How to Navigate the ETF Marketplace with ETF Action's Mike Akins

Orion's The Weighing Machine

As investors increasingly seek to optimize their portfolios and adapt to changing market conditions, exchange-traded funds (ETFs) have emerged as an effective and rapidly evolving investment vehicle. While ETFs have proven superior to traditional mutual funds, they have also ushered in a new era of opportunities and challenges for investors, financial advisors, and the industry.

In this episode, Rusty and Robyn talk with Mike Akins, Founding Partner at ETF Action. Mike has over 20 years of financial industry experience spanning multiple disciplines. Before founding ETF Action, Mike served as SVP and Head of ETFs at ALPS Advisors, overseeing all aspects of the $15 billion ALPS ETF Trust. Throughout his career, Mike has held various management positions in product development, research and data analytics, risk management, compliance, audit, and operations.

Mike talks to Rusty and Robyn about how to navigate the ETF marketplace, covering topics such as the growth and future of the ETF industry, the historical and projected growth of ETFs, the rise of ETF model portfolios, and the challenges and opportunities facing the industry.

Key Takeaways

• [03:53] - Mike's career journey from compliance to ETFs.
• [05:01] - The historical and projected growth of the ETF industry.
• [07:12] - Competitive threats to ETFs.
• [10:18] - Potential benefits and limitations of direct indexing.
• [12:13] - Possible risks that may hinder the growth of ETFs in the future.
• [13:36] - The percentage of advisors choosing ETFs themselves vs. outsourcing to ETF models.
• [15:41] - How ETF Action supports advisors in adopting ETF models.
• [17:41] - The growth prospects of models in the coming years.
• [18:37] - How other models compete against giant industries.
• [21:21] - Delivering ETFs that align with investors' criteria.
• [23:15] - Opportunities and challenges for the future of the ETF market.
• [25:46] - Mike's concerns about liquidity and market complacency.
• [26:58] - The impact of artificial intelligence on the ETF industry.
• [28:16] - Mike's favorite investment idea.
• [29:25] - How Mike maintains his physical and mental energy to perform at his best.
• [30:31] - The people for whom Mike is grateful, both personally and professionally.
• [32:23] - Mike's recommendations for content.

Quotes

[05:35] - "The ETF is a superior structure to mutual funds. Therefore, as people have the opportunity to transfer assets, whether it's required minimum distributions from their qualified accounts or there's a reason to sell their mutual fund and realize those gains, it naturally flows into the ETF market." ~ Mike Akins

[18:07] - "If you're an advisor or if you're an independent network of advisors, having models not only will lead to better outcomes, which is the ultimate game, but it also is going to lead to more efficiencies and time saved, and it's going to allow advisors to continue to scale their business." ~ Mike Akins

[21:30] - "What attracts me to the ETF market is the ability to map almost any liquid investment in the world. You have every corner of the market covered by an ETF, and with a push of a button, I can track in real-time what's going on with that market through the ETF." ~ Mike Akins

Links

• Mike Akins on LinkedIn
• Mike Akins on Twitter
• ETF Action
• It's in the Way That You Use It by Eric Clapton
• State Street
• Vanguard
• iShares
• BlackRock
• Global X ETFs
• Tom Carter

Connect with Us

• Meet Rusty Vanneman, Orion's Chief Investment Officer
• Check Out All of Orion's Podcasts
• Power Your Growth with Orion

2774-OPS-10/6/2023