Industry Trends, ETFs, and Model Portfolios with Michael Gates

Diversification is vital to any investment portfolio. Exchange-Traded Funds (ETFs) have become one of the most popular vehicles for implementing a multi-asset strategy, as they offer broad diversification, low costs, and flexibility. As the industry trends continue to evolve, how can investors position themselves to capture potential upside in different market environments?
In this episode, Rusty and Robyn talk with Michael Gates, Managing Director and Head of Model Portfolio Solutions in the Americas at BlackRock. In his role, Michael leads BlackRock's suite of Target Allocation and Target Income models and mutual funds. Morningstar has awarded the Target Allocation ETF and Long Horizon ETF models that Michael manages a gold medal.
Michael talks with Rusty and Robyn about the ETF industry and model portfolios. Michael also shares his outlook for the overall ETF industry, why investors prefer ETFs to direct index solutions, and what Blackrock's multi-asset investment strategy entails.

Key Takeaways

[02:48] - How Michael got into financial services.

[05:00] - How BlackRock has evolved over the years.

[07:18] - Michael's outlook for the overall ETF industry.

[09:30] - Why investors prefer ETFs to direct index solutions.

[10:17] - The driving force behind the flow of mutual funds into ETFs.

[11:26] - Michael's multi-asset strategy.

[16:49] - Michael's rule of thumb when investing in alternatives and real assets.

[18:34] - The tools BlackRock provides to advisors.

[21:17] - Michael's thoughts on the possibility of a recession and how it might impact BlackRock's model portfolios.

[25:44] - Michael's personal investment strategy.

[27:44] - How Michael keeps his physical and mental health to perform well.

[30:05] - Book and content recommendations from Michael.

Quotes
[08:11] - "ETFs are a big part of what financial advisors want to use because ETFs are reliable in terms of what they deliver, and they're low fees relative to legacy mutual funds." ~ Michael Gates
[10:09] - "The ability to take and deliver in kind is something that you can only do with an ETF structure. It's not something you can do with the direct index." ~ Michael Gates
[10:31] - "The trend that flows from mutual funds into ETFs is partly driven by the transition that we've observed of the brokers becoming advisors." ~ Michael Gates

Links 

Michael Gates on LinkedIn

BlackRock

Taking Me Back by Jack White

SteeleGates

Rain, Steam and Speed by William Turner

Larry Fink

iShares

Aperio Group

BlackRock Aladdin

Andrew Huberman

Steve Jobs by Walter Isaacson

Connect with our hosts

Rusty Vanneman

Robyn Murray

Subscribe and stay in touch

Apple Podcasts

Spotify

Google Podcasts

1516-OPS-8/22/2022

Diversification is vital to any investment portfolio. Exchange-Traded Funds (ETFs) have become one of the most popular vehicles for implementing a multi-asset strategy, as they offer broad diversification, low costs, and flexibility. As the industry trends continue to evolve, how can investors position themselves to capture potential upside in different market environments?

In this episode, Rusty and Robyn talk with Michael Gates, Managing Director and Head of Model Portfolio Solutions in the Americas at BlackRock. In his role, Michael leads BlackRock's suite of Target Allocation and Target Income models and mutual funds. Morningstar has awarded the Target Allocation ETF and Long Horizon ETF models that Michael manages a gold medal.

Michael talks with Rusty and Robyn about the ETF industry and model portfolios. Michael also shares his outlook for the overall ETF industry, why investors prefer ETFs to direct index solutions, and what Blackrock's multi-asset investment strategy entails.

Key Takeaways

[02:48] - How Michael got into financial services.
[05:00] - How BlackRock has evolved over the years.
[07:18] - Michael's outlook for the overall ETF industry.
[09:30] - Why investors prefer ETFs to direct index solutions.
[10:17] - The driving force behind the flow of mutual funds into ETFs.
[11:26] - Michael's multi-asset strategy.
[16:49] - Michael's rule of thumb when investing in alternatives and real assets.
[18:34] - The tools BlackRock provides to advisors.
[21:17] - Michael's thoughts on the possibility of a recession and how it might impact BlackRock's model portfolios.
[25:44] - Michael's personal investment strategy.
[27:44] - How Michael keeps his physical and mental health to perform well.
[30:05] - Book and content recommendations from Michael.

Quotes

[08:11] - "ETFs are a big part of what financial advisors want to use because ETFs are reliable in terms of what they deliver, and they're low fees relative to legacy mutual funds." ~ Michael Gates

[10:09] - "The ability to take and deliver in kind is something that you can only do with an ETF structure. It's not something you can do with the direct index." ~ Michael Gates

[10:31] - "The trend that flows from mutual funds into ETFs is partly driven by the transition that we've observed of the brokers becoming advisors." ~ Michael Gates

Links 

Michael Gates on LinkedIn
BlackRock
Taking Me Back by Jack White
SteeleGates
Rain, Steam and Speed by William Turner
Larry Fink
iShares
Aperio Group
BlackRock Aladdin
Andrew Huberman
Steve Jobs by Walter Isaacson

Connect with our hosts

Rusty Vanneman
Robyn Murray

Subscribe and stay in touch

Apple Podcasts
Spotify
Google Podcasts

1516-OPS-8/22/2022