ETF Trends’ editor-in-chief Lara Crigger sat down with Tidal ETF Services’ Gavin Filmore for this edition of “ETF Leaders Powered by the NYSE.”
Filmore is the head of product for Tidal ETF Services and explained that the company is primarily a platform for other issuers that provides exposure to the ETF market for its products.
“When we look at our platform, what really excites us is the reality that we bring together so many great ideas onto one platform,” Filmore said.
The constantly changing macroenvironment has become difficult if not impossible to predict, with major factors such as inflation continuing to be a catalyst for market movements. Filmore said that a return to focusing on basics such as diversification is a good play for advisors given current markets, as is utilizing newer ETFs as tactical tools.
Options for advisors and investors from Tidal ETF Services’ platform include the RPAR Risk Parity ETF (RPAR), which Filmore described as a “one-stop shop” for diversification. The fund diversifies across four different asset classes, including equities, commodities, Treasuries, and Treasury inflation-protected securities (TIPS). RPAR seeks positive returns when the economy is growing, preservation of capital when the economy is contracting, and the preservation of the real return rates on investments when inflation is high.
Investing Tactically and the Growth of ESG
For advisors looking for more tactical options, one option is the FolioBeyond Rising Rates ETF (RISR), which is specifically designed to benefit in a rising rate environment by investing primarily in interest-only mortgage-backed securities and U.S. Treasury bonds. Another option is the Leatherback Long/Short Alternative Yield ETF (LBAY), and other new ETFs that utilize options overlay and volatility overlay in their approaches.
“We have tools for almost anything that somebody might want to implement in a portfolio, and I think at a time like this, it’s all about just going a little bit deeper, going a little bit further than kind of your traditional core or 60/40 portfolio,” Filmore said.
As an ETF platform, Tidal ETF Services has seen a growing interest within the U.S. for ESG products, and currently around 20% of the ETFs offered on its platform are ESG-focused funds, with a much more heavily ESG-tilted skew for ETFs that are in the pipeline.
“The pipeline of product that’s either about to be launched or new prospects for the partnership side, we’re seeing closer to 50%. I think that number is only going to increase, and I think that’s just again a reflection of the market and at the end of the day giving people what they want,” Filmore explained.