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Dave Nadig
3:00
Hey folks, welcome to ETF.com Live!
So before we get started, just wanted to point out you can always get more thoughts on the ETF Prime podcast.
Latest one is up here:
But let's get to the questions!
(As always, we'll have a transcript up in a few hours, in case you  miss something, and you can enter questions in at the bottom of this page.  I'll get to as many as I can before my fingers ache too much!)
Dana Thomas
3:02
Hi Dave, Is there any precedent showing that ETFs have a better chance of success (or not closing) if a big name is behind it, such as Jim Rogers? I understand he's recently come out with an AI fund ...
Dave Nadig
3:02
So, here's the launch in question:
Honestly the biggest "Name" launches I can think of are the competing funds in the total return bond space:  Bill Gross was still at the head when BOND launched from PIMCO.
3:03
And Jeff Gundlach is still running competitor TOTL.
There's little question in my mind that having their names associated with that fund helped in their initial success.
Of course, having a following doesn't necessarily mean anything.
3:04
We used to have the Dent Tactical ETF (DENT) which was following the ideas of prognosticator Harry Dent.
That fund failed to gain assets, and failed to perform.
Ultimately of course, it doesn't matter at all what's on the label, it matters how, and how well, a fund is run.
3:05
In terms of "not closing" the absolute most clear predictor is assets under management.
While I think one fund has closed with over $100mm in assets, I think it's literally one fund, and you can count on one hand how many funds over $50mm have closed
Anonymous
3:05
What's the relationship between an index and an ETF? Can an ETF actually exist without that relationship?
Dave Nadig
3:06
Great question!  So, in the beginning, all ETFs were, kind of be regulatory design, index trackers.
But that is definately not the case anymore, and there are several flavors of difference.
First, there are quite a few firms that "self index."
3:07
What that really means is that a firm (WisdomTree is an example here) publishes a traditional Index methdology, under their own brand, and then just tracks that, just like, say, IVV or AGG would.
the advantage for the issuer is flexibility -- they can adjust the methodology over time, as research or expedience dictates.
I'm pretty sure this is what happened with their flagship Japan fund, DXJ - and obviously that was very succesful for them.
3:08
You can also have completely active ETFs, that are just traditional stock picking or bond picking active.
ARK & Davis are notable on that side for equities, Pimco cracked it open on the bond side, etc.
the only caveat there is that active ETFs (so far) have to be fully transparent.
but theres no index at all.
New To ThisMistake By The Lake
3:09
With E-Trade now offering Vanguard ETFs commission free, I believe that's the only commission free platform other than Vanguard's, is this a reaction to some of the customer service problems Vanguard has experienced with its explosive growth. or something else
Dave Nadig
3:09
Hello longname....
So, I believe you are correct that this is the only place other than Vanguard you can buy Vanguard ETFs commission free.
I have no inside knowledge of the deal, however I find it unlikely that Vanguard wrote a large check to ETrade for this.
3:10
(Commission free participation on many brokerage platforms involves the issuer paying something to make up for the lost commission revenue).
So if I had to guess (and it's a guess) - I think it's mostly opportunistic from ETrade's side of things.  It's obviously a big differentiator.
3:11
While Vanguard's brokerage services are broad, they don't come top of mind to a lot of aggressive traders -- where Etrade might.
So this could be a win win -- it gets ETFs in front of Etrade customers, and it maybe helps ETrade keep/get some additional accounts or assets.
Interesting move though, no matter how wrong I am!
Bill Donahue
3:12
Dave,  I see you are attending Inside ETFs Canada this week. I was in Toronto earlier this week.  Canada is one of the fastest growing ETF markets in the world, with continued significant growth expected in the next 5 to 7 years.  However, they have not yet experienced the downward fee pressure that has been experienced by the U.S. and European ETF markets.  Most of their mutual funds/ETFs are also sold with imbedded commissions.  I believe that Canada ETF market is ripe for disruption with respect to downward fee pressures and the removal of imbeded commissions.  How quickly do you expect this disruption will occur?
Dave Nadig
3:12
Hi Bill.  Big meaty question, and I just did a whole preso on this, but I'll try to be brief.
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