In the Know: Trends in the Changing Landscape of ETFs

As the capital markets move forward, so does the various strategies in the ETF universe, which have experienced exponential growth over the past decade.

As such, it’s important for investors to keep abreast of new trends with respect to market cycles and the changing landscape of ETFs by staying In The Know–a segment filmed at the New York Stock Exchange that features market experts, such as Yasmin Dahya, Head of Americas Beta Specialists at JP Morgan Asset Management; Samantha Azzarello, Global Market Strategist at JP Morgan ETFs; and Douglas Yones, Head of Exchange Traded Products at NYSE.

Market Cycle Understanding

Just like an airplane pilot must have spatial awareness, an investor must understand the economic landscape he or she is currently navigating. From her time as an economist at CME Group to her current role as a global market strategist at JP Morgan ETFs, Azzarello understands the importance of identifying market cycles.

With the S&P 500 recording the longest ever bull market and the Nasdaq Composite breaking past the 8,000-point level, the cycle is apparent to Azzarello.

“I think we’re squarely late cycle,” said Azzarello. “That is definitely a theme in the US right now. A lot of indicators we look at suggest late cycle, while more traditional indicators like wage growth and the yield curve are suggesting mid cycle. I think that’s left investors confused. I would say is that if you think about the way growth has played out over the last 10 years, it’s been lower, it’s been sticky and drawn out, and late cycle could be … It couldn’t be any different than that. It could be two years.”

Related: In the Know – Stay up to date on ETF This Quarter

ETF Options Abound

The rise of ETFs has allowed investors to corner specific areas of the market that they did not have access or required a substantial amount of capital prior to investing. One area that Yones is seeing in his time at the NYSE is the growth of fixed-income ETF products.