About Daniel Draper
In a September 2020 interview, Dan Draper, then Managing Director and Global Head of ETFs at Invesco, discussed the evolution of the ETF industry. He described ETFs as "micro processing chips within larger portfolio management solutions," moving beyond simple building blocks to tactical tools. Draper emphasized the importance of scale, stating it allows firms to reinvest in the business, improve risk management, and develop new products. He also addressed the potential for active non-transparent ETFs, noting that marrying active portfolio construction with effective implementation is key. Draper predicted further consolidation in asset management and ETFs, particularly where investment processes can be made more systematic, while still seeing opportunities for high-conviction active strategies.
Draper highlighted the U.S. as the largest growth market for ETFs, especially with positive government bond yields, and noted strong percentage growth in Asia, particularly China, driven by digital wealth platforms. He discussed the role of dividend strategies in a low-yield environment for retirees, stressing the need to understand labeling and construction. On acquisitions, Draper identified culture and people as the biggest challenges, stating that integrating talent and aligning values is critical for success. He also pointed to the potential for ETFs to play a larger role in collateral markets globally, given the dual nature of the wrapper as both an investment and a security.
Source: AI-verified profile updated from Daniel Draper's recent appearances.
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Transcript (1 segments)
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Interviewer0:00
I'm very lucky to be joined by Dan Draper, Invesco's global head of ETFs, for our next session on the future of the ETF industry. Dan is a great person to weigh in on this, having spent more than a decade in asset management, most recently leading Invesco's ETF business from Chicago. There he steered the firm through several acquisitions at home and abroad, securing Invesco's position as the fourth largest issuer in the US with more than $200 billion in assets. Prior to joining Invesco, Dan held asset management, wealth management, and investment banking leadership positions in New York, London, Hong Kong, and Jakarta, working for the likes of Credit Suisse Asset Management, LIXIL Asset Management, iShares, Goldman Sachs, and UBS. So I'm looking forward to getting his perspective on how things have changed and where we're heading next. Now, before I pepper Dan with a million and one questions about how the ETF industry is evolving, I want to ask the audience one about the most talked about development this year: a new type of actively managed ETF that will trade intraday but publish its holdings once a quarter, like a mutual fund. You heard James just talk about some of Bloomberg Intelligence's thoughts on active non-transparent. So the question we are going to poll you on this morning is: do you expect to buy an active non-transparent ETF over the next 12 months? Yes, I'll be there as soon as they're available. Maybe I'll consider them, but I need to be convinced. Not for at least three years. Or no, I never will. Interesting. Okay, so people will consider them but need to be convinced. I don't know whether that's due to some skepticism about the structures or just a lack of information. But Dan, I thought that would be a good point to dive in on. You guys obviously run active transparent ETFs, along with a bunch of passive and smart beta products. But how do you gauge the appeal for active non-transparent products?
