And why don't we talk about where you can invest or where you can get exposure outside of the AI trade and where are we seeing opportunities outside of AI? And then maybe you can tell us how FCUV specifically is positioned.

So, you know, FCU, these are our U.S. value factor ETF there.

But I think broadly speaking, we are seeing in last month, you know, when we think about flows as well, if we've taken a look at, you know, if we take a step back and taken a look at this year, the two main factors we've seen money flowing into would be momentum and value.

And those have been the number two, one and two performing factors year to date.

If we take another step back and take a look at where we are in the business cycle and we think about the U.S. specifically, you know, Had we gone, you know, talked to me about a year ago, I would have said we're in late cycle here for the U.S. And most folks right now agree we're back in the mid-cycle.

Historically speaking, what's worked in the mid-cycle is value and momentum.

I think why value is also working greatly this year is, you know, a lot of some of the trepidation clients do have around that momentum trade, around that AI trade.

And he's a part of our quant team based out of Boston and so that's a big part of your role as well as working alongside the quant team to develop innovative solutions here in Canada so and from my conversations with advisors in more recent months I've heard a lot about quant I think people are getting a lot more interested in how fundamental and quant can really work together in a portfolio so can you just for those on the line just tell us a little bit more about the quant team fidelity

What are your overall thoughts there?

Yeah, so obviously Q4 last year, Q1 of this year, two negative quarters of GDP growth put us into a technical recession.

So the big question coming out of that was, are we diving deeper southwards or is it just a short blip kind of in the economic story here? So right now it looks like it was just kind of a short cool off period.

If we take a look, we're getting into kind of the GDP numbers.

The month-over-month prints have been positive recently.

So it looks like it was more just kind of a short cool-off period for the Canadian economy.

We take a look at the Canadian consumer and we look at consumption.

There

But maybe talk to me a bit about the growth of the active side and where you guys have been seeing that demand come from, because it is quite interesting that there's actually now more active ETFs listed in Canada than passive ETFs.

Yeah, I mean, we talk about the statistics around launches as well.

If you take a look at new launches, you know, the lion's share are active.

You know, obviously we have kind of these established commoditized index-based products that have been around for quite some time.

So a lot of the innovation we're seeing in a lot of the new products coming to market are within the active space.

Yeah, certainly, you know, our lineup is a great example of that.

You know, we are seeing a lot of investors flock towards, you know, active mandates, particularly in the ETF space.

Yeah.

What is it now, would you say? How do you look at that now?

Yeah, your certainty, particularly between Canada and the US, is obviously there's been a differential there.

We've cut more than the Fed.

Even after the developments over the weekend, we've seen that differential widen a little bit more.

So if we take a look at kind of interest rate probabilities, what the market is expecting out of the BOC and the Fed, still pricing in potential hikes out of the Fed for this year.

Almost two hikes are still priced in, about 1.7 hikes.

But there's a full two hikes priced into the curve going out into 2027 for the Fed.

Yeah.