So Happy Together: Combining Active and Passive Vehicles

Morningstar senior fund analyst Al Kellett will provide an introduction to what the term ‘smart beta’ means, and start off this webinar by taking a look at the smart beta ETF landscape, how big this subset of the ETF market is and how it’s been growing. He’ll then illustrate why it’s hard to define and discuss some of the ways that this strategy is being carried out right now in the marketplace.

Morningstar ETF experts Hortense Bioy, Jose Garcia-Zarate, Al Kellett and Gordon Rose will answer all your ETF questions, no matter how big or small. Submit your questions in advance at ETFQueries@morningstar.com or live on the day via the BrightTALK webinar platform. We’ve already got a list of your questions to address, including how dividends are treated in ETFs and what impact this could have on performance; what costs are associated with ETFs beyond the total expense ratio; how to tell how actively traded an ETF is; and how to decide which ETF to buy when faced with several products tracking the same index.

Smart beta strategies have gained a lot of attention in recent years, and more and more smart beta ETFs are being launched in Europe. This live panel discussion between Morningstar analysts and users of smart beta strategies will address these questions:
What exactly are these alternative beta strategies?
Are they better than the traditional market cap-weighted approach or just different?
What are the pitfalls?
How can these strategies be integrated into one’s investment process?

The agenda will be to define the terms Tracking Error and Tracking Difference and talk about why they are important; to present the results of our study into the tracking efficiency of a sample of ETFs; and introduce a new Morningstar data point for measuring tracking efficiency, Estimated Holding Cost.

•A Round-Up of Where Assets Flowed in 2012
•Regulatory Changes for the ETP Industry
•Consolidation and Closures in the ETP Industry
•Expectations for the ETP Industry in 2013

•How we got to a low-yield world
•Income, not for its own sake
•Theory of yield relativity: why the highest-yielding investments don’t pay
•What’s cheap, what’s not

•Why corporate and HY have become the fixed income flavour of the year
•The outlook and the risks
•Exploring the ETF menu

Why even consider the alternatives?
Why use ETFs to access alternative asset classes?
Exploring the menu of alternative asset classes accessible via the ETF wrapper:
- Commodities
- Currencies
- Property
- Hedge Funds

- Examining the benefits and risks of securities lending
- What safeguards are put in place to protect investors?
- How much of your physical ETF is out on loan?
- Due diligence checklist

•Are commodities a diversification goldmine?
•Examining the sources of commodity returns
•Are some commodity indices better than others?
•Tips for transacting in commodity ETPs

The macro review
Would Spain be better off outside the Euro?
Investment opportunities

•Understanding ETF Liquidity
•Common pitfalls in ETF trade execution
•Best practices in ETF trading

The April edition of monthly ETF webinar focuses on discussing the philosophy behind using ETFs as portfolio building blocks, how to choose the right ones, and understand Best Practices when Trading ETFs

The March edition of Morningstar's monthly ETF webinars focuses on combining these passive investment vehicles with their active counterparts in a diversified portfolio.

In the February edition of Morningstar's monthly ETF webinars, director of European ETF research Ben Johnson goes back to basics and provides essential knowledge for all investors considering these exchange-traded products. Topics to be covered include:
Topics include:
•ETFs Defined
•A 21st Century Investing Technology
•Definition via Juxtaposition:
oETFs vs. Funds
oETFs vs. Individual Securities
oETFs vs. Investment Trusts
oETFs vs. Other ETPs

Topics Include:
•2011: The Year in Figures
•The Year of the ETP Bogeyman
•What Investors Told us About ETPs in 2011
•A Look Forward Into 2012

Morningstar invites you for a discussion about mid-caps: are they really under-researched and offer superior returns?

- Mid-Caps Defined
- Do Mid-Caps Offer Attractive Risk/Return Characteristics?
- Are Mid-Caps Under-Researched And Under-Represented?
- What drives mid caps performance relative to large caps?
- How can I access mid caps?

Morningstar invites you to discuss accessing emerging market debt via ETPs. Topics include:

- The general case for emerging market debt
- The specific case for local currency
- The offering of emerging market debt ETPs in Europe
- Key risks

Morningstar invites you to discuss counterparty risk in ETPs:

- What are the sources of counterparty risk in ETPs?
- How are investors being protected from this risk?
- How are they being compensated for assuming this risk?
- How is the industry addressing concerns over these risks?
- What more can be done to further illuminate and mitigate this risk?