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Dave Nadig
3:10
This one from Todd Rosenbluth at CFRA: https://www.etf.com/sections/blog/etf-value-metrics-can-vary
And this one from Larry Swedroe I've pointed to a lot over the last two years:
3:11
I think they give a pretty good primer on what to look for in the vlaue space.
Sheila C.
3:11
Is there any limit, say, per year, that ETF issuers can file for an ETF with the SEC? What's your thought on what percentage of filings get approved that are submitted?
Dave Nadig
3:11
Hi Sheila!
So, the VAST majority of ETF filings for run-of-the-mill ETF strategies are approved as a matter of course.  It used to be a lot more of a crap shoot.  Now it's pretty much wrote.
rote
3:12
unless your doing something new (Cannabis, Bitcon, etc) then hanging a new ETF off an existing series, or even launching a whole new series, is pretty much just boilerplate these days
No, there aren't any limits.  If you have infinite money for filing fees and lawyers, you could submit a new ETF every day.
You might get a phone call from the SEC saying "what gives" however (grin).
3:13
Here are a few I'll bundle up:
Xander Foley
3:13
HI Dave. What ETF trends are burning brightest on your radar right now, or that you see trending in future?
Ingrid Fulton
3:13
First I guess there were stocks, then mutual funds, then ETFs. Granted there were things like CDS, etc., but, what product(s) do you envision could be in investors' futures?
Dave Nadig
3:13
SO, the quick and obvious answers are some of the new asset class issues: cannabis and bitcoin, for sure.  Those always make for interesting stories.
3:14
Longer term though, I am fascinated by the idea of a "wrapperless" future -- where you don't even use an ETF or a Fund, you just have a firm allocate you fractional shares that add up to the exposure you want.  Wealthfront and M1 (who I've mentioned several times) have approaches here.
I suspect firms like Schwab will eventually extend their robo-advisor platforms in this direction.
3:15
The reason its cool is not (as some suggest) to cut costs, but to mass-customize.  Say, remove your company stock from the portfolio, or add an ESG layer.
I think its 10 years out before this is a BIG THING, but I suspect we'll start seeing the entry points pretty soon.
Bill Donahue
3:15
Self indexing is getting a lot of play these days, primarily related to cost reduction.  Any issues or concerns that you have with self indexing?
Dave Nadig
3:15
Hi Bill!  Well, I think the line between self indexing and active is super thin.
3:16
You could take the successful active strategies of someone like Kathy Wood from ARK and make those into an index with a monthly committee reconstitution, and it would look pretty similar.
3:17
I don't have any real concerns in terms of any sort of "self dealing" or anything.  As long as the index methodology is transparent, I don't think most investors care ALL that much.  Not at the retail level.
at the institutional level, it matters a lot, because if you're a big endowment, you want your ETFs to be mapable into your existing analytics framework
hence why big MSCI / S&P funds exist in competition with each other
3:18
it can also matter having related products (derivatives) tied to those same indexes.  That can really help with arbitrage and thus, liquidity.
RC
3:18
I notice that low volume ETFs that, for example, track the S&P 500, sometimes do not do a good job of tracking the underlying positions.  If the S&P500 is up 1%, the low-volume ETF might only be up .75%, on a given day.  Or if the S&P500 is up 1%, the ETF might be up 1.25%, on a given day.  Why is this? Possibly do to the market makers and spreads? Or, something else?
Dave Nadig
3:18
Hi RC.
What your seeing is MOST likely a difference between market price and NAV>
3:19
I'd be surprised if you found many plain vanilla US equity strategies that don't track their indexes pretty tightly from an NAV perspective.
However, depending on what your using as your data service, if the ETF didnt trade in the last 50 minutes of the day, you could be looking at a pretty stale "closing price."
3:20
It of course CAN be legit -- if a fund really really doesnt trade and has very wide spreads (again, pretty rare for a US equity fund!) it could have a 1% wide spread and even then, the midpoint could be off if the AP just doesn't think he will ever roll up enough to do a creation unit.
So it CAN happen, but it's pretty rare.
Most likely want your seeing is just the "last trade is old" problem
if you dig hard enough, you can find some trades that are MONTHS old.
3:21
THose are true "buyer beware" funds.
Todd Rosenbluth - CFRA research
3:21
Vanguard’s comment letter includes a recommendation for ETFs to be able to halt creations in rare cases like local market closure. What do think of that and might the SEC be ok with it? ETN halts have been dramatic.
Dave Nadig
3:21
Welcome back Todd!
So, they can in fact do this now.  Its really just a formal guidance that they're looking for.
When Egypts market closed, eventually Van Eck shut EGPT for creations.  So there's a process.
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