Behind the Ticker

Mo is the Chief Product Officer at Direxion — and the person who first told Brad to start a podcast instead of a Netflix series. Years later, he's the guest. With a career that ran from Vanguard to the New York Stock Exchange to Raymond James before landing at Direxion, Mo brings a rare cross-sectional view of the ETF industry that few in the space can match.In this episode, Mo breaks down how Direxion — now managing roughly $55 billion across 130+ ETFs — builds tools for active traders to express short-term views with leverage. We get into how the daily reset mechanism works and why holding these products beyond a single day changes the math, how the firm decides which single stock names deserve a leveraged wrapper (and whether to offer bull, bear, or both), and why most trader assets still flow overwhelmingly to the bull side. Mo also walks through the new Titan series concentrated basket concept, the right and wrong ways advisors are using these products in client portfolios, and where the category goes from here — including what the team has publicly filed and what they're watching in the tokenization space.It's a candid conversation about a corner of the ETF market that is widely misunderstood and underappreciated as a legitimate portfolio tool.

Chris Tessin, founder of Acuitas Investments, joins the show to break down AIMS — the Acuitas Multi-Manager Small Cap ETF and one of the most structurally unique products we've covered on Behind the Ticker. Rather than a single portfolio manager picking stocks, AIMS aggregates multiple deeply researched, truly active small cap managers into one ETF wrapper at a single all-in fee of 75 basis points. Chris walks through how the multi-manager model works, how Acuitas sources and underwrites managers — often finding them before anyone else is paying attention — why active management has a real edge in small cap, and why the valuation and earnings setup for small cap makes this a compelling time to pay attention to the space.

Sean Emory, founder and CIO of Avory and Company, joins the show to break down the firm's newly launched Avory Foundational ETF (AVRY) and the decade-long investment philosophy behind it. Sean walks through Avory's "investing forward" framework — identifying secular friction points in the economy, finding the companies built to solve them, and running a high-conviction portfolio of 20 to 30 names across two buckets: structural secular winners and established businesses undergoing genuine transformation. We dig into the Six M's research process, how the fund manages position sizing and cash allocation, why identity verification is one of Sean's highest-conviction themes in an AI-driven world, and how advisors should think about AVRY as a core equity holding. Sean also pulls back the curtain on what it actually takes to launch an ETF as an independent issuer.

Rob Arnott chose Wall Street over astrophysics, built his career applying scientific method to markets, and coined the fundamental indexing revolution that now runs $150B+ in assets. He breaks down the hidden drag inside cap-weighted indices -- stocks get added after they soar and deleted after they crash -- and explains how RAFI's rebalancing alpha has beaten cap-weighted value in three out of four years over 20 years live. We dig into RAUS (fundamental selection, cap weighting, 99.9% correlation to the S&P but 90bps ahead in six months at zero fees), the upcoming RAFI Growth index that beats Russell Growth by 4.5% annually over 30 years, and NIXT -- the deletions ETF that buys the names index funds are forced to dump. Plus: why the Mag 7 resembles the dot-com bubble, where the real bargains are, and the CFA monograph proving membership in an index has its privileges.

Christian Magoon built First Trust's early ETF business, raised $3B at Claymore before it was acquired by Guggenheim, and launched Amplify ETFs in 2015 — now approaching $20B across 40 funds. He breaks down Amplify's barbell strategy of income and thematic growth, explains why SILJ (the only junior silver miners ETF) won Alternative ETF of the Year, and makes the case that silver's industrial demand from AI, EVs, and solar gives it a profile gold can't match. Plus: the YieldSmart covered call approach, how junior miners act as leveraged silver, and why Amplify's open-architecture model is built for durability.

Paul Marino spent 25+ years in asset management, starting as a wholesaler at Federated Investors, managing teams at Pioneer Investments, and eventually making the jump to ETFs. Before any of that, he was a journalist at Newsday, the sixth largest daily newspaper in the country. Now, as Chief Revenue Officer at Themes ETFs, he brings all of it together - sales, marketing, PR, and a knack for communicating complex investment ideas clearly. In this episode, we get into two of the most targeted thematic ETFs on the market. First, DRGN - a China-focused generative AI fund built to give U.S. investors access to the AI buildout happening inside China, completely separate from U.S. tech exposure. Paul walks through the index construction, how they screen for sanctions compliance, and why he sees Chinese AI as a distinct return stream that complements what most advisors already hold. Then we pivot to BOTT - the humanoid robotics ETF. This one goes beyond what most people picture when they hear "humanoid robots." The portfolio spans factory automation, autonomous driving, specialized semiconductors, and industrial machine parts across South Korea, Japan, Hong Kong, and the U.S. Paul explains why equal weighting and semiannual rebalancing keeps the fund from becoming a single-stock bet, and why adoption in robotics might follow the same curve as commercial aviation. We also dig into how advisors are using thematic sleeves alongside core portfolios, how Themes identifies market gaps and moves quickly from idea to product launch, and why Paul believes early positioning in these spaces matters.

Sean O'Hara started in financial services in 1985, moved into wholesaling, and helped build the Hartford's mutual fund and 401k platforms before striking out on his own in 2007. By 2015, he and partner Joe Thompson were launching Pacer's first ETFs. Today, Pacer manages roughly $42 billion across 57 products — every one built around a simple filter: innovative, disruptive, or unique. No cheap beta replication.In this episode, Sean breaks down QDPL, Pacer's S&P 500-based income strategy that delivers four times the S&P's dividend yield without leverage or covered calls. We walk through how the 85/15 equity-to-T-bill split works, how dividend futures mechanics generate roughly 5% cash flow with the bulk distributed as tax-free return of capital, and what the actual trade-offs look like on both the upside and downside.Sean explains how QDPL fits into an advisor's portfolio — from a 50/50 blend with SPY to a potential bond replacement — and why the product's timing is more compelling now with short-term yields falling back toward 3%. We also get into Pacer's boots-on-the-ground distribution model with 120-plus salespeople, why market maker relationships matter more than most issuers realize, and how products like SRVR and TRFK were built with patience for the market to catch up to the thesis.Key Takeaways:QDPL delivers 4x the S&P 500 dividend yield (~5% today) through dividend futures, not leverage or covered calls85% equity / 15% T-bills structure — you keep most of the S&P upside while generating meaningful incomeBulk of distributions are tax-free return of capital — a major advantage over traditional dividend strategiesS&P dividends historically grow 5-7% per year, creating a built-in tailwind for the futures contractsPacer runs 120+ salespeople — old-school boots-on-the-ground distribution in a digital-first industryProducts like SRVR and TRFK prove patience pays — both sat dormant for years before their thesis played outGet Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

Michael Monaghan spent 15 years on Wall Street at Goldman Sachs, the Carlyle Group, Sanford Bernstein, and UBS before leaving to build Beartooth, a technology company that let smartphones connect without cell service. That 12-year entrepreneurial journey — and a visit to the Smithsonian where he and his partner were struck by the iconoclastic nature of America's builders — led him to launch the Founders 100 ETF (ticker: FFF), a fund that owns the 100 best publicly traded companies still run by their original founders.In this episode, Michael breaks down the strict definition of "founder-led" that drives the portfolio, the 30-year, 11,000-stock database his team hand-built to validate the factor, and why founder-led companies have historically outperformed the S&P by 3-5% annually. We get into the actual fund mechanics — the Bernstein-style factor model, the 7% position cap at quarterly rebalance, and why the 80/20 rules-based vs. discretionary split exists primarily to catch IPOs between rebalances. Michael also makes the case that FFF is a direct replacement for QQQ, running 85% active share against the S&P and 70% against the Nasdaq, and explains his distribution playbook for breaking through in a market where 10 new ETFs launch every week. Plus, the names he's watching for that he can't own yet — including SpaceX, Stripe, and Anduril.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In this episode, Brad Roth sits down with Sam Klar of GMO to unpack the thesis behind the GMO Domestic Resilience ETF (DRES). Sam shares his path from joining GMO out of undergrad to helping launch a strategy focused on U.S. reindustrialization, supply chain resilience, and long-term domestic economic strength.They break down how DRES is built, why GMO emphasizes quality and value even inside a thematic strategy, and how the portfolio is structured across manufacturing, transportation/logistics, energy/materials, and defense. Sam also addresses common pushback — including whether DRES is just an industrials bet — and explains why he believes stock-level selection and U.S. revenue exposure make the strategy distinct.The conversation closes with practical implementation guidance for advisors: DRES as a satellite allocation to complement global, tech-heavy core holdings, plus a candid look at policy risk, competition, and early investor response since launch.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

David Nicholas, founder of Nicholas X Funds and a financial advisor with nearly 20 years of experience running a private wealth practice in Atlanta, joins the show to break down how he's building one of the more ambitious ETF suites in the smaller issuer space. David walks through the origin story of X Funds, which started during COVID when he saw an opportunity to recreate insurance company balance sheets in a liquid ETF wrapper. His first fund FIAX was designed as a liquid alternative to fixed annuities, pairing a treasury underlay with short spreads on HYG to harvest junk bond yield, then using that income to buy long index call options for equity upside exposure. The fund attracted institutional investors including foreign governments and became the launchpad for everything that followed.From there, David built GIAX and then BLOX, a crypto fund that has now grown to just under 250 million in assets. The firm has since launched four new thematic funds — silver (SLVX), gold (GLDN), defense (Weapon), and nuclear — with two more Bitcoin-based products in the pipeline, an overnight fund and a Bitcoin tail hedge fund. The common architecture across the entire suite pairs roughly 50 percent commodity or core asset exposure with 50 percent equity positions in companies that benefit from that commodity, all layered with an active options overlay. In SLVX, that means silver spot exposure through ETFs like SLV and PSLV alongside miners like First Majestic, Pan American, and Wheaton. In Weapon, the commodity sleeve is rare earth materials used in defense manufacturing, balanced with traditional defense companies.David goes deep on why he built the options strategy around short put spreads rather than traditional covered calls. His core argument is that covered call strategies almost never beat their underlying in rising markets because the short call caps your upside. With put spreads on the equity side, the fund collects premium while preserving full upside participation. On the commodity ETF side, the team sells call spreads but also buys long calls above the spread to recapture gains on sharp moves higher. None of the funds track an index — they are all actively managed with the ability to switch between calls and puts, add protective hedges, or take them off at any time.The conversation also tackles NAV decline head on. David distinguishes between NAV decline caused by underlying positions dropping versus decline caused by over-distribution, and uses BLOX as a case study. The fund generates roughly 50 percent yield from options but only distributes 36 percent, targeting an 80 percent success rate on trades. Bitcoin is down 20 to 30 percent since inception yet BLOX has remained roughly flat, meaning the fund is outperforming its underlying without the distribution dragging the NAV. He could declare a higher yield like some competitor crypto funds but considers that irresponsible if the options income doesn't support it.David also gets real about the business side of scaling a smaller issuer — reinvesting essentially all revenue from the first three funds into launching six new products, navigating the compliance minefield of ETF marketing, and the leadership transition from having his fingerprints on everything to hiring specialized talent who can push the firm beyond his own ceiling. For advisors, he frames the funds through a picks and shovels lens: rather than just buying the commodity, own the entire ecosystem around it with an income-generating overlay on top.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

