Special Live From Exchange ETF Series
About Keri Riemer & Hazel Doyle and K&L Gates
In this live and in-person episode of "Behind the Ticker," host Brad Roth welcomes Keri Riemer and Hazel Doyle to explore the evolving landscape of Exchange Traded Funds (ETFs) from both a U.S. and European perspective. This engaging conversation offers a deep dive into the intricacies of ETFs, their legal frameworks, and the burgeoning growth within the industry.Keri Riemer, with a rich background in corporate law, asset management, and regulatory roles, including a stint at the SEC, shares her journey into the world of ETFs. She emphasizes the importance of detail-oriented and hardworking attributes that propelled her into a successful career in asset management and ETFs. Keri’s current role at K&L Gates allows her to leverage her comprehensive experience to assist clients in navigating the complex regulations governing ETFs, particularly under the Investment Company Act of 1940.Hazel Doyle, representing the K&L Gates Dublin office, brings a unique path to the legal world, from paralegal to a specialist in funds, including ETFs. Her Irish and geography background, coupled with hands-on experience in the funds industry, underscores the diverse skills and knowledge required in the evolving ETF space. Hazel highlights the growth of ETFs in Europe, noting the differences in regulatory environments and market trends compared to the U.S., with a particular emphasis on ESG investing, thematic ETFs, and the challenges and opportunities of cross-border distribution.The discussion provides valuable insights into what it takes to launch and manage ETFs, the role of attorneys in the ETF industry, and the legal and operational complexities involved. Both guests underscore the importance of innovation, patience, and thorough preparation in achieving success in the competitive ETF market. They also discuss the challenges and considerations for U.S. issuers looking to enter the European ETF market, including regulatory compliance, distribution strategies, and the need for a robust understanding of investor preferences and market dynamics.Listeners gain a comprehensive overview of the ETF landscape, including the growth drivers, the impact of regulatory frameworks in different jurisdictions, and practical advice for those considering launching or investing in ETFs. Keri and Hazel's expertise and experiences provide a rich resource for understanding the challenges and opportunities within the global ETF market.
Deeper Dive: Insights from the Full Conversation
Beyond the headline strategy, the full conversation between Brad and Keri Riemer & Hazel Doyle covered several additional themes worth highlighting for advisors and investors.
On Process and Philosophy
It imposes a lot of different different requirements on managers that they might not have in another genre, such as the private funds or mutual funds. So law firms like us are a first full service firm, so we are always not only in the asset management practice, but other areas like tax, or risks, thin-tapped other areas that might touch on what an ETF manager might need some input on. So we would help you not only with the formation, the registration, even if you're managing a fully transparent, passively managed ETF, and you don't have to get an incentive relief anymore from the SEC, you still need to get an effective registration statement.
So before we get into like the growth of the ETF in the US and that whole industry is exploded, if I am an asset manager today, and I'm thinking about launching an ETF, and I'm picking up with the phone and I'm calling you about how long do you think it would take me to get something to market? I'm sorry, I'm just thinking about initiating an ETF, and I'm calling you, okay, and I'll get you some starting, just thinking about the process.
Market Context and Positioning
So if you start ETF that's not guaranteed that because it's grown so much, you're automatically going to get tons of assets from day one. But the benefits that ETFs have has since day one, which is tax efficiency, relatively lower cost for investors, that's continued to grow since day one. I think there's been demands for AIAs to offer more ETF products to the clients. We're also seeing growth in the form of conversions where mutual funds are converting, hedge funds might be converting, separately manage accounts.
Well, second of last question for you. What does growing a fund and compliance look like in Europe versus the US? And what you need to obviously think of the and the use it's overlay. And so you're going to be subject to the use it's regulations. And the use it's are highly regulated investment products. And you have portfolio and the thing but your portfolio transparency requirements. We've got the benchmark regulations. So benchmark administrators are subject to make sure that their indexes are compliant with them certain rules.
I'm Brad Roth, Chief Investment Officer of Thor Financial Technologies, and portfolio manager of THLV, the Thor Low Volatility ETF. Behind the Ticker, uncovers the inner workings of the ETF industry. We will interview portfolio managers and ETF service providers to dive deep into their work lives and their businesses. We will learn the inner workings of their strategies and what drives them as they continue to grow their company. Many of these individuals are entrepreneurs, and will have unique and compelling insights to share as much goes on behind the Ticker.
Notable Insights
"And so that's why we the main difference on the service provider side and everything else is kind of you know your market maker is your APs or depository or your administrator."
"So one of the biggest things is probably on the distribution side."
Key Takeaways
- She emphasizes the importance of detail-oriented and hardworking attributes that propelled her into a successful career in asset management and ETFs.
- The conversation explores important themes in esg & thematic relevant to today's advisor landscape.
- The conversation explores important themes in income investing relevant to today's advisor landscape.
What This Means for Advisors
For financial advisors evaluating options for client portfolios, this conversation with Keri Riemer & Hazel Doyle highlights important considerations around income investing. Understanding the strategy behind each fund—not just the ticker—helps advisors make more informed allocation decisions and better communicate the rationale to clients.
The themes of income investing and esg & thematic discussed in this episode are particularly relevant in the current market environment, where advisors are increasingly looking for differentiated solutions that go beyond traditional benchmarks.
Listen to the Full Episode
This article is based on an episode of Behind the Ticker, hosted by Brad Roth, Founder and CIO of THOR Financial Technologies. For the full conversation with Keri Riemer & Hazel Doyle, including additional nuances and details, listen on Spotify, Apple Podcasts, or watch on YouTube.