What if the giants of the tech (fintech) world decided to get into the investment management business? Not farfetched at all. Think about it. Amazon, Apple and Alphabet (Google) have vast expertise that could be deployed to solve distribution challenges and they certainly have solid name recognition. You just have to believe that someone like Jeff Bazos has noted that Alibaba’s Ant Financial Group has the world’s largest money market fund. So an Amazon group of ETF’s would be pretty awesome, and most likely, well received. Of course if Amazon were to go into the investment management business, Apple and Google would not be far behind. Remember, they all know what you buy, where you shop, how you spend your leisure time, etc. so focusing on how you invest would be a “no-brainer.” Just thinking, who could be an acquisition candidate for any of them? See other expert thoughts below.
(Bill Taylor/Fintek Capital)
“Are tech titans about to enter the world of ETFs?
Given that Alibaba’s Ant Financial Group is already the world’s largest money market fund, Dave Nadig from ETF.com says it’s not such a far-out idea.
As investing becomes more automated, tech companies like Amazon, Apple and Alphabet could bring their expertise to an industry stymied by distribution challenges, he suggested at the Inside ETFs conference in Hollywood, Florida, earlier this month.
Ric Edelman, founder of Edelman Financial Engines, says that it’s “inevitable” that one of these big companies will enter the space in the next five years.
“There’s too much money there,” Edelman said on CNBC’s “ETF Edge” on Monday. “And as soon as one of them does, they all do…”