Bob Elliott, co-founder and CIO of Unlimited, returns to break down how his firm is bringing Vanguard-style indexing to the hedge fund world. After spending the bulk of his career at Bridgewater building proprietary investment strategies, Bob launched Unlimited on two truths the industry wouldn't say out loud — institutional hedge funds are largely no better than their peers over time, and managers take nearly all the alpha in fees. His solution: diversify across managers, cut fees to a fraction, and deliver it all through liquid ETFs.We get into the nuts and bolts of how Unlimited's third-generation replication technology actually works, why Bayesian machine learning picks up tactical alpha that older rolling regression approaches miss, and what separates strategies built by real money managers from those designed by academics and technologists. Bob walks through his full product suite — HFND, HFEQ, HFMF, and HFGM — explains why the 2X target return products are resonating with advisors, and makes the case for moving from 60-40 to 50-30-20. We also talk about the realities of growing a boutique ETF business on a guerrilla marketing budget and why the biggest risk for startup issuers is spending too much too fast.Learn more at unlimitedetfs.com. Read Bob's Substack "Non-Consensus" and follow him on social media at BobEUnlimited.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

David Auerbach, CIO of Hoya Capital, spent over a decade trading REITs at Green Street Advisors in Dallas before getting a front-row seat to the ETF industry's explosive growth at Esposito Securities. Now he runs two REIT-focused ETFs — HOMZ and RIET — managing over $135 million. In this episode, David breaks down the two biggest misconceptions advisors have about REITs: that they're all high yield and that they're all interest rate sensitive. He makes the case that most passive REIT ETFs are far more concentrated than people realize, with just a handful of large-cap names yielding 2–3% dominating the top holdings.David explains how RIET takes the opposite approach — overweighting small caps, mid caps, mortgage REITs, and REIT preferred stocks to deliver a 10%+ annualized monthly dividend across roughly 100 holdings with no single position above 1.5%. We also dig into the housing supply shortage driving the HOMZ thesis, why 4% on the 10-year Treasury is the magic number for REIT investors, and the current M&A wave that's seen 17 REITs merge or pursue strategic alternatives in just the past four months. David shares why private equity is scooping up REIT platforms trading below net asset value, how advisors should think about using HOMZ and RIET as complements to traditional exposure like VNQ, and why boring is exactly what you want from this corner of your portfolio.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

Raymond Micaletti built the MOOD ETF around a single idea: institutions consistently outperform retail traders, and you can measure the difference. After watching a relative sentiment indicator correctly call two major market bottoms while all his other signals failed, he stopped ignoring it and started building.In this episode, Ray breaks down how he uses Commitments of Traders data and sentiment surveys to construct signals across equities, bonds, commodities, and currencies. We dig into the structural advantages institutions have over retail, why his approach avoids the whipsaw problem that kills most tactical strategies, and where it can still get you in trouble. He also makes a strong case for pairing relative sentiment with trend following—two strategies that naturally offset each other's weaknesses.Website: www.relativesentiment.com ETF site: relativesentimentetfs.com Twitter: @relsenttechGet Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

