ProShares Launches Two Doubly Leveraged ETFs on Solana and XRP

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ProShares, a specialist in leveraged and inverse funds and a pioneer in cryptocurrency-linked ETFs, has announced the launch of two exchange-traded funds: the ProShares Ultra Solana ETF (SLON) and the ProShares Ultra XRP ETF (UXRP). SLON aims to double the daily performance of Solana, and UXRP to double that of XRP, two of the largest cryptocurrencies in the world.

“As cryptocurrencies become more widely adopted, investors are turning to platforms like Solana and XRP for exposure to next-generation blockchain technologies,” said ProShares CEO Michael L. Sapir. “SLON and UXRP provide the opportunity to target leveraged exposure to Solana and XRP, allowing investors to overcome the challenges of gaining exposure to these cryptocurrencies.”

ProShares broke ground with the launch of the first U.S. bitcoin-linked ETF (BITO) in October 2021. Since then, it has introduced the first U.S. short bitcoin ETF (BITI); the first U.S. ether performance-oriented ETF (EETH), and the first U.S. short ether ETF (SETH), among other solutions. SLON and UXRP join a range of leveraged cryptocurrency-linked ETFs with over US$1.5 billion in assets under management.

All these exchange-traded funds do not invest directly in cryptocurrencies.

Euronext Prepares Its Unified ETF Trading Platform to End Fragmentation in This Market

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The ETF industry in Europe is growing rapidly, and Euronext aims to be a key player in it: it has advanced plans to launch a unified trading platform for European exchange-traded funds, Euronext ETF Europe.

It will be operational starting in September of this year, initially concentrating the liquidity of Euronext Paris and Euronext Amsterdam; Borsa Italiana (Euronext Milan) will be added in the “medium term.” Funds Society has learned the details surrounding its operation from Aurélien Narminio, head of Indices, ETFs and Securitised Derivatives at Euronext.

Narminio explains that the current situation in Europe means an ETF is listed an average of three and a half times on different exchanges. “There are Euronext-operated listing platforms that are quite significant in the European ETF market: these are the Euronext Amsterdam, Euronext Paris, and Euronext Milan locations,” he says.

Therefore, Narminio continues, although everything is traded in the same data center and through the same firm, teams, market rules, etc., ETF issuers must list multiple times on different Euronext markets in order to distribute a given ETF to all the target end investors, especially retail investors. “This means that, for example, to reach the French retail market, listing in Milan is often not enough, as their brokers operate in isolation for reasons related to post-trade.”

According to the expert, this implies that if a trade is executed on a certain platform, it is settled in a specific infrastructure based on where it was matched. Therefore, “what we are doing with Euronext ETF Europe is creating the conditions so that multiple or cross listings become irrelevant and unnecessary.”

With the launch of Euronext ETF Europe, a single listing on any Euronext platform will be sufficient, with the same price and operating conditions for any investor, regardless of the intermediary. To achieve this, Euronext will ensure that all exchange members trading ETFs are connected to all platforms so they can trade all products seamlessly. It will also ensure that post-trade chains are unified and optimized, thanks to Euronext’s own clearing house (Euronext Clearing) and central securities depository (CSD). Behind this entire operation is the goal of eliminating “one of the problems of the European ETF market: fragmentation.”

This situation “fragments order books and liquidity,” which, according to Narminio, “generates additional costs and inefficiencies between buyers and sellers.” Now, by concentrating all available liquidity at Euronext into a single order book per ETF, “it achieves spread compression and reduces trading costs for investors, while increasing efficiency and transparency.”

Ultimately, the project is an attempt to “radically simplify the market” while creating a “pan-European ETF market.” Moreover, it’s not a project that was designed “in a dark room,” but rather one that clients “have been requesting for a long time.” In fact, Narminio notes that “it’s one of the problems that likely holds back the growth of European ETFs compared to U.S. ones.”

This new platform will be available to both retail and institutional investors, he explains. The goal of the project is that any connected member anywhere in Euronext can access ETFs in the same way, at the same cost, and with the same post-trade configurations. “Obviously, there are nuances due to the numerous technical specificities, but that is essentially the model,” he states, going further to say that with this solution applied to a specific product like ETFs, “we are, in a way, implementing the vision of a single savings and investment union.”

The platform’s operability—whose technical aspects are handled internally by Euronext through its Optiq trading system—is ready for a hypothetical short-term implementation of T+1 settlement. “It’s not a determining factor nor has a significant impact,” he states, explaining that with Euronext ETF Europe, settlement is simplified and the number of instructions in the market is reduced: “it’s a small step in the right direction.”

One of the consequences of the implementation of Euronext ETF Europe is that the number of ETFs listed on Euronext will be streamlined. Narminio explains that they currently have around 4,000 ETFs with a single listing, but admits there are products with double and triple listings. “The idea now is to gradually reduce the number of products with double and triple listings because the model is one listing per product,” he clarifies.

Starting in September, issuers with ETFs listed on multiple Euronext locations will choose which domestic Euronext venue they want to remain listed on. The new platform will then combine liquidity with the other Euronext venues.

At this point, he admits that they are working “closely” with issuers to streamline their portfolios. “We will do it gradually, so everything is properly tested, and we can ensure that client access works correctly,” says the executive, who, although aware that it will be a time-consuming process, is confident that starting in September, it will begin with the major issuers.

