Notes from The ETP Fall Forum - NYC
What was a futures guy doing at an Exchange Traded Product conference?
Good question, and one I asked myself quite a few times leading up to the event.
I wasn’t sure what I was exactly going to get out of it; plus a day away from the markets and trading brings missed opportunity risks. Yet a free invite and chance to explore another side of the asset management business, there’s only upside.
I was clearly not around my tribe; most of the participants looked at me as if I was speaking Chinese when I brought up managed futures, strategic approaches and trend-following (trust me, no judgement here).
So after a few tests of the waters, I figured it was best to keep the conversations at a minimum and focus on the subject matter.
Here’s a few intriguing topics that were repeatedly shared; maybe a few will be of interest to you as well for some deeper research (or not because you’re a “know it all”).
Enjoy!
Buzzwords
Actively Managed ETFs
We always here are about passive investing, passive ETFs, fees….but what are these about? How do they work and what makes them different? Forbes
Buffer/Defined-Outcome ETFs
Can honestly say I’m not familiar with these. Sure, I’ve heard of target-date ETFs, but these are different. Much different. According to Morningstar Direct, as of August 2024, there were 327 buffer ETFs, representing more than $54.8 billion in assets, up from 73 ETFs and roughly $4.6 billion in August 2020. Complicated and costly, but worth a deeper dive. Schwab
Model Portfolios
These are unbelievably popular with so many advisors and RIAs. It’s a quick way to figure out an allocation. Morningstar
Dividend Aristocrats
A category of dividend-paying stocks with a long track record of making – and increasing – their payouts. I’ve heard of them, but never really took a deeper dive and how they’re being incorporated across ETF offerings was interesting. Dividend Investor
Fixed-income ETFs
Active management in this space seems to have really taken off. Interest rates have become a major topic of conversation, and many are giving bonds a closer look. ETF
Separately Managed Accounts
I’m aware how they’re setup on the alternative asset side of the business, but at the conference they were being referenced from a different angle. Investopedia
Which leads to the next topic….
351 Conversions
A 351 conversion “allows for the tax-deferred contribution of assets to an ETF. Investors can 'convert' assets from traditional wrappers like legacy stock positions, appreciated ETFs, and separately managed accounts (SMAs) into ETFs without triggering capital gains.” These are out there and seem to be growing. Ultimus Funds
Intriguing Presenters
Vident Asset Management
“A specialized exposure and solutions provider partnering with clients to help them assess new opportunities and bring their investment ideas to life.” Vident Asset Management
SigTech
“SigTech products enable capital market professionals to optimize decision-making and enhance their market performance. Our solutions, the SigTech Platform, SDK and our custom GPT, harness proprietary analytics and high-quality datasets, from the world’s most trusted vendors, to offer unparalleled insights and forecasting accuracy.”SigTech
AssetLink
“AssetLink makes meeting your clients’ investment needs simple and convenient. Instead of fielding sales pitches from asset managers whose funds aren’t the right fit, advisors can simply filter or search for the fund and strategy characteristics they want, then connect seamlessly with those asset managers. “AssetLink