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Dave Nadig
3:13
I suppose the board of, I dunno, TOTL or BOND could decide they want new managers with radically different strategies, and you could see something like this.  But it's really a unicorn event.
and even more unlikely in an ETF, as you point out.
Samantha Elliott
3:13
Given that the SEC recentlyrejected more bitcoin ETFs, do you think they'll ever get approved?
Dave Nadig
3:13
I have a whole bunch of these questions so I'll just generally answer this one -- or perhaps not answer ...
3:14
The real issue, as I read the statements from the regulators and everyone involved in the press, is much more about the structure and health of the crypto market than anything specific about the ETF proposals themselves.
3:15
If that's the case, than it seems to me to be almost inevitable that as Cryptocurrencies simply have more time behind them, regulators will get more comfortable.
Imagine if you went to the SEC in 1996 with the idea of a leveraged Oil futures ETF.  They'd never in a million years have said yes.
So I do think this is a matter of time, but I should point out I don't have any inside knowledge here.  Just what I read like everyone else.
3:16
(I should also point out that Cboe Global Markets, our parent company, is involved in some of these filings and such, but I don't really know much about that side of the house).
D. Tunston
3:16
How likely is it that another serious ETF "flash crash" occurs, and how negatively could that impact the industry's reputation?
Dave Nadig
3:16
GREAT question.
3:17
So, the 2010 flash crash, while it hit some ETFs, also hit the stocks and derivatives markets.  ETFs were just part of an ecosystem that had a bad, bad day.
or a bad bad minute, really.
The work the exchanges did since then -- the Limit Up Limit Down system, some other plumbing changes -- have probably limited the ability for something similar.  After all, you always patch the last hole.
but of course, we don't know the unknowns.
3:18
I believe the core infrastructure around ETF trading and arbitrage is, at this point, pretty darn robust and well tested.  And we have had some pretty aggressive days, and ETFs have just not been part of the story.
3:19
As for how bad would it be? Of course it's never great when something breaks.  But like I said, I feel pretty confident the industry as covered all the potential "obvious" hiccups in the past 25 years.
L. Thompson
3:19
Hi Dave, Given how many niches there are in ETFs, how soon til we see a self-driving car eTf? Or is there one already?
Dave Nadig
3:19
Short answer: DRIV
It's explicitly an autonomous car ETF.
3:20
That said, there are other ways to skin that cat.  DRIV falls into a bucket with a whole bunch of other AI and Robotics focussed ETFs:
If you look at the holdings lists though, you run into the classic "super narrow niche" problem
3:21
DRIV is basically all tech names you know: Apple, Cisco, ALphabet, Microsoft, etc...
there's a bit of a "spin" on it
but you're just buying tech, with an angle.
so as long as you know that, by all means, have at it.
Risk Adverse
3:21
Can you tell us a little bit about the new Innovator ETFs that provides predicted outcomes.  Seems like a no-lose investment (not including fees).  Is it too good to be true?
Dave Nadig
3:21
They are definitely not "NO LOSE"
3:22
THey are "sell some upside, minimize some downside"
So for example, there is a version of their product that basically says "if you buy this fund, you will get the performance of the S&P 500, up until it's up about 10% for the year."
They cap that, but essentially selling the excess performance and collecting a premium.
3:23
they then spend that premium to buy downside production.  In this case, they say "OK, the first 9-10%, you don't lose"  So if the S&P is down 5%, you don't lose anything.
If the S&P is down 20%, however, you lose below the floor -- so you'd be down about 10%.
So it acts as a buffer on your exposure.
3:24
the caveats are that you get that promise over a holding period (a year).  Which is why all the current products have "JUL" in the ticker -- they're the JUly versions.  I expect there will be "August" versions coming soon.
Last, to know EXACTLY what your cap is and so on, you do need to check in with the website before you buy.
3:25
I think they're quite clever.  I worry there a bit complex (as is obvious by the fact it took me three paragraphs to explain).
Alex L.
3:25
What's the weirdest ETF you've ever come across (Weird as in number or type holdings, investment objective, methodology, etc)?
Dave Nadig
3:25
Eash:  NASH.
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