The ETF Institute?

We are excited to be back at Exchange this year, connecting with others and learning from the best and brightest minds in the ETF ecosystem! If you'll be at @Exchange, please stop by and learn more about The ETF Institute? and pursuing your CETF? designation!

A great overview of the SEC's initial concerns and request for a renaming of the new private credit SPDR SSGA Apollo IG Public & Private Credit ETF (PRIV) from State Street Global Advisors and Apollo Global Management, Inc., which launched last Thursday. The ETF caps "illiquid" investments at 15% to conform with SEC requirements, but is generally expecting private credit exposure to comprise "10% to 35% of the portfolio." The SEC raised concern that Apollo’s name on the ETF was "misleading," given that "Apollo does not have an obligation to sell any debt to the fund and it’s not an adviser or sponsor." In response, the firms agreed to a renaming of the ETF. The SEC also had concerns that the new ETF "may not have sources of liquidity other than bids from Apollo," but SSGA and Apollo "clarified that any of the fund’s illiquid products will not be exclusively tied to Apollo...Other broker-dealers can provide quotes for the private debt." https://lnkd.in/gvXe-x3Y

Though regulators have not yet approved private-asset ETFs, "a handful of ETF issuers have attempted to take advantage of the appetite for such products with new exchange-traded funds that mimic private equity exposure." "The new funds...may appeal to some retail investors who otherwise would have narrow avenues of access or exposure to private markets." https://lnkd.in/dxRmNeas

Last week, Vanguard announced its largest fee cut ever, reducing the expense ratios of nearly?90 mutual funds and ETFs, a move that is expected to save investors a collective $350 million in 2025 alone. "The implications for the ETF industry will vary by ETF category," depending in part on whether Vanguard is already the lowest-cost provider in a particular space and if it already has the ETF with the highest net assets in that category. "It will be interesting to see how the other leading ETF issuers respond to Vanguard’s aggressive fee reduction strategy." https://lnkd.in/g-UPmdY7

An excellent overview of ETF liquidity, with great visuals - it's a quick read and well written by Patrick Hooper and David Sharp of Vanguard. Worth the read. "ETFs offer two distinct layers of liquidity: in the secondary market where ETFs trade along with stocks, and in the primary market, where ETFs are created and redeemed by the ETF’s authorized participants."? https://lnkd.in/dTkdEQia

Worth the read for an understanding of how leveraged ETFs are impacted by variance drain, "the mathematical fact that an investment’s compounded return is always less than or equal to its simple average return," and how this effect can be misunderstood to be a "rebalance drag." "Whether you’re investing in a single-asset 2x or 3x ETF or a levered diversified portfolio, it’s not the resetting of leverage that harms returns, but the arithmetic of compounding that penalizes high volatility." https://lnkd.in/gyb_du3K

For the first time in decades, Vanguard's S&P 500 ETF (ticker VOO) is set to eclipse State Street Global Advisors' SPDR S&P 500 ETF Trust (SPY) as the world's largest ETF. "VOO’s draw highlights the Valley Forge, Pennsylvania-based company’s core audience: cost-conscious financial advisers and retail investors, whose long-term investment horizons typically produce steady inflows and rare withdrawals." https://lnkd.in/e4pTuZ5F

It's not too late to register for tomorrow's #webinar on the growing world of options - linked ETFs that are designed to manage risk and optimize investment returns in today's dynamic markets, along with the NYSE and ETF Central! Join an expert panel of Allianz Investment Management's Charles Champagne, Calamos Investments' Matt Kaufman, Innovator ETFs?' Andrew Nelson, CFA, and Chapman and Cutler LLP's Morrison Warren as they unpack the issues and answer your questions. Attendees will receive CE credit for attendance towards the CETF? designation. Register to join us here: https://lnkd.in/giH3Mr6D

"It’s a playbook seen a few times in the $10.6 trillion US ETF industry, but EBI is among the first funds open to investors beyond its manager’s existing client base." Hill Investment Group is launching the Longview Advantage ETF (EBI) in February with an "estimated $500 million in assets," utilizing "so-called 351 conversions" which "take advantage of the fact ETFs can flush out appreciated stocks without triggering a capital gains bill." They will be following in the footsteps of Cambria Investment Management's TAX fund, which launched in December, and is considered the "first ETF to execute a 351 conversion for an investor base beyond the manager’s clients." https://lnkd.in/gzV4J8gx

Please join us next Wednesday, January 29th, for a #webinar to discuss the growing world of ETFs that are designed to manage risk and optimize investment returns in today's dynamic markets, along with the NYSE and ETF Central! An expert panel of Allianz Investment Management's Charles Champagne, Calamos Investments' Matt Kaufman, Innovator ETFs?' Andrew Nelson, CFA, and Chapman and Cutler LLP's Morrison Warren will unpack the issues and answer your questions. Notably, CE credit will be offered towards your Certified ETF Advisor (CETF?) designation. Register to join us here: https://lnkd.in/giH3Mr6D