-
JUSTIN MEISE, CO-FOUNDER, RAISES THE QUESTION WE’VE ALL BEEN WONDERING: WILL WE SEE A RETURN TO IN-PERSON EVENTS IN 2021?
-
BIBB STRENCH, CO-FOUNDER, SHARES HIS TAKE ON THE REGULATION OF CRYPTOCURRENCY
-
BIBB STRENCH, CO-FOUNDER, SHARES HIS TAKE ON THE REGULATORY ROADBLOCK FOR MUTUAL FUND TO ETF CONVERSIONS AND THEIR KEY ATTRACTIONS
-
RICHARD KEARY, CO-FOUNDER OF ETF BILD, SHARES HIS INSIGHT ON WHY DIRECT INDEXING IS A FRIEND AND NOT A FOE TO ETFS
-
JOHN JACOBS, CO-FOUNDER, SHARES HIS OUTLOOK FOR ETFS AND ESG INVESTING IN 2021
“ESG investing is here to stay,” says ETF BILD co-founder John Jacobs. Hear his outlook for ETFs in 2021.
-
A CONVERSATION WITH RICK REDDING FROM THE INDEX INDUSTRY ASSOCIATION - Part II
In Part Two of a two-part series, The ETF BILD team sat down recently with Index Industry Association (IIA) CEO to discuss the evolving world of index regulation and its implications for the ETF industry.
-
COVID ACCELERATING DIGITAL DISTRIBUTION TRENDS
The ETF industry was built on a spirit of innovation – and in the time of COVID, ETF leaders are once again proving how adept the industry is at developing new solutions to challenges … and challenges there are aplenty. Despite the great technology and thought leadership platforms many firms have leveraged for years, sales remains a high touch, very personal process. So how are ETF firms large and small engaging with clients and – even harder – forging new relationships in an environment where very few people are traveling, conferences are on hold and a paucity of people are ready to meet in person anytime soon? We sought out a range of industry experts to tackle these questions.
-
HOW COVID-19 WILL CHANGE THE CONFERENCE MODEL AND ETF MARKETING, MAYBE FOREVER
Co-founders Justin Meise and Bibb Strench discuss the potential effects Covid-19 will have on the conference model and ETF marketing in their featured ETF Trends article.
-
CO-FOUNDER OF ETF BILD FEATURED ON NASDAQ TRADETALKS
Co-founder Richard Keary discusses ETF market structure and how strong its performing despite the coronavirus with Jill Malandrino on Nasdaq TradeTalks.
-
IS IT TIME FOR ETF INNOVATION TO SHIFT FROM PRODUCTS TO PRODUCT DISTRIBUTION?
The ETF industry is celebrating its latest impressive innovation: The Non-Transparent Active ETF structure. The concept is so novel and has so many applications that the providers lined up to offer this product have not yet standardized the name for them. They have been referred to as non-transparent or semi-transparent, actively managed ETFs; active shares; and even ANTS (Active Non-Transparent ETFs). Whatever you call them, celebration is well-deserved because of the five plus year regulatory slog that it took to obtain SEC approval of this product.
-
DIRECT INDEXING: ETFS — FRIEND OR FOE
Since 2014, direct indexing has been thought of as a potential threat over the ETF industry, but only recently has it become more prevalent. Direct indexing has many advantages that have come to the forefront in recent years: enhancements in portfolio construction, tax harvesting and the demand for passive products. Though these are not new ideas, reduction in transaction costs and technology advancements in creating and customizing indexes have led to the cost and operational efficiencies that have produced an increased focus on these products.
-
LACK OF EDUCATION, DEMAND FOR ALTERNATIVE STRATEGIES & MORE: THE NEXT BIG TRENDS IN THE ETF INDUSTRY
All signs point to the ETF industry searching for its next pivot point. To kick us off in 2018, we saw the continued trajectory toward new equity index ETF products first led by the roll-out of blockchain ETFs. However, this year seems to signal something entirely different as there has been little to no fanfare about new ETF products entering the space. Chatter in the industry has revolved primarily around deals between small ETF issuers and the absence of, or less show of strength by, large ETF issuers. Consolidation and slowing product innovation have been the bellwether signaling the maturity of many industries. Nevertheless, that may not be the case in this industry as recent off-the-record conversations amongst industry participants have centered around new ideas that are being developed by niche players funded by private equity. As seen in February at the annual Inside ETFs conference, the ETF industry seems to have refueled from its long upward journey in 2018 and is preparing to pivot towards a new trajectory that, nonetheless, is still pointed upwards.
-
DIRECT INDEXING: ETFS — FRIEND OR FOE
Since 2014, direct indexing has been thought of as a potential threat over the ETF industry, but only recently has it become more prevalent. Direct indexing has many advantages that have come to the forefront in recent years: enhancements in portfolio construction, tax harvesting and the demand for passive products. Though these are not new ideas, reduction in transaction costs and technology advancements in creating and customizing indexes have led to the cost and operational efficiencies that have produced an increased focus on these products.
