Exchange Traded Funds (ETFs)

The purpose of this research is to provide readers with a comprehensive understanding of exchange traded funds (ETFs), including the historically dominant passively managed exchange traded funds (ETFs) & the emerging actively managed exchange traded funds (ETFs). BlackRock, The Vanguard Group, & State Street Corporation (State Street Global Advisors) dominate the market. This research is incorporated into Tiburon's coverage of both registered investment companies and that of index investing.

This research starts by summarizing the key driving factors behind the rapid growth in exchange traded funds (ETFs), including exchange traded funds' (ETFs') advantages:

Strategic Asset Allocators

Incremental Lower Expenses
Improved Transparency
Additional Tax Efficiency
Lack of Cash Drag

Market Timers

Liquid & Continuously Priced
No Redemption or Short-Term Trading Fees
Ability to Place Stop-Loss, Market, & Limit Orders
Eligibility for Margin Purchases
Advantageous Short Sell Rule

This research addresses the critical historical phases of exchange traded funds (ETFs), including:

Emergence Phase
Rapid Growth Phase
Dominance Phase

This research defines the market growth and the leading exchange traded fund (ETF) sponsors.

This research defines the key exchange traded funds (ETFs) product markets, including:

Passively Managed Exchange Traded Funds (ETFs)

Passively Managed Equity Exchange Traded Funds (ETFs)
Passively Managed Fixed Income Exchange Traded Funds (ETFs)

Actively Managed Exchange Traded Funds (ETFs)

Actively Managed Equity Exchange Traded Funds (ETFs)
Actively Managed Fixed Income Exchange Traded Funds (ETFs)

This research addresses the key markets & distribution channels for exchange traded funds (ETFs), including:

Direct Channels
Financial Advisor Channels
Institutional Markets

And this research makes several future predictions for exchange traded funds (ETFs), including:

Additional Conversions of Open-End Mutual Funds into Exchange Traded Funds (ETFs)
Substantial Growth in Exchange Traded Funds (ETFs), with Any Potential Capital Gains Tax Increase to Potentially Drive Even Further Adoption
The Vanguard Group to Continue its Net Flows Success & Surpass BlackRock as Exchange Traded Fund (ETF) Assets Under Management Leader with Continued Concentration of Market Share in Exchange Trade Funds (ETFs)
Continued Dominance of Net Flows by Passively Managed Exchange Traded Funds (ETFs), with Actively Managed Exchange Traded Funds (ETFs) to Capture About Twenty Percent of Net Flows Over the Next Five Years
Continuing Substantial Price Competition
Two of Three Incumbent Core Open-End Mutual Funds Markets (Managed Account Programs & Fee-Based Financial Advisors (RIAs)) to Continue to Shift to Exchange Traded Funds (ETFs) (Along with Robo Advisors), with Defined Contribution Plans Held Up by Operational Challenges and Instead Migrating to Lower Cost Collective Investment Trusts (CITs)
Substantial Global & International (Non-United States) Exchange Traded Fund (ETF) Markets
Continuing Modest Number of Exchange Traded Fund (ETF) Sponsors Venture Capital Investments
Continuing Modest Number of Exchange Traded Fund (ETF) Sponsors Mergers & Acquisitions
Limited Exchange Traded Fund (ETF) Firms Initial Public Offerings (IPOs)