In Episode 20, we feature Paul Weisbruch from GTS, a prominent player in the financial industry. GTS specializes in trading over 30,000 different financial instruments globally, catering to a diverse clientele that includes leading financial institutions and public companies.Their approach is built on state-of-the-art proprietary technology and a team of seasoned professionals, which allows them to offer execution and liquidity solutions, even during volatile market conditions. As one of the New York Stock Exchange's designated market makers (DMM), GTS Securities serves a range of businesses, both domestically and internationally.GTS's DMM division plays a pivotal role in facilitating efficient capital formation, supporting the growth of listed companies. Their extensive portfolio includes 1,116 stock issues with a combined market capitalization of $14 trillion, accounting for 32% of NYSE market share.In this episode, we dive into the current state of the ETF industry, explore emerging trends, and examine the positive impact of floor trading on market performance for issuers. To learn more about GTS, you can visit their website at gtsx.com.
Deeper Dive: Insights from the Full Conversation
Beyond the headline strategy, the full conversation between Brad and Paul Weisbruch covered several additional themes worth highlighting for advisors and investors.
On Process and Philosophy
I feel like if an issue were going to come to market with high confidence they can raise 50 million and 30 days some of that may be internal via their RIA or other SMA strategies that they manage and convincing said investors that this new ETF is a better fit for our business and for you let's transition into it. So that that comfort level needs to be established quickly and it needs to lead to action quickly. Second of all, everyone has some level of pre-logged marketing which is obviously within compliance of their new ETF strategy and advisors will either be committed or will wait and see.
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.
Market Context and Positioning
There are some funds that are self-seated in the sense that they're a mutual fun conversion, with assets or an SMA and a contract transfer with assets. But that aside, for those new ETFs that need to launch in a rather conversion, we provide the seed, and then we agreed to believe market maker on the respective exchange that they choose. And that means that we're acquired to post reasonable bid offer quotes during all market hours every day of the week.
I mean, having all those boxes checked on day one is extremely important. I like the term that you use their bread. It is institutionalizing, you know, the business because I think that's what it becomes. In terms of whether it's a firm that's known for one or two neat funds, but they're successful and they raise assets or are growing line up of, you know, broadly diversified funds to extend a long short commodity, long short equity may be some dividend value growth type equity ETFs.
I think why because the retail base of advisors and institutions that use these have confidence now the products are traded and structured and they they they suit and need they suit and need within portfolios. So I think you'll continue to see options based or options overlay ETFs. Whether they're defined outcome buffers or something like AAPI, JP from JP Morgan, there's no shortage of funds in that space now too. All within the last two or three years. So it's gone from like a fund category of relative obscurity to something that has billions and assets and growing as well as new filing.
Notable Insights
"So I saw the merits of being a startup, the challenges of being a startup and the ETF space on the issuer side."
"Thanks very much for the opportunity Brad I always enjoy speaking with you and look forward to the next time."
Key Takeaways
- The conversation explores important themes in income investing relevant to today's advisor landscape.
- The conversation explores important themes in income investing 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 Paul Weisbruch 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.
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 Paul Weisbruch, including additional nuances and details, listen on Spotify, Apple Podcasts, or watch on YouTube.