<2> Not all strategies belong in an ETF wrapper. Here’s why
<3> The Rise of Non-Traditional Strategies
In recent years, there has been a surge in the popularity of non-traditional strategies, such as those involving derivatives, leverage, and alternative assets. These strategies have been packaged into exchange-traded funds (ETFs), making them more accessible to retail investors. However, not all strategies belong in an ETF wrapper, and the market may be entering a new phase: the shaking out of the most crowded “non-traditional” strategies.
<3> The Shaking Out of Non-Traditional Strategies
The past decade has seen a significant increase in the number of non-traditional strategies being offered to investors. These strategies often involve complex financial instruments, such as options, futures, and swaps, which can be difficult to understand and manage. Despite the complexity, many of these strategies have been packaged into ETFs, making them more appealing to retail investors.
However, the increasing popularity of non-traditional strategies has also led to a number of issues. One of the main concerns is that many of these strategies are not suitable for retail investors, who may not have the necessary knowledge or experience to manage them effectively. Additionally, the use