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Dave Nadig
3:31
So I would be cautious of looking for the easy rule of thumb.
Buffer Swap
3:32
Thoughts on tax-loss swapping Innovator Buffer for FT Buffer, is this the same scenario for SPY/VOO?
Dave Nadig
3:33
Huh.  Well, that sort of seems antithetical to how the products are designed.  Also, because the underlyings here are options, your going to get distributed gains (if I recall).
They're really ideal in tax deferred accounts, but you do need to dig into the tax issues of them. They're not holding equities.
3:34
So you should know that and walk throuhg it going in.
OK last question.
Jill Townsbury
3:34
In your thinking, are multifactor ETFs the “new active mutual fund”?
Dave Nadig
3:35
So, they're definitely appealing to the same investor - folks who want to at least make an attempt to beat the broad beta in a given arena.
In fact, many multifactor indexes have been designed to replicate the quant-active processes of their parent firms, quite intentionally.
3:36
Certainly strategies like "high quality, low volatility" have been darlings in monday meetings at active managers for decades.
And while we haven't seen trillions in flows into multifactor ETFs, we've seen nothing but outflows in active equity mutual funds for decades (as a group).  So its fair to say some of that money is hunting for more transparent, lower cost, more predictable versions
3:37
What will be interesting is whether the launch of non-transparent active ETFs (likely later this year) moves the needle on investor interest.  I remain skeptical.
OK folks, that's a wrap for today.  Thanks for coming, and we'll be doing Wednesday next week, after I get back from Wealthstack.  Have a great rest of the week and weekend!
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