Congress, Market Shifts Shape 2024 ETF Launches

Congressional tax reform discussions have intensified focus on the tax-exempt status of municipal bonds and private activity bonds (PABs), with bipartisan support emerging to preserve these benefits despite legislative uncertainty. The Affordable Housing Credit Improvement Act could expand PABs for affordable housing, though its passage is not guaranteed. Major asset managers like BlackRock are expanding into alternative assets, ETFs, and crypto, providing growth and stability amid market volatility. The S&P 500's recent decline, driven by tariffs and trade tensions, has emphasized the resilience of information technology ETFs, especially those from Vanguard, which continue to outperform. Vanguard launched several new ETFs in 2024, including actively managed muni-bond and short-duration Treasury products, aiming to offer safety and tax efficiency to investors. Tactical ETFs are also gaining traction as adaptive strategies for navigating volatile markets.