A NOTE FROM BOB

Join us on ETF Edge this Monday when our guests will be Gerard O'Reilly, co-CEO of Dimensional Fund Advisors, and Dave Nadig, chief investment officer at ETF Trends.  Dimensional Funds will be converting four of their mutual funds into ETFs over the weekend in the largest conversion from mutual funds to ETFs to date.  Tune in as Gerard shares his investment wisdom!  CNBC.com/etf-edge at 1 PM ET.

The $21 trillion U.S. mutual-fund industry could consist mostly of ETFs within the next 10 years, according to Citigroup, aided by the growth of active investing strategies and semi-transparent ETFs.

Invesco has become the ETF provider for two very big NASDAQ indexes--the Nasdaq Semiconductor Index and the Nasdaq Biotechnology Index.  The Invesco Nasdaq Biotechnology ETF (IBBQ) and the Invesco PHLX Semiconductor ETF (SOXQ) began trading June 11.  As our friend Todd Rosenbluth has noted, "The ETFs will track the same benchmarks currently followed by the $11 billion iShares Nasdaq Biotechnology ETF (IBB) and the $6.5 billion iShares PHLX Semiconductor ETF (SOXX), but iShares is shifting the underlying indexes to ones from ICE this month." Of note:  Invesco will waive advisory fees of IBBQ and SOXQ until December 17, 2021. 

Speaking of Invesco, their Dynamic Leisure and Entertainment ETF (PEJ) kicked AMC out of the fund earlier this month...interesting rebalancing story here.

John Rekenthaler has a terrific piece on whether index funds have too much voting power on Morningstar.

There's a little less optimism about the SEC approving a bitcoin ETF imminently, and with good reason.  SEC Chair Gary Gensler (whom I interviewed this week) is clearly signaling he is still concerned about fraud, manipulation and a lack of regulatory oversight on crypto exchanges.  More work may need to be done!  The SEC is facing a June 17 deadline on one bitcoin ETF application from VanEck.

For more analysis and actionable insights, catch me live on Mondays at 1 PM ET on ETF Edge.

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