The surge in ETFs: A great growth story

Oct 25, 2024

Bram Kaplan, the Head of Americas Equity Derivatives Strategy at J.P. Morgan, shares insights into the explosive growth of ETFs. He discusses the shift from active to passive investing and the rising popularity of new ETF categories, including cryptocurrency options. The conversation also delves into current economic challenges, such as interest rate cuts and potential asset reallocations toward fixed income and gold. Kaplan raises the possibility of repeating the market volatility seen during 2018’s 'Volmageddon,' shedding light on the evolving investment landscape.

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INSIGHT

Why ETFs Outpaced Mutual Funds

ETFs combine mutual-fund diversification with stock-like intraday trading and optionability.
They also offer greater transparency and U.S. tax efficiency via in-kind creation/redemption.

INSIGHT

Hot ETF Categories Right Now

Active, option-based, fixed-income, and crypto ETFs are the fastest-growing segments.
These categories attract new product launches and significant inflows.

INSIGHT

Where Equity Flows Went

Equity flows this year were U.S.-centric with renewed interest in China after policy easing.
Sector flows favored tech (AI) and rotated modestly from defensive to cyclical exposures.

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What’s behind the ETF market’s dramatic growth and what are the trends to watch? Join Bram Kaplan, head of Americas Equity Derivatives Strategy, to find out. Bram sits down with Tom Salopek from Cross Asset Strategy to explore the surge in ETF popularity, the move from active to passive funds and the impact of the economy on investor flows. Plus, could there be a replay of 2018’s “Volmageddon”?

Find out more in the ETF market guide from J.P. Morgan Research.

This episode was recorded on October 10, 2024.

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