We have portfolio managers who manage their portfolios at an asset- allocation level. It really does vary for who, when and why we are trading a particular ETF. Let’s rewind a little and perhaps you can explain how you use ETFs in your day-to-day role?ĪB: Sure. JX: That’s great to hear and we’ve already touched upon one of the key benefits of ETFs-their ability to provide price discovery and transparency particularly in times of stress. Because of this, even in strained market conditions those like myself have still managed to trade large sizes competitively when perhaps liquidity has dried up elsewhere. Then, I was off to Dublin for a large asset manager before returning to Edinburgh to work for Franklin Templeton nearly five years ago.Īlongside the growth in the quantity of ETFs has come growth in the number of banks, market makers and ETF liquidity providers who trade ETFs, which has made the pricing so competitive. I started trading global equities at Martin Currie (now part of Franklin Templeton) before moving to London to work for a large hedge fund. Now there are nearly 10,000 globally, which is a lot! I guess it shows the appetite and demand is there for low-cost solutions to gain certain market exposures. When I first started trading in 2004 there were only a few hundred ETFs out there. What else have you observed from an ETF point of view and how do you believe the ETF wrapper has fared post those events?ĪB: Yes, a lot has happened when your look back. You’ve traded through some of the most volatile periods over the last 15+ years-the 2008 global financial crisis, 2015 Greek debt crisis, 2020 COVID-19 pandemic and the current war in Ukraine. JX: Give us some context on your background. Excluding the trading, most of my time is spent liaising with various portfolio managers about implementing trade ideas or spending time looking at how we can improve and automate various parts of our trading technology. No two days are the same! One day, we can be busy trading foreign exchange options and the next day rebalancing some commodity positions. I work on the trading desk with Franklin Templeton’s Investment Solutions Group, where we execute on a wide range of asset classes for our multi-asset, systematic and ETF fund suite. Why don’t we start with you briefly describing your role.ĪB: Hi Jason. JX: Andy, thanks for taking the time to talk to us today. To kick things off I’m sitting down with Andrew Black, a senior multi-asset trader based in our Edinburgh office. They’ll discuss how they utilise the ETF vehicle to help them, and their investors, reach their investment goals and objectives. They will offer their own perspectives on how they use ETFs, the benefits, and constraints.
#Iview markets series
Hence, this is my first in a new series of interviews with traders, portfolio managers, risk officers and compliance personnel. While thinking about new ways to tell this story, I realised it might be better to hear from those actively using them in a variety of different roles. In recent years, I’ve tried my best to clear up misconceptions around ETF liquidity, educating our audience on best practices when trading ETFs. JX: At Franklin Templeton, we’re constantly aiming to innovate and push the boundaries, with our exchange-traded fund team often at the centre of this push.
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