This Bloomberg Media Studios ‘Welcome to the New Age’ podcast with Yasmin Dahya, Head of Americas Beta Specialists at J.P. Morgan Asset Management is now live and can be heard here (don’t forget to click Episode 8).
If you’re trying to stay ahead of the new innovation in ETFs, this is a podcast you don’t want to miss.
Tom Lydon and Yasmin Dahya at the Inside ETFs conference in Hollywood, Fla., in January 2018. Photo courtesy bloomberg.com
Yasmin discusses the future of ETFs and how new strategies and products are transforming the industry.
Just look at how 2017 was yet another record-breaking year of ETF inflows, almost half a trillion dollars, and it’s clear the popularity of ETFs isn’t going to slowdown anytime soon.
Tom and Yasmin discussed new products hitting the markets that reflect the evolution that’s happening with ETFs, which is a move towards more investment driven solutions.
The wave of really exciting innovation in ETFs will ultimately be a great thing for end clients because it means that ETF investors will now be getting investment capabilities that exist in other parts of the investment management industry.
As smart beta continues to be a big part of the ETF industry evolution, Yasmin gave a great overview explaining how smart or strategic beta refers to rules based products that do something different than traditional market cap weighting.
“Taking a step back though, you can think of strategic beta as sitting at the intersection of passive and active,” she said. “These are rules based products and so they pull from the benefits traditionally associated with passive investing, including transparency, efficiency and predictability.
She stressed how these products are research-driven, adding that the rules behind their process are different from traditional market cap passive and these deviations are based on academic and portfolio management research.