ETF Zoo discusses the popularity of derivative strategies, highlighted by Goldman Sachs’ acquisition of Innovator. The show explores crypto investing, psychological commodities, and the SEC’s rejection of 3x-5x leveraged ETF filings. Guests include industry experts like Mike Akins, Eric Balchunas, and Todd Sohn, diving into the latest ETF trends and developments.

The show kicks off with a discussion on ETF flows, with over $1.5 trillion entering the market this year. While most funds go to cheap beta products, the real growth is in complex derivative-based offerings targeting investor emotions. The conversation delves into the power and profitability of derivatives, exemplified by Goldman Sachs’ $2 billion acquisition of Innovator.

Vanguard’s decision to allow clients to trade crypto ETFs surprises the group, sparking discussions on digital asset fees and the role of ETFs in exposing the high costs of direct crypto ownership. The panel also delves into the psychological nature of cryptocurrency as a commodity, comparing it to assets like gold or art in terms of value perception.

The SEC’s rejection of high-leverage single-stock ETF filings prompts a debate on fee transparency and hidden costs in complex products. The conversation shifts to the impact of financing costs, turnover, and fund fees on investor performance, highlighting the growing interest in lucrative strategies among asset managers. Traders are noted for skillfully navigating leveraged products based on market conditions.

Read more at Yahoo Finance: The Staggering Flows Driving the 2-Speed ETF Market