-
MARKET VOLATILITY
SPEED OF INFORMATION – NOT ETFS, ALGOS OR HFT
Why when the markets go down or become volatile do people blame ETFs, algorithms and HFT (high-frequency trading) when the real, and perhaps less obvious, culprit is speed of information?
Maybe it is human nature to build up success stories – ETFs – only to tear them down or to attack new technologies like algos and HFT that many people are familiar with but don’t actually understand or have access to.
-
Preparing for the Next Generation of Actively Managed ETFs
Many believe the SEC is poised to allow for the first time the next generation of actively managed ETFs (Next Gen ETFs), which differ from traditional ETFs in that they differ in how they keep the ETF’s strategy secret, how they support the arbitrage process and potential intellectual property (IP) protection, as discussed further below. If the SEC opens the floodgates, the impact on the ETF industry and the asset management space in general will be seismic because of the pent-up demand to offer existing actively managed investment strategies in an ETF wrapper, as evidenced by the dramatic current imbalance between actively managed ETFs (approximately $45.8 billion in AUM) and index ETFs (approximately $3.36 trillion in AUM).[1] A more normal equilibrium between the actively managed and index worlds may in large part be a zero-sum game, with accelerated outflows from mutual funds to ETFs.
-
BOARDS NEED TO START LAYING THE GROUNDWORK FOR OVERSEEING ETF LIQUIDITY RISK MANAGEMENT PROGRAMS
Exchange-traded fund (ETF) boards soon will be knee deep in reports and presentations designed to facilitate their compliance with the SEC’s new liquidity rule. Rule 22e-4 under the Investment Company Act of 1940 will require ETFs (and mutual funds) by December 1, 2018 (June 1, 2019 for ETF complexes with less than $1 billion of assets) to have a liquidity risk management (LRM) program and imposes comprehensive new portfolio liquidity responsibilities on boards when overseeing the LRM programs....
-
REGULATORY, OPERATIONAL HEADWINDS SLOWING BUT NOT STOPPING ETF INNOVATION
The recent conversation from the SEC referencing the competitiveness of the ETF industry points a finger at some of the challenges the industry faces but there remains plenty of opportunity. The large firms have scale, thus access to larger concentration of AUM; however, the smaller players have the entrepreneurial spirit and the strength of innovation, which built this industry and continues to live in its DNA. Innovation will keep the upstart ETF managers in this business and give them the potential to thrive.
-
ETF BILD REPRESENTED AT INDUSTRY CONFERENCE
At ETF Global’s fall ETP Forum, co-founders John Jacobs and Bibb Strench participated in a panel discussion on regulatory, industry and legal issues in the ETF industry. The discussion included developments surrounding product approval process, custom baskets, nontransparent ETFs, and the SEC’s “ETF Rule.”
-
SEC IS WIDE OF THE MARK ON ETF AND FUND VALUATION RULE PROPOSAL
ETFs in large part are regulated by a single statute, the Investment Company Act of 1940 (1940 Act). While most agree that the statute over the many years of its existence has done an admirable job of regulating ETFs (and mutual funds) and protecting their shareholders, it nevertheless contains a number of surprising provisions including how it regulates valuing the securities and other assets held by an ETF. In no uncertain terms, it assigns that task to the ETF’s board of directors.
-
INTERVIEW WITH RICK REDDING OF THE INDEX INDUSTRY ASSOCIATION
From time to time, ETF BILD has the opportunity to discuss a variety of issues and topics with prominent individuals in the ETF industry. In connection therewith, we seek comments from our readership resulting in a full and thoughtful discussion around the issues and topics vital to the ETF Industry.
Recently, ETF BILD sat down to speak with Rick Redding, CEO of the Index Industry Association (IIA). We talked about the state of indexing and various regulatory and business issues. Below is a summary of the highlights from that discussion.
-
ETF BILD Submits Comment Letter to SEC on ETF Rule
Dear Mr. Fields:
Thank you for the opportunity to submit this letter in response to the request for comments contained in the above-captioned release (the “Proposing Release”) whereby the U.S. Securities and Exchange Commission (“Commission”) proposes Rule 6c-11 (“Rule 6c-11”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Rule 6c-11 would permit certain exchange-traded funds (“ETFs”) to operate without an exemptive order, subject to the conditions contained therein.
-
A CONVERSATION WITH RICK REDDING FROM THE INDEX INDUSTRY ASSOCIATION
In Part 1 of a two-part series, The ETF BILD team sat down recently with Index Industry Association (IIA) CEO to discuss the evolving world of index regulation and its implications for the ETF industry.
-
THREE ETF INDUSTRY PIONEERS DISCUSS INNOVATION – PAST AND FUTURE
ETF BILD was formed to stimulate discussion on the business of ETFs, and recently we had the pleasure of sitting down with three of the earliest innovators in the ETF industry, including our own ETF BILD co-founder John Jacobs, to capture their insights on what inspired them in the early days of ETFs and what is driving current and future innovation in the ETF industry.
