ETF Innovator on the Future of Passive Investing

Published on
March 9th, 2018
Duration
43 minutes

Up Next

Related Videos

COVID-19 and Financial Markets in a Post-Stimulus World
The Interview ·

COVID-19 and Financial Markets in a Post-Stimulus World

The Highest Quality Macro Trades and the Impending End of U.S. Outperformance
The Interview ·

The Highest Quality Macro Trades and the Impending End of U.S. Outperformance

Market Irrationality, Monetary Confidence, and Systemic Change
The Interview ·

Market Irrationality, Monetary Confidence, and Systemic Change

Emerging Market Investing: You’re Doing it Wrong
The Interview ·

Emerging Market Investing: You’re Doing it Wrong

Rethinking Risk Management: Avoid Surprise, Not Risk
The Interview ·

Rethinking Risk Management: Avoid Surprise, Not Risk

The Wirecard Debacle: Shades of Enron and WorldCom
The Interview ·

The Wirecard Debacle: Shades of Enron and WorldCom

“Extend and Pretend”: Moral Hazard in the Debt Markets
The Interview ·

“Extend and Pretend”: Moral Hazard in the Debt Markets

Lining Up The Dollar Dominoes
The Interview ·

Lining Up The Dollar Dominoes

Steve Keen — We Need a Private Debt Jubilee
The Interview ·

Steve Keen — We Need a Private Debt Jubilee

A Sleeping Giant: Opportunity in Fannie Mae
The Interview ·

A Sleeping Giant: Opportunity in Fannie Mae

The Role of Crypto Post-Coronavirus
The Interview ·

The Role of Crypto Post-Coronavirus

Gerard Minack — “Buy the Rumor, Sell the Fact”
The Interview ·

Gerard Minack — “Buy the Rumor, Sell the Fact”

Jamie Metzl and Dee Smith — When Systems Collapse
The Interview ·

Jamie Metzl and Dee Smith — When Systems Collapse

Building the Ultimate Anti-Fragile Portfolio
The Interview ·

Building the Ultimate Anti-Fragile Portfolio

The Electrodollar: Venture Capitalism, Technology, and Silicon Valley
The Interview ·

The Electrodollar: Venture Capitalism, Technology, and Silicon Valley

The Ultimate Macro Phase Change
The Interview ·

The Ultimate Macro Phase Change

DoubleLine’s Global Bond Strategy: A Global Rates and FX Masterclass
The Interview ·

DoubleLine’s Global Bond Strategy: A Global Rates and FX Masterclass

More Power To The Princes
The Interview ·

More Power To The Princes

The Intersection of European Banking and Politics
The Interview ·

The Intersection of European Banking and Politics

Epidemics and Society: From the Black Death to the Coronavirus
The Interview ·

Epidemics and Society: From the Black Death to the Coronavirus
37

ETF Innovator on the Future of Passive Investing

The Interview ·
Featuring Kathleen Moriarty

Published on: March 9th, 2018 • Duration: 43 minutes

Kathleen Moriarty, known as "SPDR Woman" for her role in building the legal framework behind world's first and largest ETF, SPY, talks with us about the future of passive investing. Moriarty gives us a behind-the-scenes look at the challenges she faced when launching the first gold ETF, GLD, and how it compared to her work with the Winklevoss twins on their application for a bitcoin ETF. Filmed on March 5th, 2018.

