What’s Hot in the ETF Industry
This week, we’ve hand-picked what we believe to be the most impactful news about the ETF industry at large and provide some insights on how you might be affected. Below you’ll learn about the impact of ETFs on the Wealth Management Industry, the latest from Kitces, and more.
ETF Rule
The SEC meeting on the ETF rule (6c-11) set for Wednesday September 25th was called off Tuesday without much public explanation. The rumor amongst ETF Nerds is that the rule will likely be approved by vote with no public meeting. To learn more about this regulation that should support further ETF growth we suggest checking out these articles:
https://www.etf.com/sections/features-and-news/etf-rule-decision-coming-wednesday
https://www.morganlewis.com/pubs/sec-proposes-new-etf-rule
https://etfdb.com/news/2019/05/30/new-etf-rule-even-playing-field-small-players/
https://www.assetmanagementadvocate.com/2018/08/proposed-etf-rule-an-overview/
https://www.etf.com/sections/blog/etf-rule-etfcoms-comment-letter?nopaging=1.
Factors and the Glide Path
Calm headline returns last week belie a tumultuous undercurrent in factor equities. Specifically, value and momentum equities both performed a rapid turnaround relative to recent performance. When all was said and done, the rotation between the two factors resulted in a weekly performance spread of over 900 basis points.
https://blog.thinknewfound.com/2019/09/factors-and-the-glide-path/
No Jacket Required: Inside the World of New School Wealth Management
One of the main drivers behind the rise of ETFs and index funds is the fast-changing world of wealth management. RIAs have always been the early adopters of ETFs and remain big users today.
https://www.bloomberg.com/news/articles/2019-09-19/no-jacket-required-inside-the-world-of-new-school-wealth-management
Nobody Wants to Read Your Shit
Consider this next time you’re drafting your thought leadership pieces. https://mebfaber.com/2019/02/19/nobody-wants-to-invest-in-your-shit/
Three Things I Think I Think – Repo Madness!
What the heck is a repo and why do they matter?
The secret rise of robotics and AI stocks
If the headlines have you wondering where to turn next as an investor, you can rest assured that your exposure to robotics and AI is likely paying off—even if their recent growth is the market’s best-kept secret at the moment. While the Fed’s next interest rate move, Boris Johnson’s Brexit debacle, and Trump’s latest late-night tweet have been doing a spectacular job of sending the stock market into a frenzy and keeping investors scratching their heads, companies focused on delivering on the promise of robotics and AI have been quietly rising to the top of the heap. Here’s just a snapshot of some of the biggest winners.
https://www.roboglobal.com/insights/the-secret-rise-of-robotics-and-ai-stocks/
Detroit’s Only ETF Firm Tackles Growing Business Far From Wall Street
Index Funds are the New Kings of Wall Street
https://www.wsj.com/articles/index-funds-are-the-new-kings-of-wall-street-11568799004
Funds tracking broad U.S. equity indexes had more assets by value than stock-picking rivals for the first time
When Heuristics And Biases May Actually Improve Financial Decision-Making
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