ETF Innovator on the Future of Passive Investing

Published on
March 9th, 2018
Career, ETF, Bitcoin
43 minutes
Asset class

ETF Innovator on the Future of Passive Investing

The Interview ·
Featuring Kathleen Moriarty

Published on: March 9th, 2018 • Duration: 43 minutes • Asset Class: Equities • Topic: Career, ETF, Bitcoin

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.


  • JO
    JOHN O.
    22 March 2018 @ 21:11
    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.
    • GO
      Greg O.
      29 March 2018 @ 19:09
      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)
  • RS
    Ryan S.
    14 March 2018 @ 13:12
    Great interviewer
  • EF
    Eric F.
    13 March 2018 @ 13:46
    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.
    • GO
      Greg O.
      29 March 2018 @ 18:41
      I disagree. She did a great job. I think that's the way the interviewee is, right on the point.
  • RA
    Robert A.
    11 March 2018 @ 21:55
    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.
  • VP
    Vincent P.
    11 March 2018 @ 00:35
    Well done! Good background information and also clues for what's ahead.
  • RM
    Ron M.
    10 March 2018 @ 15:55
    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
  • RI
    R I.
    10 March 2018 @ 04:34
    De ja vu:
    • MB
      Max B.
      12 March 2018 @ 11:00
      Oh dear......I thought I was paying for new content!!!
  • RI
    R I.
    10 March 2018 @ 04:33
    This interview reminded me of this one I saw on yahoo finance a month ago:
  • IO
    Igor O.
    9 March 2018 @ 17:48
    That's a real inside on bitcoin ETF. Thanks.
    • TT
      Tokyo T.
      10 March 2018 @ 11:53
      What was inside info?
  • TS
    Tyler S.
    9 March 2018 @ 17:23
    Please do NOT use a slider in your shots unless you know how to use it.
  • PB
    Pieter B.
    9 March 2018 @ 16:25
    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
      I agree
  • PB
    Pieter B.
    9 March 2018 @ 15:50
    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
      Lawyers didn't create the innovation; she did the paperwork, but now claims she created it because she read some legal docs.
  • RM
    Richard M.
    9 March 2018 @ 14:54
    Fascinating historical examination of the SPY creation (and GLD). Great interview by both interviewer and interviewee!
  • TE
    Tito E.
    9 March 2018 @ 14:31
    complication makes work for lawyers
    • TE
      Tito E.
      9 March 2018 @ 17:26
      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
      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
      So its only backed by metal if you hold ~ $12,500000 of this instrument? ..mervellous
  • TS
    Tyler S.
    9 March 2018 @ 13:52
    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
    too washed-out, need to fix the lighting and make it more comfortable for the talent.
  • PU
    Peter U.
    9 March 2018 @ 11:32
    Good job. The interviewer should be in the movies!

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