Comments

  • MS
    Martin S.
    26 May 2020 @ 19:25
    0 0
    I was very impressed with interviewer, great interview
  • JO
    JOHN O.
    22 March 2018 @ 21:11
    3 0
    Good interview. I agree with those that suggest the use of more open end questions. There is so much more ground to cover on this subject. Some of the questions however, seemed a bit leading as if the interviewer was trying to support a thesis that ETFs are not good investment vehicles. Let's not forget that it wasn't the ETF's that were the cause of the problem in August. It was the fact that many of the underlying equities did not open. How to strike a NAV if 20% of your underlying are reporting "NA" for a price. I guess the exchange could have prevented the ETFs from opening as well but that probably would have ticked off people more. But I digress.... Very informative interview however. I continue to be impressed with the guests you guys are able to bring to us on a day to day basis.
    • JP
      Janusz P.
      29 March 2018 @ 19:09
      3 0
      I respectfully disagree. The interviewer did a great job. I think that's the way Kathleen Moriarty is, right on the point. As far as "leading questions to support her thesis": 1. don't you think it is ok to have a thesis that the guest may support or contradict? 2. she (interviewer) pointed out that there are more ETFs than stocks, 3. She did mention the arbitrage problems, flash crashes etc 4. Considering #2 and #3, isn't it a "common sense" to have some issues with ETF world in general? As far as the answer the interviewee provided to the above (that the markets are risky and people take on risks): 1. First and foremost, don't expect ANYONE that created a monster to admit he/she created a monster. I'm not saying ETFs are that, just a general comment that it is rare for people to take on responsibility for a big scale mess they created. After all it's their "baby" and they will find any excuse to protect their reputation (work). 2. If you don't think that the current state of ETFs is distorting the markets, then watch some RVs material from last year when on many occasions, a deep analysis of ETFs reveals the problems of these vehicles and how distorting they are or can be. 3. When during the flash crash 2010 shares of well know sound companies were changing hands at $0.01 or $100.000, how's that for "markets are risky" or that people "sell into falling markets"? Granted these were programs, but the whole reason the hell breaks lose occasionally is because of this overly complicated market (too many products/derivatives)
  • EF
    Eric F.
    13 March 2018 @ 13:46
    6 1
    Be good to ask some more open ended questions to let the person being interviewed expand on answers. Not a criticism but I do think some of the answers were too short and it maybe required a bit more work to open up. Just felt like some untapped potential left in this interview.
    • JP
      Janusz P.
      29 March 2018 @ 18:41
      0 0
      I disagree. She did a great job. I think that's the way the interviewee is, right on the point.
  • RS
    Ryan S.
    14 March 2018 @ 13:12
    5 0
    Great interviewer
  • RI
    R I.
    10 March 2018 @ 04:34
    2 0
    De ja vu: https://finance.yahoo.com/video/needs-happen-bitcoin-etf-approval-220501356.html
    • MB
      Max B.
      12 March 2018 @ 11:00
      1 0
      Oh dear......I thought I was paying for new content!!!
  • RA
    Robert A.
    11 March 2018 @ 21:55
    3 0
    Some basic “simple” legal stuff on regular etfs, commodity etfs, etf Tax differentiation for collectibles, Bitcoin etf potential and ICO etf regulatory hurdles presented in an easy to comprehend format—vintage RV at it’s best. Right or wrong I did a “Fire, AIM, Ready” purchase of Bitcoins in December 2015 and am humbled to say that I learned way too much in this video that I clearly should have known before I jumped in. Major takeaway= Using the GLD template...whenever/if a BC etf happens there will be a BC price surge based upon the entrance of MANY retail BC purchasers who are just waiting for the patina of regulatory approval.
  • PB
    Pieter B.
    9 March 2018 @ 16:25
    36 3
    I like to add that I think Justine is a superb interviewer! It was really easy to follow with your well-structured & in-depth questions!
    • RS
      Ryan S.
      11 March 2018 @ 18:07
      1 1
      I agree
  • VP
    Vincent P.
    11 March 2018 @ 00:35
    2 0
    Well done! Good background information and also clues for what's ahead.
  • RM
    Ron M.
    10 March 2018 @ 15:55
    2 0
    Kathleen is right that markets are risky and people aren’t rational, but structurally certain holdings of ETFs (for example, bonds) are going to be pretty illiquid with the volatility we likely will e
  • IO
    Igor O.
    9 March 2018 @ 17:48
    0 0
    That's a real inside on bitcoin ETF. Thanks.
    • TT
      Tokyo T.
      10 March 2018 @ 11:53
      4 0
      What was inside info?
  • PB
    Pieter B.
    9 March 2018 @ 15:50
    6 1
    Awesome interview! Great value and fun to watch! Great to see how the SPY started and where passion and innovation can lead to!
    • TT
      Tokyo T.
      10 March 2018 @ 11:46
      3 8
      Lawyers didn't create the innovation; she did the paperwork, but now claims she created it because she read some legal docs.
  • TE
    Tito E.
    9 March 2018 @ 14:31
    5 1
    complication makes work for lawyers
    • TE
      Tito E.
      9 March 2018 @ 17:26
      5 2
      Possibly need to qualify my comment: GLD likely has multiple claims on every ounce of underlying physical. Counterparty risk everywhere. Its a trading vehicle (and a good one) but f things get rough dont expect to be taking delivery of any gold you think you have. The lawyers will get plenty fees sorting through the claims though.. just my tuppence
    • DM
      Dan M.
      9 March 2018 @ 19:04
      4 2
      Regarding your GLD redemption comment, the fact that the minimum redemption is 100,000 shares removes the redemption option for most while conveniently greatly reducing the bank's delivery default risk.
    • TE
      Tito E.
      10 March 2018 @ 08:18
      5 0
      So its only backed by metal if you hold ~ $12,500000 of this instrument? ..mervellous
  • RI
    R I.
    10 March 2018 @ 04:33
    1 0
    This interview reminded me of this one I saw on yahoo finance a month ago: https://finance.yahoo.com/video/needs-happen-bitcoin-etf-approval-220501356.html
  • TS
    Tyler S.
    9 March 2018 @ 17:23
    1 8
    Please do NOT use a slider in your shots unless you know how to use it.
  • RM
    Richard M.
    9 March 2018 @ 14:54
    5 1
    Fascinating historical examination of the SPY creation (and GLD). Great interview by both interviewer and interviewee!
  • TS
    Tyler S.
    9 March 2018 @ 13:52
    3 1
    Why would Kathleen Moriarty admit that the devil is in the details, her sole purpose in life is to wordsmith perspectives..
  • TS
    Tyler S.
    9 March 2018 @ 13:37
    1 9
    too washed-out, need to fix the lighting and make it more comfortable for the talent.
  • PU
    Peter U.
    9 March 2018 @ 11:32
    12 5
    Good job. The interviewer should be in the movies!

Chapters

  1. 00:03:36
    Creating Spy
  2. 00:13:16
    The Proliferation of ETF's
  3. 00:16:38
    Creating GLD
  4. 00:23:14
    Hurdles for Bitcoin ETF
  5. 00:30:00
    Initial Coin Offerings
  6. 00:34:35
    ETF Price Dislocations
  7. 00:38:56
    The Regulatory Landscape