealth to analyze this trend and where he envisions strong ETF inflows to continue throughout 2025 and beyond.
"The reasons for that are not necessarily the investment strategies or the exposures that investors are seeking — it is the regulatory change that began in 2019 when the SEC came out with the ETF Rule 6c-11, it began to open the door for active managers to take advantage of the ETF structure," Lorusso explains.
"It's just really important to zoom out and say, 'Look, the broad trend in the ETFs is more about the structural benefits,' and then within that where are investors gravitating," Lorusso tells Brad Smith.
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This post was written by Josh Lynch