Actionable ETF Investment Ideas for Institutional Investors

Brendan Maton
Exchange-traded funds have been growing at a rapid pace since the launch of the first ETF nearly 20 years ago. Today, the global ETF market boasts assets worth more than $1.7 trillion and the pace does not seem to be slowing down. According to last year’s Greenwich study, 40% of institutional investors plan to increase their ETF allocation in the next 12 months. But how are the most sophisticated investors utilising these seemingly retail investment tools?

Join experts from SPDR® ETFs, the exchange traded funds (ETF) platform of State Street Global Advisors (SSgA) to hear how institutional investors are currently using ETFs, which asset classes they are accessing with ETFs, and why ETFs are an attractive option for index exposure over other vehicles. The discussion will also address common misconceptions of ETFs.
• Using ETFs for strategic/tactical asset allocation, transition management, cash equitisation, rebalancing portfolios and liquidity management.
• Asset classes to consider accessing with ETFs.
• Comparing ETFs, futures and swaps.
• Addressing common misconceptions of ETFs.
Jun 20 2012
61 mins
Actionable ETF Investment Ideas for Institutional Investors
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  • MSCI Multi-Factor Indexes May 13 2014 1:00 pm UTC 75 mins
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  • A Framework for Implementing Factor-Based Equity Allocations Recorded: Dec 10 2013 72 mins
    The theory and practice of factor-based investing continues to be a subject of lively discussion among academics, institutional investors, product providers and index providers alike. As a result, incorporating equity factors—such as value, momentum, low size, low volatility, quality and high yield—in the asset allocation process necessarily involves several layers of critical decision points.

    In this webinar, MSCI explores how to allocate to and across factors in the context of the institutional portfolio. We also provide a framework for evaluating and refining candidate factors for the plan, and selecting appropriate factor indices based on the investor’s various objectives and constraints.

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  • Taking a fresh look at Quality Recorded: Dec 4 2013 70 mins
    The investment industry is full of excitement about "smart beta", investors are responding by reconsidering their current active and passive allocations and looking at the potential benefits of factor based investing.
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  • Smart Beta in Practice Recorded: Nov 19 2013 64 mins
    What is Smart Beta?
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    What are the benefits?
    • Transparent (like an index).
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    Ms. Husson-Citanna will provide insights on the following themes, and answer your questions during the live Q&A session.
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  • Signs of a Turning Point? What are the Best Real Estate Investment Opportunities Recorded: Sep 25 2013 69 mins
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  • Smart Beta, Monkeys and Upside Down Strategies Recorded: Sep 18 2013 68 mins
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    Brendan Maton
  • Capital Market Assumptions 2013 - Northern Trust’s Five-year Market Outlook Recorded: Sep 11 2013 61 mins
    Every year Northern Trust produces a range of five-year forecasts on economic activity and financial market returns. These capital market assumptions serve as a guide to the opportunities and risks our investment teams will see over the next five-year investment horizon and help identify which themes to watch, and how these may affect asset allocation.

    We are offering you this unique opportunity to hear directly from our experts how our economic outlook could relate to your portfolio. Join Jim McDonald, Chief Investment Strategist and Claire Meier, Senior European Sovereign Analyst as they discuss:

    • Whether current government policy in the US and China is good enough for the world economy?
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    Key Topics:
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    Malavika Solanki
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    Interviewer: Brendan Maton
  • Webinar: Putting Strategy Indexes to Work Recorded: Jun 11 2013 66 mins
    Putting strategy indexes to work
    How these tools can help investors better understand possible unintended exposures and outcomes from Russell Indexes, Russell Investments.

    As ‘Strategy Indexes’ continue to evolve, the multitude and growing availability of these tools to help investors gain more flexible and precise exposures to specific investment strategies can be overwhelming. The European investor must choose the best fit of these strategies for their portfolio and is faced with the impact that their selection could have on overall portfolio performance.

    This webinar aims to provide a guide to the various types of strategy indexes available. Our presenters will explain how the indexes can help investors manage exposures and volatility challenges more effectively in the quest to improve portfolio outcomes, without increasing risk. There will also be an opportunity to have any questions answered during an interactive Q&A.

    Lloyd and Rolf will share their insights on:
    • Why the interest in strategy indexes?
    • How the intelligent use of these indexes can be beneficial to institutional portfolios
    • How investors can use these tools to:
    - capture diversified drivers of risk and return
    - tune their portfolios to achieve desired exposures such as lower volatility, higher quality, higher exposure to dividends, and access to emerging markets
  • Designing Portfolios of Risk Premia: Practical Considerations Recorded: May 21 2013 64 mins
    Extensive empirical research has found positive gross excess returns from exposure to risk factors (or risk premia) such as value, momentum, low size (or small cap) and low volatility stocks. Now, investors are sharply focused on the practical questions of how to implement exposure to these factors effectively.

    MSCI was recently engaged by the Norwegian Ministry of Finance to analyze various factor strategies, examining their risk, performance, investability and capacity characteristics.

    We share key findings from this new in-depth study and:

    · propose a framework for gauging the investability of factor strategies, including their tradability/liquidity, turnover and replication costs, capacity, and degree of active tilt

    · discuss a range of indexing methodological decisions which can affect the ability of an index to “capture” various factors

    · highlight the tradeoffs between index investability and pure factor capture

    · explore the benefits of combining multiple risk premia indices, across the dimensions of risk, performance and investability
  • Emerging Markets - More to Give Recorded: May 7 2013 59 mins
    Emerging markets have shown their mettle in the years following the GFC. Strong growth and increasing share of global GDP, healthy balance sheets, improving transparency and liquidity have improved Emerging Markets' appeal among institutional investors.

    • With global developed markets making a strong start to 2013, does the relative appeal of EMs still hold true? What’s in store over the year ahead?

    • Are institutional investors still under-allocated to Emerging Markets?

    • What is driving EM returns and how can investors evaluate different components?

    • What approaches are delivering results?

    • We review an equal weighted country strategy that has produced consistent results and enhanced EM diversification.

    Gaurav Mallik
    Gaurav is a Senior Member of the Global Active Quantitative Equity Team at SSgA. He is responsible for portfolio management, research and positioning across multiple strategies within the group.
    Prior to this role, he was a part of the quantitative credit research team at State Street Global Markets. He joined State Street Global Markets from SKG, Inc., a company he founded with State Street in 2001 focused on trading illiquid bonds. Gaurav has 7 years' experience in research and quantitative modelling on the sell-side.

    Gaurav holds an MBA in Finance from Cornell University, a Master in Electrical Engineering, with a focus on Neural Networks, from Boston University and a BSc in Electrical Engineering from Robert Gordon's University in Aberdeen. He has written several papers on liquidity in credit markets and has presented research at academic and practitioner conferences.
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