Lessons from Launching (and Shutting Down) a Small-Cap Value ETF
Two Quants and a Financial PlannerJanuary 15, 202401:01:35

Lessons from Launching (and Shutting Down) a Small-Cap Value ETF

In this episode, we walk through our experience of launching a small-cap value ETF in 2014, running it for 6 years and then shutting it down in 2020. We look at what we learned from the experience and what investors can learn about how ETFs work behind the scenes from our experience.

00:00 - Intro
02:33 - Why we decided to launch an ETF
06:50 - The logistics of launching an ETF
11:09 - The active vs. passive ETF decision
14:56 - Securing seed capital
19:30 - The competition in the small-cap value ETF space
24:00 - How we thought about portfolio size
28:30 - How ETFs handle inflows and outflows relative to mutual funds
30:44 - The importance of short-term performance for new ETFs
37:05 - The challenges of the ETF space for small issuers
41:23 - How Matt evaluates smaller ETFs as an allocator
45:59 - The decision to shut down the ETF
52:26 - What happens when an ETF shuts down

#valueinvesting #investinglessons #investing #stockmarket

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