Behind the Ticker

The episode of "Behind the Ticker" features Sal Esposito from Zacks, focusing on two of their ETFs: ZECP (Earnings Consistent Portfolio) and SMIZ (Small Mid Cap Core ETF). Sal's journey began at UBS, transitioning from various roles to Zacks, where he embraced the ETF space. Zacks, starting in 1978, specializes in earnings estimate revisions and surprises, crafting strategies around quality and consistency.

ZECP, designed as a core portfolio piece, invests in large cap, quality companies demonstrating consistent earnings and resilience through market cycles. It typically includes 50-65 names, chosen through a rigorous screening process emphasizing historic and forecasted EPS stability.

SMIZ targets opportunities in the small and mid-cap space, focusing on earnings estimate revisions and market anomalies, holding around 198 names. Unlike ZECP, it does not prioritize earnings consistency but rather seeks to exploit less covered market segments for alpha.

Zacks also offers "Zacks Plus," a unique product combining ETFs and SMAs into holistic solutions, tailored across risk spectrums without strategist fees. It allows advisors to deliver more sophisticated, efficient portfolio options, focusing primarily on domestic equities.

Sal suggests ZECP can complement large cap equity exposures like SPY, offering downside protection through its focus on quality. SMIZ serves as a dynamic small to mid-cap exposure, aimed at capturing alpha in less scrutinized market segments. For more information on Zacks and their ETF products, Sal recommends visiting zacksetfs.com or contacting [email protected].

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The podcast episode of "Behind the Ticker," hosted by Brad Roth, features Johan Grahn from Allianz discussing the intriguing world of buffered ETF products. Johan Grahn, with his extensive background in investment and asset management over two decades, delves into how buffered ETFs provide investors with defined outcomes, integrating protection against market downturns with a cap on maximum gains. These innovative products, primarily based on the S&P 500, aim to manage investment risk while ensuring transparency and building investor confidence.

Grahn's journey through university endowments, consulting, and roles in large insurance companies has honed his expertise in risk-managed strategies and portfolio construction. This experience underpins his current role at Allianz, where he oversees the launch of buffered ETFs, a testament to his commitment to developing products that balance risk and return efficiently.

The conversation explores the mechanics of buffered ETFs, including their reliance on an options package to achieve predefined outcomes. With different levels of protection (buffers) and durations available, these ETFs cater to a broad spectrum of investor needs. Grahn explains the reset process at the end of each outcome period, which allows for continuous protection and potential growth.

Buffered ETFs emerge as a flexible investment solution amidst a noticeable shift towards more conservative strategies among retiring individuals. The podcast highlights how these ETFs can serve a wide range of investors, from those seeking to reduce equity risk in their portfolios to those looking to add risk in a controlled manner.

Listeners interested in Allianz's buffered ETFs can find more information on their website, which offers comprehensive resources, including videos and product tables. 

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In the episode of "Behind the Ticker," Brad Roth and Weldon Rice from Qraft Technologies discuss the integration of artificial intelligence within the investment landscape, particularly through Exchange-Traded Funds (ETFs). This conversation provides a detailed look at how Qraft applies AI to develop and manage ETFs, offering insights into the practical implications and methodologies behind AI-driven investment strategies.

Weldon Rice introduces two specific ETFs during the discussion: the QRFT and the AMOM. The QRFT ETF is designed to leverage AI in managing a portfolio of U.S. large-cap stocks, aiming for a balance between diversification and performance by analyzing large datasets to identify market trends and inefficiencies. The ETF maintains a portfolio of roughly 300 to 320 stocks and is adjusted monthly based on AI's analysis.

The AMOM ETF, in contrast, focuses on capturing momentum within the U.S. large-cap space, holding a more concentrated portfolio of around 50 stocks. This ETF seeks to dynamically adjust to market conditions, emphasizing stocks or sectors displaying strong momentum. It's described as having a more focused investment strategy, with potential for higher volatility given its concentration and rebalancing approach.

Rice emphasizes the role of AI as a tool to complement, rather than replace, human decision-making in the investment process. The discussion highlights how AI can enhance traditional investment strategies by providing deeper insights into market data and trends, thus aiding in portfolio construction and risk management.

