The exchange traded fund (ETF) world became more exciting with the recent introduction of actively managed ETFs this year. As ETF providers continue to offer successful and innovative products, the success of ETFs may depend heavily on educating investors.
In a dialogue with InvestmentNews’ David Hoffman, PowerShares CEO Bruce Bond discussed his views on ETFs and what he feels is essential to continuing the growth of the ETF marketplace.
Bond elaborated on his reception to the release of the first actively managed ETFs and how they are performing. He sees bringing out compelling products to win over investor interest, and have them start to participate on the actively managed side as a big obstacle.
He also touched on ETFs and what they need to overcome as they try to enter the retirement and 401(k) market. Also, he explained how he feels there needs to be more of a focus on retail to increase net flows into ETFs.
Throughout this conversation, Bond alluded to many different aspects of ETFs and the direction they are heading. However, he feels as though the primary obstacle for the ETF industry is education. His company sees education as being one of their greatest focuses at this time, as PowerShares Universities pop up around the country, in an effort to educate advisors.
At ETF Trends, we agree that education is key, and it is one reason we started this site. If we can contribute to the education of investors, explain how ETFs work, and spread information showing that ETFs are a better alternative to mutual fund investment, ETFs will thrive in the investment world.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.