Note: This article is courtesy of Iris.xyz

By Craig Iskowitz

The low cost of ownership, high diversification, high liquidity and other general attributes of exchange traded funds (ETFs) are well known and have helped drive their growth and popularity. So how can a Registered Investment Advisor (RIA) take advantage of ETFs to build diversified investment strategies for their clients?

A panel discussion at the Money Management Institute’s 2014 Fall Solutions Conference attempted to answer this and a number of other questions about ETFs.

(Please note that two of the panelists have similar last names. Brendan Clark, President, Clark Capital Management Group and Todd Clarke, CEO of CLS Investments. I have referenced each person’s full name in the article to avoid confusion.)

Are ETFs Good for RIAs?

Robbie Cannon, CEO, Horizon Investments described ETFs as “a great building block” which could be used to surgically allocate client funds. Brendan Clark, President, Clark Capital Management Group proposed that ETFs “make advisors look good”.

The affirmations are true because ETF’s have grown in variety and complexity over time. As alluded to by (Brendan) Clark, ETF’s now are available in a wide range of strategies: active, passive, leveraged, quant, sector, geographical, tactical, etc.- this last one being the latest to emerge as a dominant force in the industry and the principal focus of the panel discussion.

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