How Institutional Investors Use ETFs

The video discusses the adoption of ETFs by institutions, highlighting that while usage is increasing, ETFs still represent a small portion of institutional assets. The role of consultants in ETF adoption is examined, noting that they may influence slower adoption rates. The video also explores ETF liquidity, explaining how trading volume can be misleading and how implied liquidity works. Overall, the video suggests that ETF adoption is expected to grow, with new use cases emerging and management fees decreasing.

How do active managers utilize ETFs in their portfolios?

What factors contribute to the slow adoption rate of ETFs among institutions?

What role do consultants play in the investment decisions of institutions regarding ETFs?

How has the ETF market changed in terms of management fees and use cases?

What are the implications of implied liquidity for institutional investors using ETFs?