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Pilots had backed out of the NASDAQ data the Dow positive -- of the biggest players in the ETF.
Industry maybe a nickname for -- -- -- I'll work on that hit it in the next -- -- -- you.
Exchange traded funds in these three people sitting with me know more about them.
Than anyone welcome to -- far black rock managing director and global head ETF research and implementation strategy.
David Blitzer you know him with S&P managing director and chairman of index committee.
And -- package are Russell investment group director of business development wrong.
David Deborah -- -- -- thank you.
I've been quoting -- your research on the number of ATF's globally the amount of money and them -- 2200.
What is the growth going to be in the coming years but.
Areas but also in the types of ETFs and.
I think we are seeing that why investors in Asia Latin America Middle -- are using you -- so I think we're gonna see growth really all over the world.
And where we are seeing money going is into fixing come into commodities but I think it's important you know you quote the statistics.
The top 100 each guest account for 64% of all the assets so the core -- building blocks such as the S&P five on bad Russell two.
MSCI emerging markets you find.
The first mover the first -- -- out there continues to get bigger and bigger so you find that people really embracing ETF says.
Low cost beta building blocks and in times of uncertainty one more investors used -- -- as a way to quickly express their views.
But -- you also have some and is SMP as well non market leaders there are so many.
ETS out there based on even the smallest of indexes do you expect.
That there will be a win away and out of its closing of some of these ETF that just don't get that much and assets or trading activity.
And if that's true and I think that's part of the process of innovation is you don't always -- necessarily what's concepts which ideas are gonna take hold so from an index providers when you were the ones creating that raw material that's used in the TF so.
Well obviously wanna have a lot of investment merit in what we're designing and and you know put that to -- -- sponsors to launch this product but the market forces will actually decide which ones win and which ones lose.
But David she mentioned commodities and we're talking about it before we came on and there are investments that individuals can make.
Whether it's in commodities.
And good that goal for example.
It today that they couldn't have made ten years ago and is that dangerous particularly for individual investor.
But I think when they they realize ETF which -- originally way to.
Trade a package of stocks that one pass with the institution for doing.
How is the time to -- but -- it's the who's who more important individuals could do until we -- came along.
Really that was the first step.
But what they've done is they've -- all these other investment vehicle I try charge all of them opportunities.
Into the marketplace commodities as and he runs in index -- S&P GAC I think represents over half that.
Commodity investment in the world.
Has NE TF on an attack has won numerous tips on different parts of the -- -- You mentioned -- not just -- with a long list of precious metals oil.
We've been hearing about creating years the man on the street can now take a while it's all there it's all available.
The difficulty is that for a lot of people getting into it it's brand new and not quite sure what it is that not quite sure how it works.
And although ETF -- fantastically transparent.
-- believe everything you polled every.
You still -- and are there some atx and then it bit are bad investments except for just short term traders.
If there aren't I think it's less what's in them than there are ETFs that are -- leverage.
Which means if you put in a hundred dollars the yet all the hundred dollars and you now have a 200 dollar investment is you all a hundred dollars back.
Cop who really dangerous thing is they reset or rebalance.
Every single day and that the market goes like this.
You're holding are going like this on a matter of fact you've been out.
Keep me down you always get Beagle and a wrong thing in the market situation like that so you have to be.
Either very nimble are very brave and very much about are very lucky to have -- in the fact that I think it -- look at what you.
You mentioned the term vehicles so it's really important for investors understand when you move to commodities.
The products are not holding equities has some of them are buying physical gold.
Some are holding front month futures this summer hoping for a month futures so it's very important to understand are the products really funds -- your assets are held -- the custodian ring fence.
From other funds and investors.
Or are you actually buying notes which is an unsecured debt instrument so I think clearly what we've seen in -- up.
There's been a preference to buy products that are really funds and not notes because they don't want counterparty -- risk.
So I think we have to be careful when we talk about the products you know people called me yes in many cases -- not really funds.
And about people many more people wind up owning on these days and they they don't even know they -- own that.
Did Deborah was pointed out earlier that they are winding up and target date mutual funds in many instances and do you hope fingers crossed that you people -- -- for -- -- I think that's that's part of our job as as providers of financial services industry want to make sure that we're doing what's best for the investor and so I think again part of this always comes back to education and transparency I mean really you know as we don't know what's best for markets is transparency and equal access to all participants.
But with proper education.
I they had -- like comet that just as you suggest you know ETS potentially -- mechanisms in them that could be dangerous.
They're also no different -- buying and it hurt they have no different wrist and by individual stocks and I'd like to think that extent that.
You can now buy a fairly narrow ETF in its exposure to clean energy for example is better than trying to pick individual clean energy stocks and taking a risk of an individual stock in that area.
So I'd like to think too there's that benefit of of being -- -- that the market more narrowly.
-- quickly it would echo that he was I think.
What used to happen all too often.
We can't barbecue somebody's -- I act like he's the greatest tech stock of the week if you happen to run around my XYZ.
Can't he's 5050.
Now at least think it will not so hot let me by apple always -- finding forty or fifty have a.
-- little but it diversification not like the S&P 500 but a little bit which is a huge step.
In the right direction -- got to be the final word but thanks to all of you that far David Blitzer and Rolf Hackett Russell.
As -- pay and black rock in -- yeah.
Thank you all three -- you.
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