ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Columbia Threadneedle’s Marc Zeitoun on the Success of DIAL ETF
News
Share

Columbia Threadneedle’s Marc Zeitoun on the Success of DIAL ETF

Aaron NeuwirthDec 04, 2020
2020-12-04

Fixed Income is hard, and it’s not getting any easier. Many investors have been looking for alternative approaches, and one that’s recently celebrated a significant milestone is the Columbia Diversified Fixed Income Allocation ETF (DIAL B), with three solid years of performance in the can.

ETF Database CIO and Director of Research Dave Nadig recently spoke with Marc Zeitoun, CFA, Head of Strategic Beta and COO North American Distribution for Columbia Threadneedle Investments, about the fund, fixed income investing, and more.

“One thing that makes us unique,” Zeitoun points out, “is that our active PMs are also the managers of our passive solutions.” Columbia Threadneedle believes that whoever manages the money and develops the index methodology is just as important as any other due diligence question anyone may have on a mutual fund or an SMA.

Zeitoun expressed a bit of disbelief that more ETF investors don’t ask this question.

“We believe that there are so many unintended consequences of people buying a benchmark, mainly taken from a lack of familiarity with the rules, leading them to judge a book by its cover,” Zeitoun said.

Going for More Than the Score

Ultimately, what should matter is investors getting the exposure they want — and need — as opposed to having an attractive-looking score on any particular portfolio metric. For Zeitoun, on his side of things, Columbia Threadneedle looks at all angles of a portfolio, rather than just duration or credit risk or sector exposure.

As Zeitoun explains, “Investors have needs on a continuum, the client is going up and down. Whatever they want, it’s not up to me to tell them what is right. It’s up to me to deliver options based on their preferences. However, the industry makes a constant mistake of homogenizing people’s preferences.”

Keeping that in mind helps advisors manage client expectations. For Zeitoun, the Columbia Threadneedle approach is to start with the benchmark and use the active/alpha-seeking strategies and the tax/pure beta to bridge the gap. Ideally, there will never be an underperformance-of-expectaiton, but that sort of commitment could lead to problems.

To make for a better play, Zeitoun details how Columbia Threadneedle enlisted their active PMs to build a rules-based process based on their experience on the actively managed, alpha-seeking side of the business. Developing that further has proven to be successful, and has formed the model around how DIAL has been built.

As far as the importance of these strategies and funds have to fixed income when it comes to seeing ETFs as more than a passive affair, one needs to keep in mind creations and redemptions in fixed income ETFs. The average investor may feel lost on some of this, but advisors having more knowledge on how these rules were developed could lead them down a more confident path based on some of their favorite brands, where they recognize expertise.

For more market trends, visit ETF Database.


Content continues below advertisement

» Popular Pages

  • Tickers
  • Articles

May 26

Main Management Market Note: May 26, 2023

May 26

Family Offices Embrace Crypto, While Needing Support

May 26

ETF Issuer League: Avantis, Summit Up, Global X

May 26

Active ETFs Positioned Better for Opportunities in High-Yield Bonds

May 26

Insurers Own Major Stakes in Fixed Income ETFs

May 26

Cash Flow Kings at Home With These ETFs

May 26

Counter U.S. Default Risk With Foreign Equity ETF AVDE

May 26

Vangaurd's EM Bond ETF Surprises With Fixed Income Protection

May 26

The Economy Matters: PCE, GDP, Durable Goods & Employment Numbers

May 26

SPYI Captures Huge Single Day Nvidia Pop, Enhances Income

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

BOTZ

Global X Robotics &...

VGT

Vanguard Information...

VOO

Vanguard S&P 500 ETF

SMH

VanEck Semiconductor ETF

XLK

Technology Select Sector SPDR...

VTI

Vanguard Total Stock Market...

IYW

iShares U.S. Technology ETF

SOXX

iShares Semiconductor ETF


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X