On this week’s episode of ETF Prime, host Nate Geraci is joined by ETF Trends’ CIO and Director of Research, Dave Nadig, to discuss a variety of ETF-related questions, as well as the role of social media regarding ETFs. Plus, President and CEO of Gerber Kawasaki Wealth & Investment Management, Ross Gerber, spotlights the AdvsiorShares Gerber Kawasaki ETF (GK).
Being a social influencer is having an impact on the market these days. As Nadig explains, the idea of connecting social influence with specific products (in this case, ETFs) is a good way for anyone with a well-defined ETF philosophy and traction through their business to push forward in that realm. With that in mind, it does come down, in certain cases, to being able to identify those who make a good living on being accurate stock pickers.
“I think there’s a well-trodden path here for RIAs with good, solid businesses to use the ETF wrapper to expand their footprint,” Nadig adds.
When asked if there’s such a thing as too many ETFs, Nadig explains how now every ETF necessarily needs to exist. However, many firms have distribution and brands, so the launching of various funds revolves around the clients appreciating having a branded fund to work with. This also means that not every ETF is right for everybody.
Another question focuses on the iShares Global Clean Energy ETF (ICLN) and whether or not it will perform well. With an index that expanded back in March because of how much growth it was experiencing, Nadig notes how ETFs may not be the perfect solution for every investment. However, with the idea that there’s a conscious choice to have ICLN function as an ETF, it comes down to needing to have a liquid and investable to serve as a proxy for exposure to the clean energy space.
One more question focuses on the nature of purchasing ETFs if it is clear they contain both good holdings, along with less than stellar ones. For Nadig, he states, “If you believe that either you or an asset manager that you’ve identified will be able to, in the future, select the winners and avoid the losers, then, by all means, that is the person you should give your money to.” It comes down to trusting certain skillsets, which many don’t always have.
Later in the show, Geraci brings in Gerber, who is a registered investment advisor. Gerber Kawasaki manages some $2 billion in client assets. However, back in the beginning of July, they partnered with Advisor Shares to launch GK. It’s a fascinating fund, as it seems that any advisory firm of significant size should be setting up some form of ETF strategy, and due to Gerber’s popularity on social media, the engagement level is proving to be a strong tie-in to the ETF. Having this serve as a way for monetization may be a look into the future of growth in some cases.
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