Sam Rahman and John McNamara joined Brad to discuss the launch and philosophy behind the HGRO ETF. Hedgeye, originally built on delivering institutional-quality macroeconomic research to a broader audience, has now extended into the asset management space with active ETF offerings.Sam, who previously managed public equity investments for the Fidelity family office, explained how HGRO fills a gap in the ETF landscape: it offers a concentrated, actively managed large-cap growth portfolio that emphasizes risk-adjusted returns. He emphasized that most large-cap growth ETFs are either over-diversified and benchmark-hugging or overly concentrated and thematic, leaving little in between. HGRO aims to provide thoughtful portfolio construction and institutional-quality research to everyday investors.The strategy focuses on three core themes: deep moat compounders, innovators and disruptors, and special situations. Sam described the selection process as conviction-driven but bounded by disciplined portfolio risk constraints, with max 3% active weights on both stock and sector levels. Sell decisions are typically driven by fundamental deterioration or technical breakdowns.John shared that HGRO is intended to be a core large-cap equity position in diversified portfolios and is gaining early traction among large RIAs. He also confirmed that Hedgeye has more ETF launches in the pipeline and plans to build on its highly engaged research community and media platform to drive continued growth.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In this episode of Behind the Ticker, Brad Roth speaks with Seth Cogswell, Portfolio Manager at Running Oak Capital, about the firm’s flagship ETF—RUNN, the Running Oak Efficient Growth ETF. With a background that spans fundamental equity research and derivatives trading, Cogswell shares his journey to Running Oak and how the firm’s roots in separately managed accounts (SMAs) laid the foundation for its ETF strategy. Originally launched in 2009 for advisors seeking a smoother ride through market cycles, the strategy behind RUNN has delivered strong results with an emphasis on downside protection.Cogswell breaks down how RUNN combines a core equity portfolio of 30–50 high-conviction U.S. large-cap stocks with a tactical allocation to fixed income and cash equivalents. What sets RUNN apart is its ability to dynamically shift its allocation between risk-on and risk-off environments. The fund can reduce equity exposure as low as 30% or raise it up to 90%, based on a rules-based framework that evaluates macro indicators, valuation metrics, and market trends. This allows the fund to dial down risk during market stress and re-enter more aggressively during recovery phases.The equity sleeve of the portfolio focuses on quality companies with strong free cash flow and sustainable growth—avoiding overvalued, speculative names. Meanwhile, the fixed income sleeve remains flexible, emphasizing high credit quality and shorter durations when risk is elevated. Cogswell notes that RUNN is actively managed daily, with oversight to ensure discipline in both the equity and fixed income allocations. The team also maintains a consistent philosophy that prioritizes risk-adjusted returns and long-term capital appreciation rather than chasing short-term performance.Designed for use as a core equity holding or a risk-managed growth strategy, RUNN offers advisors and investors an efficient, transparent vehicle to navigate unpredictable markets. With a track record rooted in the firm’s SMA history and now offered in a more tax-efficient ETF format, the fund aims to deliver smoother performance without sacrificing long-term upside. Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In this episode, Brad sits down with Eric Lutton, CIO of Sound Income Strategies, to discuss the firm’s actively managed ETF: FXED, and its unique approach to fixed income investing.Eric shares his professional journey from trading in the pits of Chicago to managing institutional assets and ultimately building out Sound Income’s fixed income platform. The firm has grown from managing $30M with one advisor to nearly $4B with over 100 advisors, all through organic growth. At the core of their approach is a clear focus on income generation—particularly for retirees and conservative investors looking to preserve capital and generate steady cash flow.Eric explains that FXED was created to solve two problems: making the firm’s core-plus fixed income strategy available to smaller accounts and addressing the lack of fixed income ETFs that combine traditional bonds with higher-yielding alternatives like BDCs, REITs, preferreds, and non-core bond ETFs.He outlines how the portfolio targets around 70-75% fixed coupon instruments and layers in non-traditional income-generating securities—especially those with lower correlation to investment grade bonds—to deliver better risk-adjusted returns than broad benchmarks like the Agg. He discusses their bottom-up selection process, focus on management quality in BDCs and REITs, and commitment to avoiding names with poor underwriting or operational risks.FXED is actively managed to allow dynamic rebalancing between investment-grade and high-yield allocations depending on market conditions. Eric makes the case that active management in fixed income still has an edge—unlike equities, where alpha is increasingly hard to find. The fund aims to outperform by overweighting stronger names and avoiding the losers—something passive indexes can’t do.He emphasizes that FXED is especially useful for retirees or near-retirees who need reliable income and want to avoid relying too heavily on equities for yield. With a target yield in the upper 6% range, the fund allows for reduced capital commitment to fixed income, freeing up room for growth investments or risk-free cash buffers elsewhere in the portfolio.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In this episode of Behind the Ticker, Brad Roth interviews Ryan Thomes, Co-Portfolio Manager at Hotchkis & Wiley, to discuss the launch and strategy behind the firm’s newest ETF—HWSM, the Hotchkis & Wiley SMID Cap Diversified Value ETF. Ryan shares his career journey from investment consulting to portfolio management, explaining how his early due diligence work led him to join the very firm he once evaluated. Over the past 17 years at Hotchkis & Wiley, Ryan has been deeply involved in refining the firm’s value-based equity strategies and co-manages both the small-cap and SMID strategies.The conversation centers on the HWSM ETF, which launched in early 2024 and represents a natural extension of Hotchkis & Wiley’s long-standing small-cap value process. Although the ETF is new, the underlying investment methodology dates back over 20 years. Ryan breaks down the firm’s three-step process: proprietary quantitative modeling, human analyst review, and thoughtful portfolio construction. Unlike traditional quant screens, Hotchkis & Wiley’s models attempt to emulate how a human analyst would value companies based on normalized mid-cycle earnings rather than current market conditions. This combination of rigorous modeling and fundamental judgment allows them to focus on out-of-favor, under-followed stocks with long-term value potential.HWSM typically holds between 150–200 names, balancing diversification with high active share, and utilizes a tiered weighting system that ties directly to fundamental risk ratings. Analysts assess companies across three pillars—business quality, balance sheet strength, and corporate governance—and these scores directly impact the weightings in the portfolio. The fund is rebalanced biannually with monthly adjustments as needed, helping maintain both conviction and efficiency.Ryan explains that SMID caps—especially value names—are historically underappreciated and undervalued compared to large-cap growth, making them especially compelling today. Despite large-cap tech’s dominance over the past decade, he sees potential mean reversion in valuations that could favor smaller, overlooked companies. HWSM is positioned as either a core equity holding or a complement to growth-oriented SMID allocations, offering access to Hotchkis & Wiley’s institutional-quality research through a tax-efficient ETF vehicle. Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In this episode of Behind the Ticker, host Brad Roth speaks with Kirk McDonald, Portfolio Manager at Argent Capital Management, about his unique path from Air Force pilot to managing the Argent MidCap ETF (ticker: AMID). McDonald shares how his firm’s mission to deliver both strong investment performance and top-tier client service inspired their move into the ETF space. With a deep-rooted philosophy focused on “enduring businesses,” Argent seeks companies with consistent cash flow growth, durable competitive advantages, and strong capital allocation by management.Kirk dives into the construction of AMID, which holds a concentrated portfolio of 40–50 midcap names with low turnover—around 20% annually. What differentiates Argent’s approach is the integration of both quantitative modeling and fundamental research, a methodology McDonald calls “quantamental.” This framework is built on 25 fundamental factors that guide stock selection, continually refined to ensure alignment with their long-term investing philosophy. Kirk shares a memorable analogy comparing portfolio candidates to pigs at a trough—emphasizing the constant drive to prioritize younger, hungrier contenders that can generate future outperformance.McDonald also breaks down key portfolio holdings, including Copart and Fortinet, and explains how AMID performs across different market cycles. While the strategy may lag during market regime shifts, it tends to outperform once trends stabilize. He stresses the importance of risk management, drawing from his aviation background to describe a systematic process embedded throughout the stock selection lifecycle.Finally, McDonald explains how AMID fits into broader client portfolios, describing midcap stocks as a “forgotten” asset class underrepresented in most investor allocations despite historically delivering strong returns. He also previews Argent’s growing ETF lineup, which now includes large cap and small cap offerings and will eventually expand to cover SMID and high-yield strategies.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In this episode of Behind the Ticker, Brad Roth sits down with Rob Thummel, Senior Portfolio Manager at Tortoise Capital Advisors, to dive into the firm’s active ETF, the Tortoise Essential Energy Fund (Ticker: TPZ). Rob shares his decades-long journey in the energy sector—from working in gas stations and oilfields as a teenager to helping lead one of the most focused energy investment firms in the country. Tortoise Capital is devoted entirely to energy, aiming to deliver superior risk-adjusted returns by investing across the full spectrum of the sector, including infrastructure, utilities, and renewables—not just traditional oil and gas producers.TPZ, which recently transitioned from a closed-end fund to an active ETF, offers investors a dynamic approach to the evolving energy landscape. Rob explains how the fund is positioned to capture opportunities stemming from electrification and increased U.S. energy exports, with particular focus on natural gas and liquid infrastructure. He emphasizes that energy is no longer just about oil—natural gas and electricity are central to powering data centers and AI advancements, and TPZ is designed to align with that megatrend.The portfolio maintains an active share of 86%, reflecting its substantial divergence from traditional benchmarks like the S&P Energy Index or ETFs like XLE. TPZ typically holds 80-90% in equities and 10-20% in fixed income, with additional option overlays to generate income and reduce volatility. Rob describes the fund’s hybrid approach—combining top-down macro analysis with bottom-up fundamental research—to find undervalued names with strong cash flows and management quality.With a current dividend yield of about 5% and one-year performance exceeding 40%, TPZ has outpaced many passive energy benchmarks by leaning into secular shifts and tactically avoiding cyclical pitfalls. Rob positions TPZ as a core energy allocation for diversified portfolios, not just for total return potential, but for its robust income stream and long-term exposure to the energy-AI convergence. Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of Behind the Ticker, Bob Elliott, co-founder and Chief Investment Officer of Unlimited, discussed the firm’s mission to democratize hedge fund strategies through innovative ETF structures. Drawing on his experience managing strategies at Bridgewater Associates and running a $125 million venture capital fund, Elliott launched Unlimited to address what he sees as fundamental inefficiencies in traditional hedge funds—high fees, limited access, and tax-inefficient vehicles. Unlimited’s approach uses proprietary technology to replicate hedge fund strategies at lower costs, inside liquid, tax-efficient ETFs.The firm’s latest offering, the Unlimited HFGM ETF (ticker: HFGM), seeks to replicate the returns of global macro hedge funds, offering a 2x exposure to the strategy at just 95 basis points. Elliott explained that global macro is one of the most attractive and diversifying hedge fund styles due to its flexibility across asset classes—currencies, commodities, rates, equities—and its historically low correlation to traditional 60/40 portfolios. By leveraging a machine learning-driven process, HFGM infers the positioning of roughly 500 macro hedge fund managers in near real-time, using public market data and return streams to replicate their exposures.Elliott emphasized that HFGM is fully systematic, with daily updates to inferred manager positioning and weekly average rebalancing. The ETF primarily uses futures contracts for efficiency, allowing both long and short exposure across global macro markets while benefiting from tax-friendly ETF structuring. Elliott stressed that the firm avoids “black box” opacity by grounding its machine learning in intuitive, transparent modeling—essentially scaling the same logic any investor might use to reverse-engineer a manager’s trades, but with far greater accuracy and breadth.He positioned HFGM and Unlimited’s broader ETF suite as part of a shift in portfolio construction—from the old 60/40 model to a more modern 50/30/20 framework, where 20% is allocated to alternatives, including both liquid and illiquid strategies. HFGM, with its manager-diversified exposure, ease of execution, and lack of paperwork or K-1s, offers a compelling way for advisors and institutions to gain hedge fund-like exposure without the drawbacks of traditional LP structures.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of Behind the Ticker, Brad Neuman, Director of Market Strategy and Portfolio Manager at Alger, joined the show to discuss the firm’s rich history in growth investing and the launch of their latest ETF: Alger Russell Innovation ETF (ticker: INVN). Neuman, who has a 25-year investment background spanning bottom-up and top-down roles on both the buy and sell sides, explained how Alger’s philosophy of “positive dynamic change”—a principle rooted in identifying growth opportunities amid market disruption—has remained consistent since the firm’s founding in 1964.Neuman described Alger’s long-standing emphasis on change as the foundation for identifying outperforming businesses. This philosophy is implemented through deep, fundamental research conducted by a seasoned analyst team that conducts proprietary field work—speaking directly with customers, competitors, and suppliers. While most of Alger’s strategies have been actively managed and bottom-up, INVN marks a shift toward a more systematic, top-down process designed to isolate innovation as an investable factor.The INVN ETF seeks to directly invest in innovation by identifying companies with strong R&D investment that is underappreciated by the market. Starting with the Russell 1000, Alger removes the bottom third of companies ranked by free cash flow margin to avoid early-stage or inefficient businesses. From the remaining universe, they select the top 50 companies based on R&D-to-enterprise value. The result is an equally weighted portfolio reconstituted quarterly to maintain exposure to what Neuman calls “HIPP” stocks—Highly Innovative, but Prudently Priced. This approach avoids overlap with typical growth benchmarks and excludes megacap names like Apple, whose R&D may be large in absolute terms but not relative to their vast market caps.Neuman positioned INVN as a mid-cap core exposure that can serve as a replacement for traditional passive or active mid-cap strategies, while solving for issues like overconcentration in large-cap tech and inflated market valuations. With low turnover, high active share, and a valuation profile significantly below traditional growth indices, INVN provides a unique, quant-driven solution for investors looking to allocate directly to innovation. Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of Behind the Ticker, Wayne Penello, founder of NextGen EMP, shared the fascinating journey that led him to launch the NextGen Efficient Market Portfolio Plus ETF (ticker: EMPB). With over 40 years of experience as a commodity trader—including a decade on the floor of the New York Mercantile Exchange and years advising global trading firms—Penello developed a deep understanding of risk management. He later patented the Performance Risk Management System, which earned his clients over $13 billion in hedging profits and was detailed in his book, Risk as an Asset. After selling his firm, Penello turned his attention to equities, frustrated by the industry’s overreliance on diversification and lack of active risk management, ultimately leading to the creation of EMPB.EMPB is a long/short equity ETF designed to actively manage systemic market risk using a proprietary, statistically driven methodology Penello describes as a “foggy ball”—an imperfect but highly effective algorithm that identifies the weakest sectors (“nags of the market”) and shorts them to dampen volatility. Rather than attempting to predict market direction or time the best 90 days, the fund focuses on avoiding the worst periods, which historically have the most destructive impact on long-term performance. The ETF holds about 16 sector or thematic ETFs, balancing long and short exposures to achieve a Sharpe ratio above 2, with the aim of consistently outperforming the S&P 500 while maintaining a maximum drawdown of less than 10%.A key differentiator for EMPB is its accessibility: Penello was determined to build a sophisticated hedge-fund-like strategy for everyday investors, not just accredited institutions. By launching as an ETF rather than a private fund, NextGen EMP made the strategy available to anyone with $25, offering hedge-fund-caliber active management in a tax-efficient, low-minimum format. Despite an advertised expense ratio of 2.21%, Penello explained that the effective net cost to investors is closer to 1% or less when accounting for the offsetting interest income from short positions and dividends on long holdings. The fund is rebalanced monthly.Penello positioned EMPB as a core equity exposure solution rather than an alternatives sleeve, emphasizing its potential appeal to both young investors seeking equity growth with controlled risk and retirees who cannot afford major portfolio drawdowns. With a disciplined, systematic process that removes emotional decision-making and a structure that works efficiently within tax-advantaged accounts, EMPB represents what Penello calls the “next generation” of equity investing.