Narminio explains that the good thing about the ETF market is that there is significant market concentration; there are dozens of issuers, some of them quite large, with whom they are collaborating because they share interests: “For us, it’s about reducing trading costs and improving ETF trading conditions in Europe. For them, it means improving their distribution by gaining greater leverage through a single listing and lowering access costs to their products for their investors,” he explains, concluding that “this is a major coordinated change at the industry level.”

Commodities: Sector-Wide Rise Driven by Specific Geopolitical and Political Factors

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The Bloomberg Commodity Total Return Index rose 5.5% in the first half of the year, with most of the gains concentrated in just four contracts: gold, silver, copper, and live cattle. Additionally, outside of this index, platinum soared nearly 50%. According to experts, persistent forces such as deglobalization, decarbonization, increased defense spending, dedollarization, demographic shifts, urbanization, and climate change continue to lay the groundwork for a potential commodities bull market.

Kerstin Hottner, head of commodities and portfolio manager at Vontobel, takes a cautious view and considers that we are seeing isolated sectoral movements driven by very specific factors. “We have seen cyclical and geopolitical impulses that have raised the prices of certain assets, but the current dynamics are much more determined by supply and demand, speculative flows, and technical factors. In a global context marked by geopolitical tensions, uncertain monetary policies, and a transitioning economic cycle, I see commodities regaining a central role in investment strategies,” says Hottner.

Precious metals

In this regard, each commodity rally has been explained by specific factors. For example, gold, which has been hitting highs for several weeks, has found an equilibrium point around $3,350/oz. “Although its role as a safe haven asset has slightly weakened due to a lower perception of risk, I still see several catalysts that could push it toward $3,500/oz by year-end. Among them are possible Fed rate cuts, likely starting in September; U.S. fiscal uncertainty tied to the ‘Big Beautiful Bill’ debate; continued central bank purchases (which I estimate at about 1,000 tons annually); and a greater tolerance for the opportunity cost of holding non-yielding gold in the face of rising sovereign risk,” explains Hottner.

From WisdomTree, they point to multiple macroeconomic risks supporting its valuation. Specifically, they cite trade uncertainty, debt trajectory, institutional quality, geopolitical risks, and ambiguous dollar policy.

“After its intraday high of $3,500/oz on April 22, 2025, gold has fluctuated between $3,180 and $3,400/oz. The lower end aligns with the 76.4% Fibonacci retracement level, and while our forecasts suggest a potential short-term break below this level, we anticipate strong support near the 61.8% level ($3,024/oz), paving the way for a rebound. For Q2 2026, we project that gold could reach $3,850/oz based on consensus macroeconomic data. We view the current period as a ‘loading spring’ phase, setting the stage for a strong upward move in gold prices,” says Nitesh Shah, head of commodities and macroeconomic research at WisdomTree.

The Vontobel expert also adds that, unlike gold, both silver and platinum have risen sharply, though more due to investment flows than strong fundamentals. “In the case of silver, the recent surge stems from growth in the solar sector, but there are regulations in China that could slow that momentum. As for platinum, the enthusiasm is fueled by shifting Chinese consumer preferences, although I believe prices may already be overextended,” she adds.

Industrial metals


For Carsten Menke, head of next generation research at Julius Baer, several factors also lie behind the price jump in iron and steel. “With prices significantly above their early summer lows, sentiment in the Chinese iron ore and steel markets appears to have shifted. One reason is the expectation of supply-side reforms in the steel industry, which cannot benefit both markets at the same time, as lower steel production implies reduced iron ore consumption,” says Menke.

It is worth noting that in 2024, China produced over 1 billion tons of steel—more than half of global output—of which it exported nearly 120 million tons, far more than any other country. According to Menke, sentiment in the Chinese iron ore and steel markets seems to have changed in recent weeks. “Prices have risen between 10% and 20% from their early summer lows. Since the structural overcapacity in the steel market is affecting global trade and tariffs, supply-side reforms in China would be essential to restore balance to the global market,” he explains.

Copper also deserves mention, as it climbed back above $10,000 per ton in early July. In this case, Menke suggests what might be attributed to easing trade tensions and reduced recession risk is actually driven solely by tariffs.

“The expectation that the U.S. will impose tariffs on copper imports has caused a sudden increase in U.S. imports. This has turned a balanced market into a tight one. That said, copper will be restocked in the market at some point. We continue to project a market with sufficient supply this year, but we remain concerned about demand prospects due to U.S. importers’ early buying ahead of potential tariffs on China,” Menke concludes.

Oil and industrial metals

Finally, experts point out that oil has been at the center of significant volatility, with conflicts in the Middle East and Ukraine driving brief price spikes, particularly following Israeli attacks on Iranian facilities and direct U.S. involvement.

“For the second half of 2025, I anticipate a bearish scenario with expanding global supply: non-OPEC production continues to grow, with projects in Brazil, Guyana, Angola, the U.S., and Norway, and OPEC+ may reverse some of its cuts, adding 0.5 million barrels per day in September. Moreover, demand this year will be weaker than usual, leading to oversupply after the summer,” says Hottner.

