Financial advisors provide much more than advice on investments. In today’s complex market, they must wear many hats, including those of financial planners, portfolio managers and behavioral psychologists. In an uncertain global environment, juggling these and other responsibilities doesn’t always yield optimal results. The Financial Advisor Center can help you navigate these complexities to build a successful career as a financial advisor or planner.
When it comes to Exchange-Traded Fund (ETF) investing, financial advisors have unique challenges navigating what is sometimes referred to as a “liquidity mismatch” between a fund that provides flexible liquidity terms and the market liquidity of the underlying assets. What’s more, the term “ETF” has become a blanket one to describe many different products. Once narrowly defined, the term “ETF” today casts a much bigger net that includes investment vehicles with varying degrees of tax consequences and risks. As a financial advisor, you must be aware of these nuances to help clients meet their objectives. For a better understanding of how ETFs are classified, check out the ETF Database.
Despite the challenges, there’s no better time than the present for financial advisors to use ETFs to build a transparent, diverse and low-cost portfolio for their clients. Since 2010, global ETF assets under management have more than doubled to $3 trillion, and are expected to more than double again over the next five years. More information on the size, scope and trends of the ETF market can be found here.
Portfolio Management
ETFdb’s Financial Advisor Center provides both existing and aspiring financial advisors with best practices for navigating the ETF market and developing the necessary knowledge and emotional fortitude to excel in this demanding role.
The Portfolio Management section is geared toward providing financial advisors with a practical approach for using ETFs in client portfolios. The content also teaches the science behind effective portfolio management, including how to develop an investment policy statement, define return objectives and manage investment constraints. This includes setting appropriate risk/return parameters inside the portfolio. Existing portfolio management topics covered in this section include, but are not limited to:
- Best practices for reading an ETF prospectus.
- Understanding different ETF structures.
- Understanding the role of Beta in your ETF portfolio.
- Measuring risk-adjusted returns.
To view these and other topics, click here. If you’ve only just begun looking into ETFs, here are 25 Things Every Financial Advisor Should Know About ETFs.
Practice Management
The Practice Management section showcases tools and strategies for helping financial advisors manage and grow their business. Practice management is an emerging business paradigm that helps companies adapt to the needs of consumers. It covers all the decisions, actions and resources needed to execute a successful business operation. This section educates financial advisors and planners to look beyond the prospectus to see how their services can align with the needs of the market. The section provides:
- A weekly synopsis of the most important content in the field of investment advisory practice.
- Best practices for business management, including how to hire additional staff and how to boost client acquisition and retention.
To learn more about these and other practice management strategies, click here.
ETF Investment Portfolios
The Financial Advisor Center provides readers with technical savvy to build and execute ETF investment portfolios, and to then use that knowledge to grow a successful business. Think of portfolio management as your nuts and bolts and practice management as your overall blueprint. Both are vital to launch a successful career as a financial advisor or planner.
As a financial advisor who’s looking into ETF investing, 101 ETF Tips Every Financial Advisor Should Learn is a must read.
Both of our Financial Advisor Sections, Portfolio Management and Practice Management, are updated regularly with valuable insights from industry-leading experts. Come back to these pages regularly to stay up to date.
