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Garrett Stevens, CEO of Exchange Traded Concepts, on the advantage of ETFs for investors.
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Appropriate may -- -- -- about buying individual stocks like FaceBook for instance but like the social media sector.
Exchange traded fund could be a good alternative for joining me now with a look at the advantages of ETS is -- Stevens he's CEO of exchange traded concepts -- thank you so much for being here.
Released this kind of go back -- beginning YE TF such a good option for investors what are they provide.
Early tests provide access to corners the market that are not always easy to get things he can get us very specific focus piece of the market.
You can get it at a low cost you can get it with intraday liquidity.
And you can get it in about every means you can make removes a lot quicker and get in and out all day -- if you buy mutual fund you have to get in -- out at the end of the day at the same time everyone else does you don't have the flexibility.
Isn't it is not part of the argument about against it I mean many will say that the reason gold is -- where it is is because of that deal DE TF the -- DTM who was so easy to get in so easy to push the price up.
There is that argument but I I think I would take it decided that the gold market is massive -- that's one product the gold market trades around the world point four hours today.
So while that there is the potential for some increased volatility that I don't think that's what you find is that it costs so how would you describe the ETF market right now do we have a lot more ATF's launching all the time I mean what's the -- the economy affected that there's that side of -- investment we do so far this year they've been north of nine ETF launched in the first quarter of this year.
-- 12100 ETFs to this point.
Roughly a trillion dollars in those funds.
The growth rate isn't just -- to be north of seven trillion in the next few years.
That being said mutual funds -- multiples of that and there's something like seven or 8000 mutual funds.
So while they're growing you know as a bit of perspective -- they've got a ways to go before they.
Not under any tips reliance and it was in response it mutual funds charging too much money and investors losing money on the funds or -- could be seeing the same thing -- -- ETF weld couldn't -- because -- in expenses are going up.
As these funds get more and more specific to certain sectors.
They are you you do you are seeing some of the niche products come out -- the higher expense ratio and really it's because you have the specialty of the manager involved.
So in some of these products for instance a couple of -- -- bring into market we just brought -- York -- YNOP fund to market in the last during March.
That's my group of money matters and that's all they do is manage and in LP space so it's not a giant fund complexes and around think in what kind of product can we sell.
It's a group of managers who know what they're doing and even involved in the business since their early nineties and painful.
Sellers and invest what the key things I should be looking at if I'm considering getting into -- ETF.
Well you gotta find one that it.
Has the right strategy so don't just look at the name of the -- read the prospectus find out exactly what the index strategy is what they're investing in how they're doing it.
Look at the expense ratio compared across other similar funds because there were getting -- point now whether maybe three or four different similar funds but -- you know they have their own nuances.
But -- expense ratios are likely to be different.
-- you can.
Do you can get into FaceBook -- ETFs -- chairman there's two at least that say they're going to add FaceBook to them a global ex social media and the first trust US IPO index.
Is that a way to play FaceBook.
It could be obviously it's not a pure play but I eat right get some FaceBook exposure that way that would help with some of the diversification you're gonna get other -- other companies and in Facebook's space without being completely devoted to wants to all right we're at a time Cat Stevens of exchange traded concentrated.
And pushing them really diversified each instrument with ago --