By examining QRFT and AMOM, the episode explains how AI technologies are applied in the creation and management of ETFs. These examples illustrate Qraft's approach to integrating AI into finance, aiming to offer innovative solutions for investors looking to benefit from the advancements in AI for portfolio management and investment decision-making.

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In this episode of "Behind the Ticker," host Brad Roth welcomes David LaValle, a notable figure in the ETF industry and a current leader at Grayscale, the premier digital currency asset manager. The discussion provides an in-depth look at the intersection of Exchange-Traded Funds (ETFs) and digital assets, highlighting LaValle's significant contributions and Grayscale's innovative efforts in this space.

Background and Industry Experience: David LaValle shares his extensive experience in the financial markets, tracing his path from the early days of trading to his pivotal role in Nasdaq's ETF listing and trading business, and now, his leadership position at Grayscale. His journey reflects a deep commitment to advancing financial products and the ETF ecosystem.

Grayscale's Approach to Digital Assets: The conversation delves into Grayscale's mission to make digital assets accessible through regulated investment products. LaValle discusses the importance of regulatory compliance and the company's strategy in offering products like the GBTC, aiming to provide investors with secure access to digital currencies within a familiar investment framework.

Educational Initiatives: A significant part of the episode focuses on the challenges surrounding the adoption of digital assets and the crucial role of education in this process. LaValle emphasizes Grayscale's efforts to dispel myths and provide clear, comprehensive information about digital currencies, highlighting resources like the Grayscale Bitcoin Book designed to inform and guide investors and financial advisors.

Regulatory Journey and Milestones: LaValle recounts the challenging but ultimately successful journey to obtain regulatory approval for Grayscale's bitcoin ETF. This narrative underscores the complexities of integrating digital assets into traditional financial systems and the perseverance required to navigate regulatory landscapes.

Looking Forward: The episode concludes with LaValle's insights into the future possibilities for ETFs and digital assets. He shares his vision for expanding the ETF ecosystem to include a wider range of digital asset products, potentially transforming how investors engage with these emerging technologies.

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Behind the Ticker — new episode every week.
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Episode notes and the full archive: thorft.com/podcast
Daily market note, The Signal: thesignal.thorft.com

Special Live From Exchange ETF Series

In this live and in-person episode of "Behind the Ticker," host Brad Roth welcomes Keri Riemer and Hazel Doyle to explore the evolving landscape of Exchange Traded Funds (ETFs) from both a U.S. and European perspective. This engaging conversation offers a deep dive into the intricacies of ETFs, their legal frameworks, and the burgeoning growth within the industry.

Keri Riemer, with a rich background in corporate law, asset management, and regulatory roles, including a stint at the SEC, shares her journey into the world of ETFs. She emphasizes the importance of detail-oriented and hardworking attributes that propelled her into a successful career in asset management and ETFs. Keri’s current role at K&L Gates allows her to leverage her comprehensive experience to assist clients in navigating the complex regulations governing ETFs, particularly under the Investment Company Act of 1940.

Hazel Doyle, representing the K&L Gates Dublin office, brings a unique path to the legal world, from paralegal to a specialist in funds, including ETFs. Her Irish and geography background, coupled with hands-on experience in the funds industry, underscores the diverse skills and knowledge required in the evolving ETF space. Hazel highlights the growth of ETFs in Europe, noting the differences in regulatory environments and market trends compared to the U.S., with a particular emphasis on ESG investing, thematic ETFs, and the challenges and opportunities of cross-border distribution.

The discussion provides valuable insights into what it takes to launch and manage ETFs, the role of attorneys in the ETF industry, and the legal and operational complexities involved. Both guests underscore the importance of innovation, patience, and thorough preparation in achieving success in the competitive ETF market. They also discuss the challenges and considerations for U.S. issuers looking to enter the European ETF market, including regulatory compliance, distribution strategies, and the need for a robust understanding of investor preferences and market dynamics.

