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Dave Nadig
2:59
Good afternoon everyone!  Welcome to ETf.com Live!
3:00
You can enter in questions below at any time.  I'll get to as many as I can in the next 30 minutes or so, and we'll also have a transcript up shortly after we're done.
Let's get to the questions!
Anon
3:00
Soundtrack?
Dave Nadig
3:00
Love it.  Vampire Weekend just dropped a new track, so thats the order of the day.
but on to the real stuff.
Roger-Dodger
3:00
I read today's ETF.com story "New Volatility ETN In Demand"  How does $450 million remain in VXX at expiration, or paid back to holders, happen. Is that deliberate to leave money there at expiration?
Dave Nadig
I'm guessing that's the story you're talking about.
As an ETN, it's basically just a piece of corporate debt.
So just like a bond, if you hold till maturity, your investment simply becomes cash, paid out just like a bond.
3:02
So why would anyone leave it in?  Well, I suppose SOMEONE out there doesn't actually realize that VXX is expiring and has been replaced by VXXB.
So they could theoretically just get the cash in their account.
but more likely: there are no transaction fees or spreads associated with just holding it.
3:03
So why would you sell it and pay the bottom half of the spread when you can just get the actual fair value for free?
If you are insensitive to the timing, it could save you real money
So probably some combo of folks who don't realize it's happening, and folks who don't care about EXACTLY when they sell out, but are happy to save some cash.
Todd Rosenbluth- CFRA Research
3:03
Hi Dave. You’ve been coming for years. What’s an under appreciated session or part of Inside ETFs in your opinion? What’s a must see/do?
Dave Nadig
3:04
So, Todd is of course referring to the big Inside ETFs conference hapenning in Hollywood florida a week from Sunday.
Obviously I love all the big name keynotes.
3:05
But I would say the very best part of the event is getting to meet advisors and investors and find out what's on their mind.
So I tend to think the cocktail events and lunches and so on are actually the most interesting.
If I was coming AS an advisor or investor however, I'd go to the most random side sessions I could find.  Or things like the "hidden gems" presentations.
3:06
I think what goes on at the edges of the business is often much more interesting than whatever the latest product from the top 3 issuers is.
That doesn't mean those are GOOD investments of course, it just means they're INTERESTING.  That's just the start of the due diligence process.
Don Bascomb
3:06
Do all ETNs necessarily have a maturation date, like a target-maturity eTF?
Dave Nadig
3:06
Hi Don.  To my knowledge, every ETN has a maturity date, because they are ultimately just pieces of corporate debt.
3:07
And we don't really have perpetual bonds in the U.S. - they get used in some other countries.
So consequently, we get effectively "long paper" for these ETNs.
3:08
Interestingly, some ETFs expire too.  I'd have to double check, but the QQQs I believe expire on the death of the last named board member or something.  Very odd.
(but there's a lot odd about the QQQs).
Doug
3:09
When it’s said, e.g., ‘no 2 factor ETFs are exactly alike,’ I’m assuming that applies to ETFs in every asset class
Dave Nadig
3:09
For the most part, it's true that any given two ETFs likely have differences, no matter how small.
Even SPY/IVV/VOO have differences, even though they all track the exact same index (the S&P 500).
Now, these differences can be quite small.  A basis point here and there.
3:10
but if you go to something like "Growth" things open WAY up.
you can't get two CFAs over coffee to agree on what a correct growth methodology is, much less two independant companies trying to figure out what works, and what sells.
So the less vanilla something is, the more likely there are real, substantial exposure differences.  And thus, the more work you'll need to do to make an informed decision.
Taylor
3:11
What specific attributes make for a superior robo advisor?
Dave Nadig
3:11
GREAT question.
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