ETFs are the most popular investment instruments for individual and institutional investors. You are interviewing with a FinTech firm that creates Equity Sector ETFs. Make a pitch for how you will design Sector ETFs that offer something unique and that are able to stand out in the crowd given the proliferation of Sector ETFs in the market. Keep in mind (a) the correlation of the Sharpe ratio across different sector ETFs; and (b) the stationarity of the Sharpe ratio. Also, keep in mind the importance of being able to predict the macro environment; and the importance of AI and ML in a robo-advising context
ETFs are the most popular investment instruments for individual and institutional investors. You are interviewing with a FinTech firm that creates Equity Sector ETFs. Make a pitch for how you will design Sector ETFs that offer something unique and that are able to stand out in the crowd given the proliferation of Sector ETFs in the market. Keep in mind (a) the correlation of the Sharpe ratio across different sector ETFs; and (b) the stationarity of the Sharpe ratio. Also, keep in mind the importance of being able to predict the macro environment; and the importance of AI and ML in a robo-advising context
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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ETFs are the most popular investment instruments for individual and institutional investors. You are interviewing with a FinTech firm that creates Equity Sector ETFs. Make a pitch for how you will design Sector ETFs that offer something unique and that are able to stand out in the crowd given the proliferation of Sector ETFs in the market.
Keep in mind (a) the correlation of the Sharpe ratio across different sector ETFs; and (b) the stationarity of the Sharpe ratio. Also, keep in mind the importance of being able to predict the macro environment; and the importance of
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