Listeners gain a comprehensive overview of the ETF landscape, including the growth drivers, the impact of regulatory frameworks in different jurisdictions, and practical advice for those considering launching or investing in ETFs. Keri and Hazel's expertise and experiences provide a rich resource for understanding the challenges and opportunities within the global ETF market.

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More episodes: thorft.com/podcast

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Behind the Ticker — new episode every week.
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Episode notes and the full archive: thorft.com/podcast
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Adam Curran shares his background growing up in a household focused on money and his journey to starting his own financial planning firm. He introduces the God Bless America ETF, which aims to provide conservative investors with an investment option that aligns with their values. He explains the screening process for selecting companies based on their political and social activism. Curran also discusses the weighting and selection of holdings within the ETF and the challenges of marketing the fund. He emphasizes the importance of focusing on business and returns for shareholders. Adam Curran discusses his firm Retire Y'all and the God Bless America ETF. He shares his inspiration behind creating Retire Y'all and the importance of investing in the American Dream. Curran emphasizes the need for financial education and building a community of investors. He also discusses the role of technology in investing and shares his vision for the future of Retire Y'all.

Takeaways

Adam Curran's background growing up in a household focused on money and his journey to starting his own financial planning firm

The God Bless America ETF aims to provide conservative investors with an investment option that aligns with their values

The screening process for selecting companies based on their political and social activism

The weighting and selection of holdings within the ETF and the challenges of marketing the fund Retire Y'all is a firm focused on helping people achieve their retirement goals.

The God Bless America ETF is an investment fund that supports American companies.

Investing in the American Dream is a key aspect of Retire Y'all's philosophy.

Financial education and building a community of investors are important for success in investing.

Technology plays a significant role in making investing more accessible and efficient.
Retire Y'all aims to continue growing and providing valuable resources for investors.

Chapters

00:00 Background and Early Influences
05:00 The Inspiration Behind Retire Y'all
10:00 The God Bless America ETF
15:00 Investing in the American Dream
20:00 The Importance of Financial Education
25:00 Building a Community of Investors
30:00 The Role of Technology in Investing
35:00 The Future of Retire Y'all
40:00 Conclusion and Final Thoughts

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More episodes: thorft.com/podcast

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Behind the Ticker — new episode every week.
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Daily market note, The Signal: thesignal.thorft.com

In this conversation, Brad interviews Todd Rosenbluth, an industry veteran and current member of VettaFi. They discuss Todd's background, VettaFi's business, and the upcoming Exchange conference. Todd shares his insights on the future of the ETF industry and offers advice for new ETF issuers. The conversation highlights the collaborative nature of the ETF community and emphasizes the importance of ongoing engagement and communication. Todd provides information on where to learn more about VettaFi and access his research.

Takeaways

·      VettaFi is an ETF services company that aims to educate financial advisors and provide them with content, webcasts, and data to help them make informed investment decisions. 

·      The Exchange conference, organized by VettaFi, brings together industry experts, asset managers, and financial advisors to share ideas, discuss trends, and provide training and education. 

·      The future of the ETF industry is expected to see continued growth in actively managed ETFs, conversions of separately managed accounts (SMAs) into ETFs, and a focus on education and collaboration within the community. 

·      To make the most of the Exchange conference, financial advisors are encouraged to review the agenda, attend sessions that align with their interests, and take advantage of networking opportunities. 

·      The ETF community fosters collaboration and a sense of community, with industry participants willing to help and support each other. 

·      New ETF issuers should engage with platforms like VettaFi to get their word out and stay in front of industry experts and writers who can help promote their products. 

·      To learn more about VettaFi and access Todd Rosenbluth's research, visit the VettaFi and ETF Trends websites, as well as connect with Todd on LinkedIn.

Chapters

00:00 Introduction and Background 

01:35 VettaFi's Acquisition and Products 

07:35 Overview of the Exchange Conference 

10:09 The Future of the ETF Industry 

12:12 Making the Most of the Exchange Conference 

15:02 Highlighted Sessions at the Exchange Conference 

19:30 Planning for the Exchange Conference 

21:45 Information and Registration for the Exchange Conference 

23:40 The Collaborative Nature of the ETF Community 

27:13 Advice for New ETF Issuers 

30:13 Where to Learn More about VettaFi and Todd Rosenbluth

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The guest on this episode of the "Behind the Ticker" podcast was Matt Barry, head of product management and ETF capital markets at Touchstone Investments. Touchstone is a $25 billion mutual fund manager that has historically focused on active management strategies. As Matt explained, Touchstone aims to beat benchmarks by looking meaningfully different than the benchmarks, using high conviction best ideas from 15 different subadvisors across various strategies.

