Event: IAFE Event In Partnership with PRMIA: Exchange Traded Funds
Date: May 5
Time: 5:30 pm
Ernst & Young
5 Times Square
42nd & 7th Ave.
at The Cafe on the 22nd Floor
This free round table discussion will provide feature the following panelists:
Robert Tull - Vice President American Stock Exchange
Gary Gastineau - Managing Director, ETF Consultants
Kathleen H. Moriarty - Partner, Carter Ledyard & Milburn LLP
C. Michael Carty - Principal, New Millennium Advisors
Gus Fleites - Managing Director & Principal, State Street Global Advisors
For the past three years, ETFs (Exchange Traded Funds) have been growing at a rapid pace which continues to date. ETFs now cover an ever expanding range of securities, markets, styles, sectors, geographies, and indices. Recent estimates indicate that there are over three hundred ETFs with $225 billion in assets globally.
ETFs appeal to institutional investors because of low expense ratios and ease of trading throughout the day. They appeal to hedge funds because of the opportunity they provide to take both long and short positions which
can be leveraged. And they appeal to asset managers because ETFs enable them to focus research and decision-making on asset allocation strategies rather than selection of individual securities.
ETFs offer transparency, liquidity, diversification, tax efficiency, style drift protection. To capture the benefits of ETFs, investors need to take stock of risk factors specific to this market. Each ETF has a unique architecture and internal mangement fee structure, with trading commissions
to be factored into estimates of the total cost of investment, as compared to mutual funds. ETFs trade at a price which can be at a premium or a discount to NAV. ETFs may contain internal risk concentrations, especially
in the case of sector and country funds or tracking funds whose underlying indices are weighted in the top holdings.