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of Behind the Ticker, Rob Harvey, Vice President at Dimensional Fund Advisors (DFA), shared his personal journey into asset management and gave an in-depth look at DFA’s unique approach to building portfolios, particularly their work in the ETF space. Harvey described how he first encountered Dimensional while managing external asset managers at Cisco Systems, where their emphasis on evidence-based investing and disdain for market predictions immediately stood out. After attending a Dimensional conference and hearing academic legends like Eugene Fama and Ken French present, Harvey was convinced and eventually joined DFA, relocating to Austin, Texas.Harvey explained that DFA’s core mission is to help investors achieve their financial goals by providing investment solutions based on robust academic research, rather than focusing on marketing or chasing hot trends. He emphasized Dimensional’s long-standing partnership model with financial advisors, which prioritizes education, client communication, and long-term outcomes over product sales. This commitment to advisors and evidence-based investing remains central even as DFA expands its reach through ETFs, making their historically advisor-only strategies accessible to a broader audience without compromising their foundational principles.The conversation focused heavily on DFA’s investment philosophy, particularly their emphasis on factors like size, value, and profitability, which are systematically applied across all portfolios. Harvey noted that DFA is highly disciplined in vetting new research before incorporating it into their strategies, ensuring that any new factors—such as profitability, which was added in 2012—meet a high bar for robustness and persistence across time and markets. DFA’s portfolios are managed actively on a daily basis, providing flexibility to capture real-world developments in ways traditional index funds cannot, while maintaining low fees and broad diversification.Harvey also provided an overview of DFAI, Dimensional’s International Core Equity ETF. He described DFAI as a market-wide, low-tracking-error strategy that lightly tilts toward premiums like small size, value, and profitability, offering enhanced expected returns over a standard index fund. DFAI differs from traditional international index funds by including a broader set of securities, especially micro-caps, and by incorporating real-time momentum screens to avoid value traps and boost performance. Harvey positioned DFAI as an ideal core international equity holding for advisors seeking to move beyond passive indexing without sacrificing diversification or cost efficiency. Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of Behind the Ticker, Clark Allen, Head of ETFs at Horizon Investments, shared his journey from public accounting and family office investing to leading Horizon’s entrance into the ETF space. With a deep background in institutional asset management and quantitative research, Allen joined Horizon to help bridge the gap between sophisticated investment strategies and emotionally resonant, goals-based planning for financial advisors and their clients. Horizon, founded in the mid-1990s, evolved from a wealth manager into a strategist firm with a focus on outcome-oriented models. Today, the firm offers a blend of mutual funds, OCIO services, and now, actively managed ETFs as part of its growing product suite.Horizon’s ETF push began with two initial launches, BENJ and HBTA, and the firm has filed for seven more ETFs in 2024. Allen explained that Horizon’s motivation was largely advisor-driven—many advisors were already using Horizon’s mutual funds and model portfolios but needed ETF-based solutions to better integrate with their workflows. BENJ, the Horizon Landmark ETF, is a cash management strategy built around box spreads, offering a T-bill-plus total return without kicking off taxable income. Allen emphasized that this feature is ideal for model portfolios, particularly in retirement distribution strategies, where advisors need liquidity but prefer to manage tax exposure and reinvestment activity with precision.HBTA, the firm’s second ETF, is designed as a high-beta equity strategy with put spreads to offer greater upside capture than the S&P 500. Allen described it as a product built for certainty—not to time markets, but to provide clear expectations around performance, particularly for advisors seeking risk-aligned tools for growth-oriented allocations. He noted that many advisors in Horizon’s OCIO network had asked for such solutions to complement their existing exposures without relying on small caps or thematic tech names.What sets Horizon apart, according to Allen, is its emphasis on being a solution provider rather than a product pusher. The firm’s ETF lineup is crafted to fit within model portfolios and financial plans, not just to chase the latest trend. Horizon’s focus remains on outcome-driven investing, where each ETF serves a clear role—whether providing liquidity, risk-managed equity exposure, or a building block for custom advisor models. Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent special edition of Behind the Ticker recorded live at the Exchange ETF Conference, Paisley Nardini, Vice President and Client Portfolio Strategist at Simplify Asset Management, joined the show to discuss her path from bond trading to ETF strategy—and dive into Simplify’s Managed Futures Strategy ETF, ticker CTA. With a career that began on a bond trading desk and later evolved through roles at PIMCO and in institutional portfolio management, Nardini has developed a strong passion for bringing hedge-fund-caliber strategies to a broader investor base.Simplify launched in 2020 following a key SEC rule change that expanded the use of derivatives in ETFs. Since then, the firm has grown to over $7 billion in AUM across 35 ETFs, becoming known for its innovative use of options and derivatives. While often categorized as an “alternative ETF issuer,” Nardini emphasized that Simplify’s lineup includes not only pure diversifiers like CTA but also core active fixed income and systematic equity strategies. She described CTA as a capital-efficient, hedge-fund-style managed futures fund focused solely on commodities and interest rate futures—excluding equities and currencies to offer a cleaner source of diversification.CTA stands out by employing a multi-signal model composed of four drivers: trend, mean reversion, intermarket (or risk-off), and carry. The trend signal captures directional market movements across short, medium, and long-term timeframes. The mean reversion signal acts as a counterbalance, scaling exposure when trends become extended. The intermarket factor assesses cross-asset relationships—such as equities selling off while bonds rally—to adjust positioning dynamically. Finally, the carry signal evaluates the interest rate curve to avoid negative carry in periods of inversion. This hedge-fund-inspired, daily-rebalanced model is powered by research from Altis Partners, a UK-based CTA firm.The fund uses futures contracts, which naturally embed leverage, but Simplify imposes a 25% margin-to-equity constraint to manage risk. Unlike many peers, CTA has no sector or position caps, allowing for high-conviction trades—such as its profitable exposure to the cocoa market in 2023. Nardini also addressed the ETF’s performance through volatile periods, highlighting its ability to pivot quickly, reduce drawdowns, and remain uncorrelated to both stocks and bonds. With negative correlation to equities and the potential for equity-like returns, CTA is increasingly being used as a key diversifier in modern model portfolios.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent special edition of Behind the Ticker recorded live at the Exchange ETF Conference, Matt Kaufman, Head of ETFs at Calamos Investments, joined the show to talk about Calamos’ expanding lineup of structured outcome ETFs—including their latest innovation: a suite of protected Bitcoin ETFs. With a legacy in risk-managed strategies, especially convertible bonds, Calamos has built a reputation over the past 50 years as a leader in delivering upside equity potential with downside protection, a philosophy that now extends to one of the most volatile asset classes—Bitcoin.Kaufman introduced the firm’s new structured protection Bitcoin ETFs: CBOJ (100% downside protection), CBTJ (10% at risk), and CBTX (20% at risk), offering varying degrees of risk-reward profiles depending on an investor’s tolerance. These funds use a combination of zero-coupon U.S. Treasuries and option strategies built on a custom Bitcoin index developed with the Chicago Board Options Exchange (CBOE). That index, tracking all 11 spot Bitcoin ETPs, enables Calamos to construct call spread strategies that allow for capped upside with predefined downside exposure—offering investors a much-needed safety net in the crypto space.Kaufman explained how these ETFs are built: most of the portfolio is allocated to Treasuries to secure principal (e.g., 96% for the 100% protected product), while the remaining yield is used to buy a call spread on Bitcoin. The result is a defined one-year outcome period with options-based exposure to Bitcoin’s price movement. Kaufman emphasized the appeal of these products during periods of high volatility, noting that current upside caps are as high as 50–60% for the 20% floor product—making them attractive even amid Bitcoin’s recent drawdown.Designed for both crypto-curious investors and advisors looking to include Bitcoin in client portfolios with risk control, the Calamos suite of protected Bitcoin ETFs fills a significant gap in the market. Whether used as a “risk-off” sleeve in a crypto model portfolio or as a bond-alternative with meaningful upside, these ETFs offer a more traditional framework for incorporating Bitcoin. Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of Behind the Ticker, Jeff Cullen, Managing Director at Schafer Cullen Capital Management, sat down to discuss the firm’s first ETF, the Cullen Enhanced Equity Income ETF (ticker: DIVP). With over 30 years in the asset management industry and experience across mutual funds, SMAs, and ETFs, Cullen provided a deep dive into how the firm’s long-standing dividend-focused value strategy evolved into an actively managed ETF. Schafer Cullen, which manages over $24 billion in assets, has built a reputation over four decades as a value manager with a strong emphasis on dividend-paying stocks, and DIVP represents a natural extension of that philosophy.DIVP is a high-conviction, actively managed strategy that holds 30 to 40 large-cap, household-name value stocks with above-average dividend yields—typically above 3%. What sets DIVP apart is its selective covered call overlay, where the team writes short-dated, out-of-the-money call options (typically 2–4% out and expiring in two weeks to one month) on about 25–40% of the portfolio. The calls are written on individual stocks, not an index, and are chosen based on market volatility and the underlying fundamental outlook of each holding. This approach allows the portfolio to enhance income without significantly capping upside potential, thanks to thoughtful partial-position writing and sector diversification.Cullen emphasized that the ETF is designed to deliver two sources of income—dividends from quality value stocks and call option premiums—leading to a historical yield between 7.2% and 8.3% in the SMA version of the strategy, with more than half of that coming from qualified dividend income. The strategy is intended for investors seeking higher income with equity market participation and downside resilience. While the ETF may underperform in sharp bull runs or during periods of low volatility, it performs particularly well in sideways or volatile markets where premium harvesting and dividend yield can shine.Cullen also shared his enthusiasm for entering the ETF space, highlighting the structural benefits of the ETF wrapper, including tax efficiency, ease of implementation, and the ability to reach a broader set of advisors and investors. He noted that Schafer Cullen plans to expand its ETF offerings, potentially via ETF share classes of existing mutual funds, depending on upcoming SEC rulings.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of Behind the Ticker, Dan Petersen, Head of Product Management at New York Life Investments, discussed the firm’s international equity strategy and the mechanics behind the NYLI FTSE International Equity Currency Neutral ETF (ticker: HFXI). With over two decades in the industry, Petersen has held various roles in financial advisory and ETF distribution, playing a key role in the growth of IndexIQ before its acquisition by New York Life in 2015. Since then, he has focused on product development, helping expand the firm’s ETF offerings.HFXI was designed to provide a balanced approach to international investing by hedging 50% of currency exposure while maintaining full equity market exposure. Petersen explained that historically, investors in international equities had to accept full currency exposure by default, which could add or detract significantly from returns depending on currency fluctuations. Fully hedged products emerged to remove this risk entirely, but many investors found it difficult to time when to hedge and when not to. HFXI was created to offer a middle ground—allowing investors to benefit from currency movements when favorable while reducing the risk of extreme fluctuations.The fund achieves this partial hedge by using forward contracts that are rolled monthly, adjusting for changes in currency valuations. Petersen highlighted that currency exposure can have a substantial impact on performance, often contributing or detracting by as much as 600 to 1,000 basis points annually. By hedging half the exposure, HFXI aims to smooth out volatility while still allowing investors to participate in foreign currency strength when it occurs. This strategy is particularly beneficial in periods of global economic stability when foreign currencies tend to appreciate, as well as in risk-off environments where excessive currency exposure can compound equity drawdowns.Petersen positioned HFXI as a long-term core allocation within international equity portfolios. Advisors can use it as a standalone replacement for unhedged international ETFs or pair it with traditional market-cap-weighted international funds to create a customized level of currency exposure. He also pointed out that international equities currently present a compelling valuation opportunity, with price-to-earnings ratios at historically attractive discounts compared to U.S. markets. Given the extreme valuation gap between U.S. and international stocks, he suggested that now may be an opportune time for investors to consider increasing international exposure.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of Behind the Ticker, Kirsten Chang, Director of Editorial and Content at VettaFi, shared insights into her journey from CNBC to her current role, as well as details about the upcoming Exchange ETF Conference, the largest ETF industry event of the year. With over a decade of experience at CNBC—working on Squawk Box, covering markets from the floor of the NYSE with Bob Pisani, and helping launch ETF Edge—Chang transitioned to VettaFi to further develop her own voice and contribute to the growing ETF landscape.Chang explained that VettaFi is more than just the organizer of the Exchange conference. It serves as an index provider, a data analytics firm, and a digital distribution company focused on bridging the gap between advisors and ETF issuers. With over 4,000 ETFs available in the market, VettaFi helps investors and financial professionals sift through the noise by offering research, webcasts, and educational content. Through its partnerships with asset managers, the firm provides timely insights on ETF flows, market trends, and new product developments.The discussion then shifted to the Exchange ETF Conference, now taking place in Las Vegas after years in Miami. Chang highlighted that the conference is designed to offer advisors actionable insights and analysis, with sessions covering everything from private credit and hedge fund-led multi-asset ETFs to the explosive growth of active ETFs. The event brings together the biggest names in the industry, including keynote speakers like David Kelly and Ian Bremmer, and features panels on thematic investing, ESG trends, crypto, AI, and international equities. With record-breaking fixed income ETF flows and the continued rise of AI-related investments, the conference aims to provide a roadmap for advisors navigating today’s markets.Chang also emphasized Exchange’s focus on networking and community building, calling it the must-attend event for anyone in the ETF space. She shared details on new initiatives like the Putt for Pink charity event benefiting Susan G. Komen, a March Madness basketball connect-four game hosted by State Street, and an interactive app that allows attendees to schedule meetings and customize their experience.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of Behind the Ticker, Adam Patti, founder and CEO of VistaShares, discussed the launch of the VistaShares Artificial Intelligence Supercycle ETF (ticker: AIS) and how it differentiates itself in the growing AI investment space. With over two decades in the ETF industry, Patti previously founded IndexIQ, one of the earliest issuers of liquid alternative ETFs, which was later acquired by New York Life. After spending several years outside the industry, Patti partnered with John McNeil of DVX Ventures to launch VistaShares, focusing on building high-quality thematic ETFs with a more thoughtful and targeted approach.Patti explained that AIS is designed to provide pure exposure to the AI supercycle by focusing exclusively on the infrastructure driving artificial intelligence, particularly in data centers and semiconductors. Unlike many AI-themed ETFs that hold broad tech exposure dominated by the "Magnificent Seven" stocks, AIS takes a supply chain-driven approach, investing in companies that manufacture the essential components—such as GPUs, VRAMs, cooling systems, and fiber optic networks—needed to power AI. By analyzing the bill of materials for AI data centers and semiconductors, VistaShares identifies companies with substantial AI-driven revenue, ensuring that the fund is directly tied to AI growth rather than being diluted by large-cap tech names with only partial AI exposure.AIS follows a rules-based, actively managed strategy that combines systematic supply chain analysis with an active overlay. The core portfolio is constructed based on a transparent, rules-driven methodology—one that VistaShares has filed for a patent on—ensuring that holdings are determined by their relevance to AI infrastructure rather than arbitrary weightings. The fund undergoes a semi-annual rebalance, but Patti emphasized that the active overlay allows for adjustments in response to new developments in the rapidly evolving AI space. The investment committee, which includes AI industry practitioners such as former Tesla president John McNeil and AI entrepreneur Sonny Madra, helps identify emerging trends, new players, and risks within the AI ecosystem before they become widely recognized.Patti also highlighted the global nature of the AI supply chain, with AIS holding companies from the U.S., Taiwan, China, and Europe. Currently, about 60% of the portfolio is U.S.-based, with the remainder distributed across key AI manufacturing hubs. Looking ahead, VistaShares has the flexibility to expand the portfolio’s focus, potentially incorporating consumer-facing AI applications and energy solutions as the industry matures. However, for now, the fund remains centered on AI infrastructure, which Patti believes is still in the early stages of exponential growth, as evidenced by record-breaking capital expenditures from major tech firms.For investors and advisors looking to incorporate AIS into portfolios, Patti suggested a 3-5% allocation within a core equity strategy, positioning it as a high-conviction growth satellite. Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

