Deborah Fuhr spoke in the opening remarks. Her talk was called “Review of the Mega Trends Influencing the ETF Industry”. She is a managing partner and co-founder of ETFFGI. Her company’s site here.
ETFs were started in Canada in March of 1990. The US got them 3 year later. The US now has the largest pool of ETF assets with 5.2B in assets. The US has 71%, Canada 2.5% and EU 16% of the EFT market. The future for ETFs is positive. Pension funds, Hedge Funds and individuals have access at the same price. Half the institutions hold ETFs for at least 2 years.
There is often a home country basis in stocks and holding of outside country in ETFs. ETFs have lower cost and produce better results. ETFs have driven costs down for other products. Financial advisors have embraced ETFs. ETFs can deliver interesting products. For example, the growth in Robo investing via ETFs.
Seven out of ten active Mutual Funds do not beat the market. Hedge funds have now been around for 68 years, but ETFs have more money. Hedge funds are performing below the S&P500. ETFs provide Hedge Fund type of investments. It is easy to get into and out of ETFs, but it takes time to get into and out of Mutual Funds.
The majority of ETFs money is in market investments. There has been 55 months of positive inflows into ETFs. Money is now going into Ethical ETFs. Money is going into market ETFs of US and China, into dividend products ETFs and Bonds ETFs. Some ETFs rebalance every day and are for short term investing. The industry will grow and there will be new products.
On my other blog I wrote yesterday about Teck Resources Ltd. (TSX-TCK.B, NYSE-TCK) ... learn more. Next, I will write about Logistec Corp (TSX-LGT.B, OTC-LTKBF) ... learn more on Friday, October 12, 2018 around 5 pm.
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