How ETF Investors Are Faring in the Great Divergence Trade

The video discusses the divergence between US and emerging markets, focusing on ETF flows and market stability. Experts provide insights on market trends, interest rates, and fixed income strategies. The future of indexing, including self-indexing, is explored, along with the impact of fee compression on smart beta products.

What is the main reason for the divergence between U.S. stocks and emerging markets?

• Emerging markets are outperforming U.S. stocks.

• U.S. stocks have higher volatility.

• Emerging markets have better growth prospects.

• U.S. stocks are pulling away due to higher investor inflows.

What is a key factor that could lead to a convergence between U.S. and emerging markets?

• Decreased investor interest in U.S. stocks.

• Higher interest rates in the U.S.

• Stabilization of ETF flows in emerging markets.

• Increased trade tensions.

According to Ben Levine, what is a significant factor affecting the divergence in market performance?

• Interest rate changes in Europe.

• Political stability in emerging markets.

• Earnings growth outlook in different regions.

• Currency fluctuations.

What is a potential benefit of self-indexing for ETF providers?

• Reduced research costs.

• Higher fees for investors.

• Increased transparency for investors.

• More complex investment strategies.

What is a concern for investors regarding self-indexing?

• Higher volatility in ETF performance.

• Lack of transparency in index construction.

• Limited access to emerging markets.

• Increased regulatory scrutiny.

What is a common topic of discussion at ETF conferences?

• The impact of political events on ETFs.

• The role of technology in ETF trading.

• Fee compression in the ETF industry.

• The influence of social media on ETF popularity.

Why do some experts believe fees should not be the sole focus when evaluating ETFs?

• Fees are irrelevant to investment decisions.

• Other factors like strategy and performance are also important.

• Low fees always indicate poor performance.

• Fees are not transparent.