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After a brief hiatus, thematic ETFs—Exchange Traded Funds, or baskets of stocks and companies focused on a narrow theme, trend, or concept—are being aggressively marketed by the investment management industry again.

Although CFOs’ optimism has risen, finance leaders are confronting the disruptive triumvirate of new tax legislation, persistent tariff volatility, and rising AI integration—while seeking meaningful, measurable outcomes. All at once, three things must be considered in a complex environment where transformational opportunity and uncertainty coexist. The takeaway is that holistic modeling is essential for businesses to determine the right tax strategy for their circumstances.

Looking at the data and macro trends, the quantitative insights suggest the conditions underpinning more than a decade of non-U.S. equity underperformance may be starting to shift. The three drivers behind it are (1) tariffs are weighing on U.S. household income and may curb consumption; (2) fiscal and economic policy abroad is becoming more proactive; and (3) macro conditions are reshaping relative growth prospects. As growth differentials narrow, there are compelling valuations—and potential capital flows—outside the United States.

In this episode of The Money Maze Podcast, NEPC's Michael Manning discusses the evolving role of investment consultants, highlighting how they help institutional investors navigate complex markets, build resilient portfolios, and make strategic, long-term decisions. The conversation explores whether these consultants are indispensable in an increasingly dynamic investment landscape.

By most measures, the start of the first quarter of 2025 painted a picture of positive economic momentum and optimism in the U.S. Growth remained solid. Unemployment hovered near 60-year lows. Real wages were rising. Corporate earnings were on track for double-digit growth. And then it turned from optimism to uncertainty to sheer panic with the Trump administration surprising markets with a sweeping set of tariffs. By quarter’s end, the tariffs have ignited fears of global trade war, surging inflation, and a material growth slowdown.