Finally, the expert from Vontobel notes that, on the agricultural front, the first half of the year was relatively calm, but he sees the second half as presenting interesting opportunities and significant risks. “Record corn harvests in the U.S. and Argentina, along with possible trade realignments with China, will be key factors. Toward the end of 2025, the focus will shift to weather conditions in South America and regulatory decisions such as new biodiesel blending mandates under EPA (Environmental Protection Agency) rules in the U.S.,” he concludes.

Man Group to Acquire Bardin Hill to Expand in Private Credit

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Man Group, the global alternative investment management firm, has announced that it has reached an agreement to acquire Bardin Hill, a U.S.-based private credit manager with approximately US$3 billion in assets under management.

Headquartered in New York City, Bardin Hill is an opportunistic and high-yield credit manager. Its opportunistic credit platform focuses on investments in special situations and distressed companies, as well as sponsorless direct lending in the United States. Its high-yield credit platform focuses on large-scale syndicated loan CLOs.

Led by a senior team with deep experience and an average industry tenure of 22 years, Bardin Hill has strong expertise in managing credit strategies and serves a sophisticated global client base that includes pension funds, endowments, foundations, insurance companies, and consultants.

Jason Dillow, CEO of Bardin Hill, will remain at the helm of Bardin Hill’s business with the support of his nine partners, including executive committee members Philip Raciti and Jacob Fishelis. Bardin Hill’s investment committee, investment team, and investment processes will remain intact, while Man Group’s global distribution capabilities will enhance the firm’s access to new investors.

The acquisition further strengthens Man Group’s global credit platform, which currently has nearly US$40 billion in assets under management; more than 10 specialized investment teams; and over 100 credit professionals, by adding opportunistic and high-yield credit strategies designed to consistently deliver risk-adjusted returns.

Bardin Hill’s investment capabilities will complement Man Group’s existing private credit offering, which includes direct lending, credit risk sharing, and residential real estate lending strategies. The acquisition also further expands the firm’s presence in the United States, in line with the company’s strategic priority to grow its footprint in North America.

Steven Desmyter, president of Man Group, stated that this acquisition “adds new and important capabilities to our growing credit platform, further broadening and diversifying our offering to clients, in line with the strategy we laid out last year. Following the acquisition of Varagon in 2023, we are excited to be able to offer our clients another high-quality, specialist team with strong credentials, a rigorous and selective investment process, and experience across market cycles. We see real growth potential in both opportunistic and high-yield credit and look forward to working with Jason and his team to capture it.”

For his part, Jason Dillow, CEO of Bardin Hill, said they are “very excited to join Man Group as part of its rapidly growing U.S. private credit platform. Man Group’s broad distribution network, sophisticated institutional platform, and leading-edge technology will help us strengthen our opportunistic and return-driven credit strategies for Bardin Hill’s current investors while also offering new investors access to Bardin Hill products. Given the persistence of volatility and dislocation in credit markets, we believe there is a significant opportunity to leverage our combined strengths to deploy capital and deliver attractive returns to clients.”

One Year Until the World Cup: What’s at Stake Goes Beyond Soccer

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Mexico is preparing to make history. In 2026, it will become the first country to host three editions of the world’s most-watched tournament: the FIFA World Cup. But this time, it’s not just the ball that will be rolling—so will billions of dollars in investment, consumption, tourism, and opportunities for those who know where to look.

An analysis by GBM outlines how this World Cup will be played not only on Mexico’s fields but also on its stock exchanges.

A Historic World Cup—On and Off the Pitch


The countdown continues for the FIFA World Cup hosted by Mexico, which will welcome the tournament for a third time. In 1970, the country saw Pelé win his third title, and in 1986, “the hand of God” and the “goal of the century” helped Maradona secure Argentina’s second World Cup. This time, alongside the United States and Canada, the Latin American nation will host millions of fans in three cities: Mexico City, Monterrey, and Guadalajara.

Following its triumph at Euro 2024, Spain could arrive at the 2026 World Cup as the top favorite, thanks to a young and talented generation led by Lamine Yamal, Nico Williams, and Pedri. France, runner-up in the last World Cup and champion in 2018, is also a strong contender with stars like Kylian Mbappé and a deep roster. Brazil, under new leadership with coach Carlo Ancelotti, remains a historical powerhouse seeking its sixth title. England, with players like Jude Bellingham, Bukayo Saka, and Harry Kane, aims to end its World Cup drought, while Argentina, the current champion, relies on the experience of Dibu Martínez, Enzo Fernández, and Julián Álvarez to defend the crown—possibly in Lionel Messi’s final World Cup. Portugal, recent winner of the 2025 Nations League, and Morocco, semifinalist in Qatar 2022, are also teams to watch, while Mexico dreams of making a surprise run, backed by talents like Santi Giménez, Edson Álvarez, and a solid base of Liga MX players.

The 2026 World Cup will debut a new format with 48 teams divided into 12 groups of four. The top two from each group, along with the eight best third-placed teams, will advance to the round of 32.

This format allows the champion to play up to eight matches—one more than in previous editions—and raises the total number of games to 104. The opening match is scheduled at Estadio Azteca on June 11, and the final will be held on July 19, 2026, at MetLife Stadium in New Jersey, home of the NFL’s Jets and Giants, making this the longest and most game-filled World Cup in history.

