Gratus' Portfolio Manager of Private Markets Jay Sammons, CPA, CFA recently spoke with Barron's about private-credit ETFs. “There’s a big push, especially in high-net worth, ultrahigh-net-worth channels, to increase allocation to this risk bucket, whereas I’m not sure a lot of investors yet really grasp the credit quality they’re assuming, or the credit risk they’re assuming,” he says. Click on the link to read the full article: https://lnkd.in/eYkwZC2f
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My closing line on CAIA Association’s blog has consistently been “investing is for the long-term.” Jay Sammons, CPA, CFA raises the most important conundrum re this actively traded wrapper when he states “he doesn’t understand why investors need something like a private-credit ETF, since the point of private assets is they’re supposed to be long-term holdings.” I don’t understand it either. Asset gathering must yield to longterm value creation… for the client.
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As the market anticipates a shift in interest rates, the path forward for fixed income investors is full of potential and key questions. EdgarAgents will be joining experts and peers at the upcoming Bloomberg event on October 23rd to discuss how these changes could reshape portfolios, growth strategies, and the role of ETFs. This gathering offers a chance to connect with professionals across the industry, share knowledge, and explore the future of fixed income together. Bloomberg | Wednesday, October 23, 2024 @ 1:30pm Antoinette Behan Richard Wuchte #FileWithConfidence #MutualFunds #InvestmentManagement #AssetManagement #SEC #FinancialServices #ETFs #Compliance
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Investment Research Analyst at Northstar Analytics | CFA Level 3 Candidate | NISM Certified Research Analyst | NCFM Certified Investment Analyst and Portfolio Manager
Day 27/30 of breaking down complex financial topics in simple language. Let’s know the difference between a mutual fund and an ETF today. A mutual fund and an ETF are both investment vehicles, but they differ in several ways: - Trading: Mutual funds are bought and sold at the end of the trading day based on the NAV, while ETFs trade on stock exchanges like individual stocks throughout the day at fluctuating prices. - Management: Mutual funds can be actively or passively managed, with higher fees often associated with active management. ETFs are typically passively managed and track an index, generally leading to lower costs. - Costs: Mutual funds may have higher expense ratios and minimum investment requirements, along with potential sales loads. ETFs usually have lower expense ratios and no minimum investment, though trading fees may apply. - Tax Efficiency: ETFs tend to be more tax-efficient than mutual funds due to their structure, which minimizes capital gains distributions. - Transparency: ETFs provide daily disclosure of holdings, while mutual funds disclose their holdings less frequently. Overall, mutual funds are suited for investors looking for managed portfolios, while ETFs appeal to those seeking lower costs, tax efficiency, and the flexibility of real-time trading. #Investing #RiskManagement #SimpleFinance #ETMoney
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With ETF managers increasingly turning to securities lending to maintain competitive edge and offset costs, BBH's Securities Lending and ETF experts, Thomas Poppey, CFA, FRM, Antonette Kleiser, and Tim Huver explain more about this growing trend. https://lnkd.in/eJfxNY_y
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Very interesting chart showing the flows of mutual funds and ETFs for both equities and bonds.
ETFs have dominated when it comes to equity inflows, while mutual funds have seen large outflows ... for fixed income (bottom panel), both ETFs and mutual funds have seen inflows through last month per Bloomberg Intelligence
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Question from a follower: “It might be too nerdy but I'd love to read about how factor ETFs perform vs pure hypothetical factors given the natural constraints the ETFs face.” In a vacuum, hypothetical factors don’t have any transaction costs, market slippage, commissions, management fees, operator errors, etc. So of course ETF’s will underperform their factor counterparts given that constraint. That said, ETFs' tax efficiency will typically compensate for these shortcomings by deferring capital gains, which is a huge impact for taxable investors.
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Nick Elward Sr, Senior Vice President and Head of Institutional Product and ETFs at Natixis Investment Managers, illustrates the growing interest in options oriented #ETFs, including derivatives income and buffer products, and their appeal to #FinancialAdvisors and investors 👉 https://lnkd.in/eC4ZtE-y #ATVMasterclass
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🚨 New Article Alert! 🚨 I'm excited to share my latest piece on ETF Central: "Understanding the ETF Rule and How it Transformed Fixed Income ETFs." In this article, I dive into the game-changing impact of the SEC's ETF Rule 6c-11 and explore how it has revolutionized the landscape of fixed income ETFs. From simplifying the approval process to enabling custom baskets, this rule has leveled the playing field and paved the way for innovation in the ETF space. Whether you're an industry professional or an investor, understanding these developments is crucial for navigating today's evolving markets. Check out the full article here: https://lnkd.in/egSQrPuB #ETFs #ETFRule #FixedIncome #Finance #ETFCapitalMarkets #ETFCentral #ETFCapitalMarketAdvisorsLLC