n a recent episode of Behind the Ticker, Emma Harper, a research analyst at Sage Advisory, shared insights from the firm’s 2024 ETF Stewardship Report, which evaluates how ETF providers engage with companies, vote on shareholder proposals, and integrate sustainability and governance practices. With a background in finance and research, Harper plays a key role in Sage's analysis of responsible investment strategies, ensuring the firm’s investment decisions align with best stewardship practices. Sage Advisory, which manages approximately $28 billion in assets, focuses on institutional and retail clients, blending investment management with rigorous research.Harper explained that Sage’s annual stewardship report examines ETF providers' voting and engagement practices, governance structures, and transparency efforts. The report analyzes how asset managers influence corporate behavior through proxy voting, engagement strategies, and sustainability considerations. One key aspect of the research is assessing whether providers have dedicated stewardship teams and clearly defined voting policies. Given that ETF holders delegate their ownership rights to fund issuers, understanding how these rights are exercised is crucial for fiduciary responsibility.A major trend identified in the 2024 report is a decline in transparency among ETF providers, particularly in response to regulatory scrutiny and political pressures. Harper noted that while early versions of the report saw growing disclosures from asset managers, recent years have shown a more cautious, legalistic approach to describing stewardship activities. Additionally, there is a widening divide between active and passive ETF managers, with active managers generally exhibiting stronger stewardship practices. Passive managers, on the other hand, tend to rely more on third-party proxy advisors and have less direct engagement with portfolio companies.Harper also highlighted concerns about the concentration of voting power among a few major ETF providers, such as BlackRock, Vanguard, and State Street. These firms control trillions of dollars in assets and exercise substantial influence over corporate governance. The report found that larger providers tend to support management more often than smaller firms, which raises questions about their commitment to shareholder advocacy. Harper emphasized that investors should carefully evaluate ETF issuers’ stewardship policies, particularly as issues like ESG, artificial intelligence, and cybersecurity become more relevant in corporate decision-making.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of Behind the Ticker, Rob Arnott, founder and chairman of Research Affiliates, shared insights into the firm's latest innovation, the Research Affiliates Deletions ETF (ticker: NIXT). With nearly 50 years in investment management, Arnott has built a reputation for pioneering quantitative investing strategies, particularly through the development of the Fundamental Index methodology. Research Affiliates, founded in 2002, now indirectly oversees $158 billion in assets through partnerships with firms like Schwab, Invesco, and PIMCO.Arnott explained that NIXT was created to exploit inefficiencies in traditional market-cap-weighted indexes. When companies are removed from major indices like the S&P 500 or Russell 1000, they often experience exaggerated price declines, pushing them to deep value levels. Historically, these "deleted" stocks tend to recover significantly, often outperforming the market in the years following their removal. NIXT systematically captures this mean reversion by identifying and investing in stocks that have been dropped from indices due to temporary underperformance rather than fundamental deterioration.The fund follows a rules-based process where deletions from the top 500 and top 1,000 market cap rankings are screened for quality metrics, eliminating the bottom 20% to avoid value traps. The remaining stocks are then held in equal weight for five years, allowing time for revaluation and recovery. Arnott noted that this approach benefits from both the structural inefficiencies of index deletions and the broader opportunity in small-cap and deep value stocks, which are currently trading at historically low relative valuations.Arnott positioned NIXT as a unique completion strategy, complementing traditional market-cap-weighted portfolios by reintroducing stocks that indices have discarded too soon. While not intended as a core allocation, NIXT provides an alternative way for investors to gain small-cap value exposure with a systematic, contrarian approach.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