The World Cup Brings Goals and Economic Growth


Hosting a World Cup isn’t just a matter of prestige, as GBM highlights—it’s a high-impact economic play. To meet the standards of the world’s most-watched event, host nations must invest heavily. In Mexico’s case, the firm’s analysts estimate an infrastructure investment of $805 million, primarily focused on Mexico City, including key improvements at the international airport.

This amount is significantly lower than the investment planned by the United States, estimated at US$10.42 billion. The difference is due to Mexico and Canada hosting only 13 matches each, while the United States will stage 78 games, including all knockout rounds.

GBM notes that such investment is not made in vain. Global events in Mexico have historically generated strong returns. Since its return in 2015, Formula 1 has brought in around US$7 billion, while NBA, NFL, and MLB games have also drawn millions of fans, especially from Latin America.

But the World Cup is in a league of its own. It’s the one global sporting event capable of delivering the largest economic impact for a host country. According to figures cited in the analysis, Brazil 2014 contributed a 1.2% GDP increase and 158,000 temporary jobs, with its legacy being mainly tourism-driven. Russia 2018 modernized infrastructure and added over $14 billion to the economy, creating more than 300,000 jobs. Qatar 2022, with a record US$200 billion investment, cemented its global positioning.

According to GBM estimates, the 13 matches held in Mexico could generate an economic impact close to US$1 billion, driven by the arrival of approximately 5.5 million visitors during the tournament. This would represent a significant boost for domestic tourism. Additionally, the creation of 24,000 direct jobs related to World Cup activities is expected—from stadium volunteers to additional pilots for the increase in international flights.

Some analysts estimate that, indirectly, the total economic impact could reach up to US$7 billion, factoring in cultural, culinary, and sporting events organized across the country. And that doesn’t include the value the World Cup holds for global companies, sponsors, and sports brands.

The analysis details how, for FIFA, the World Cup is its primary revenue source. As demonstrated by Qatar 2022, the sale of rights related to the tournament generated US$6.3 billion between 2019 and 2022, accounting for 83% of the organization’s total revenue during that cycle. This financial impact makes each World Cup a crucial event for the sustainability and global expansion of FIFA’s operations.

Financial Opportunities Landing With the World Cup


The authors of the analysis raise what they call “the million-dollar question”: how can investors take advantage of the World Cup to boost their investments?

The first factor they believe should be considered is the increase in visitors arriving in the country. While the Mexico City International Airport—which will host five matches—is government-operated, the airports in Guadalajara and Monterrey are managed by Grupo Aeroportuario del Pacífico (GAP) and Grupo Aeroportuario del Centro Norte (OMA), respectively. Both companies are listed on the Mexican Stock Exchange, creating opportunities for investors to benefit from increased air traffic and higher airport service revenues during the World Cup.

On one hand, GAP operates 12 airports in the country. While the largest in terms of volume is Guadalajara, the most appealing from a tourism perspective might be Puerto Vallarta or Los Cabos. For OMA, the potential is similar. In addition to Monterrey’s airport, which is key during the event, destinations such as Acapulco or Ixtapa-Zihuatanejo may attract fans seeking a break between matches.

The other major airport group in Mexico is ASUR, GBM notes. While it does not benefit directly from World Cup matches, it could gain from increased domestic travel driven by fans moving around the country. ASUR controls the airport with the highest international traffic in the country: Cancún.

Brands, Media, and Stadiums: Other Key Players in the Game


Beyond stadiums and tourism, analysts point out that the World Cup also activates key players in media, entertainment, retail, and sports—many of which are publicly traded companies. One central figure is Ollamani, the company that owns Estadio Azteca, which plans to invest more than US$158 million in its renovation, as the venue will host five matches, including the opener.

Although it will not receive revenue from ticket sales, merchandise, or sponsorships during the tournament, this investment ensures international visibility and increases its value as a venue for future events. Another asset, PlayCity, could see a major boost in sports betting activity during the World Cup, driving profits for the group.

In Q1 2025, AGUILAS—the holding company encompassing football and betting operations—reported EBITDA of 268 million pesos (US$14.1 million), below GBM’s estimate. Fourteen percent of its revenue came from Club América and Estadio Azteca, while 43% came from PlayCity Casinos. The firm’s research team assigns a price target of 64 pesos per share (US$3.36), with 35% upside potential.

In media, TelevisaUnivisión is the dominant player. It holds the broadcast rights to the 2026 World Cup in both Mexico and the U.S. (in Spanish), covering free-to-air television and digital platforms. The company also holds rights to the Olympics through 2032, the Gold Cup, and Liga MX, consolidating its leadership in sports content and increasing its commercial value.

But the playing field doesn’t end there. Global brands like Nike and Adidas—who outfitted 63% of the teams at Qatar 2022—play a key role in jersey, cleat, and merchandise sales. Nike, for instance, sponsors stars like Mbappé, Cristiano Ronaldo, and Neymar, and leads in on-field presence.

Nike is a top international pick in GBM’s view, thanks to its exposure to the global sports market, particularly in Asia. Its Triple Double strategy and $2 billion cost-savings plan strengthen margins through automation, e-commerce, and price increases. The brand also stands out for shareholder returns: $2 billion in dividends, recent buybacks worth $8 billion, and a five-year $16 billion plan—all in dollars.

