What the Morgan Stanley-E*Trade Deal Means for ETFs

Morgan Stanley is acquiring E-Trade for $13 billion, highlighting a trend of consolidation in the financial industry. This move reflects a shift from wholesale to retail, driven by the need for firms to be competitive through scale or differentiated services. The industry is seeing vertical integration, with companies expanding into new areas and competing across various sectors. Examples include Vanguard's advisory services, JP Morgan's ETFs, and Goldman's online banking, similar to Morgan Stanley's strategy.

What is the value of the deal in which Morgan Stanley is acquiring E-Trade?

• $20 billion

• $13 billion

• $15 billion

• $10 billion

What trend is driving firms to shift from wholesale to retail?

• Need for competitive scale or differentiated services

• Decreasing interest in retail markets

• Rising costs of wholesale operations

• Increased demand for luxury services

What is a key strategy mentioned for firms to remain competitive?

• Focusing solely on retail

• Increasing advertising budgets

• Vertical integration

• Reducing employee numbers

Which company is adding advisory services as part of its expansion strategy?

• Goldman Sachs

• Morgan Stanley

• Vanguard

• JP Morgan

Which financial firm is launching ETFs as part of its new strategy?

• Vanguard

• JP Morgan

• Goldman Sachs

• Morgan Stanley