Developing Trends in the ETF Industry for 2018

The exchange traded fund industry is maturing and the markets could extend their bullish march. As 2018 gets under way, there may be a number of trends that could stand out this year.

“I see plenty of opportunities in equities where you’ve got choices there,” Jae Yoon, Chief Investment Officer for New York Life Investment Management, said at the’s Inside ETFs 2018 conference. “I would actually argue, maybe, the tools and education is more needed. In fixed income, we think there’s opportunity for more solutions for our clients.”

To help investors better access potential opportunities in the U.S., IndexIQ has partnered up with Chaikin Analytics to launch the multi-factor IQ Chaikin U.S. Small Cap ETF (NasdaqGM: CSML) and IQ Chaikin U.S. Large Cap ETF (NasdaqGM: CLRG). The smart beta ETFs incorporate the so-called Chaikin Power Gauge that combines four primary factors, including value, growth, technical and sentiment.

Along with the rise smart beta strategies hitting the market, there is an increased need to educate advisors and investors about the inner workings of these products and how to best incorporate the strategies into a diversified investment portfolio.