Finally, the World Cup’s official sponsors are also playing their own game. Companies like Coca-Cola, Visa, Bank of America, Aramco, Lay’s, and Adidas invest hundreds of millions of dollars for exclusive rights and massive exposure to a global audience. Each leverages the tournament to strengthen its market position: Coca-Cola launches campaigns like #SomosLocales, Visa bets on young ambassadors like Lamine Yamal, and Aramco gains strategic visibility as the only sponsor from the energy sector. For these firms, the World Cup is not just about branding and awareness—it’s a high-return investment.

The Play Is Underway


GBM notes in its analysis that with one year to go before the World Cup, opportunities for investors are already on the table. From infrastructure and tourism to media, betting, and sports brands, the world’s biggest tournament moves more than just passion—it moves capital.

Spotting early which companies are best positioned to capture value—whether through direct exposure to the event or collateral effects on consumption, mobility, and entertainment—can make all the difference in returns.

The 2026 World Cup will be an unprecedented showcase for Mexico and for many globally active companies. The question isn’t whether it will generate value—it’s: with whom and how will this historic play be executed?

BBVA Launches Ambitious Plan to Multiply Its International Wealth Management Assets in Five Years

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BBVA has an aggressive growth target in global wealth, and the U.S. unit will play a very relevant role, contributing the largest share of asset growth, said Humberto García de Alba, in an exclusive interview with Funds Society.

The Spanish-origin bank has launched a new five-year strategic cycle, and BBVA GWA aims to “multiply several times over” its AUMs by 2029, he stated. “The United States will play a key role due to its importance in the region and because of the nature of the market. The goal is to grow significantly and quickly,” the executive anticipated.

Leveraging its three global wealth platforms (Switzerland, Spain, and the United States), BBVA offers its Latin American clients complementary and comprehensive solutions through the work of local and international teams of Wealth Planners, Investment Counselors, and Financial Advisors.

With this model, BBVA GWA plans to expand and diversify its base of high-net-worth Latin American clients “in a meaningful way.” Currently, 95% are Mexican, though clients from Peru and Colombia are being added; they will soon gain a presence in Uruguay as well, the CEO stated in the interview.

In the U.S., in addition to its main base in Miami, the firm also currently has offices in Houston.

The CEO announced that the unit is now launching discretionary management, with an investment team led by Víctor Piña, CIO of BBVA GWA. However, the advisory business remains significant, according to García de Alba, since “the Latin American client wants to retain that final decision over their wealth to a relevant extent; it is a client with little tendency to relinquish discretion,” he acknowledged.

A Clear Opportunity Ahead

“There is a very clear opportunity for BBVA in the Wealth business, since the Latin American client, for multiple reasons, holds a relevant portion of their financial wealth outside their country of origin. In the current context, the various international units focused on this type of client are a high priority,” the executive explained.

“BBVA has strongly committed to the Wealth business during the previous cycle. The bank is very well positioned in Spain, Turkey, Switzerland, and Portugal in Europe, and has a very relevant local presence in Mexico, Peru, Colombia, and Uruguay in Latin America,” he noted.

In the United States, BBVA’s presence in the international Wealth Management business spans 30 years, although it experienced a pause due to the 2021 sale of BBVA Compass to PNC Financial Services, until the reopening of the BBVA GWA office in Miami two years later. In Switzerland, this unit has been active for 50 years; in Spain, this type of service is relatively new for the bank.

A Framework for Growth

“We are growing at very fast rates,” García de Alba told Funds Society, while explaining that for both regulatory and practical/logistical reasons, they collaborate “closely” with BBVA Group’s local bankers, “because we consider the day-to-day relationship of trust with our clients to be important.”

A Mexican national, the new CEO has been with the Spanish group for over two decades. “What we have built over these years is that this trust-based relationship can be easily expanded internationally,” he noted, as the relationship with the local banker facilitates communication and access for the client to the specialists and global solutions that GWA offers from its platforms in the U.S., Switzerland, and Spain. “We have built the channels, the means, the platforms so that this communication happens very easily and very quickly,” he explained.

BBVA GWA offers its clients a unique global strategy that is approached in three layers, the executive explained. “We have the Wealth Planning area, as a guide for family solutions in situations such as inheritance, trusts, etc. Then, we have the figure of the Investment Counselor, which has existed for nearly 20 years. This is a specialist who dedicates 100% of their time to investment matters. And at the core of our offering is our Relationship Manager, our local or international advisor, depending on the figure that exists in each location. So, with this entire structural framework, we serve the high-net-worth client.”

García de Alba also emphasized that BBVA GWA is structured as an RIA, which means the fiduciary duty fosters a greater alignment of interests with the client. “I believe the biggest area of opportunity BBVA has right now in the Wealth business is on the international side,” the CEO affirmed.

“Locally, we have a lot of confidence in this business. We see a growth opportunity to multiply AUMs several times over. We’ve built the model, we have the people and very strong teams. We have a highly relevant growth path ahead, and I believe we have all the foundations in place to make it happen,” he concluded.

Vanguard Launches Three New ETFs Focused on U.S. Government Debt

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Vanguard Announces the Launch of the Vanguard Government Securities Active ETF (VGVT), an Actively Managed ETF, and Two Indexed ETFs: Vanguard Total Treasury ETF (VTG) and Vanguard Total Inflation-Protected Securities ETF (VTP). All are managed by the firm’s fixed income team.

