Research and strategy- indexes, ETFs, volatility, options. Call the Low Country of SC my home. Vest Financial, Women in ETFs co-founder, CFA Institute Board
Joined October 2013
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Deep dive into evaluating ETFs with case studies for different investor types. Fun to work on this over the last year with @ElisabethKashne and @DaveNadig
The same #ETF can serve different purposes. That is why ETF due diligence cannot stop at the headline features. Read about an Efficiency, Tradability, and Fit framework for evaluating ETF choices in “A Comprehensive Guide to ETFs (2nd edition), Module 2: Evaluating ETFs:" cfainst.is/4xdAV8v
Well worth a read. Focus is on how recent mainstream adoption of derivatives strategies found a fertile home in ETFs. I am fortunate to have seen this show from a front row seat at Vest. Karan has a great perspective on the structured products legacy of option-based ETFs.
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The largest financial market in the world isn’t stocks or bonds.
It’s derivatives. ~$600 trillion in size as this decade began.
6x world GDP. 3x global stocks and bonds combined.
That scale exists for one reason: utility.
Utility that is finally becoming accessible beyond institutions. For the rest of us. 🧵
(@BIS_org & @IMFNews).
Thanks @jasonzweigwsj for showing what is behind the curtain on those single stock+option ETFs. Hard to imagine what investment purpose they serve except high income for very high risk. If anything screams for a warning label, these do! wsj.com/finance/investing/th…
Agree. Pretty impressive EFA outperformance after lagging so long. Seems highly significant - obviously from an investment shift, but also the sentiment behind it.
Thank you @jasonzweigwsj for so eloquently hailing the contribution, skills, & good fortune of Warren Buffett. Here’s to the epitomy of an active investor whose stock has been the perfect vehicle to share in his expertise. He set the standard. wsj.com/finance/investing/wh…
Here, here @DaveNadig - counted on you to be creative in announcing our new joint ETF publication. Thanks to folks @CFAResearchFndn & @CFAinstitute for making this happen again.. & to CFA members who donated so this type of educational content is free to anyone who cares.
The new phone book is here! Or, the new ETF book is here! One that @ElisabethKashne @joahill and I have been working on for ages. Best part is, it's published by the @CFAinstitute, so it's completely free. Also: thoughts about transparency, fee compression and APs. 1/2
Buffer ETFs- The backstory. When @soodk approached me in 2016 to join @VestFinancial to help bring option strategies to the mainstream, I signed on- I pushed for ETFs with options to manage downside risk from early days. Investors are the winners: growing assets & product range.
Great article. This is the way to analyze equity index option strategies - as a component of a total portfolio, as an alternative to fixed income, and relative to risk.
Total AUM in “derivative income” funds has grown 8x since 2019, from $20bn to $160bn, while AUM in “defined outcome” funds have grown 20x from $3bn to $60bn.
What's driving this rise in options-based strategies? Mandy Xu shares her analysis: bit.ly/4hcQMuZ
Would like to see this chart broken out by single stock versus index and ETF options. Some growth is related to use of options in strategy ETFs to manage risk and target income. But retail single stock use of options for speculative trading is up too.
Yep, this is healthy and not at all bubble-like. wsj.com/finance/investing/a-…
ETFs are essentially a packaging vehicle - this opens them up to packaging flawed investment investment strategies, such as this one. Buyer beware! wsj.com/finance/investing/ma…
Art was a classic. Taught me respect for floor traders and for decades had good insights on market dynamics. RIP
Art Cashin, @NYSE fixture for decades, dies at age 83. In the intensely competitive world of stock market commentary, he was that rarest of all creatures: a man respected by all. He was a great drinker and a great teller of stories, and a great friend. cnb.cx/3BlslfP
Quite a ride over the last 30 years since launch. ETFs adoption was helped but the Global Financial Crisis that changed investing - less focus on buy and hold, index and transparency valued. Fixed income ETFs significant the last decade.
MILESTONE: ETFs have officially passed $10T in assets in the US 🎉 Normally they double assets every 5yrs but this time it only took 3.7yrs. They also now have double index MF assets (from which they were birthed). We predict they will hit $25T in next ten years. Good write up on from @isabelletanlee bloomberg.com/news/articles/…
A thorough and insightful article on on index investing, highlighting how it incorporates active decisions in systematic ways, but is different from discretionary portfolio management. Well worth a look.
Index investing has deeply impacted asset management over the last six decades. A new #CFAInstitute report stresses how AI, and client preferences are creating change for the investing style and industry. Read more here cfainst.is/4dm9qz4
Well put, Eman. So glad to be out of the dark tunnel. Still a long and bumpy road, but the path and destination are clear.
Joanne M Hill retweeted
Here's a brand new episode of Financial Thought Exchange for your weekend perusing:
youtube.com/watch?v=xvf1l_3m…
Host Larry Siegel is joined by Bill Sharpe & Marty Leibowitz to discuss equity risk premium, spending rates, and investment strategies for retirement.
Happy listening!
Huge thanks to @JTasmanJones for capturing the key role women have had and will continue to play in driving the success of the ETF industry. It has been great to celebrate the 10th Anniversary of @WomeninETFs with members this month.
“Women continue to lead the way in the #ETF industry”
@WomeninETFs networking group celebrates 10 years of supporting female executives in fund management
By Jessica Tasman-Jones, @FinancialTimes
ft.com/content/d2b47093-7fe9…
Moved over to Threads: @joahill there as well.… sad to see EM’s impact on Twitter even before he made comments - offensive/unacceptable/ arrogant. He should sell X before value sinks more.
Research REVEALS…. Glad to see research on workplace impediments to women being recognized. Think how much GDP growth has been sacrificed due to our inability to address the gender pay gap! Improved family support services could move the needle. washingtonpost.com/business/…