ETF Express Newsletter 01.03.24

Active ETFs enjoy their day in the sun

This week saw us bringing you a series of interviews from our time at the Exchange conference in Miami. The sun did feature, a welcome added extra for those of us facing heavy snow or rains when we returned home, but the key ETF subject of choice was active ETFs.
We bring you my interview with Sal Esposito of Zacks Investment Management, talking about their two first ETF products that enjoy an annual portfolio turnover of 25 per cent for ZECP and 100 per cent for SMIZ, focused on small to mid-cap stocks.
"It’s all based on our research and there are more opportunities and market anomalies in the small to mid-cap stocks," Esposito explains.
We also spoke with Jeremy Senderowicz, partner at Vedder Price, who compared and contrasted the US regulatory framework for ETFs with Europe’s UCITS. "The UCITs structure allows the use of multiple share classes far beyond what is allowed in the US," he says.
Final interview posted this week is with Graham Mackenzie, managing director, Exchange Traded Products, Toronto Stock Exchange, who commented on the Canadian regulatory framework which has contributed, he believes, to greater innovation in the ETF industry. "What is unique in Canada is that ETFs are governed by the same rule set as mutual funds so what can go into a mutual fund, can also go into an ETF," he explains.
More from Miami next week… .

Beverly Chandler, Managing Editor
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