Evan Metcalf discusses the rapid evolution of the ETF market - and why US small caps are emerging as one of the most interesting segments in today’s environment.
Despite ongoing geopolitical volatility and shifting market conditions, ETF flows remain strong both in Australia and globally. At the same time, investor behaviour is becoming more dynamic, with increased use of ETFs for tactical positioning.
A key focus of the discussion is the rotation into US small caps, which have recently outperformed large caps - and, notably, have shown greater resilience than typically expected during periods of market stress.
Evan explores the drivers behind this shift, including:
- valuation dispersion across equity markets
- changing investor positioning and capital flows
- structural inefficiencies within the small cap universe
The conversation also examines the growing role of active ETFs globally, where active strategies are now capturing a significant share of new inflows - a trend that is still underdeveloped in the Australian market.
Finally, Evan outlines Savana’s systematic, algorithm-driven investment approach, designed to identify and capture mispriced opportunities across the US small cap universe through a disciplined, repeatable process.
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