The Blunt Dollar Sefian Kasem: The Active vs. Passive Debate Is Totally Missing the Point
Mar 3, 2026
Sefian Kasem, Global Head of ETF and Indexing Investment Specialists at HSBC with a PhD in mathematical finance, talks ETFs as the building blocks of portfolios. He reframes the active vs passive debate. He covers ETF uses for tactical allocation, the rise of faith-based and thematic ETFs, and how Europe is innovating its ETF market.
AI Snips
Chapters
Transcript
Episode notes
Why ETFs Became Mainstream
- ETFs grew because they are highly versatile instruments used to gain market access or to dial risk on and off within asset allocation.
- Their transparency, cost comparability, and wide coverage across asset classes made them attractive to both institutional and retail investors.
Use ETFs To Implement Tactical Moves
- Use ETFs for tactical portfolio adjustments across asset classes, sectors, factors, or regions to precisely implement views.
- Choose ETFs for both short-term tactical moves and long-term strategic allocation because of ease of comparing holdings and costs.
Practical Ways To Reduce Index Concentration
- Index concentration (e.g., S&P 500 dominated by a few mega-caps) is real but manageable through index design choices.
- Options include capped indices, equal-weight benchmarks, sector/factor exposures, or rotating to broader benchmarks to reduce single-name or tech concentration.