Exchange Traded Funds – Advanced

This course examines advanced concepts in ETFs. ETFs as an asset class have grown significantly in the last decade. The proliferation in the number of ETFs has led to many complex issues arising in the space. The first two sections of the class examine different types of ETFs such as leveraged ETFs, fixed income ETFs, international ETFs, industry ETFs, and factor-model ETFs. The selection process for assets included in these ETFs is discussed, and the risks behind these ETFs are examined. In the second half of the class, we examine ETFs and their use by industry. It addresses issues including how external asset management clients use ETFs and what are they looking for when considering ETFs, the arbitrage opportunities in the ETF space, how hedge funds use ETFs, the process and selection criteria issues hedge funds have around ETFs, hedge fund replication in ETF products from firms like Goldman Sachs, and how active management products like the new NextShares ETFs are changing the market.

Course Objectives

By the end of the course, the participants will be able to:

• Describe various types of ETFs
• Recognize the process of investing in ETFs and hedging the risks of those investments
• Explain asset management process and the selection criteria for ETFs
• Assess the risks and opportunities for arbitrage in the ETF space
• Explain emerging ETF asset classes like actively managed ETFs and hedge-fund replication ETFs

Suggested Prerequisites:

• Exchange Traded Funds class or equivalent knowledge

Program Level: Intermediate

Advance Preparation: None

Computers and Financial Calculators: N/A

Recommended CPE Credits: 7