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The Tidal Financial Group (Tidal) expanded rapidly over the last decade and encompassed multiple ETF related brands including Toroso Investments, Tidal ETF Services, and the ETF Think Tank. Going forward all activity will be unified under the Tidal brand as we become one company, dream, family, and platform focused on holistic ETF customer solutions.

Get Think Tanked Distilled with Joshua Wilson and Russell Rhoads

Joshua Wilson, Founder of United Ethos Wealth Partners, is a wealth management executive whose primary goal is to educate advisors and provide expertise that improves their client relationships. Russell Rhoads, Head of Research and Education at United Ethos Wealth Partners, specializes in financial market trends and volatility management techniques. With both set to join the Tidal Financial Group family, they join the ETF Think Tank to discuss what they’ll be bringing to the table.

Wilson explains that one of his goals is to deliver more cost-effective and efficient solutions to investors and advisors. According to Rhoads, banks typically suggest over-the-counter products. He instead proposed that investors can use SPX options to achieve a similar exposure and do so at a fraction of the cost. Along with product specific research, their hope is to create solutions that optimize effectiveness while doing so as inexpensively as possible.

Should advisors want to develop customized solutions? Wilson believes that they should if they can. If you do not put a client into a cookie cutter model portfolio solution, you must explain yourself. He notes that deviating from the expected approach may require additional explanation, and he aims to assist advisors in this regard to avoid complications. Wilson suggests that advisors identify their specialty and focus on improving it, rather than attempting to find a bespoke solution for everything, you’re probably going to fail. You should, however, try to shine in the area you are specialized in. Advisors don’t need to be completely generic. There is an opportunity to find a middle ground.

At a high level, Wilson and Rhoads are looking to develop ETFs or models that fit into wealth management solutions. They find that some advisors can struggle because of a focus on products and technology, not necessarily the people they’re working with. Sometimes, there can be such a focus on figuring out what’s going on that it takes away from what advisors should focus on, their clients and how it affects them. Wilson explains that he wants to help deliver the first part so advisors can focus on the second part. They will assist with marketing, media and whatever else it might take to get to the next level.

There’s a saying that robots are coming for the advisors. Wilson emphasizes that the key factor that will separate the advisor from the robot is the humanity element. Advisors can provide the personalized attention to clients, making them feel like they have a true partner in their financial journey. Advisors also have the ability to transport people towards a narrative and help them envision the finish line. Rhoads explains that this is a big reason why robo-advisory hasn’t really caught on to any major degree. It highlights the importance of trust and the value that clients place on working with a financial advisor.

To say that the relationship between ETPs and volatility is tumultuous would be an understatement. Wilson and Rhoads explained that this emphasizes the importance of education and knowledge. When it comes to VIX products, Wilson acknowledges that educating clients can be a time-consuming process, and finding ways to integrate protective strategies without overburdening clients with technical details can be difficult. How can you get a protective strategy into client accounts without forcing the education aspect?

Other key takeaways:

  • Have the needs of investors evolved? Wilson doesn’t believe so, but he thinks a lot of people are trying to keep up with the information flow. People used to not ask a lot of questions. Then, he’d start getting calls every week when Jim Cramer threw out his ideas. It’s a function of everybody’s access to information.
  • Where do you draw the funds from for volatility protection in your portfolio? It could come from the alternatives bucket or from cash if there’s some waiting to be deployed. Does it come from the alternatives bucket? These, however, shouldn’t be long-term holdings.

Be on the lookout for a new podcast “Untamed Ethos” with both Wilson and Russell, dropping episodes later this week. You can follow Joshua Wilson on Twitter to stay up to date.

Disclosure

All investments involve risk, including possible loss of principal.

The material provided here is for informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

The value of investments and the income from them can go down as well as up and investors may not get back the amounts originally invested, and can be affected by changes in interest rates, in exchange rates, general market conditions, political, social and economic developments and other variable factors. Investment involves risks including but not limited to, possible delays in payments and loss of income or capital. Neither Toroso nor any of its affiliates guarantees any rate of return or the return of capital invested. This commentary material is available for informational purposes only and nothing herein constitutes an offer to sell or a solicitation of an offer to buy any security and nothing herein should be construed as such. All investment strategies and investments involve risk of loss, including the possible loss of all amounts invested, and nothing herein should be construed as a guarantee of any specific outcome or profit.  While we have gathered the information presented herein from sources that we believe to be reliable, we cannot guarantee the accuracy or completeness of the information presented and the information presented should not be relied upon as such. Any opinions expressed herein are our opinions and are current only as of the date of distribution, and are subject to change without notice. We disclaim any obligation to provide revised opinions in the event of changed circumstances.

The information in this material is confidential and proprietary and may not be used other than by the intended user. Neither Toroso or its affiliates or any of their officers or employees of Toroso accepts any liability whatsoever for any loss arising from any use of this material or its contents. This material may not be reproduced, distributed or published without prior written permission from Toroso. Distribution of this material may be restricted in certain jurisdictions. Any persons coming into possession of this material should seek advice for details of and observe such restrictions (if any).

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