Belden: BulletShares Can Take On iShares
Belden (cont'd.): And we really believe that there are many fixed-income asset classes that are best represented through an active approach. There are certainly merits to a passive approach, but we really feel like Guggenheim has a core competency in active fixed-income management.
We have two active fixed-income strategies that are out right now. We have an enhanced short-duration product—(NYSEArca: GSY)—that’s gotten good traction in the marketplace. And given this particular environment that we’re in—with very low interest rates, and the regulatory reform impacting money market funds—we really feel like investors are going to be seeking alternatives to what they're doing with the strategic cash part of their portfolio. So that is one of the active strategies that we have.
IU.com: One final question: One of the trends people talk about now in the ETF industry is there’s a plethora of securities—1,400-plus now and counting. And there’s this notion that these global-macro types are people who put together allocation plans for others that are on the verge of getting some serious traction. After all, there are some really talented prospectors who don’t have the time or maybe the inclination to get their heads around all these ETF tools and how best to deploy them. Would you comment on the extent to which Guggenheim might travel in that traffic and serve up some allocation strategies that might be helpful to the advisors who use your products?
Belden: Yes, there are a couple of paths to follow there. We see that asset growth within ETFs have really been driven recently with the increased adoption of asset allocation portfolios that many of the people attending the [Inside ETFs] conference are actually providing. So model allocations are getting a lot of traction within financial services in general. And we certainly find that we have a capability—from an asset allocation perspective—to not only have products that fit within those models, but also to drive a more comprehensive solution for asset allocation, whether it be a global-macro approach or just providing particular sleeves to that.
So right now, we’re focused on distributing our products within the models that are largely being provided by the registered investment advisors and other financial advisors that are doing so. But we also see an opportunity for us on the asset allocation front to prepackage some solutions for clients. And that’s an active part of our current R&D.
This week, the NYSE expects to hear from the SEC. What will it mean for ETF investors?
Our annual fixed-income conference is coming up in a little more than a week and I can’t wait.
When it comes to reinvesting dividends, mutual funds have ETFs beat.
With VIX spiking, it’s tempting to pile in or bet against it. Both are a bad idea.