As Quincy Jones ETF Waits in Limbo, Weighing the Issues of Celebrity ETFs

The video discusses the increasing trend of sub advising ETFs, highlighting the rise from 6% in 2012 to over 20% in 2017. It explores factors driving this trend, such as the increase in ETF issuers and the need for compliance and regulatory infrastructure. The correlation between outsourcing ETFs and thematic or ESG strategies is examined, with a focus on the Quincy Jones ETF. Challenges in launching celebrity-oriented ETFs and getting them approved on major platforms are discussed. The video concludes with a comparison of sub advising active versus passive funds, emphasizing the differences in management processes.

What was one of the main reasons for the increase in sub-advising ETFs from 2012 to 2017?

• The popularity of celebrity-oriented ETFs

• A decline in regulatory requirements

• The rise of self-indexed funds

• A decrease in the number of ETF issuers

How does the rise in thematic and ESG strategies relate to the increase in outsourcing ETF management?

• Outsourcing is only for passive funds

• Firms focus on strategy development while outsourcing management

• Thematic and ESG strategies require less management

• They are unrelated trends

What is a significant challenge for celebrity-oriented ETFs?

• Limited marketing opportunities

• High regulatory fees

• Difficulty in getting on major platforms

• Lack of interest from investors

What distinguishes sub-advising an active fund from a passive fund?

• Passive funds are more experimental

• Active funds have variable management schedules

• Passive funds require more frequent management

• Active funds have a fixed rebalance schedule

Why is platform approval critical for a fund's growth?

• It provides access to a larger investor base

• It reduces management costs

• It guarantees immediate success

• It eliminates the need for a sub-advisor