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Ronna Crostwait
3:29
Seems like marijuana and ESG ETFs have really taken off out of the gate. Besides bitcoin ETFs, which seem like they're next, any areas you see as new hot spots that will thrive out of the gate in this industry?
Dave Nadig
3:30
So, last week I talked about about some of the "defined outcome" ETFs coming to market, and I dismissed them a bit out of hand because they weren't solving the retirement decumulation problem.
I've had some time to really think about it though, and I may be wrong.  I think there are markets where investors might genuinely want to have, for instance, 5% downside risk, but a 10% upside cap.
Thats the whole (enormous) structured products market.
3:31
thats basically what folks like Innovator are doing, and I could see some of those types of products gaining some surprising traction.  Probably takes some real market chaos to show they do what they promise, but I could see that.
3:32
As for "new hotness" thematics like Marijuana -- maybe its a failure of creativity on my part, but honestly no.  I don't see the big gaping hole ready for the industry to jump in and fill to make billions.
Michael T. Kennedy
3:32
S&P 500 Bond ETF just launched today....what is your outlook on this fund performance and flow wise?
Dave Nadig
3:32
Yeah, interesting launch.
3:33
Esp at an interesting time, when there are starting to be these undercurrents about "is corp debt over" from things like the Milken conference.
At the core, it's mostly a branding play.  THere's nothing magical about the S&P 500 that should make the issuers inside it better credit than, say, company 501.  So I think it's a shorthand way for investors to feel good about their corp bond investments.
3:34
THat's not a bad thing at all, honestly.  Most investors are pretty monolithic in their thinking about bonds: they buy a single big bond fund, whether its something like AGG or Pimco's BOND.
3:35
getting folks to think about the corp bonds as a distinct slice of the pie is actually probably healthy, and if it takes slapping "S&P"on the label to get people there, more power too them.
but I can't think of a reason it should perform notably differently than competitors in the investment grade bond space, like LQD.
Phew, ok, I think I'll wrap it up there.  Great questions as always folks.
3:36
Transcript will be up shortly, and hey, if you hadn't seen, ETF.com is now a weekly part of the ETF Prime podcast.
You can find it at ETFprime.com, or on your podcast app.  It's been fun getting to work with those folks, so check it out if you've got a commute or a long run coming up.
Thanks, and we'll see you next week, same time, same place!
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