Stadion's McGough Says the Fee Wars in ETFs Are 'Tough'

The video discusses the concept of a fund of ETFs, highlighting the value addition of both passive and active strategies. It explores the competitive landscape of the ETF industry, noting the entry of major players like BlackRock and Vanguard. The discussion also covers the challenges of active management fees and the importance of educating investors on asset allocation. Finally, it examines current investment strategies, focusing on small caps and tech, and the impact of market trends.

What is the primary goal of passive value add in ETF strategies?

• To focus on short-term gains

• To minimize investment risks

• To achieve the market's return

• To outperform the market consistently

How do smaller ETF firms compete against larger players like BlackRock and Vanguard?

• By focusing on high-cost products

• By reducing their workforce

• By offering free asset allocation services

• By not pushing products and adding active overlays

Why is it challenging for active managers to justify higher fees?

• Because the industry is cutting back on fees

• Due to the high cost of technology

• Due to the lack of market volatility

• Because passive strategies are more popular

What is the benefit of combining active and passive strategies in asset allocation?

• It focuses solely on passive returns

• It eliminates the need for market analysis

• It reduces the average blend of fees over time

• It increases the overall fees

Why is there a current focus on small caps and tech stocks?

• Due to their stable market position

• Because they have the lowest fees

• Because of recent strong earnings and market volatility

• Due to their consistent underperformance