Yes, I think the emergence of smart beta ETFs is a game changer....

Yes, I think the emergence of smart beta ETFs is a game changer. I think the screening process is critical compared to the purely blind market cap based ETFs.

I agree the fees are outrageous for most active managers in Australia. Unfortunately the downward pressure on fees has not been as pronounced here as most other markets.

I think the majority of managers will fold in the next 10-20 years. Only those willing to compete based on fees or have a strong history of alpha will survive.

I also agree the draw factor to ETFs is compelling based on their fees and performance. I just feel conflicted buying into something I know is going to screw the whole system. I find it amazing no one contemplates the effects... given the guy who invented the whole thing even admitted anything beyond 70% passive would be disastrous.