This week’s special ETF Prime episode was recorded live in Miami, Florida, as host Nate Geraci was joined by ETF Trends financial futurist Dave Nadig and head of research Todd Rosenbluth, as well as John Swolf of Advisor Circle, to recap the ETF event of the year — Exchange: An ETF Experience.
Speaking to an audience, a first for the podcast, Geraci chats with Nadig and Rosenbluth about being back at an ETF conference for the first time in years, with thoughts on attending more than 2,000 registered advisors, asset managers and more at this event. . There’s a lot to cover when it comes to opportunities to learn more about various funds, companies, and more.
Regarding the overall state of the ETF industry, which currently stands at $7 trillion in assets under management and $200 billion in inflows so far this year, Rosenbluth points out that she is exceptionally healthy. He thinks there is a chance to beat the previous inflow record for the year depending on how things turn out and whether or not the bond market stabilizes.
“All of this is happening on the back of the core equity ETFs, mostly, and commodities,” Rosenbluth points out. Given the pace, there is a chance of hitting a new record number of ETF launches within a year, and many companies are showing how promising the industry is to grow even further.
Nadig adds that the success of the industry is not even a surprise at this point. “Where we are now is talking about macroeconomics, inflation, the Fed, bonds, wallets, crypto. It’s just a given that the ETF is the vehicle that will provide all the solutions industry can offer.”
Looking at some key takeaways, Geraci notes FINRA’s proposal on ETFs and more complex mutual funds, which has caused some negative buzz because of what it requires brokerages to do to investors. . For Nadig, “It would be an unprecedented change in the way financial interactions are regulated in this country.” It would be a very different process for people that would undo the progress already made in the past for the ETF industry.
A door opening for the Bitcoin ETF?
The discussion then turns to the possibility of a spot bitcoin ETF and why other countries and territories such as Canada and Latin America all have spot crypto products currently trading. Listening to Nadig, he points out that there is less presence of true bottom-up created asset environments. Moreover, finding ways to innovate in other areas means competing with established structures.
Additionally, Rosenbluth notes how the pendulum may be starting to swing in America when it comes to crypto and what is actually possible. “I feel that momentum, and I also see it here at the conference,” he adds. That’s not to say everything is final, but there have been many sessions at Exchange that certainly show considerable interest in the future of a bitcoin spot ETF and new developments in the crypto space in this regard.
The conversation also includes discussion of ESG and active ETFs. Focusing again, the discussion then expands to rising rates and inflation and the challenge of fixed income securities. Geraci thinks this may have been the biggest topic of the week, noting that there’s been a lot of talk about the death of the 60/40 wallet. And yet, seeing how this year has started, it’s understandable why this topic keeps coming up.
By focusing on solutions that investors may not fully understand, Nadig thinks it’s absolutely something worth discussing. The market reacts with reallocations in areas such as dividends. These trade-offs can be misunderstood, so there is hope that advisors are making smart choices to ideally find appropriate solutions.
“These are complex products, for the most part,” adds Nadig. “There are solutions, but they require more due diligence.”
Rosenbluth also discusses how creating a fixed income playbook (as suggested by ETF Trends editor Lara Crigger) could help with decisions like shortening duration and review of investment-grade floating rate ETFs or a number of ideas that would enable informed decision-making. the decisions.
Towards the end of the podcast, Advisor Circle co-founder John Swolf arrives to add some more thoughts on the experience at Exchange this week, as well as what’s happening in the industry. He agrees with Nadig that things are only getting stronger, putting less emphasis on the idea of being surprised by the growth of ETFs.
Listen to the full ETF Prime episode with Dave Nadig and Todd Rosenbluth:
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