Cinthia Murphy, investment strategist at VettaFi, joined host Nate Geraci this week on ETF Prime to preview 2026 through fresh advisor survey data gathered between mid-November and late December.

Murphy shared survey results showing strong bullish sentiment from advisors despite recent market performance. When asked where the S&P 500 will finish in 2026, 63% of advisors predicted it would be 10% or more higher, while 23% expect rangebound performance and only 14% anticipate declines of 10% or more. Murphy suggested the optimism may reflect recency bias after the index gained 26% in 2023, 25% in 2024, and 18% in 2025.

On interest rates, Murphy reported that 75% of advisors expect rates to be lower by year-end 2026, with only 7% expecting higher rates. She highlighted the belly of the curve — the three- to seven-year duration range — as a potential sweet spot if short-term rates decline while inflation concerns keep long-term rates elevated.

When asked which asset classes advisors plan to initiate or add to in 2026, Murphy said large cap U.S. equities topped the list at 30%, followed by small cap U.S. and international equities tied at 21% each. She noted that international markets finally performed well in 2025, with China up over 30%, which may validate renewed interest in the asset class.

Crypto as a Source of Speculative Growth

On crypto adoption, the survey revealed 53% of clients hold zero crypto exposure, while 38% hold between 1% and 10%. Murphy explained the primary reasons clients ask about crypto are speculative growth opportunities at 50%, diversification at 28%, and fear of missing out at 22%. Notably, 0% cited conviction in the underlying technology, which Murphy said reflects the gap between industry discussions about blockchain innovation and real-world advisor conversations.

The episode also featured Brittany Christiansen, head of business development at Tidal Financial Group, which manages over 350 ETFs with 90 issuers.

Christiansen discussed the multi-share class structure recently approved by the U.S. Securities and Exchange Commission, calling it somewhere between the massive ETF Rule of 2019 and the less successful semi-transparent ETF structure. She emphasized that managers must evaluate their investor base, as funds heavily held in retirement accounts or those with load fees may not be ideal candidates for an ETF share class.

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