Lending markets

VettaFi, Equity ETFs, Markets & Investing

This week ETFs Prime host Nate Geraci talks to Tom Hendrickson, VettaFi’s chief product and innovation officer, about VettaFi’s recent rebrand and insight into equity ETF advisors in today’s markets. Later, Geraci is joined by Nick Bohnsack, CEO from Strategas Asset Management, which discusses financial markets and recent ETFs spear. The podcast ends with David Auerbach, CEO of Armada ETFs Advisors, which discusses the Home Appreciation United States REITs ETFs (HOME).

The conversation opens with a discussion of the VettaFi rebrand, which saw ETFs Tendencies, ETFs The Database, Alerian, and S-Network global indexes are all uniting under one fintech brand that is business-to-business and carries business-to-consumer responsibilities. The company needed a way to embody all of the end-to-end services it historically offered while extending them into the future, and from there VettaFi was created.

“We tried to layer all of our core values ​​and how we wanted the market to perceive this end-to-end capability set that we have,” Hendrickson said. “Everything we do is certainly underpinned by a rigorous and disciplined nature when it comes to data.”

The name VettaFi includes the word “veterinarian” for investigating before making decisions, “Vetta” meaning one who knows in Sanskrit or peak/peak in Italian, and “fi” for financial and fintech representation. The name also includes the letters ETFs within it, a tribute to ETFs roots that the company carries as it grows into the future.

Pivoting to discussing advisor interest in equity ETFs, interest in dividend ETFs continued to grow on the VettaFi website in the first quarter of 2022 compared to the fourth quarter of 2021. Popular ETFs understood the VictoryShares US EQ Income Enhanced Volatility Weighted ETFs (CDC B) and the suite of Pacer funds, including the Pacer Global Cash Cows Dividend ETFs (GCOW).

Other popular strategies beyond dividends included quality, aerospace and defense, and selected funds with low volatility or equal weight, such as the Invesco S&P 500 equally weighted ETFs (RER B+)the Invesco S&P 500 Low Volatility ETFs (SPLV A)the iShares MSCI UNITED STATES Vol factor. min. ETFs (USMV A)and several other ETFs.

“Performance is a retrospective measure – you look historically at what happened. One interesting thing is finding where advisors spend time on how things might predict the future, and so you use that as a predictive mechanism to think about where the puck is going,” Hendrickson said.

The macro environment and residential investment

Next was Nick Bohnsack, CEO from Strategas Asset Management, who discussed the financial markets and the launch of their two new ETFs this year, the Strategas Macro Thematic Opportunities ETFs (SAMT) and the Strategas Global Strategic Opportunities ETFs (SAGP).

Bohnsack spoke about the transition from a decade of very accommodative policies to a decade where inflation became a global problem and was further exacerbated by the pandemic and the war in Ukraine. Valuations and types of companies to consider were also discussed, given the changing economic environment.

“The macro environment is challenged and will likely remain so for the foreseeable future; I don’t want to be too gloomy about it, but we have to fix some of these issues, frankly, before we can start to heal,” Bohnsack said.

The last was David Auerbach, chief executive of Armada ETFs advisers, who discussed the Home Appreciation United States REITs ETFs (HOME)the first active American residential pure-play ETFs. The fund does not include any homebuilders or any type of mortgage finance company, but it is pure play in the residential market.

“The idea for the fund came about because everyone has a story about the housing market across the country right now; it doesn’t matter if you’re located in Raleigh, Jacksonville, Atlanta, Tampa, Denver,” Auerbach said. “With so many people trying to buy homes across the country, it means a lot of people are being left out of the housing market.”

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