n a recent episode of Behind the Ticker, John Davi, founder and CIO of Astoria Advisors, discussed the firm's latest ETF launch, the Astoria US Quality Kings ETF (ticker: GQQQ). With over two decades of experience in quantitative investing and asset allocation, Davi founded Astoria in 2017, building a firm focused on macro-driven and quantitative investment strategies. Managing approximately $2 billion in assets, Astoria serves financial advisors, institutions, and ultra-high-net-worth individuals.Davi explained that GQQQ was created to address a gap in the growth investing space. While many existing growth ETFs are purely market-cap weighted, GQQQ combines growth with a quality filter, ensuring exposure to high-growth companies while maintaining fundamental financial strength. Unlike broad Nasdaq-based ETFs, which include all non-financial large-cap stocks without quality screening, GQQQ applies quantitative selection criteria focusing on return on equity (ROE), return on assets (ROA), and return on invested capital (ROIC). This results in a portfolio that captures growth opportunities while reducing exposure to weaker companies.The ETF blends large-cap and mid-cap stocks, aiming to identify the next generation of market leaders. Davi highlighted AppLovin as an example—GQQQ included the stock in its launch portfolio in October 2023, months before it was added to the Nasdaq 100, allowing early participation in its strong performance. By including mid-cap growth names, GQQQ seeks to capitalize on emerging winners while mitigating the concentration risks seen in traditional growth ETFs dominated by the "Magnificent Seven" mega-cap tech stocks.Davi also emphasized the risk management strategies within GQQQ. The ETF undergoes an annual rebalance with quarterly quantitative reviews, allowing for adjustments when stocks significantly de-rank in quality metrics. While not a tactical allocation product, this process ensures that the fund remains aligned with its quality-growth mandate. He positioned GQQQ as a complementary holding to existing growth ETFs like QQQ or Vanguard's growth ETFs, offering a more refined and risk-conscious approach to growth investing.For advisors and investors looking to incorporate GQQQ into their portfolios, Davi suggested it as a way to diversify traditional growth exposure, especially given the heavy concentration in a few stocks within broad-market growth indices.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of Behind the Ticker, Mike Loukas, CEO of TrueShares, shared insights into the firm’s journey and the unique approach behind their ETFs, including their latest launches, QBUL and QBER. Loukas, with over 30 years of experience in the financial industry, founded TrueMark Investments in 2019 with the purpose of establishing TrueShares as a solutions-based ETF platform. TrueShares aims to take traditional active strategies and institutional hedging techniques and incorporate them into ETFs that offer investors smarter portfolio construction tools.Loukas explained that TrueShares’ ETF lineup started with fundamental active management products and expanded to include thematic and structured outcome ETFs. Their defined outcome or buffered ETFs have been popular among investors seeking downside protection while maintaining exposure to equity growth. Most recently, the firm launched QBUL and QBER, two quarterly resetting hedged equity ETFs designed to offer principal protection with directional market exposure.QBUL aims to capture market gains beyond a 5% threshold within a quarter while maintaining treasury-level downside protection. In contrast, QBER generates positive returns when the market drops by more than 5%. Both funds use a structure where principal is invested in treasuries, and the yield is used to purchase out-of-the-money call options (for QBUL) or put options (for QBER). This approach ensures low risk exposure with the potential for asymmetric returns based on market movements.Loukas highlighted the flexibility of these ETFs within a portfolio, explaining that they can be used as standalone investments or blended with other asset classes to create diversified, risk-adjusted strategies. Advisors can use QBUL in bullish markets to enhance upside potential while maintaining principal security, and QBER in bearish markets to hedge against significant declines without taking on the risks associated with shorting the market.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of Behind the Ticker, Catherine LeGraw, asset allocation strategist at GMO, shared insights into the firm’s approach to value investing and their newly launched ETFs, including GMOV, their U.S. value ETF. LeGraw, who joined GMO in 2013 after working at BlackRock and Barclays Global Investors, brings a top-down perspective to asset allocation, seeking valuation-driven opportunities across asset classes. She emphasized GMO’s commitment to long-term value investing and its employee-owned structure, which allows the firm to focus solely on clients’ best interests.LeGraw explained that GMOV stands out among value-focused ETFs due to three key differentiators. First, GMO takes a top-down approach, looking for entire groups of dislocated or misvalued stocks, rather than relying solely on bottom-up stock selection. Currently, the fund focuses on the cheapest 20% of the market, which GMO believes represents a tremendous opportunity for deep value investing. Second, the firm does not rely on standard accounting data but instead restates financials to reflect true underlying value, such as treating research and development expenses as investments rather than operating costs. Lastly, GMO incorporates forward-looking projections tailored to each company’s unique characteristics, providing a more accurate estimate of future profitability.GMOV also applies rigorous portfolio construction techniques to balance deep value opportunities with quality and growth characteristics, avoiding common value traps. LeGraw highlighted GMO’s use of proprietary red flag screening, which examines accounting metrics, management behavior, and market signals to identify potential risks. The fund consists of approximately 150 names, with sector weightings determined by valuation attractiveness rather than traditional market cap constraints. Unlike many passive value ETFs that may be overweight in sectors like utilities, GMO’s active approach allows them to avoid sectors they consider overvalued.In addition to discussing the U.S. market, LeGraw also touched on GMOI, their international value ETF, which she believes offers an even greater opportunity given the relative cheapness of international equities and the potential tailwind of currency valuation shifts. She emphasized that value investing is currently priced for significant outperformance, with deep value trading at historically attractive levels.For advisors and investors looking to diversify their portfolios away from an overconcentration in U.S. large-cap growth, LeGraw suggests GMOV and GMOI as substitutes for passive value exposure or as tactical allocations to capitalize on the current value opportunity. Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of Behind the Ticker, Kevin Carter, founder of EMQQ Global, shared his journey into investment management and the inspiration behind his suite of emerging market internet ETFs, including INQQ, which focuses on India’s rapidly growing internet sector. With a background that began at Robertson Stephens in 1992 and included pioneering direct indexing and active indexing, Carter’s passion for emerging markets and digital transformation culminated in the creation of EMQQ Global and its targeted ETF offerings.Carter discussed the investment thesis for INQQ, highlighting India’s unique position as the world’s largest and fastest-growing emerging market. With a population exceeding 1.4 billion, robust demographics, and a booming middle class, India presents unparalleled opportunities for consumption-driven growth. Carter emphasized India’s ongoing infrastructure and technological advancements under Prime Minister Modi, particularly the “India Stack,” a revolutionary digital public infrastructure. The stack has transformed India’s economy by enabling biometric identification, digital payments, and financial inclusion for over 800 million people in just a few years.INQQ provides investors exposure to the burgeoning internet sector in India, which Carter described as being in its early stages of growth. The ETF focuses on publicly traded Indian internet companies that meet market cap and liquidity thresholds, offering a diversified portfolio across various verticals, including e-commerce, payments, and online travel. Companies like Paytm and MakeMyTrip exemplify the opportunities available as digital adoption accelerates, with many sectors still in the nascent stages of development.Carter underscored the importance of INQQ as a standalone investment opportunity within emerging markets, appealing to those seeking targeted exposure to India’s digital transformation.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of Behind the Ticker, David Dziekanski, founder and CEO of Quantify Funds, introduced his firm’s first ETF, the STKD Bitcoin and Gold ETF (ticker: BTGD). With 17 years of experience in the investment and ETF industry, including 11 years as a partner at Tidal Financial Group, Dziekanski launched Quantify Funds to bring innovative, efficient investment solutions to market. BTGD represents a novel approach to leverage ETFs, offering exposure to both Bitcoin and gold in a single investment vehicle.BTGD is structured as a “stacked” ETF, providing $1 of exposure to Bitcoin and $1 of exposure to gold for every $1 invested. This 50-50 blend offers a leveraged, long-term approach without the typical path dependency or decay associated with traditional leverage products. The fund utilizes a combination of futures and exchange-traded products to optimize leverage and manage rebalancing efficiently. Dziekanski explained that the fund targets a 5-7% rebalance drift to minimize trading costs while maintaining the desired asset allocation.The rationale behind combining Bitcoin and gold lies in their shared status as scarcity assets. Gold, with its historical role as a store of value, and Bitcoin, often referred to as “digital gold,” both offer protection against currency debasement. Dziekanski noted that the mining rates of Bitcoin (0.86% annually) and gold (1.75% annually) are significantly lower than the 7-9% annual currency printing rates of developed nations, making them ideal assets for a hedge against inflation and declining currency values.Dziekanski also highlighted how the differing volatility and correlations of Bitcoin and gold enhance the portfolio’s resilience. Bitcoin’s higher volatility is balanced by gold’s stability, allowing for effective rebalancing during market shifts. Historical data shows that gold has performed well during past crypto winters, providing diversification benefits and mitigating drawdowns. Advisors are encouraged to view BTGD as a debasement hedge or a high-volatility alternative in portfolios, with suggested allocations ranging from 2-5%.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a special edition of Behind the Ticker recorded at the UT CATT 2024 Global Analytics Conference, host Brad Roth moderated a panel discussion exploring the future of AI in finance. The panel brought together leading voices in the field: Kyle Wiggs, co-founder and CEO of UX Wealth Partners; Sudhir Holla, founder and CEO of MyStock DNA; and Tal Schwartz, founder of AI Funds. Together, they examined how artificial intelligence is revolutionizing portfolio management, addressing longstanding industry challenges, and opening up new possibilities for smarter investment strategies.Kyle Wiggs highlighted the operational challenges and opportunities AI presents to financial advisors. He explained how UX Wealth Partners bridges the gap between sophisticated AI-driven strategies and practical implementation for end clients. By focusing on trading, billing, and reporting across multiple custodians and account structures, Wiggs emphasized the importance of scalability and efficiency in delivering cutting-edge solutions to the wealth management community. He also stressed that AI’s role should complement human advisors rather than replace them, describing the concept as “man and machine” working together to enhance outcomes.Sudhir Holla brought a different perspective, emphasizing MyStock DNA’s philosophy of “winning by not losing.” He explained how their AI engine, Darwin, helps mitigate downside risk while managing large volumes of data and human emotions that often derail investment decisions. Holla introduced the concept of an “emotional risk frontier,” suggesting that AI could help create individualized portfolios tailored to each investor’s emotional tolerance for market volatility. His analogy of AI as a “self-driving car” for portfolios resonated, showcasing how the technology navigates complex market conditions while aiming for safety and efficiency.Tal Schwartz provided insights into the quantitative and predictive power of AI in active portfolio management. He shared details about his AI engine, BAILA (Bayesian AI Learning Algorithm), which acts as both a macro strategist and portfolio optimizer. BAILA’s ability to identify market environments and adapt to changing conditions offers a smarter alternative to traditional active strategies. Schwartz highlighted AI’s capacity to outperform human managers by leveraging massive datasets and eliminating emotional biases, enabling portfolios to achieve asymmetric returns with minimized downside risk.The panelists agreed on the transformative potential of AI but acknowledged challenges, including regulatory hurdles, biases in training data, and the need for human oversight. They emphasized that while AI has made significant strides, its most impactful applications lie ahead, particularly in democratizing access to sophisticated investment tools. The discussion underscored AI’s potential to reshape finance, from enhancing risk management to delivering tailored solutions for investors at all levels.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of “Behind the Ticker,” Al Chu, portfolio manager at Man GLG, discussed his role managing the American Beacon GLG Natural Resources ETF (ticker: MGNR). Chu, who has over two decades of experience in natural resources investing, described his journey from managing natural resources strategies at BNY Mellon and various hedge funds to leading this strategy at Man GLG. With the backing of Man Group, a UK-listed alpha-focused alternative manager, Chu’s expertise is now accessible to a broader audience through the active ETF structure.Chu explained that MGNR takes a long-only, equity-based approach to natural resources investing, distinct from many other commodity ETFs that rely on futures or fund-of-funds models. The ETF focuses on equities within the natural resources space, such as oil producers, oilfield services, and mining companies, aiming to capitalize on alpha opportunities driven by commodity cycles. The active strategy allows the fund to adjust exposures dynamically, targeting subsectors and companies that offer the highest return potential based on commodity trends, regional dynamics, and bottom-up company analysis.A unique aspect of MGNR is its structured investment process, which begins with identifying favorable commodity cycles, then drilling down into specific subsectors, and finally selecting companies with strong fundamentals, management, and assets. Chu highlighted the importance of maintaining diversification within the fund, capping individual positions at 5% and limiting sector and subsector concentrations to manage risk effectively. The fund typically holds 40 to 50 names, representing a concentrated yet diversified exposure to the natural resources space.Chu also addressed the fund’s appeal to advisors and investors looking for exposure to real assets with low correlation to traditional equities and bonds. MGNR is positioned as an alternative to passive commodity exposure, providing not only a hedge against inflation but also an opportunity to benefit from the operational and financial leverage of resource companies.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of “Behind the Ticker,” Raymond Holst from Practus LLP discussed the intricacies of 351 exchanges and their relevance to the ETF industry. Holst, a tax attorney with over 20 years of experience, joined Practus in 2023, bringing extensive expertise in financial products and taxation. Practus, a fully virtual law firm with attorneys across the United States, specializes in ETF and mutual fund markets, offering tailored legal and tax solutions.Holst explained that a 351 exchange refers to a provision in the Internal Revenue Code allowing for the transfer of property into a corporation in exchange for shares without triggering immediate tax recognition on built-in gains. This mechanism is particularly useful for asset managers looking to convert separately managed accounts (SMAs) or private funds into an ETF wrapper. The process enables investors to transfer diversified securities portfolios into an ETF while maintaining their original tax basis and avoiding taxable events.Key requirements for a successful 351 exchange include maintaining at least 80% ownership in voting and value by transferors post-exchange and adhering to diversification rules. Holst elaborated on the 25/50 diversification test, which ensures that no single security exceeds 25% of the portfolio and the top five securities do not exceed 50%. These safeguards are essential to comply with tax regulations and ensure the exchange qualifies under the 351 provision.Holst emphasized the importance of partnering with experienced professionals for 351 exchanges, noting the complex coordination required among custodians, fund administrators, and legal advisors. While the process is tax-efficient, it involves significant logistical work, particularly in transferring tax information and establishing proper valuations. Once completed, however, ETFs formed through 351 exchanges operate like any other ETF, offering investors liquidity, marginability, and tax advantages.For asset managers considering launching an ETF using a 351 exchange, Holst highlighted the long-term benefits, including improved tax efficiency and operational flexibility.