You are viewing the chat in desktop mode. Click here to switch to mobile view.
X
ETF.com Live!
powered byJotCast
Prev Page View Full Chat
Dave Nadig
1:38
But I could argue that at what, $300 million or so, MJ is already having that moment in the sun.  Hard to see how you have 2-3 competitors show up until it becomes much more mainstream, and that will require some regulatory shifts in the U.S. I think.
1:39
OK, last question and then we'll wrap until next week:
Ben
1:39
What is the future for smaller ETF mgrs (non-Vanguard, BlackRock, StateStreet). Will they be able to grow organically, or is the ETF space forever a three-horse town?
Dave Nadig
1:40
It's worth noting that a "small issuer" - a non "top three" like a WisdomTree or a Van Eck, is huge compared to how we thought about ETF companies a decade ago.
But that being said - the reality is that for the segment of the market focused on cost, there are real, difficult to compete against economies of scale.
1:41
I can't imagine a startup ETF launching a 4 basis point large cap equity ETF and geting traction.  I just don't see it.
1:42
Where smaller players really can differentiate is in the non-vanilla space, and we're seeing that in spades.  Just from this chat - ARKK, CXSE, ANGL -- three super innovative funds, with real money, real traction, and not a lot of competition.
1:43
Of course, if something like CXSE becomes a 10-billion dollar, staple investment for institutions, you'd see copycat strategies, but the first mover advantage tends to stick, even for smaller funds.
So while I think there's a natural asset-level dominance at the top of the food chain, I think there's tremendous opportunity for smaller firms.
1:44
OK, that's going to wrap for this week.  We'll have a transcript of this up towards the end of the day.
Have a great afternoon everyone.
Connecting…