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The volatility index (^VIX) reaches its highest level in 2025 following President Trump's enactment of tariffs against Canada, China, and Mexico this week.
AllianceBernstein Global Head of ETFs Noel Archard comes on Catalysts to expand more upon how ETF flows are reacting to the market's (^DJI, ^IXIC, ^GSPC) volatility trends.
"We've seen a reversal in in the flows to some degree where we saw a lot of participation. Obviously in sort of the strong equity markets at the end of the year and a little bit of softness in the fixed income markets, that's flip-flopped over the last two months, stronger fixed income markets versus equities," Archard explains to Seana Smith and Madison Mills.
"But we're still seeing a lot of flows into US large-cap securities. So, I think just reflective of still, this bet that, in the long run, the US economy still has some legs to it. We're seeing some softness in small caps. So a little bit of that maybe taking a little bit more of a conservative approach and things like dividend securities, others are starting to get a little bit more play."
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Watch the video above to hear Noel Archard weigh in on investing in international stocks, large-cap names, and fixed income (^TYX, ^TNX, ^FVX).
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
This post was written by Luke Carberry Mogan.