Seeing the continued growth in active ETFs, Touchstone has been building out an ETF platform over the last few years. They launched their first four active ETFs around a year and a half ago. Matt discussed how investor demand is driving the growth due to the structural benefits ETFs offer like tax efficiency, liquidity, and transparency while also providing exposure to active management strategies. Regulatory changes have also made it easier for active managers to launch ETFs.

Matt highlighted a few of Touchstone's newer active ETF strategies including HEAT, their climate transition fund, which is managed by Swiss firm Lombard Odier and invests in companies benefiting from the transition to a cleaner economy. Their ultra short income (TUC) and securitized income (TSEC) ETFs focus on securitized fixed income assets and are managed by the experienced structured credit team at Fort Washington. TSEC aims for a higher yield with the ability to allocate to some non-investment grade securitized debt.

In terms of distribution, Matt explained how Touchstone is leveraging their existing mutual fund distribution network and relationships with advisors. However, they have also worked on developing internal ETF expertise to ensure their wholesalers are fluent in discussing the ETF structure and considerations when speaking with advisors.

To learn more about Touchstone Investments please visit touchstoneinvestments.com 

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In this episode, we are joined joined by Andrew Chanin, Co-Founder and CEO of ProcureAM. They discuss Andrew's background in financial services and how he came to found Procure, focusing on their decision to build their own ETF infrastructure and unique suite of product.

Andrew provides an overview of Procure's two flagship ETFs - UFO, which offers exposure to the global space industry, and FIXT, which provides exposure to disaster recovery stocks. He explains the methodology behind the construction of each ETF's index, highlighting the diversified mix of space and disaster recovery related companies.

They delve into the investment case for the space industry, examining key innovations like reusable rockets that are bringing down launch costs and opening up opportunities. Andrew outlines the growing government and defense interest in space given its strategic importance. He also discusses where a niche thematic ETF like UFO can fit in an investment portfolio.

Overall, Andrew provides insightful perspective on bringing differentiated ETF products to market and the process behind developing focused thematic exposures. Tune in to learn more about ProcureAM's unique offerings in the evolving ETF landscape. For more information on ProcureAM visit Procureetfs.com 

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In this episode of Behind the Ticker, Brad invites Yuri Khodjamirian, CIO at Temma Capital Management, to discuss their actively managed ETF focused on monopolies and oligopolies. (TICKER: TOLL).

Yuri shares his background in finance and how he eventually became CIO at Temma. He talks about his interests outside of work, like exercising and reading widely across different topics.

They discuss the key sources of competitive advantage for monopolies, including non-replicable physical assets, network effects, high switching costs, regulation, and economies of scale. Yuri explains why good monopolies arise by providing mission critical products and immense customer value over time.

Yuri outlines Temma's investment process for selecting securities in the Toll portfolio. It starts with creating a pure thematic universe of monopolies, then applying fundamental equity analysis to identify the best companies. He mentions targeting 30-35 holdings in the portfolio.

They dive into Temma's rigorous risk management, using multiple layers like security selection, portfolio construction tiers, and continuous monitoring. Yuri explains their active but systematic rebalancing approach. On portfolio construction, Yuri details their conviction tier system for position sizing between high, medium and low conviction names. He explains how this takes advantage of managers' stock picking skills while controlling for risks.

Yuri discusses how Toll can fit into an investor's portfolio, arguing it essentially high grades on quality and durability versus a typical core allocation. He suggests investors look beyond just tech and growth stocks. For more information about TEMA ETF visit: temaetfs.com

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Behind the Ticker — new episode every week.
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Episode notes and the full archive: thorft.com/podcast
Daily market note, The Signal: thesignal.thorft.com