Morningstar: SSGA's Mazza on ETF Innovation

Where are advisors placing client funds? Dave Mazza, head of research for SSGA, says in this video interview that over the past year, he’s seen advisors “follow quantitative easing” worldwide. “A significant amount of money is moving away from the U.S. toward Japan and Europe,” particularly in currency hedged products, he reports.

With so many ETFs and mutual funds available already, where will innovation come from in investing vehicles? In ETFs, “the market is evolving is into all-in solutions that folks can bolt onto” more basic ETFs to build the “right portfolio for the right client.” In the mutual fund space, it’s liquid alternatives. “There’s such a demand for products that do more than what you get” in traditional stock or bond investing, he says.