DRAMatic Launches and Wall Street's Crypto Takeover

Welcome to ETF Zoo, where we check in on the latest happenings in the wild world of ETFs. The crew this week covers the liquidity crunch happening in private credit, the broadening industry embrace of bitcoin and crypto, how diversification is actually (finally!) working this year, and niche ETFs to launch recently, including the already wildly popular Roundhill Memory ETF (DRAM). ETF.com hosts Dave Nadig, President & Director of Research, and Sumit Roy, Senior ETF Analyst, are joined this week by Nate Geraci, President, NovaDius Wealth Management; Brian Moriarty, Principal, Manager Research at Morningstar; and James Seyffart, CFA, CAIA, Senior Research Analyst, Bloomberg Intelligence.  Hot Topics Covered Include:   Private Credit Liquidity Concerns: The recent friction in private credit, despite redemption mechanisms working as intended to protect portfolios, are a cause for concern. By opening up to the retail market, asset managers now find themselves exposed to the reality of investors wanting their money back during downturns.  The "Wall Street-fication" of Crypto: With major institutions like Morgan Stanley and Goldman Sachs launching crypto-linked products, the Zoo crew discusses bitcoin’s evolution into a standard tool for advisors with the industry focusing more on distribution and management fees. The Rise of Targeted, Niche ETFs: The success of the Roundhill Memory ETF (DRAM) — that focuses on memory chips — demonstrates a growing demand for highly concentrated thematic plays combined with the ability to quickly launch timely, niche strategies.  The ETF Spaghetti Cannon Is Fully Operational: At the same time, lower regulatory hurdles and the rise of white-label providers have led to declining costs to launch an ETF. This is turn has given rise to a trend where issuers launch numerous tactical products and demonstrate a ready willingness to close funds that don’t gain immediate traction. Diversification’s Return to Form: For the first time in years, diversification is actually helping portfolios. With small-caps, value stocks, international markets, and gold outperforming the S&P 500 at various points this year, megacap tech dominance is finally giving way to a broader market rotation. Follow along with the conversation at https://www.etf.com/sections/podcasts