'Bloomberg ETF IQ' (07/03/2019) - The Four ETF Things to Watch in the Second Half of 2019

The video discusses ETF flows in the first half of the year, highlighting the dominance of fixed income ETFs and the shift towards low-cost and low-volatility investments. It explores the emerging fee war in the ETF space, liquidity concerns in mutual funds, and the ongoing debate between active and passive investment strategies. The video also examines ESG investment trends, noting the growing institutional interest despite challenges in retail adoption.

What was a significant trend in ETF flows during the first half of the year?

• Equity ETFs dominated the market.

• Fixed income ETFs took the lead.

• High-cost ETFs saw increased inflows.

• Smart beta ETFs were the least popular.

What is a potential outcome of the emerging fee war in the ETF space?

• Decreased competition among asset managers.

• Zero-fee funds becoming more common.

• Higher management fees.

• Increased service quality.

What is a reason for the potential increase in zero-fee funds?

• Advisors are moving towards providing comprehensive services.

• There is a decrease in competition among asset managers.

• Investors are demanding higher fees.

• Asset managers are focusing on high-cost products.

What is a key concern for ETFs holding high-yield corporate bonds?

• Excessive management fees.

• Overperformance compared to mutual funds.

• Potential liquidity crunch.

• Lack of market interest.

What trend is being observed in the shift from active to passive investing?

• Active management is becoming more popular in stable markets.

• Passive funds are outperforming in volatile markets.

• Passive funds are losing their appeal in volatile markets.

• Active managers are excelling in volatile markets.

What is a challenge associated with ESG investing?

• Lack of institutional interest.

• High management fees.

• Subjectivity in defining ESG criteria.

• Limited media coverage.

What is a potential benefit of direct indexing in ESG investing?

• It limits the options available to investors.

• It allows for personalized investment choices.

• It reduces the need for active management.

• It increases the cost of investment.