On this episode of ETF Prime, host Nate Geraci speaks with a trio of guests exploring several different topics in the ETF space. His guests include VettaFi’s Tom Hendrickson who discusses artificial intelligence. Geraci also speaks with Bloomberg’s Nick Gendron who talks about his company’s indexing business and several other topics. To close the podcast Geraci speaks with NEOS Investments’ Garrett Paolella about his firm’s ETFs.
Artificial Intelligence Symposium
To open the podcast Geraci speaks with VettaFi’s Tom Hendrickson to discuss how VettaFi will be hosting an artificial intelligence symposium, on August 30 at 11 am ET to provide investors with insight into how this technology will impact them. Geraci highlights some of the effects that artificial intelligence has had on several different industries this year including the ETF space. Hendrickson discusses the relevance and significant interest this topic has garnered this year among those in the financial industries and from companies in general.
“This is argued to be one of the biggest technological revolutions in hundreds of years if not more,” said Hendrickson.
Hendrickson mentions that VettaFi is constantly looking for ways to add value to its audiences, and the company felt with the significant interest surrounding AI that now would be a perfect time to host an event of this kind to add that value. Hendrickson adds that the event will include thought leaders who can shine a light on the intricacies this technology offers, and how it will affect the asset management industry at large.
The Impact of Artificial Intelligence
Geraci discusses that when it comes to AI ETFs there are two categories they fit into. One of the categories is ETFs that use artificial intelligence to invest, and the other category is ETFs that invest in AI-focused companies. Geraci mentions the QRAFT AI-Pilot U.S. Large Cap Dynamic Beta and Income ETF (AIDB) and the Roundhill Generative AI & Technology ETF (CHAT) as ETFs that fit into each of those categories. Geraci then shifts the conversation when he asks Hendrickson about what specific tickers and topics he is seeing that have significant investor engagement on VettaFi platforms. Hendrickson reiterates that VettaFi is seeing an increased interest in all things related to AI and significant interest in the overall applicability of the technology in advisory firms.
“Everyone is trying to figure out how they can use AI in their business, and advisors are certainly no different,” said Hendrickson.
Hendrickson also mentions a handful of tickers that VettaFi has seen investors increasingly engage with including the Global X Artificial Intelligence & Technology ETF (AIQ), the WisdomTree Artificial Intelligence and Innovation Fund (WTAI), and ROBO Global Robotics & Automation Index ETF (ROBO). To close the segment Hendrickson and Geraci continue to discuss specific AI tickers, as well as the possible impact the AI sector can have moving forward for those in the financial industries.
Bloomberg’s Indexing Business
The conversation then moves from AI to fixed income when Geraci speaks with Nick Gendron the global head of fixed income product management at Bloomberg. Geraci highlights how Bloomberg powers the index behind 440 ETFs globally and has nearly a trillion dollars in assets. His guest, Gendron has a wealth of experience in this industry, specifically with indexing as he has been in the industry since he first started working with Lehman Brothers in the 1990s. Gendron then goes in-depth on the index he is currently working with at Bloomberg. The pair also discuss the significant impact Bloomberg indexes have had surrounding the fixed income asset class, and other sectors as well.
“I think the key to our diversity across the ETF spectrum has been our ability to execute on several other asset classes as well,” said Gendron. In addition, the pair also discuss the innovation and change Gendron is seeing within the fixed income industry as well as several other significant ETF-related topics.
NEOS ETFs
Geraci closes the podcast when he speaks with Garrett Paolella who is the co-founder and managing partner at NEOS Investments. The firm currently offers three ETFs and has about $360 million in assets in under a year of existence. Geraci also mentions how most of the fund’s assets have come in recent months. The pair then discuss the ins and outs of the firm’s most popular funds which are the NEOS S&P 500 High Income ETF (SPYI), and NEOS Enhanced Income Cash Alternative ETF (CHSI).
“When we think about our overall product suite with these two, we are trying to give investors the ability to espouse their markets views on risk, on income, and to fit their core asset allocation,” said Paolella.
Paolella also discusses the firm’s third ETF which is the NEOS Enhanced Income Aggregate Bond ETF (BNDI). He mentions that this fund gives investors exposure to core or aggregate bonds. Both Geraci and Paolella also touch on different tax perspectives surrounding these products as well as Paolella’s thoughts on the current state of the market.