“The actively managed ETF VGVT leverages our fixed income expertise to offer a flexible, high-quality portfolio of U.S. government and agency bonds, along with select securitized credit,” stated Roger Hallam, Global Head of Rates at Vanguard Fixed Income Group, in a press release.

“VGVT is designed to serve as a resilient core fixed income position, capable of adapting to changing market conditions while maintaining the diversification and risk-buffering qualities investors expect from Treasuries. It’s an attractive option for those looking to balance their equity exposure and pursue long-term stability through active management,” he added.

Strategy Details

The new VGVT vehicle from the firm aims to outperform the broad U.S. Treasury bond market while retaining the diversification benefits such bonds offer. Its expense ratio is 0.10%, and it becomes the eighth actively managed ETF in the firm’s fixed income lineup.

VTG, in turn, further strengthens Vanguard’s offering of indexed fixed income ETFs, providing a low-cost solution for broad exposure to the U.S. Treasury bond market—the largest and most liquid fixed income segment. It has an expense ratio of 0.03%, facilitating access to the full yield curve.

Lastly, VTP offers long-term investors a robust tool designed to protect their portfolios from inflation risk. It provides exposure to the full spectrum of the U.S. Treasury Inflation-Protected Securities (TIPS) market, complementing the existing Vanguard Short-Term Inflation Protected ETF (VTIP).

The vehicle features a broader investment universe and a longer duration profile and is being launched with an expense ratio of 0.05%. According to the firm, it is a valuable addition for those seeking long-term inflation protection.

Track Record and Expertise

VTG and VTP reflect Vanguard’s decades of experience in Treasury markets and inflation-protected investment vehicles, the ETF house emphasizes. Both ETFs provide access to Vanguard’s fixed income index team through comprehensive solutions for two key market segments.

With the launch of these three strategies, the total number of fixed income ETFs offered by Vanguard Fixed Income Group rises to 36, of which 28 are indexed.

Looking Beyond Home Bias? Brazilians Open the Door to Offshore Assets

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Photo: Diego Torres Silvestre. Paulo Sampaio Named Head of Latin America Southern Cone for S&P DJI

One of the Idiosyncratic Features of Brazil’s Financial Market—the Largest in Latin America—is Its Notorious Home Bias. With high interest rates, a deep and competitive industry, and substantial capital across all segments, Brazilian investors have historically favored domestic investments. However, this era of local bias appears to be starting to fade, as capital holders in the country recognize the importance of international diversification.

Historically, only a small percentage of total domestic portfolio wealth has been invested in foreign assets, according to data from the Brazilian Financial and Capital Markets Association (Anbima). This includes portfolios of major institutional players such as pension funds, which are even more conservative, with an average of just 1%.

This scenario has been shifting recently, driven by a combination of macroeconomic factors. By May, the real had depreciated 6% against the dollar in 2025, while the Ibovespa had fallen 6.5% year-to-date, reflecting internal fiscal uncertainties and a more restrictive global environment. In contrast, international equity indices delivered more attractive returns, prompting growing interest from Brazilian investors in allocating assets abroad.

Brokerages, asset managers, and multi-family offices have been adapting their structures to respond to this new investor behavior and the growing demand for global products.

Offshore Outpost: Bradesco’s Strategy

In their efforts to consolidate international operations and offer a platform in the renowned U.S. market, some investment firms have turned their attention to Miami.

One illustrative example is Bradesco Asset Management (BRAM), which has been expanding its international exposure with the opening of a new office in the Florida city. This move positions the firm as an international business hub for the Bradesco Group.

“Brazilian clients are increasingly structuring their international allocations. In the past, it was a tactical decision focused on the dollar. Today, we see a more strategic stance, with permanent presence abroad,” explains Priscila Ramirez, Head of Business Development at BRAM, in an interview with Funds Society. She leads the new operation, which is integrated into Bradesco Bank in Miami.

With approximately 930 billion reais (around US$164.8 billion) in assets under management, BRAM represents 8.5% of Brazil’s fund market. In the U.S., the manager is focusing its presence on three fronts: relationships with institutional investors and global asset managers; expanding product offerings for Private clients; and serving a new segment called Principal, aimed at High Net Worth clients with assets starting at 300,000 reais (about US$53,200).

“Clients will have access to a full banking structure, not just an expanded investment portfolio,” says Ramirez. The Miami office will allow them not only to open checking accounts in the U.S., but also to invest in a portfolio of around 50 offshore funds, selected through a curated process involving ten international partner managers.

BRAM is also registered as a manager with the SEC, which, according to Ramirez, broadens its ability to serve foreign investors, especially pension funds in Latin America and Europe.

More Exposure: XP’s Recommendation

Brazil’s largest brokerage and a major player in local financial advisory, XP, has made a significant shift in its recommended portfolio, now urging investors to increase their international exposure. Since April, the recommendation has been for at least 15% of the portfolio to be allocated to offshore assets.

“Retail clients today have between 3% and 4% of their wealth outside Brazil. That’s too little. Especially for this profile, it should reach around 15% over the next one, three, or five years,” says Rodrigo Sgavioli, Head of Allocation at XP, quoted by InfoMoney.

XP has worked to facilitate this shift with solutions like its international account, which provides direct access to global assets without the need for complex structures like offshore companies. “The XP international account offers a simple solution for those seeking diversification,” he explains.

