Day One, Part Two at Schwab Impact in San Francisco
Nov 21, 2024
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David Botset, Managing Director and Head of Innovation at Schwab Asset Management, dives into the intriguing world of ETF investing. He discusses the potential of a new NVIDIA ETF and the implications of AI technology on investment strategies. The conversation covers the rise of specialized ETFs, including unique offerings like mortgage-backed security ETFs and Bitcoin options. Botset emphasizes the evolving investor preferences and the advantages ETFs hold over traditional mutual funds, highlighting innovation's role in shaping the future of investing.
The integration of technology in asset management is crucial for enhancing service delivery and informed investment decisions for financial advisors.
Market dynamics influenced by political outcomes are reshaping investment strategies, particularly in sectors like fossil fuels and pharmaceuticals post-election.
Deep dives
Innovative Strategies in Asset Management
The discussion emphasizes the integration of technology and asset management, highlighting how advancements are reshaping the advisory landscape. Companies like InvestNet are leveraging technology to enhance service delivery, managing over $5.8 trillion in assets while supporting a vast network of financial advisors. There's a recognition of the growing convergence between asset management and tech, with the adoption of innovative solutions being crucial during conferences such as Schwab Impact. As market dynamics evolve, the ability to harness real-time data is becoming essential for advisors to make informed investment decisions.
Market Reactions to Political Changes
Market fluctuations are analyzed in the context of prior elections, revealing how political outcomes can align with specific sector performance. For instance, sectors like fossil fuels and financials experienced growth under the Trump administration, impacting investment strategies. The implications of presidential candidates' policies and their effects on industries are underscored, as seen in the mixed reactions to pharmaceutical stock performance following recent political announcements. Investors are encouraged to evaluate how market pricing reflects the probabilities of policy outcomes and adjust their strategies accordingly.
Trends in ETF Innovations
The ETF market is experiencing significant growth and innovation, with a notable 96% of ETFs posting positive returns in the past year. This shift is due to evolving investor needs, where key factors like cost and educational support shape decisions between ETF and non-ETF investors. The introduction of new ETFs, including a mortgage-backed security ETF, illustrates a trend towards greater precision in fixed income allocations amid fluctuating interest rates. Consequently, the landscape for investment options continues to expand, as firms focus on meeting diverse investment strategies while maintaining competitive pricing.
What would YOU like to hear about on Bloomberg? Help make shows like ours even better by taking our Bloomberg Audience Survey https://bit.ly/48b5Rdn Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Dana D’Auria, Co-CIO of Envestnet, discusses managing the Trump Trade. David Botset, Head of Innovation and Stewardship at Schwab Asset Management, talks about ETF investing. Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.