With Great Power, Comes Great Responsibility With ETFs

Rodrigo Gore discusses the power and responsibility of ETFs, comparing active and passive investing. He highlights the importance of education in investment strategies and explains the concept of risk parity ETFs, emphasizing diversification and risk management.

What is a key advantage of ETFs mentioned in the first section?

• They are risk-free investments.

• They provide access to a wide range of asset classes.

• They are only available to professional investors.

• They guarantee high returns.

According to the second section, what is a common behavior of investors in active funds?

• They are more disciplined than ETF investors.

• They are less prone to panic and fear.

• They are just as impulsive as ETF investors.

• They always follow model-driven strategies.

What does the study mentioned in the second section reveal about ETFs?

• ETFs are less volatile than mutual funds.

• ETFs have lower money-weighted returns than mutual funds.

• ETFs are more popular than mutual funds.

• ETFs have higher money-weighted returns than mutual funds.

What is the primary focus of Resolve Asset Management as discussed in the third section?

• Educating investors and advisors.

• Maximizing short-term profits.

• Eliminating home country bias.

• Developing new ETFs.

How does the risk parity approach benefit a portfolio according to the third section?

• By concentrating investments in emerging markets.

• By ensuring equal risk contributions across asset classes.

• By eliminating all risks from the portfolio.

• By focusing solely on high-risk assets.