Such a variety of topics, but the perfect platofrom for you to share your long history, knowledge and insights into the ETF market Good inventory of where we are at. I think the “active” dimension of ETFs is definitely on the rise and the “packaging” aspect is a big growth area, especially for ETFs that take advantage of option’s ability to transform capital returns into income and reshape return patterns. There are also very few successful multi-strategy ETFs, because that is what RIA’s and model portfolios cover. Perhaps this will be an area of competition down the road. I have always hated the “pay to play” and have been surprised how long it lasted. Hopefully, the clamor for broader access to ETFs by wirehouse clients will eventually win out - but I agree it will take a while, given the bull market backdrop.
Completely agree on bringing options into the mix. I hope it didnt sound unfavorable, I think the way we're using options to mold patterns of returns in these structures is brilliant. Where I think there are some things to think of down the line are the onesidedness of some of these trades. We know what happens when everyone goes one way in a big complex trade -- that's sort of the volmageddon story. Everything works, but there can be snap reactions that surprise people.
Curious if you have thoughts about where things go to far in this regard. It gets so comples from a reg perspective...
And excellent choice of citation for the recent SEC enforcement action on violation of the liquidity rule!
FWIW I wouldn’t worry too much about attempts to provide access to private markets in the ETF wrapper; the division is just too sharp (even before the liquidity rule) and the action in trying to expand private markets access is occurring in other areas (I’ll tell you about them next time you swing through NY).
Lastly, one of these days I’ll pick a fight with you about the virtues of our retirement system (hint: it has virtues and they are underrated).
Oh, I am personally a fan of the DC system -- I cut my teeth as the head of sales for the Wells 401k team in 1993, where I was a terrible, terrible sales manager (at the sagacious age of 26). But the followon effects in capital markets I have come to believe, are real, and worth discussing. Will reach out for a coffee in a few weeks!!! Cheers!~
Such a variety of topics, but the perfect platofrom for you to share your long history, knowledge and insights into the ETF market Good inventory of where we are at. I think the “active” dimension of ETFs is definitely on the rise and the “packaging” aspect is a big growth area, especially for ETFs that take advantage of option’s ability to transform capital returns into income and reshape return patterns. There are also very few successful multi-strategy ETFs, because that is what RIA’s and model portfolios cover. Perhaps this will be an area of competition down the road. I have always hated the “pay to play” and have been surprised how long it lasted. Hopefully, the clamor for broader access to ETFs by wirehouse clients will eventually win out - but I agree it will take a while, given the bull market backdrop.
Thanks Joanne!
Completely agree on bringing options into the mix. I hope it didnt sound unfavorable, I think the way we're using options to mold patterns of returns in these structures is brilliant. Where I think there are some things to think of down the line are the onesidedness of some of these trades. We know what happens when everyone goes one way in a big complex trade -- that's sort of the volmageddon story. Everything works, but there can be snap reactions that surprise people.
Curious if you have thoughts about where things go to far in this regard. It gets so comples from a reg perspective...
Excellent overview.
And excellent choice of citation for the recent SEC enforcement action on violation of the liquidity rule!
FWIW I wouldn’t worry too much about attempts to provide access to private markets in the ETF wrapper; the division is just too sharp (even before the liquidity rule) and the action in trying to expand private markets access is occurring in other areas (I’ll tell you about them next time you swing through NY).
Lastly, one of these days I’ll pick a fight with you about the virtues of our retirement system (hint: it has virtues and they are underrated).
Oh, I am personally a fan of the DC system -- I cut my teeth as the head of sales for the Wells 401k team in 1993, where I was a terrible, terrible sales manager (at the sagacious age of 26). But the followon effects in capital markets I have come to believe, are real, and worth discussing. Will reach out for a coffee in a few weeks!!! Cheers!~
I cannot disagree with any of these predictions.