Ken Fisher's Side Bet in an Arcane and Controversial Corner of Wall Street

The video discusses Fisher Investments' significant stake in ETNs, accounting for over 25% of US-listed ETN assets. It highlights the unique structure and risks of ETNs, which offer quarterly leverage and are used to outperform benchmarks. Despite their potential, ETNs are costly, with fees ranging from 1.5% to 4%, and involve complexities like floating fees with Libor. The video raises concerns about client awareness of these high-cost, complex products, especially for those seeking low-cost, broad-based asset allocation.

What percentage of the US ETN market does Fisher Investments account for?

• 25%

• 50%

• 10%

• 75%

What is a key characteristic of the ETNs used by Fisher Investments?

• They have no associated risks.

• They provide quarterly leverage.

• They are ideal for long-term holding.

• They offer daily leverage.

How are ETNs typically used in client accounts by Fisher Investments?

• To minimize risk.

• To outperform a benchmark.

• As a primary investment strategy.

• For short-term trading.

What is a notable feature of the fees associated with ETNs?

• They are not charged annually.

• They are fixed at 0.2%.

• They can float with Libor.

• They are lower than ETFs.

Why might some clients be dissatisfied with Fisher Investments' use of ETNs?

• They seek low-cost, broad-based asset allocation.

• They are unaware of the ETN market.

• They want more complex products.

• They prefer high-risk investments.