Tom Lydon, CEO of ETF Trends, analyzes the shifting structural risks and composition of benchmark bond indexes.
Opinion
Lydon: ETF Industry Misses the 'Rock Star' Manager Culture of Mutual Funds
“It wasn't just making money, but you're backing a horse. And that's something I think, you know, with the ETF industry, we're missing today.”
Prediction Not checkable as stated
Lydon: Self-directed ETF investors will likely panic sell in downturns
“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?”
Prediction Not checkable as stated
Lydon: Active managers will prove value by protecting against market declines
“So we're not really yet in a period where active management can really show its worth, but I think we're going to be getting there, and that's really going to get us more back to full circle, where active managers are going to come in. They can show that maybe…”
Opinion
Lydon: Fixed Income ETFs Have Improved Bond Market Price Discovery
“Because there's more liquidity in the ETF space, we've seen better price discovery because ETFs have come into the marketplace.”
Assertion Not checkable as stated
Rob Arnott Keeps 50% of His Personal Portfolio in Emerging Markets
“Somebody like a Rob Arnott, that I talk to on a regular basis, who personally has, 50% of his individual money in emerging markets, and said, you just don't see valuations like this, with P ratios around 12 right now.”
Assertion Supported
Lydon: 1990s fund companies used custodians to ban short-term market timers
“If a fund company knew you were coming in and putting twenty million dollars, and then you were selling it six months later, they would actually work with the custodian. The custodian would say, they don't want that type of money, so you no longer can buy that…”