ETF Industry Trends and the Post-Election Outlook

  • (0:45) - What Role Does Tidal Play When Bringing ETFs To Market
  • (3:50) - What Is Driving The Growth In The ETF Industry Right Now?
  • (6:20) - What Impact Will A Trump Presidency Have On The Stock Market?
  • (11:30) - What Is Causing The Rise In Active ETFs?
  • (16:35) - Newly Launched ETFs You Should Have On Your Watchlist From Tidal
  • (20:20) - Breaking Down What A 351 Exchange Strategy Is
  • (24:10) - Investing Like A Politician: NANC & KRUZ
  • (27:40) - Mutual Funds Converted To ETFs: Will This Trend Continue?
  • (30:15) - ETF Trends and Themes To Watch Out For In 2025
  • (33:10) - Episode Roundup: MSTX, CHAT, TSLY
  •                 Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Mike Venuto, Chief Investment Officer at Tidal Financial Group, a leading white-label ETF issuer, about ETF industry trends and the post-election outlook.

It’s been a blockbuster year for the ETF industry. U.S.-listed ETF assets surpassed the $10 trillion mark for the first time, and flows remain on track to exceed $1 trillion by year-end.

A significant milestone was the launch of the first spot Bitcoin ETFs after a wait of more than a decade. Assets in the iShares Bitcoin Trust IBIT have surged to over $42 billion, making it the most successful ETF launch ever.

So, what's driving the growth in the ETF industry?

Trump’s major victory sparked impressive rallies in U.S. stocks and other risk assets. Many investors are hopeful that lower taxes and reduced regulations will benefit the economy. ETF inflows have surged since the election.

Most recently, we’ve seen an explosion in active products, particularly those using derivative-based strategies. Leveraged single-stock ETFs like the Defiance Daily Target 2x Long MSTR ETF MSTX and option-based income ETFs like the YieldMax TSLA Option Income Strategy ETF TSLY have garnered significant investor interest.

Tidal recently filed for eight two-stock ETFs that will go long on one stock and short on another. For example, one such product will provide a leveraged long position in NVIDIA NVDA while shorting Intel INTC. Another will go long on Tesla TSLA while shorting Ford F.

Due to the general preference for ETFs among investors, many providers are converting their mutual funds into ETFs and launching ETF clones of their successful mutual funds.

Vanguard's unique patent allowing ETFs as a share class of its existing mutual funds expired last year. Since then, more than 30 asset managers have filed to offer ETF share classes of mutual funds.

What would a Trump presidency mean for the market and the ETF industry?

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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