#InsideETFs – CNBC’s Hottest ETF Topics

The World’s largest ETF conference gets underway in Hollywood, Florida on January 24 with four information packed days of speaking panels, technology demonstrations and killer cocktail parties.  Trendrating will be amongst the many product, data and technology exhibitors participating in the event (Booth 319).  CNBC’s @BobPisani will be broadcasting live as well as moderating a panel discussion.  Here is a summary of Mr. Pisani’s Hottest ETF Topics for 2016.

ETFs are cheap, and getting cheaper

Will lower and lower fees prohibit more ETF Issuers from joining in? Can huge volume compensate for near zero fees?

Smart beta funds keep growing

Is “Smart beta” just a front for active fund management?  More notable fund issuers such as GSAM, Deutsche Bank and JP Morgan have launched multi-factor Smart Beta funds which typically include value, momentum, quality and volatility.

This is something we at Trendrating can attest to as more and more ETF Issuers are evaluating our momentum analytics against their home grown models or commercial models offered by MSCI, Morningstar, Dorsey Wright and others.

Active Management is coming – for better or worse

“Why does active management persist, despite the growing popularity of passive investments that track indices? Because: 1) there is a huge industry that insists they are smarter than the market; and 2) there’s more money in it than passive management.” At least the price for mediocre returns will be much less.

Regulation of ETFs: Will the SEC kill the party?

Maybe, but at the pace they usually move at, it won’t happen anytime soon.  Expect more mutual fund companies to dip their toe into the water.

Market structure: What role do ETFs play in market volatility?

Success breeds jealously amongst non-participants.  A lot of the finger pointing is being done by firms don’t have a dog in the race and are losing fee revenues.

For those attending the Inside ETFs Conference next week, safe travels (if your flight isn’t cancelled) and stop by and say hello to the folks at Trendrating.

 

 

 

 

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