Since its launch in 2022, the account has offered access to over 10,000 assets listed on Nasdaq and NYSE, corporate bonds, U.S. Treasuries, and more than 100 global funds.

The firm’s thesis is backed by hard data: “The Brazilian capital market represents only 1% to 2% of the global market. That means anyone who keeps 100% of their wealth in Brazil is giving up on 98% of the world’s available opportunities,” according to Sgavioli.

The firm also promotes international investment as a way to protect wealth against internal shocks and inflation. “In times of instability, the dollar appreciates, which preserves the purchasing power of those with dollar-denominated assets,” he adds.

In this vein, Sgavioli affirms that the move toward internationalizing portfolios is not a passing trend, but part of a long-term strategy. “The major themes that will shape the next 10 or 20 years—such as technology and artificial intelligence—are being led by companies listed on U.S. and European stock exchanges,” he comments.

XP’s portfolio overhaul also includes a fixed income component, where it launched Certificates of Deposit (CDs) in May—fixed income securities issued by global financial institutions, similar to Brazilian CDBs. “Our mission is to democratize access to international investments just as we did in Brazil,” says Rodolfo Buim, Product Manager at XP in the international division.

A Must for MFOs: The Case of MSX

“For us, offshore is mandatory,” states Marco Saravalle, CIO of MSX, a recently established multi-family office in Brazil. In an interview with Funds Society, he emphasizes that international allocation is no longer optional and has become a structural practice in wealth management.

Saravalle notes that Brazilian investors are particularly sensitive to two factors: exchange rates and politics. “They usually act in the opposite way to what’s ideal. They seek offshore investments only after the real has already depreciated significantly. The right move would be to position themselves when the real is strong,” he says. He recalls that when the dollar hit the 6.2 to 6.3 reais range, demand for foreign assets rose significantly.

The investment manager also warns about the high correlation among local assets. “Many people think they’re diversifying by holding shares of Bradesco, Itaú, Petrobras, CDBs, and government bonds. But they’re all highly correlated. They move together,” he explains.

Offshore assets, on the other hand, offer not only geographic diversification but also structural de-correlation. “In 2023 and 2024, while the Brazilian stock market fell, the U.S. market appreciated. Even if it ended flat, with the real’s devaluation, the investor gained in dollars,” he notes, adding that “it was the right decision. The dollar went up, and so did their wealth.”

The MSX CIO agrees that this movement is already a structural trend. “Today, all our clients have some dollarized position. Some have over 50% of their wealth in hard currency. Even those just starting out already have at least 10% in dollar-linked assets,” he says.

Finally, Saravalle stresses that de-correlation is as important as returns. “Right now, the real is appreciating, the Ibovespa is rising, while foreign markets are more volatile. That’s why it’s essential to build a balanced portfolio that works across different cycles. That’s the key to long-term consistency,” he concludes.

This article was published on page 44 of Issue 43 of Funds Society Américas magazine. To access the magazine, click here!

Trump and Powell: A Relationship Full of Noise and Little Substance, For Now

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The political tension from Donald Trump, President of the U.S., toward Jerome Powell, head of the U.S. Federal Reserve (Fed), regained prominence after Treasury Secretary Scott Bessent avoided confirming whether Powell will be removed. According to experts, this is a new chapter in a story we’ve been hearing for just over a month. Just last week, these same rumors disrupted the markets.

“Despite the tense backdrop with the Fed, Bessent avoided giving opinions on the possible dismissal of Chairman Jerome Powell, whose term ends next May, hinting that the final decision lies solely with President Trump. However, recent reports from The Wall Street Journal stated that Bessent had privately warned Trump about the negative impact on markets if Powell were removed—something the president emphatically denied through his official account on X, insisting that ‘no one explains anything to him’ and taking personal credit for the market’s record highs,” says Felipe Mendoza, financial markets analyst at ATFX LATAM.

In this context of pressure on the Fed, financial markets tend to react initially to headlines by taking refuge in defensive assets such as U.S. Treasury bonds and gold, while the U.S. dollar weakened and stocks experienced brief volatility before stabilizing following Trump’s clarification. According to UBS, prediction markets assigned a probability of approximately 21% that Powell will not continue in his position in 2025. Furthermore, the dollar has recently reached its lowest level in three years, weakened by headlines about a potential early leadership change at the Fed.

“While we continue to consider the probability of a change in Fed leadership to be low, recent events have drawn increased attention from policymakers and investors. Although the situation remains speculative, global investors should take into account the possible implications of a challenge to the Fed’s independence, the legal considerations for removing its chair, and the political implications for monetary policy,” UBS states in its report.

The Consequences
According to the document, a move to dismiss the Fed chair could raise doubts about the long-term credibility of U.S. monetary policy and about the Fed’s independence, which has historically been considered a fundamental pillar of the financial system. “This comes at a time when there are already concerns about the U.S.’s fiscal sustainability, inflation, and the dollar as a store of value. Such an event could lead investors to demand higher risk premiums on U.S. public debt, especially if it generates greater uncertainty about inflation or interest rate policy. Aggressive rate cuts under political pressure might not translate into lower yields across the curve, as investors could begin to anticipate greater inflationary risks. These developments could also negatively affect the U.S. dollar’s role as a global reserve currency,” warns UBS.