-
A GUIDE FOR INSIDE ETFS
The annual trek to sunny South Florida is once again upon the ETF industry; a time to reflect, prognosticate and network with our colleagues at the Inside ETFs Conference. It is an interesting time in the industry; change continues to be the only constant, but it feels like it is developing more rapidly these days. Recent regulatory rulings, fee announcements, consolidation, assets flowing into fixed income products, and perhaps fundamental shifts in operational strategies can all pose challenges for the industry in the coming year.
-
ETF BILD PARTICIPATES IN THOMPSON HINE ETF & ALTS CONFERENCE
ETF BILD Co-Founders Bibb Strench, John Jacobs, Richard Keary, and Justin Meise discussed converting mutual funds to ETFs and its implication on the industry at the Thompson Hine ETF & Alts Conference in New York City on September 18, 2019.
Other conference participants included NYSE, Natixis, JMP Securities, CBOE, and FS Investments.
-
SEC FINDS POTENTIAL ISSUES WITH ETFS THAT TRACK CUSTOMIZED INDEXES SPONSORED BY ENTITIES NOT REGISTERED AS INVESTMENT ADVISERS
Dalia Blass, Director of the SEC’s Division of Investment Management, in a recent speech questioned whether the provider of an index used by a single ETF should be registered as an investment adviser under the Investment Advisers Act of 1940.[i] Such indexes are sometimes called “bespoke indexes” because they are built at the request and to the specifications of a single sponsor in contrast to broad-based indexes used by asset managers and investors as benchmarks. Any SEC action on this issue could dramatically impact the burgeoning self-indexing segment of the ETF industry, including by adding another regulatory hurdle for new entrants.
-
THE ETF BILD PROJECT PRESENTS ITS FIRST LEADERSHIP DISCUSSION SESSION
ETF VETERANS DISCUSS IMPLICATIONS OF FINRA RULE 5250
From time to time, ETF BILD has the opportunity to discuss a variety of issues and topics with prominent individuals in the ETF industry. In connection therewith, we seek comments from our readership resulting in a full and thoughtful discussion around the issues and topics vital to the ETF Industry.
Recently, ETF BILD sat down to speak with three prominent veterans in the ETF space to capture their insights on FINRA Rule 5250, Payments for Market Making, and its implications.
-
FIRST ITEM ON YOUR 2018 “TO DO” LIST: SEND COMMENTS TO THE SEC ABOUT THE PROPOSED NEW ETF RULE
Ten years after it tried to adopt an ETF rule, the SEC has once again announced that it will propose a rule allowing a firm to enter the ETF business without first obtaining an exemptive order. Perhaps more importantly, the new ETF rule will level the regulatory playing field for all ETF sponsors. While all of the ETF sponsors will be playing on the same field, it will be vitally important for the industry to provide the SEC with input through comment letters, meetings with its staff and other means so that level playing field has as few regulatory puddles and loose turf as possible. The SEC staff likely will look first to those exemptive orders when drafting the rule, which contain a number of granular restrictions and conditions that should be jettisoned to produce a more flexible rule that still protects ETF investors. The ETF industry also can urge the SEC to adopt a rule that clarifies what types of exchange-traded vehicles can call themselves “ETFs.”
-
WHY ETFs FAIL: POST LAUNCH
The ETF BILD Project is presenting this paper to create a dialogue and place emphasis on post-launch activities for new ETFs. The industry has done a commendable job of explaining how to launch an ETF; we want to delve into the important activities that are a must for creating a successful ETF after it has been launched.
Mission
The ETF BILD (Business Insights & Leadership Discussion) Project aims to be the catalyst for discussions on the most pressing issues faced by the business leaders of the exchange traded fund industry.
- The ETF BILD Project is at the intersection of academic research and actionable business leadership. The ETF BILD Project is focused on the business insights, leadership, and discussion of the ETF industry.
- The ETF BILD Project seeks to encourage an ongoing and open discussion on how leaders are solving problems, employing business and operational strategies, the outlook for the marketplace, and lessons learned throughout their process.
VISION
The ETF BILD Project is an open, objective and un-biased ideas exchange for ETF leaders and decision makers to share, discuss and analyze issues facing the ETF industry.
- Through joint content, white papers, surveys and round-tables, the ETF BILD Project will engage with ETF industry leaders to facilitate discussions and produce thought leadership on the business of ETFs.
- The ETF BILD Project will seek to publish original content on a quarterly basis and aggregate timely academic and industry research on an ongoing basis via its “What We’re Reading” website section.
VALUES
The ETF BILD Project is 100% objective and unbiased and does not accept sponsored content or any form of pay-to-play exposure.
- The ETF BILD Project does not endorse any product or business nor recommend any investment action.
- The ETF BILD Project serves as a soundboard and place of interaction, debate, discussion, and analysis for the business leaders of the ETF industry.
LATEST FROM TWITTER
Listen to co-founder Bibb Strench share his take on the regulation of #cryptocurrency https://bit.ly/3oPR6o2