In this presentation Marc Jocum from Global X covers:
- Migration from high cost to low cost has been the key driver for ETFs.
- Benefits of ETFs – liquidity, tax efficiency, transparency.
- How ETFs can help with generating passive income for investors.
- Green fatigue – declining popularity of ESG investing but still interest in thematic renewable energy plays.
- More active ETFs coming to market but not attracting enough investor dollars.
- ETF innovation areas such as digital assets, fixed income, thematics and smart beta.
Ask most investors what determines their long-term returns and they’ll most likely talk about their asset allocation, the way they select their fund managers or their track records at getting macro calls right.
When it comes to ETFs, a few stereotypes abound. Passive, low cost, flexible, broad exposure. While there’s some truth rooted in the stereotypes – some ETFs are index-trackers and have lower fees after all – investors should be wary of leaning too closely on these in their approach to ETFs.
Most market commentaries explain major price moves after the fact with tidy causes that sound obvious only in hindsight. In my opinion, that’s not an intellectually honest approach in the current environment.