M&A Fever Hits ETF Industry

The video discusses the trends in corporate M&A, focusing on the ETF market. It highlights Hartford's acquisition of Lattice Strategies, emphasizing the strategic move towards smart beta products. The discussion covers the benefits of acquiring talent and industry experience, the shift from active mutual funds to smart beta, and the importance of SEC approval. The impact on customers is also considered, noting potential benefits like lower fees and increased liquidity.

What recent acquisition by Hartford has been a topic of discussion?

• Lattice Strategies

• Schwab

• Velocity Shares

• Vanguard

Why are companies acquiring smaller ETF issuers?

• To compete directly with Vanguard

• To reduce their market share

• To increase their number of products

• To acquire talent and expertise in passive management

What is the main focus for active mutual funds in the future?

• Direct competition with I shares

• Traditional mutual funds

• Smart beta strategies

• Market cap weighted strategies

How do customers benefit from these acquisitions?

• Less liquidity

• Higher fees

• Fewer product options

• Economies of scale and lower fees

What strategy did Janice employ after acquiring Velocity Shares?

• Competed with Schwab

• Reduced their ETF offerings

• Focused on smart beta products

• Increased VIX related products