As Thanksgiving nears, we have many reasons to be grateful this November. We decided to share what we are most thankful for in our work before we sit down to our holiday dinners on Thursday. This by no means covers everything we appreciate, but we hope you’ll find our rundown insightful (and occasionally bemusing).
2025’s Thanksgiving gratitude list
An independent Federal Reserve. Every year, someone will claim that green bean casserole (or the Fed’s dual mandate) is an outdated recipe and should be replaced with something else. Every year, those individuals are proven wrong. Despite structural challenges and supply constraints, the Fed managed to keep unemployment steady at around 4.2% this year, while also reducing inflation from a peak of 9% in 2022 to about 2.6% by mid-2025. The Fed also began gradual rate cuts of two 25 bps reductions (in September and October) to support slowing growth, signaling adaptability and data-driven decision making without undermining inflation progress.
Updated Insights Integration rollout. The bounty of features on the table this year includes: new universal components that can be accessed via client and account search pages, as well as embedded analytics views in UMP, tax management insights for proposals, SSO connectivity, and Insights integration in TAM Reporting for Tamarac, and a conversational AI feature powered by Insights.
Occasional market volatility. We know what you’re thinking: Watching markets seesaw can create worse indigestion than overeating on Thanksgiving. Still, volatility can create opportunities. Investment fluctuations helped our tax overlay partially offset clients’ capital gains with some losses. Instead of being terrified when the markets wobble, be prepared to harvest potential losses with our automated overlay.
Exchange-traded fund (ETF) share classes. On November 17, the Securities and Exchange Commission (SEC) allowed the first asset manager to proceed with creating ETF share classes for active mutual funds. Dozens of other asset managers will likely receive similar authorizations. These new share classes may improve mutual fund tax efficiency while potentially giving ETFs access to greater economies of scale.
International equity market performance. This year, we’re also thankful for the strong equity market returns from outside the US. As of November 17, developed markets were up 26.81% in 2025, and emerging markets had climbed 31.63% for the year. After international equities had largely lagged in recent years, 2025 has been rewarding for globally diversified investors.
Solid returns from value stocks. While tech-heavy growth stocks may have captured most of the momentum this year, they also faced the most volatility. Meanwhile, value stocks continued to provide consistent returns and fair valuations during periods of market uncertainty. We hope that this serves as a reminder to diversify your portfolios like a Thanksgiving dinner plate going forward.
Portfolio customization. Certain preferences must be considered when setting a holiday agenda: parents or in-laws, Charlie Brown or Planes, Trains, & Automobiles, Turkey Trot 5k at 7 am, or doing anything else. While you may have to compromise on certain traditions, we’re thankful that advisors are consistently able to select investments perfectly tailored to a client’s preferences. Direct Indexing and Tax Management remain integral components to customize investment portfolios to meet the needs of their clients.
Higher yields. Higher yields led to increased coupon and interest income, strengthened portfolio resilience during market stress, and improved risk-adjusted returns. This is especially beneficial for the managers and beneficiaries of retirement funds like pensions and 401ks.
The increased availability and adoption of alts. We’re pleased to see the greater adoption of semi-liquid alts by advisors and investors. Technology enhancements and innovation at Envestnet will serve to reduce friction and allow for a more efficient operational process for advisors to use semi-liquid funds in their clients’ portfolios.
A small cap rebound. Just like the Detroit Lions over the last few Thanksgivings, small caps managed to show an impressive performance in the 3rd quarter, but ultimately continue to lag their large cap competition YTD. However, the outlook for small caps in 2026 may be more optimistic, supported by cheaper valuations and potential rate cuts.
Fresh economic data. After disruptions relating to the most recent government shutdown, we are thankful that the flow of federal economic information has resumed. The September jobs report and real earnings data should be available to enjoy alongside our turkey and stuffing this year.
Our clients. We appreciate each and every home office, advisor, and end-client for your trust in us. We never take your business for granted, and we deeply value our relationship with you. Advisors, please also consider reaching out to thank your clients for valued partnerships and for contributing to this year’s many successes.
Closing thoughts
We hope this list leaves you with a warm heart and a few talking points for your holiday table. Gratitude is the healthiest emotion according to scientific research, and we couldn’t agree more. So, from the Envestnet family to yours, happy Thanksgiving!
Keep up with our industry insights at www.envestnet.com/blog.
