Vince Lorusso, president and CEO of Clough Capital, recently shared insights on the shifting investment landscape, with particular focus on the rapid rise of actively managed Exchange-Traded Funds (ETFs). As ETF inflows reached approximately $1.3 trillion by early December, Lorusso explained how these vehicles are increasingly reshaping portfolio construction for both institutional and retail investors.
Over the past two years, actively managed ETFs have seen accelerated growth as asset managers seek to combine institutional-grade investment strategies with broader market accessibility. Lorusso pointed to regulatory changes introduced in 2019 as a turning point that unlocked the ETF structure for active managers. Clough Capital, a Boston-based investment firm with 25 years of experience, launched its ETFs on the New York Stock Exchange in 2020, aligning with the early stages of this structural shift.
Lorusso highlighted several features driving the appeal of active ETFs, including tax efficiency, liquidity, and transparency. By delivering sophisticated strategies through an ETF wrapper, managers can offer investors greater flexibility while maintaining disciplined portfolio oversight. He noted that more fund managers are migrating toward ETFs as data-driven insights and evolving investor preferences continue to shape capital flows.
Clough Capital’s investment philosophy emphasizes disciplined research rather than trend-driven positioning. With two flagship funds, Clough Select Equity and Clough Hedged Equity, the firm focuses on strategic investment horizons informed by macroeconomic conditions and long-term thematic trends. By analyzing capital market cycles, economic growth patterns, and technological shifts, Clough Capital aims to identify companies with durable fundamentals and sustainable growth potential.
Looking ahead to 2026, Lorusso expressed a constructive outlook on equities, supported by anticipated interest rate changes and demographic tailwinds. He identified technological innovation, particularly in artificial intelligence and sustainability investing, as key drivers of future market dynamics. Areas such as AI infrastructure, supported by detailed bottom-up research, are expected to present compelling opportunities.
Rather than relying solely on broad-based indices, Lorusso encourages investors to focus on specific industries and companies that demonstrate strong barriers to entry, consistent free cash flow generation, and resilient business models. This selective approach, he noted, becomes increasingly important during periods of economic uncertainty.
Lorusso’s perspective reflects Clough Capital’s commitment to adaptable investment strategies that respond to evolving market conditions. As financial markets integrate emerging technologies and align more closely with sustainability principles, staying informed and strategically positioned remains essential for long-term success.
Clough Capital’s approach also aligns with broader trends in responsible investing, emphasizing innovation, transparency, and efficiency. As blockchain technology, cryptocurrency, and AI continue to influence financial markets, active ETFs are emerging as a flexible vehicle capable of supporting both performance objectives and evolving investor priorities.
In conclusion, the current investment environment presents meaningful opportunities within actively managed ETFs. Clough Capital’s focus on disciplined research, adaptability, and sector-specific strategies highlights how active ETFs can serve as a dynamic tool for diversification and long-term portfolio growth.