ETF Edge The tipping-point of “innovation”? 5/19/25
May 19, 2025
Dave Nadig, a financial futurist known for his insights on ETFs, joins Paisley Nardini from Simplify Asset Management to discuss the current investment landscape. They dive into the rise of flexible and alternative investment strategies amidst market volatility, stressing the importance of educating investors. The conversation highlights how dynamic approaches, such as managed futures and hedged equity, are becoming essential. They also touch on the complexities of ETF investments, particularly regarding risks associated with private credit markets.
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Demand for Alternatives in Uncertainty
- Continued market uncertainty drives demand for alternative-based ETF strategies like managed futures and hedged equity.
- Investors seek low correlation, dynamic strategies that can adjust flexibly to market conditions.
New Diversification Challenges
- Bonds and equities moving in the same direction breaks traditional diversification assumptions.
- Managed futures offer real diversification by being counter-correlated to both asset classes.
Educate and Outsource Active Risk
- Investors must educate themselves on advanced ETF strategies involving derivatives and leverage.
- Outsource active risk decisions to managers with dynamic strategies like managed futures and FX long/short.