Daniel Draper on ETFs
From In Conversation With Dan Draper · · Bloomberg Live
“ETFs have become micro processing chips within larger portfolio management solutions, moving beyond simple building blocks to tactical tools alongside active strategies and alternatives.”
On , Daniel Draper, Group Chief Underwriting Officer at AXIS CAPITAL HOLDINGS LTD, spoke about ETFs during In Conversation With Dan Draper on Bloomberg Live.
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.