The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
Wednesday, August 05, 2020|
Prepping ETFs, a Giant Declares "No Interest" In Direct Retail
"ETFs are accessible at the retail level but we have no interest whatsoever in working with retail clients."
"That's a really big deal," Michael Kitces, a head of planning strategy at DFA user Buckingham Wealth Partner, tells Bloomberg. "DFA is one of the biggest success stories of being exclusively advisor-sold."
"[Butler] says the quant giant has no intention to make any wholesale adjustments to its business model," Bloomberg writes.
"We're an asset manager, that's all we do," Butler tells the publication. "We don't do advice."
The piece offers an overview of DFA's specific business model and history. It also highlights DFA's recent flows woes in light of the underperformance of value and small cap stocks.
"Everything that made DFA this big cult in the early to mid-2000s turned against them," Rick Ferri, founder of Ferri Investment Solutions and another DFA user, tells Bloomberg. "It's a changing marketplace and DFA finally came around and said, 'We will provide [ETFs].'"
Printed from: MFWire.com/story.asp?s=61699
Copyright 2020, InvestmentWires, Inc.
All Rights Reserved