In the opinion of Deborah Cunningham, Chief Investment Officer for Global Liquidity at Federated Hermes, one of the many costs of President Trump’s attacks on Fed Chair Powell is presenting monetary policy as black or white, with no middle ground. “It might have seemed that way decades ago. Before Chair Bernanke opened it up to the public, the Federal Reserve was a black box. It communicated mainly through Federal Open Market Committee (FOMC) statements and daily market operations, rather than through speeches, press conferences, and congressional testimony. But monetary policy is as gray as anything in economics, involving both opinion and data,” she explains.

In her view, Trump’s tirades also drain healthy debate about the central bank. “Had he not issued a rant after the FOMC held rates steady last month, the main story could have been a growing unease among officials. It actually should be. No participant dissented from the decision, but the June Statement of Economic Projections (SEP) changed subtly compared to March’s, suggesting a possible split. While the median federal funds rate remained at 3.9%—implying two quarter-point cuts this year—seven voters indicated zero cuts, compared to four in March,” Cunningham adds.

Their Different Points of View
According to the Market Flash from Edmond de Rothschild AM, beyond the pretext of poor management of the bank’s renewal plans, the episode illustrated two radically opposing views on U.S. inflation and growth. “On the ‘rear-view mirror’ side, we find Donald Trump and the candidates to succeed Jerome Powell as Fed Chair. With inflation trending toward 2%, they advocate for urgent rate cuts to halt the economic slowdown and deteriorating labor market. The ‘windshield’ side, which includes Adriana Kugler, a Powell supporter and member of the Fed’s Board of Governors, encourages the bank to keep rates where they are, as tariffs should push inflation above 3% by the end of 2025,” they explain in their report.

The financial institution is anchored in a “wait-and-see” stance pending the impact of the new trade policy of the Trump Administration. According to Edmond de Rothschild AM experts, the Fed had expected the trade war to have only a fleeting effect on inflation, but Donald Trump’s recent announcements—delaying the 200% tariffs on pharmaceuticals until 2026—could prolong the impact and cause a de-anchoring of long-term inflation expectations.

“The data seem to suggest that Jerome Powell’s side is right: weekly jobless claims, excluding seasonal effects, indicate that the economy is at a cyclical high, yet showing resilience. Consumer spending remains strong: retail sales have rebounded sharply after a disappointing start to the year. The latest CPI reading revealed a significant increase in goods inflation, particularly in areas sensitive to tariffs like electronics, although overall inflation still appears to be under control thanks to shelter trends. Donald Trump expected that the tariff hikes would be absorbed by exporters to the U.S., but the fact that import prices have only fallen slightly suggests that U.S. businesses are bearing most of the increases,” they note.

Surge in Flows to Active ETFs in the First Half of 2025

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Global assets in actively managed ETFs reached $1.48 trillion by June, representing a growth of 26.7% during the first six months of the year, according to the latest data published by ETFGI. This figure was driven by inflows that also broke new records: $46.77 billion in June alone, which raised the cumulative net inflows for the year to a record $267.02 billion, according to the report.

Subscriptions to actively managed ETFs are gaining increasing relevance relative to overall inflows in the total ETF market. According to figures published by ETFGI, investment flows into exchange-traded funds totaled $897.65 billion in the first half of the year, $167.29 billion more than in the same period last year, a 22.9% increase. Of the investment inflows into ETFs from January to June, a total of $267.02 billion corresponded to actively managed ETFs, an amount $112.98 billion higher than in the first half of 2024, or in other words, 73% higher.

Therefore, inflows to actively managed ETFs this year already represent 29.7% of total ETF subscriptions, compared to 21% during the same period last year. At the end of 2024, this percentage stood at 19.9%. The positive market performance also lifted the assets of actively managed ETFs worldwide.

Regarding the industry composition, by the end of June, there were 3,805 actively managed ETFs listed globally, managed by 573 providers and traded on 42 stock exchanges across 33 countries.

Flow Dynamics
 Analyzing June’s flows, it stands out that actively managed equity ETFs, listed worldwide, recorded net inflows of $24.65 billion, bringing the total accumulated for the year to $148.98 billion, surpassing the $89.35 billion registered in the same period of 2024.

For actively managed fixed income ETFs, net inflows of $20.51 billion were reported in June, reaching accumulated inflows in 2025 of $102.6 billion, “well above the $54.49 billion recorded up to June 2024,” explain ETFGI. They indicate that the substantial inflows can be attributed to the 20 actively managed ETFs with the highest net flows, which together captured $19.7 billion during June.

Two recently launched JPMorgan ETFs, the JPMorgan Mortgage-Backed Securities ETF (JMTG US) and the JPMorgan Active High Yield ETF, led the inflow rankings. The former recorded $5.78 billion in inflows.

Strong investment inflows are notable in collateralized debt ETFs, such as the Janus Henderson CLO AAA ETF, which registered subscriptions of $876 million last month. It is the largest CLO ETF in the world, with over $21 billion in assets under management. This year, it has already received flows close to $5.2 billion.

Interest in dividend ETFs is also remarkable, such as the Capital Group Dividend Value ETF, which received investment inflows of $835.9 million in June alone, raising its subscriptions this year to $4.524 billion.