Billions at Stake If ETF Rates Rise

The video discusses the impact of rate increases on the ETF market, focusing on historical data from 2013 and 2015. It highlights how gold and emerging markets were affected, with significant outflows observed. The video also explores the behavior of retail investors versus hot money in ETFs, noting that retail investments can offset outflows. Additionally, it examines the effects of rate increases on various stock categories, including real estate, utilities, and dividends. Finally, it analyzes the performance of high yield and financial ETFs, noting that financial ETFs benefited from rate increases.

What was the impact of rate increases in 2013 and 2015 on gold and emerging markets?

• They saw a moderate increase in investments.

• They experienced significant inflows.

• They remained unaffected.

• They were the hardest hit with outflows.

How do retail investors influence the ETF market during rate changes?

• They only invest in gold ETFs.

• They can offset outflows from hot money.

• They have no impact.

• They cause significant outflows.

What is a key factor for certain investors when choosing an ETF?

• The ETF's trading volume.

• The ETF's popularity.

• The ETF's historical performance.

• The ETF's fee structure.

Which ETF category showed resilience during rate increases due to a specific rally?

• Real estate ETFs

• Dividend stock ETFs

• MLPs

• Utility stock ETFs

Which ETF category doubled its assets during rate increases?

• High yield ETFs

• Financial stock ETFs

• Emerging market ETFs

• Gold ETFs