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Dave Nadig
3:10
But I'm very blessed that I get to be on my favorite panel, which is the ridiculous showdown all the ETF pundits do picking their favorite of the year.
The escalation that's happened there is out of control (and hilarious).  We're pretty much ready for T-Shirt cannons and full backing bands.  But I always learn something.
Gwynn
3:11
What kind of an impact on the ETF industry do you think the new RBC iShares will have?
Dave Nadig
3:11
So, if you don't live in Canada, none.
But for the Canadian market I think this is SUPER smart.  Blackrock obviously has the product chops in spades, and Canada remains massively dependant on bank distribution, which RBC has.
So basically, it creates a "got it all" powerhouse to compete with BMO.
3:12
I dont see it having much spillover, but I suspect we'll continue to see Canada being the test bed for U.S. innovations (like Vanguard's smart beta funds, which launched in Toronto first).
It's a pattern that the U.S. issuers have used for decades now.
World Bond
3:12
Thoughts on Vanguard's BNDW vs Wisdom Tree's GLBY?  Does enhanced yield make more sense even though GLBY has higher fees and spreads?
Dave Nadig
3:13
While there are nuances between them, here's the problem with this analysis:
GLBY essentially NEVER trades.
Now, its new
I get that.
3:14
but it's a month in, and the ADV is something like 100 shares.
I have deep sympathy for everyone who launches new products, but part of the reason we've seen this pattern of new funds coming to market with built in institutional support is because of products like GLBY.
It may in fact be a better mousetrap.  We might look back in a year and say "Holy cats, these guys have it figured out"
3:15
But it's very very hard in good conscience to suggest someone wade in with their IRA money or whatever when you can't get a bid on it.
I'm not someone who says volume is everything, but there has to be SOME.  Even 10,000 shares a day would make me feel fine about this.
but zero?
ETF Bro
3:15
Does volatility actually increase the liquidity of an ETF?  Do ETFs gain liquidity as the underlying securities trade more?
Dave Nadig
3:16
History would suggest these are pretty unrelated.
We have huge, liquid ETFs covering very illiquid underlyings (BKLN for instance, or SRLN), and we have countless ETFs covering large cap equities that hardly ever trade.
3:17
If you have decent volume in BOTH the ETF AND the underlying then you do see transmission -- easy to trade underlyings equal better spreads on the ETF.
But I don't think it's causal that "all liquid ETFs are liquid because of their underlyings"
Ultimately, investor interest is what drives on screen liquidity.
3:18
Put it this way: we have 3 solid S&P 500 ETFs.  How much volume do youthink a 4th, or a 10th would get?  Same underlyings...
Todd Rosenbluth - CFRA Research
3:18
Hi Dave. Happy new year! Do you think the owners of VXX realize that the ETN is maturing this month? Still a lot of money and volume in this product.
Dave Nadig
3:18
Hi Todd,
So, the traders I've talked to are all acutely aware.
3:19
That said, I am 100% sure we'll read some article about some dentist in Iowa who was holding right till the end and was surprised when he got cashed out.
My prediction is that within a few days or a weeks, we'll see essentially all that volume in the successor ETN -- or I supposed, the competitive vol ETP from Janus.
Neil
3:20
What do you think about ETFs of ETFs?
Dave Nadig
3:20
Mostly I don't.  In that, I think rolling ETFs up in strategies makes a lot of sense.  It just comes down to transparency and cost.
3:21
One of my favorite boring ETFs - Cambria Trinity (https://www.etf.com/TRTY) is an ETF of ETFs.
A lot of the currency hedged ETFs are just holding a non-hedged ETF and a currency position)
as long as your not layering up fees and know what you own, theres really no concern.
dave
3:22
can i do a 60% (equtiy) 40% (fixed income) ETF? all in one thing
Dave Nadig
3:22
So there are quite a few "all in one" etfs at this point, although im not sure theres one that's THAT simple.
3:23
The Wisdomtree ETF we mentioned earlier, NTSX, is essentially this, but with 50% leverage.
The challenge is always managing rebalances, and if you're really just after your whole portfolio in two funds: one equity, one bond, well, managing that rebalance yourself isnt hard.
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