ETF Launches, Flows 'Just Getting Started': AllianceBernstein's Rausch

The video discusses the significant growth and evolution of ETFs, highlighting the shift from passive to active ETFs and their impact on mutual funds. It explores the potential approval of mutual funds adopting ETF share classes, which could accelerate ETF launches and benefit active ETFs. The discussion also covers the increasing use of ETFs in institutional investments, emphasizing their cost efficiency, liquidity, and ease of use. The video concludes by noting the ongoing opportunities for ETFs in the market.

What is the primary reason for the recent growth in active ETFs?

• The ETF wrapper is becoming more popular for both passive and active investments.

• Active ETFs are taking market share from passive ETFs.

• Investors prefer mutual funds over ETFs.

• Mutual funds are outperforming ETFs.

What could be a potential benefit if mutual funds are allowed to adopt ETF share classes?

• A decline in active ETF growth.

• Minimization of capital gains for mutual funds.

• A decrease in ETF launches.

• Increased capital gains for mutual funds.

How might the approval of ETF share classes impact active ETFs?

• It will accelerate their growth.

• It will have no impact on their growth.

• It will likely slow down their growth.

• It will cause them to lose market share.

Why are institutions like endowments shifting from hedge funds to ETFs?

• ETFs offer higher returns than hedge funds.

• ETFs have higher fees than hedge funds.

• ETFs provide cost efficiency, liquidity, and ease of use.

• Hedge funds have become more popular.

What is a key feature of buffer ETFs that attracts institutional investors?

• They have no management fees.

• They minimize losses while capping upside gains.

• They guarantee high returns.

• They are less liquid than hedge funds.