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of “Behind the Ticker,” Garrett Stevens and Rich Malinowski from Exchange Traded Concepts (ETC) discussed the firm’s unique position as the first white-label ETF issuer and its role in supporting clients from concept to launch. ETC, which has been operating for 13 years, has launched over 100 ETFs with a combined $7.5 billion in assets under management. The firm provides a turnkey platform for ETF issuers, handling everything from regulatory filings and portfolio management to marketing and website development, while also offering individual services for established funds.Stevens highlighted a growing trend in the ETF industry: wealth management firms launching their own ETFs based on existing strategies. This shift allows advisors to offer tax-efficient, liquid, and operationally streamlined investment vehicles to their clients. He emphasized that these advisor-driven ETFs are often not marketed publicly but are used as tools to enhance the client experience and differentiate wealth management firms from competitors.The conversation also touched on the growing popularity of actively managed ETFs, which now account for about 75% of new launches. Stevens explained that while thematic and passive ETFs dominated early growth, the focus is now shifting toward active strategies that allow for sector rotation, cross-asset class exposure, and unique management styles. He noted that active ETFs require a longer runway for success, as they often depend on performance to attract investors, contrasting with the quicker adoption of thematic passive products.Rich Malinowski added insights on mutual fund-to-ETF conversions and semi-transparent ETF structures. He explained that while mutual fund conversions have slowed due to operational challenges and intermediary resistance, they remain an area of interest. Additionally, semi-transparent ETFs face hurdles related to their limited visibility for market makers and custodians, but Malinowski expects gradual acceptance as the industry adapts to these innovative products.Both Stevens and Malinowski emphasized the importance of preparation and infrastructure for ETF issuers. They advised aspiring ETF managers to secure sufficient assets at launch, target a $30 million breakeven point, and build strong relationships with service providers to ensure operational success.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of “Behind the Ticker,” Brett Eichenberger from Cohen & Company discussed the intricacies of auditing in the ETF and mutual fund industry. Eichenberger, based in the firm’s Cleveland office, has worked his way up over a 19-year career with Cohen & Company, which now audits over 1,800 registered funds, making it the fourth-largest auditor of registered funds in the U.S. and the second-largest in the ETF space. Eichenberger emphasized Cohen’s role in maintaining public trust through transparency and strict regulatory compliance, working with a range of investment products including ETFs, mutual funds, closed-end funds, and interval funds.One of the central differences in auditing ETFs versus mutual funds, Eichenberger explained, lies in the valuation of securities. ETFs report returns on both NAV and market value bases, due to their trading on secondary markets, whereas mutual funds focus solely on NAV. Additionally, ETFs rely on authorized participants for capital activity through in-kind creation units, which introduces unique audit considerations, especially in managing the in-kind exchange of securities.Eichenberger highlighted several key areas of focus in ETF audits, such as ensuring accurate valuation, particularly in complex portfolios that may include derivatives, foreign securities, or illiquid assets. For products like ETFs, Cohen & Company pays close attention to maintaining diversification standards and testing qualified income, which is essential for regulatory compliance. Eichenberger explained how Cohen’s audit teams perform regular assessments to verify all positions are accurately valued, confirming assets held in custody and ensuring that clients’ funds meet regulatory diversification requirements.The discussion also touched on the impact of technology, including advancements in data-driven auditing that allow Cohen to move toward 100% testing of transactions, improving accuracy over traditional sampling methods. Eichenberger shared that the firm’s adoption of automation enables more efficient audits, allowing for better oversight and faster processing.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of “Behind the Ticker,” Petra Bakosova from Hull Tactical discussed the unique approach behind the Hull Tactical Asset Allocation ETF, HTUS. Bakosova, who has been with Hull Tactical since its inception, has a background in applied mathematics and previously worked at proprietary trading firms. She explained that Hull Tactical’s investment strategy draws inspiration from founder Blair Hull’s background as both a blackjack card counter and a legendary options trader. Hull’s principles—making frequent, proportional bets based on advantage, and prioritizing risk management—form the backbone of HTUS’s tactical approach.HTUS, launched in 2015, is a tactical asset allocation fund that aims to outperform the S&P 500 without exceeding its volatility. The fund combines data-driven market timing with quantitative models that analyze approximately 40 publicly available indicators. These indicators are organized into categories: macroeconomic factors, fundamentals, technical anomalies, and sentiment. The strategy is fully dynamic, adjusting S&P 500 exposure daily based on signals generated from these models. HTUS typically ranges from 50% to 150% exposure, though it has flexibility from fully invested to flat or even short.A unique feature of HTUS is its daily rebalancing, a process that allows the fund to remain agile and responsive to market changes. Bakosova detailed that HTUS leverages SPY and E-mini futures for S&P 500 exposure and incorporates SPX options to adjust for market sentiment and volatility. The fund’s sentiment indicators include sources like MarketPsych, Halbert, and Ned Davis, which track social media and news sentiment. Bakosova highlighted the importance of diversification in HTUS’s modeling process, as each indicator provides different market insights over various time horizons.HTUS is intended as a sophisticated, hedge fund-like strategy within an ETF structure, appealing to advisors seeking an alternative to traditional large-cap core holdings. Bakosova emphasized that Hull Tactical is focused on continual research and model refinement, with plans to incorporate more advanced AI and machine learning techniques.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of “Behind the Ticker,” Joe Benoit, portfolio manager at Grimes & Company, discussed the firm’s collaboration with Little Harbor Advisors on their ETF, the LHA Risk Managed Income ETF (ticker: RMIF). Benoit, who began his career with Grimes, now oversees portfolio management and research for the firm. Grimes & Company, a Massachusetts-based RIA managing over $5 billion in assets, follows a holistic approach to client portfolios, integrating stock, fixed income, and alternative strategies. Grimes’s partnership with Little Harbor Advisors, known for tactical equity ETFs, stemmed from a mutual interest in providing a tactical fixed income solution, ultimately leading to RMIF.RMIF, as Benoit explains, aims to generate consistent income while preserving capital and managing downside risk. This strategy originated in response to the post-2008 low-interest environment, as Grimes sought alternatives to traditional high-quality bonds. The ETF applies a fully tactical, unconstrained approach to fixed income, allocating based on positive price trends and yield. RMIF can shift entirely into areas like high yield, bank loans, or even cash, depending on market conditions. This flexible allocation model allows the ETF to adjust risk exposure as trends change, making it a versatile solution for income-focused investors.Benoit details RMIF’s approach to asset allocation, explaining that it prioritizes ETFs offering the highest yield within the current positive trends. Currently, the portfolio includes five ETFs, with equal weighting, primarily focusing on bank loans and short-duration high yield bonds. The strategy is momentum-based, utilizing price trends, volatility assessments, and yield comparisons to determine allocations. In periods of heightened volatility, RMIF can de-risk quickly, shifting allocations to safer assets like short-duration Treasuries or cash.Designed as an alternative to core fixed income, RMIF fits into portfolios as either a substitute for or complement to traditional bond investments. For advisors seeking “conditional credit,” RMIF’s ability to tactically adjust to market shifts provides a reliable source of income with an added layer of risk management.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of “Behind the Ticker,” David Allen, CFA and founder of Octane Investments, discussed his background in finance and the firm’s strategy for its recently launched All-Cap Value Energy ETF (ticker: OCTA). Allen, who began his career in 1992 as a trader at Merrill Lynch and witnessed significant market events like the breaking of the Bank of England, developed a keen interest in geopolitics and energy markets early on. His experience spans institutional sales and trading, which later inspired him to start Octane Investments to capitalize on what he identified as a market gap created by divestment from traditional energy sectors.Allen explains that Octane Investments was founded to take advantage of the “carbon risk premium” and other risk premiums inherent in the energy market, such as the equity risk premium, the small cap premium, and the value premium. The firm focuses on identifying undervalued companies in the energy sector, particularly those that are being overlooked or divested due to environmental concerns. OCTA, Octane’s All-Cap Value Energy ETF, is structured around an all-cap value strategy, investing in energy companies with stable earnings, strong balance sheets, and a commitment to returning capital to shareholders.Throughout the conversation, Allen emphasized the significant opportunity in traditional energy sectors, despite the increasing focus on sustainability and renewable energy. He highlighted that many investors are avoiding energy stocks, leading to a scarcity of capital and undervalued opportunities in the market. OCTA seeks to capture this value by focusing on companies that are profitable, financially stable, and returning capital to shareholders, such as through buybacks and debt elimination. Allen explained that the fund’s holdings are curated based on a decision tree that screens for price-to-earnings ratios, balance sheet strength, and capital return strategies.Allen also touched on how OCTA offers exposure to a range of energy subsectors, including refiners and tankers, and discussed how the fund’s structure mitigates risks by limiting exposure to any single company. The ETF is rebalanced weekly, and the portfolio includes companies from developed markets, avoiding exposure to non-OECD markets where political risks are higher. Allen sees OCTA as a strong complementary allocation for investors who are underweight in energy and stressed that, with energy representing less than 4% of the S&P 500, there is a structural underweight in the sector that his ETF addresses.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of “Behind the Ticker,” Federico Brokate, Head of U.S. Business at 21Shares, shared insights into the firm’s approach to digital asset ETFs, including their products ARKB (Spot Bitcoin ETF) and CETH (Spot Ethereum ETF). Having joined 21Shares three months ago, Brokate brings a wealth of experience from his ten-year tenure at BlackRock, where he focused on U.S. ETFs. 21Shares, headquartered in Zurich, is dedicated to making digital assets more accessible through innovative products and has been rapidly expanding with over 50 products in 16 global markets.Brokate explained that 21Shares was founded in 2016 with a clear mission to bridge the gap between traditional finance and digital assets. The company’s founders, inspired by their mothers’ interest in Bitcoin, realized there was no easy way for retail investors to access digital assets without understanding the complexities of wallets, keys, and encryption. This led to the creation of 21Shares’ digital asset ETPs, which now offer institutional-grade products in both Europe and the U.S.Regarding the current digital asset landscape, Brokate highlighted the tremendous success of Bitcoin ETFs, noting that digital asset ETFs, including 21Shares’ ARKB, have become some of the fastest-growing ETFs in history. He emphasized the importance of educating advisors and clients, particularly in the wealth advisory and institutional spaces, where interest in digital assets is rising but knowledge gaps remain. He mentioned that a significant portion of digital asset ETF holders are retail investors, but interest from institutional investors and wealth advisors is growing steadily.Brokate also discussed the operational aspects of 21Shares’ products, explaining that both ARKB and CETH utilize a multi-custodial model with custodians like Coinbase, Anchorage, and BitGo to reduce single points of failure and ensure robust operational security. He noted that 21Shares is the only issuer currently offering this level of transparency, allowing investors to verify the holdings of each product through a partnership with Chainlink, which provides proof of reserve technology. This transparency, combined with the firm’s experience in managing digital asset products, has positioned 21Shares as a leader in the space.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of “Behind the Ticker,” Nancy Davis, founder and CIO of Quadratic Capital, discussed her journey from Goldman Sachs to launching her firm, as well as the innovative strategies behind her ETFs, including IVOL and BNDD. Davis, who founded Quadratic in 2013 after spending ten years at Goldman Sachs, explained that her entrepreneurial leap was driven by the desire to start something new, embracing the learning curve of building a business from scratch.Quadratic Capital initially started with managing separate accounts and a hedge fund before entering the ETF space in 2018. Davis was intrigued by the ETF structure for its tax efficiencies and saw an opportunity to address gaps in traditional fixed income products like the Aggregate Bond Index (AGG) and TIPS (Treasury Inflation-Protected Securities). IVOL, Quadratic’s interest rate volatility and inflation hedge ETF, was designed to complement core bond holdings, addressing issues in the AGG such as its lack of inflation protection and embedded short optionality through mortgages. IVOL provides investors with exposure to TIPS and the rates market, offering inflation protection and interest rate volatility hedging, which is generally inaccessible to individual investors.Davis explained that IVOL’s portfolio consists of about 80% TIPS and is structured to give investors access to inflation expectations beyond the consumer price index (CPI). By providing exposure to interest rate volatility through long options, IVOL helps mitigate risk in fixed income portfolios during periods of rising volatility or unexpected rate cuts, as demonstrated during events like the March 2020 market turmoil.The conversation also touched on BNDD, Quadratic’s deflation-focused ETF, which is designed for long-duration exposure to nominal treasuries. Davis highlighted that BNDD offers asymmetric exposure to interest rates without the leverage risks that are prevalent in other bond market products. While IVOL addresses inflation risks, BNDD offers protection during deflationary periods, making both ETFs complementary tools for managing interest rate risks in a portfolio.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of “Behind the Ticker,” Mike Venuto, co-founder and CIO of Tidal Financial Group, shared insights into the company’s approach to launching, growing, and operating ETFs. Tidal, a firm that has grown significantly over the years, now manages and supports over 160 funds with more than $19 billion in assets under management. Venuto, who has a background in ETFs dating back to his time at WisdomTree and Global X, highlighted Tidal’s unique platform that helps clients from initial idea generation to full-scale ETF operations.Venuto discussed his hands-on role at Tidal, which involves structuring ETFs, managing active funds, and collaborating closely with clients to develop innovative products. A key focus of the conversation was on the breadth of Tidal’s capabilities, from handling compliance and legal matters to marketing and product development. The company prides itself on offering a comprehensive service, allowing ETF issuers to focus on managing their portfolios while Tidal handles the operational complexities.One of Tidal’s standout achievements is its ability to launch ETFs quickly and affordably, compared to the traditional process. Venuto explained that while starting an ETF independently can cost hundreds of thousands of dollars and take up to nine months, Tidal can often bring funds to market in under four months at a fraction of the cost. This efficient process, combined with the firm’s expertise in complex strategies such as options, derivatives, and leverage, has allowed Tidal to grow rapidly, especially in the active ETF space, which has seen significant demand.Venuto also touched on trends in the ETF market, including the growing interest in active strategies, single stock ETFs, and the potential for mutual fund-to-ETF conversions. He noted that while mutual fund conversions have been slow, the demand for more tax-efficient ETF structures continues to rise. Additionally, Venuto emphasized that Tidal only partners with clients who have strong, viable product ideas, ensuring that the firm maintains a low fund closure rate and helps clients succeed in a competitive market.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of “Behind the Ticker,” Sylvia Jablonski, CEO & CIO of Defiance ETFs, shared her background in finance and the innovative strategies driving the firm’s success. Jablonski, who has a rich history in sales & trading and a decade of experience with ETFs, decided to join Matt Bielski to help launch Defiance, a company that aims to create ETFs targeting cutting-edge themes. Over the last four and a half years, Defiance has grown significantly, expanding its product lineup to include thematic, income, and leveraged ETFs.Jablonski discusses the firm’s thematic approach, with a special focus on their quantum computing ETF, QTUM. Launched in 2018, QTUM was ahead of the curve in recognizing the potential of quantum computing, artificial intelligence, and machine learning. Jablonski explains that Defiance worked with Bluestar to construct an index that includes the top companies in quantum computing and AI, from major players like IBM and Hewlett-Packard to smaller, pure-play names like IonQ and D-Wave. The fund offers investors diversified exposure to the key sectors driving these transformative technologies.The QTUM ETF targets companies that derive at least 50% of their revenue from supercomputing, machine learning, and AI. The fund holds around 70 equally weighted names and is rebalanced semi-annually, providing exposure to both large and small-cap companies. This includes established tech giants like Nvidia and Google, which act as a ballast for the fund, while also capturing the potential high growth of emerging players in quantum computing. Jablonski highlights that quantum computing’s ability to process data exponentially faster than traditional computers can revolutionize industries such as biotech, aerospace, and defense, making QTUM a powerful thematic play for long-term growth.In addition to discussing QTUM, Jablonski touches on the overall strategy at Defiance, emphasizing the importance of speed, adaptability, and listening to market demands. She explains that Defiance’s ability to be nimble and respond quickly to trends has been key to their success. The firm has also built an in-house marketing and distribution platform, leveraging AI and digital marketing to efficiently promote its ETFs. This unique approach has allowed Defiance to punch above its weight, attracting attention in a competitive market without the extensive budgets of larger issuers.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast

