Why Causeway CEO Ketterer Is Considering Active ETFs

The video discusses the challenges faced by active managers, such as the rise of ETFs and fee compression. It highlights the benefits and drawbacks of ETFs and mutual funds, particularly in terms of tax implications. The speaker outlines a strategic approach to market entry, emphasizing the importance of market intelligence and business development. The video concludes with a comparison of active and passive management, noting the potential for active management to outperform in changing economic conditions.

What are the two main threats to active managers discussed in the video?

• Interest rates and economic downturns

• Market volatility and inflation

• Mutual funds and tax benefits

• ETFs and fee compression

Why might taxable investors prefer ETFs over mutual funds?

• Mutual funds have lower fees

• Mutual funds are more liquid

• ETFs are more tax-efficient

• ETFs offer higher returns

What is emphasized as crucial for entering new markets or strategies?

• Reducing operational costs

• High-risk investments

• Market intelligence and business development

• Rapid expansion

What is a potential downside of passive management according to the video?

• It is not suitable for long-term investments

• It requires more frequent trading

• It cannot outperform in changing economic conditions

• It is more expensive than active management

What advantage does active management have over passive management?

• Opportunity to outperform

• Less market risk

• Lower fees

• Guaranteed returns