Look Out Actives, More Passive ETFs Coming Your Way

Head of exchange traded products at the New York Stock Exchange Talks More ETFs

Douglas Yones, Head of Exchange Traded Products for the NYSE says there are more ETFs waiting in the wings.  “Our expectation is that the flow continues to grow as well because of pricing and tax efficiency of ETFs. At the advisory level, why not find a way to reduce the cost of your portfolio? The adoption rate has is rising. It’s really an exciting time for the ETF.”

Currently, about $2.6 trillion in tradable ETFs exist in the U.S. market, with $2.4 trillion listed on the NYSE. All asset classes saw inflows last year, Yones said during an interview with RIA Channel. He gives a broad overview of where the money flow is going in the ETF universe and trends to come in the years ahead. The growth of ETF investing promises to become stiff competition for traditional mutual fund managers which often charge load fees and have other management expenses.

Yones was appointed head of NYSE ETF products in November 2015, taking him from a 17 year stint at Vanguard, where he was head of domestic equity indexing and ETF product management.