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In the rapidly evolving world of finance, adaptability is not a luxury—it's a necessity. We are keenly aware of how technological advancements are reshaping investor expectations, especially when it comes to agility, access, and cost efficiency. In a recent episode of VegTech™ Invest’s Upside & Impact: Investing for Change podcast, CEO Elysabeth Alfano sat down with Victor Werny, Head of Cboe North American ETF Listings, to explore how Exchange-Traded Funds (ETFs) are meeting these demands—and why they are fast outpacing mutual funds in relevance and utility.
Intraday Trading: A Game-Changer for Investors
Victor Werny distilled the shift succinctly: "One of the really exciting aspects of an ETF...is that you can trade an ETF during the same core trading hours that you would normally trade a common stock." This seemingly simple feature—intraday trading—delivers a powerful advantage in times of market volatility. Unlike mutual funds, which only execute trades at the end of the trading day at the Net Asset Value (NAV), ETFs offer investors the flexibility to enter or exit positions at any point during the trading session. In a market increasingly driven by real-time data and AI-powered decisions, this level of responsiveness is essential.
ETFs also offer structural benefits that appeal to both institutional and retail investors. They generally come with lower fees, greater tax efficiency, and broader accessibility compared to mutual funds. “We’re seeing issuers go into the ETF wrapper so they can widen their investor base and give investors more opportunities to access the ETF,” Werny noted. It’s a shift that underscores how product design is adapting to modern market behavior and investor psychology.
Why ETFs Align with the Future of Investing
This trend as part of a larger transformation in capital markets—one that values transparency, efficiency, and speed. As impact investors focused on food system innovation and sustainability, at VegTech Invest we believe the ETF structure supports our mission by democratizing access to thematic investing, allowing investors to align their portfolios with the future of food and global resource management.
The New Standard for a High-Speed World
In today’s hyper-connected and increasingly AI-accelerated world, waiting eight hours for a mutual fund trade to settle feels not just outdated—it feels risky. As Werny pointed out, the shift is already well underway. And for forward-thinking investors and asset managers alike, the ETF is no longer just a modern option—it’s the new standard.
Listen to the full audio podcast here. Watch the full video here.
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