What's New for ETF Investors?

The video discusses the shift from futures and swaps to ETF's due to regulatory changes affecting investment banks. ETF's are gaining popularity for their liquidity and cost-effectiveness, attracting institutional investors. Kevin O'Leary highlights smart beta as a method of using active management strategies in a rule-based index, reducing human error. The video also explores the debate between active and passive management, noting that high-cost active management is struggling, while low-cost active strategies still attract investments.

Why are ETFs considered to be replacing futures and swaps?

• Because they are more expensive

• Due to the shrinking of investment banks

• They offer less liquidity

• They are less regulated

What is one of the main reasons institutions prefer ETFs over futures contracts?

• Higher returns

• Better tax benefits

• Greater liquidity

• Lower risk

What does Kevin O'Leary compare smart beta to?

• A traditional mutual fund

• An index made from a manager's expertise

• A government bond

• A high-risk investment

What is a potential downside of smart beta according to the discussion?

• It increases human error

• It eliminates human intuition

• It is more expensive

• It lacks regulation

What is the stance of Jim Raley from Vanguard on high-cost management?

• It is becoming more popular

• It is thriving

• It is the future of investing

• It is dead