ETF

“We will see index vol a spike at some point in my life. I'm a hundred percent sure. And when it does, we don't quite yet know how that, how far that will go, because we just don't know how deep people are going to de-risk. And when they do, they're going to se…”

“There are, in many ETFs, significant mismatches between the liquidity that the ETF promises and the underlying liquidity of the instruments.”

“And by the way, global diversification through index funds is a fake diversification. Index funds and ETFs are often calculated on a cap-weighted basis, which is a fundamentally flawed way to calculate indices.”

“So the industry basically has three years starting now to prove it can do it. If three years from now, we still have meeting an active manager below the ETF, the story will ride itself.”

“And as far as self-directed investors who have invested in ETFs, maybe through robo-advisors and that type of thing, are they gonna stick with it? They should. We know historically they should over time. Are they going to? Probably not, right?”

“Even though the asset growth in inverse and leverage ETFs haven't really kept up with overall asset growth in ETFs in general, it doesn't matter because when you look at the underlying volume, it's tripled.”

“We're seeing a lot of M&A going on in the space already. There are a lot of managers who were late to the game, and rather than create it themselves, they'd want to go in and buy somebody. So it's hot right now, and managers are paying premium prices For estab…”

“When you look at high volume days on the exchange and people talk about it, ETFs account for one third of the daily asset trading, right?”

“Even with over 2000 ETFs that are out there, how very, very few have year-end distributions.”

“So up until 2007, 2008, most of it was pure cap weighted indexes and the low costs, the major market indexes that you would know.”

“There's now four or 5000 ETFs. There were only 50 in 1999.”

“I had spent enough time as a salesperson looking at the hedge funds. And I just thought that the industry was ripe for the same type of disruption that the mutual fund industry went through in the nineties with exchange traded funds and that the hedge fund ind…”

“Virtually all ETFs, with the exception of US large cap, actually earn less than the index. There's friction cost. Security lending doesn't overcome all the friction cost. Can't always buy all the securities.”

“The idea that ETFs were ever a self-liquifying instrument, that is to say that ETFs create liquidity in their underlying reference securities was always just buy-side propaganda. Absolute garbage. And to see dozens and dozens and dozens and dozens Of credit an…”

“Whenever we do a trade, we have an ETF portfolio. We make tilts in our portfolio. I go back about six months if I can and try to look at the trades after six months and come up with one of the behavioral traps I may have fallen into.”

“I have an ambition to launch an equivalent platform focused on biotech. And we're exploring the idea of launching a whole suite of ETFs.”

“So if you can do the math, then it's probably closer to four trillion on the indexing side, which would be ETFs and traditional mutual funds.”

“There's nothing automated about it. There's nothing that a supercomputer can replicate. There's no ETF version of private equity or private markets more generally. It's a people business, and therefore you have to understand The traits and DNA of those people,…”

“The main impact is that we will counterbalance certain overweights that we don't want as intentional overweights. So we have to have enough liquidity in the portfolio where we can use ETFs or index funds or futures that we can offset those.”

“If you look at the most democratizing investment vehicle that is likely ever to exist, it's going to be ETFs, and so the marriage of those two isn't a huge leap of faith, I don't think.”

“And one of the interesting trends obviously at the moment is mutual funds are rapidly being displaced as the preferred vehicle by other vehicles, depending on the channel, whether it's retirement as collective investment trusts or what everybody talks about wi…”

“The next chapter of growth for the industry, I think is going to be alternatives. And I think we are in the early innings of that beginning to happen right now.”

“If you're going to do that, then you need to have some liquidity function, and that always is going to come at a cost. It could be an explicit cost, it could be an implicit cost, but at the end of the day, you can't magically say something that's illiquid is l…”

“We have the offices to get differentiated access. It's not to get beta. We can get beta from screens in Toronto. We can get beta through swaps and ETFs. We need alpha. We open the offices to get alpha.”

“As time went on, as we saw through the 2000, the passive indexation and ETFs and the capital markets changes in the public market rendered some of those advantages obsolete.”

“What we've done is we've taken the data that we have over the last 15 years of analyzing these companies, and we've said, there are 80 high-quality real estate companies. These are secular winners, compounders like Hilton. That will be the investable universe …”

“It's about a 50% overlap at any given point in time.”

“Traditional asset managers, i.e. Mutual funds, ETFs, they're gonna start injecting some amount of private assets blended into their products.”

“In the coming years, we've been vocal Figuring out how we're going to be accessing the four one K market, the traditional asset manager. So the mutual fund market, the ETF market, those are some of the places we're going now.”

“We started with a portfolio of ETFs and slowly layered managers in. We weren't going to take the traditional amount of equity risk in those early days because we didn't have the traditional amount of diversification.”

“The majority of our investors are long-term holders, whether they're in ETFs or mutual funds. Holding periods at Vanguard are five to 10 years.”