2. Managing Editor, Editorial Director
Official Welcome
Mike Taylor
Managing Editor, Editorial Director
Money Management

3. The Panel Matthew McKinnon Director, Intermediary & Institutions
VanEck
Shaun Parkin
Head of SPDR ETFs, Australia
State Street Global Advisors
Damien Sherman
Head of Exchange Traded Fund Capital Markets
Vanguard
Alex Zaika
Director, iShares Wealth Advisory Strategist
iShares

4. Director, iShares Wealth Advisory Strategist
Alex Zaika
Director, iShares Wealth Advisory Strategist
iShares

5. Head of Exchange Traded Fund
Damien Sherman
Head of Exchange Traded Fund
Capital Markets
Vanguard

6. Director, Intermediary & Institutions
Matthew McKinnon
Director, Intermediary & Institutions
VanEck

7. State Street Global Advisors
Shaun Parkin
Head of SPDR ETFs, Australia
State Street Global Advisors

8. FOR WHOLESALE CLIENT USE ONLY – NOT FOR DISTRIBUTION TO RETAIL CLIENTS
Core allocation
Key trend: increased ‘core’ usage to save fee budget for high conviction opportunities
FOR WHOLESALE CLIENT USE ONLY – NOT FOR DISTRIBUTION TO RETAIL CLIENTS

9. Fixed Income and Smart Beta Growing
ETFs continue extraordinary growth
Global ETP Assets
Fixed Income and Smart Beta Growing
2013: DM Equities, Smart Beta
2014: US Equities, FI, Jap Eq
2015: Europe, Japan, EAFE
2016 YTD: Fixed Income, Min Vol
Data are as of September 30, 2016 for all regions. Global ETP flows and assets are sourced from Markit and BlackRock. Flows and assets for the years between 2010 and 2015 are sourced from Bloomberg and BlackRock. Flows and assets for years prior to 2010 are sourced from Strategic Insights Simfund. Asset classifications are assigned by BlackRock based on product definitions from provider websites and product prospectuses. Other static product information is obtained from provider websites, product prospectuses, provider press releases, and provider surveys.
FOR WHOLESALE CLIENT USE ONLY – NOT FOR DISTRIBUTION TO RETAIL CLIENTS

10. Multi-Asset Solutions
Q. What is your current view of the Australian ETF market when compared to US and Europe, and how quickly do you see the Australian ETF market adapting to similar strategies/order models ?
The evolution of ETF products
Broad Asset Classes
Sub-Asset Classes
Active Strategies
Multi-Asset Solutions
Esoteric Investments

11. Q. What is your current view of the Australian ETF market when compared to US and Europe, and how quickly do you see the Australian ETF market adapting to similar strategies/order models ?

12. ETF trading strategies
Q. What are your recommendations for someone that is starting to build his portfolio?
Strategic asset allocation
Tactical asset allocation
Core & satellite
Pairs trading
Sector rotation
Cash equitisation
Completion strategies
Maximize diversification benefits with allocations to a variety of asset classes
Quickly gain exposure to specific sectors or asset classes; easily “fill the holes” in a portfolio
Establish tactical short term overweight/ underweight positions in an effort to outperform the market or reduce risk
ETFs
Gain instant short-term market exposure while refining a longer-term investment view
Use sector funds in addition to core investments to potentially enhance overall portfolio performance, provide diversification, or control risk
ETF trading strategies
Use key trading signals to take advantage of cyclical market movements
Take long position in an ETF; short one constituent of the ETF

13. Major Index types Market capitalisation weighted
Securities are weighted based on the proportionate size/value of the company
Examples include: S&P/ASX 200 Accumulation Index, S&P 500, London’s FTSE 100, Japan’s Nikkei 50
Equal weighted
Each stock in the index is equally weighted
Examples include: MVIS Australia Equal Weight Index, S&P 500 Equal Weight Index
Factor based
Weight securities based on identifiable components such as book value, return on equity, volatility and dividend yield.
Examples include: MSCI World Quality Index, Morningstar Wide MOAT Focus Index
Capped weightings
Indices designed to address a specific distortion in conventional benchmarks and target an investment outcome such as addressing stock concentration risk, security liquidity or sector exposure
Examples include: MVIS Australia A-REITs Index, MVIS Australia Banks Index

14. ETF Due Diligence Checklist
Evaluate the Index / Fund
Does the index and/or fund objectives align with a client’s portfolio?
Examine the ETF’s Product Structure
Does the fund’s structure help mitigate portfolio risks and promote liquidity?
Consider the Total Cost
Does the ETF minimise expenses?
Gauge Liquidity
Can you trade when you want to?
Examine the Fund Provider
Does the company have a solid reputation in the ETF marketplace?

15. Q. What is an effective way to introduce the idea of ETF’s to someone who has never heard of them?
ETF Cost of Ownership
Expense
Ratio
Commission
Spread
Tracking Error
Total Cost of
Ownership
Source: SSGA.

16. Submit your questions using the Q&A widget