Central Bank conference on ETFs - 29th November, Dublin

Discussion in 'Exchange Traded Funds (ETFs)' started by Brendan Burgess, 9 Oct 2017.

  1. Brendan Burgess

    Brendan Burgess Founder

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    The Central Bank of Ireland will be hosting a Conference entitled “ETFs – Stability and Growth” on 29 November 2017 in the Convention Centre Dublin.

    Are ETFs still the safe, simple, transparent product they are understood to be? Is the ETF structure appropriate for any type of product? Should there be limits? What impact do ETFs have on their underlying market and what liquidity concerns are relevant and valid in an ETF context?

    Participation is free of charge and you can register your interest in attending by emailing ETF@centralbank.ie

    Final details will be available on our website.

    We look forward to seeing you and to engaging in a frank and open discussion on ETFs!
     
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  2. patrickjd

    patrickjd Frequent Poster

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    Hopefully it might lead to the government introducing a sensible tax regime for EUR domiciled ETF's.
     
  3. fistophobia

    fistophobia Frequent Poster

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    No, it will not. You would be wasting your breath to bring this up at the conference.
    The agenda is to discuss the growth of ETFs and possible systemic risk. I expect their will be a lot of industry people in attendance.
     
  4. Brendan Burgess

    Brendan Burgess Founder

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    The FT has an interesting article

    Could ETFs survive a sudden downturn in the market?

    "US asset managers such as iShares and Vanguard, the two largest issuers, have traditionally offered “physical” ETFs — funds backed by the underlying securities that make up the index. These are distinct from “synthetic” ETFs, which are backed by a swap agreement between the provider and a counterparty such as an investment bank, which provides the index-hugging return.

    Investment commentators such as Professor John Kay have warned retail investors to be “wary” of synthetic ETFs, and stick to the more straightforward physical variety."

    I understand the argument against synthetic ETFs, but I don't follow the argument against physical ETFs. It is something like the following: The flow of funds into ETFs has caused the mis-pricing of equities. But surely if the equities are mis-priced, the active investors will exploit those market inefficiencies?

    When the next market crash happens, private investors will exit the market. But so what? That happens in actively managed funds as well.

    Brendan
     
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  5. fistophobia

    fistophobia Frequent Poster

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    I am attending this conference. I will ask a targeted question if such a forum is granted.
    Expect this to be quickly shut down, as private investors are bottom of the pyramid.

    "Oh, this is not our responsibility. Government make the rules on fund exit tax, etc."

    I am sticking with UCITS funds for now.
    My aim is to move overseas, so exit tax is not going to be an issue in the end.