ETFs get 'back to basics' as Crypto gives way to Vanguard.

The year has brought significant change for the almost 2,000 ETF Exchange conference attendees.

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This week, industry professionals and financial advisers re-convened in Miami, Florida, and saw a minor trend away from riskier market sectors. While speculative assets such as Cathie Wood's funds increased in value at the beginning of this year, the impact of 2022's decline was clear.

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The conference featured panels on cryptocurrencies, discussions on growth-oriented strategies such as environmental, social, and governance (ESG) and single-stock ETFs, and Wood's ARK Investment Management. In their place emerged industry titans like Vanguard Group, the second-largest ETF manager in the world. Even a panel honoring the oldest product in the market, the SPDR S&P 500 ETF Trust, was held (ticker SPY).

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Athanasios Psarofagis, an ETF analyst, stated that this year was more "back to basics." 2022 was crypto-only. This year, thematic product booths were significantly smaller."

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In 2022, Psarofagis saw the disappearance of Wood, who "was on a number of panels." ARK was a major sponsor last year but did not booth or sponsor the four-day event.

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Other notable absences included speakers and booths from firms such as Grayscale Investments and Valkyrie Funds, which had huge presences last year when many crypto enthusiasts extended their stays in Miami for a week, and there were discussions about when the US Securities and Exchange Commission will approve a spot for Bitcoin ETF. This year, one of the few event booths with a crypto-centric focus was located in the back corner of the conference room.

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A Grayscale representative stated that the company's ETF team was in Miami but that other team members were in Washington, DC, in preparation for March oral arguments in Grayscale's case against the SEC to convert GBTC to an ETF. Valkyrie declined to comment. Even conference swag lacked a little panache. Last year, they seemed to be giving away some nice items. This year, it simply mugs," Psarofagis stated.

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The event's front hall was dominated by ETF giants State Street, Invesco Ltd., and BlackRock's iShares. With its cafe-style seating, JPMorgan Chase & Co. was distinguished. Conversations centered on dividend ETFs, so-called "buffer-ETFs" that shield investors from significant losses during market declines, and low-volatility funds.

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The ETF Exchange conference was produced by VettaFi, whose head of research, Todd Rosenbluth, stated, "Even the businesses that have participated in previous years are showing more defensive and environment-aware strategies."

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Actively managed ETFs were another focal point. While the earliest ETFs pioneered passive index-tracking methods, active funds are gaining popularity. In five years, the asset management division of JPMorgan predicts that the strategy will account for up to 20% of all ETF assets.

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Despite the dearth of bull-market excitement at the conference, the sector is coming off its second-best year in terms of inflows and launches. Despite the decline in the popularity of growth-oriented tactics, conference delegates remained optimistic.

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Amrita Nandakumar, president of ETF sub-advisor Vident Investment Advisory, stated, "I still believed there was a healthy, reasonable optimism." "There is anticipation that 23 won't be as terrible as 22. And nevertheless, as players in this business, we can continue innovating, introducing investors-desired new items, and advancing the industry."

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