In a recent episode of “Behind the Ticker,” James St. Aubin, Chief Investment Officer of Ocean Park Asset Management, shared insights into his firm’s approach to managing risk and growing client assets. With over two years at Ocean Park and a background that includes stints at Smith Barney, Wilshire, and Ibbotson Associates, St. Aubin has extensive experience in asset allocation and portfolio construction. He explains that Ocean Park’s core philosophy, dating back to its founding in the mid-1980s, is focused on downside protection and mitigating exposure to left-tail risk, particularly for retirees or those nearing retirement.Ocean Park offers a range of solutions, including four ETFs, eight mutual funds under the Sierra brand, and packaged fund strategist portfolios for advisors. The firm’s investment strategy revolves around quantitative trend-following techniques, using banded moving averages to identify buy and sell signals in its target markets. This methodology, which emphasizes capital preservation by limiting exposure to market downturns, is particularly important for investors seeking to avoid large losses during volatile periods.The discussion also centered on Ocean Park’s recently launched ETF, DUKQ, which focuses on U.S. domestic equities. St. Aubin explains that DUKQ applies the same quantitative, trend-based approach as the firm’s other strategies, investing in ETFs that cover a broad range of market exposures, including small cap, mid cap, and factor-based strategies. DUKQ holds around 10 to 12 ETFs when fully invested and has the ability to move entirely to cash during market sell-offs if all assets signal a downturn.One of the key advantages of DUKQ, according to St. Aubin, is its ability to protect against extreme market events while still participating in market gains. The ETF can redeploy capital to other sectors if certain segments trigger a sell signal, rather than immediately moving all assets into cash. This flexibility ensures that the fund remains actively managed, with turnover averaging around two trades per year.As ETFs become a more critical part of Ocean Park’s overall offering, St. Aubin emphasizes the importance of meeting advisor demand for these products. The firm’s decision to launch ETFs, including DUKQ, was driven by the growing preference for ETFs among advisors due to their tax efficiency and ease of use. St. Aubin believes that ETFs, along with the firm’s mutual funds and managed portfolios, provide advisors with flexible, tactical tools to manage client risk and return.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast