What is it like to work with an ETF

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TwoIdenticalIndexes
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What is it like to work with an ETF

Post by TwoIdenticalIndexes » Wed Jun 24, 2020 11:39 am

For example, WisdomTree.

Most of the ETF trading decisions should be automated, right? Are most people in sales roles?

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J G Bankerton
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Re: What is it like to work with an ETF

Post by J G Bankerton » Wed Jun 24, 2020 6:48 pm

TwoIdenticalIndexes wrote:
Wed Jun 24, 2020 11:39 am
For example, WisdomTree.

Most of the ETF trading decisions should be automated, right? Are most people in sales roles?
Are their ETFs managed or indexed? If they are managed they need people to do that.

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TwoIdenticalIndexes
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Re: What is it like to work with an ETF

Post by TwoIdenticalIndexes » Thu Jun 25, 2020 7:44 am

I was thinking an index.

rjbraun
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Re: What is it like to work with an ETF

Post by rjbraun » Thu Jun 25, 2020 7:58 am

Not sure I can be helpful, but I'm not clear about your question: Are you asking what it is like to be employed a a firm that offers ETFs? In that case, there are all kinds of roles (depending on the size of the firm): investing, risk management, operational, marketing, financial, administrative ...

Or maybe you are asking about owning an ETF in your personal account? In that case, it would be helpful to know which particular ETF you are referring to. At least the ETF strategy and underlying assets: active vs. passive, fixed income or equity, etc.

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TwoIdenticalIndexes
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Re: What is it like to work with an ETF

Post by TwoIdenticalIndexes » Thu Jun 25, 2020 4:14 pm

The former. I am curious about the roles that are needed to actually execute the ETF, not so much general business admin.

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Re: What is it like to work with an ETF

Post by rjbraun » Sat Jun 27, 2020 12:49 pm

TwoIdenticalIndexes wrote:
Thu Jun 25, 2020 4:14 pm
The former. I am curious about the roles that are needed to actually execute the ETF, not so much general business admin.
Not sure, but maybe the information below could be helpful to you. Admittedly, it was written over three years ago now, but it's the best I found in a google search. I'm no expert on ETFs, but BlackRock is a big player and the piece seemed reasonably accurate and current, from what I could tell.

https://www.blackrock.com/corporate/lit ... h-2017.pdf

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David Jay
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Re: What is it like to work with an ETF

Post by David Jay » Sat Jun 27, 2020 1:02 pm

Only a handful of ETFs are stand-alone entities. The majority of them are developed by a financial firm that has multiple ETFs. So it is much more likely that one would be employed by a financial firm than be "employed by an ETF".
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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J G Bankerton
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Re: What is it like to work with an ETF

Post by J G Bankerton » Sun Jun 28, 2020 2:22 pm

Vanguard's ETFs are just a class of their mutual funds; Vanguard has a patent on doing it that way.

How Vanguard Patented a System to Avoid Taxes in Mutual Funds

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TwoIdenticalIndexes
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Re: What is it like to work with an ETF

Post by TwoIdenticalIndexes » Sun Jun 28, 2020 8:51 pm

rjbraun wrote:
Sat Jun 27, 2020 12:49 pm
TwoIdenticalIndexes wrote:
Thu Jun 25, 2020 4:14 pm
The former. I am curious about the roles that are needed to actually execute the ETF, not so much general business admin.
Not sure, but maybe the information below could be helpful to you. Admittedly, it was written over three years ago now, but it's the best I found in a google search. I'm no expert on ETFs, but BlackRock is a big player and the piece seemed reasonably accurate and current, from what I could tell.

https://www.blackrock.com/corporate/lit ... h-2017.pdf
Thanks!

And @DavidJay I understand that.

alex_686
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Re: What is it like to work with an ETF

Post by alex_686 » Sun Jun 28, 2020 8:55 pm

David Jay wrote:
Sat Jun 27, 2020 1:02 pm
Only a handful of ETFs are stand-alone entities. The majority of them are developed by a financial firm that has multiple ETFs. So it is much more likely that one would be employed by a financial firm than be "employed by an ETF".
Technically no ETF is stand alone. Every fund is its own corporation. Every one I know - big or small, public or private - have zero employees.

The corporation is just a shell to hold assets. All of the work is farmed out. Normally to the fund family, but there are plenty of executions out there.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.

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Re: What is it like to work with an ETF

Post by David Jay » Sun Jun 28, 2020 9:22 pm

alex_686 wrote:
Sun Jun 28, 2020 8:55 pm
David Jay wrote:
Sat Jun 27, 2020 1:02 pm
Only a handful of ETFs are stand-alone entities. The majority of them are developed by a financial firm that has multiple ETFs. So it is much more likely that one would be employed by a financial firm than be "employed by an ETF".
Technically no ETF is stand alone. Every fund is its own corporation. Every one I know - big or small, public or private - have zero employees.

The corporation is just a shell to hold assets. All of the work is farmed out. Normally to the fund family, but there are plenty of executions out there.
I guess “zero employees” kind of limits employment opportunities... :wink:
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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TwoIdenticalIndexes
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Re: What is it like to work with an ETF

Post by TwoIdenticalIndexes » Mon Jun 29, 2020 5:21 am

As I said, I understand that you aren't being employed by a financial asset. I said "work with an ETF".

The idea is that you are employed by Wisdom Tree or Direxion.

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Re: What is it like to work with an ETF

Post by alex_686 » Mon Jun 29, 2020 7:17 am

TwoIdenticalIndexes wrote:
Mon Jun 29, 2020 5:21 am
As I said, I understand that you aren't being employed by a financial asset. I said "work with an ETF".
What specifically do you want to know? I worked at a mutual fund company that had both. The short answer is not much. Most of the functionality and work duties are the same. The Portfolio Manager's team is small and more focused. No research department. With a ETF the trading department is external where a mutual fund's is internal.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.

CardioMD
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Re: What is it like to work with an ETF

Post by CardioMD » Mon Jun 29, 2020 7:42 am

Interesting question. I’ve always wondered about the ins and outs of running a mutual fund or ETF. Not being in the world of finance I have a wolf of Wall Street picture but obviously it can’t be like that.
“The stock market is a giant distraction from the business of investing.” -Jack Bogle

alex_686
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Re: What is it like to work with an ETF

Post by alex_686 » Mon Jun 29, 2020 8:09 am

CardioMD wrote:
Mon Jun 29, 2020 7:42 am
Not being in the world of finance I have a wolf of Wall Street picture but obviously it can’t be like that.
95% of people in asset management is dominated by operations. Accountants, IT, business annalists, etc. Boring routine work that has to accomplished every day. Less than 5% work as portfolio managers and researchers. These people tend to skew towards the more stereotypical view of white males with MBAs and too much testosterone.

The Wolf of Wall Street was not about people in asset management, but rather people in sales. And there is a certain truth there. Financial advisors are sales people, so you want extroverted competitive people. College grads who participated in AAA sports are a good pick.

Oddly, the one Wolf of Wall Street person in asset management was Mark Hanna, played by Matthew McConaughey. Arguably, he was the man behind Jordan Belfort and was the one who actually drove the fraud.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.

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Re: What is it like to work with an ETF

Post by Flyer24 » Mon Jun 29, 2020 8:22 am

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