Welcome to ETF Edge, your go-to place for all things exchange traded funds. I'm your host, Dominic Chu. Now, there's a growing divide, dichotomy, if you will, between retail and institutional investors.Now, it's all about who is embracing complexity to a greater degree and trying to gain an edge and who might not be. So joining me now for this conversation is Mike Akens, the founding partner of ETF Action alongside Agakinska, the senior vice president of product development over at Tidal Financial Group, a ...

I'm Dominic Shu with your ETF edge. New data is finding some retail investors have been diving deeper into increasingly complex ETF strategies to gain a trading advantage amid the market volatility. Meanwhile, institutional investors have been sticking with or even reverting back to more simplistic strategies.So, which end of the spectrum is more likely to be the winner in the end. And what will happen to the relative losers. Joining me now is Mike Akens, the founding partner of ETF Action, the firm behind ...

Group 1 - The valuation of ETF platforms is significantly higher than that of traditional wealth managers, with multiples ranging from eight to ten times earnings for ETF businesses compared to three to four times for others [2] - The number of Registered Investment Advisor (RIA) transactions and ETF launches reached record highs, with 322 RIA deals in 2025, up from 272 in 2024, and 1,167 ETF launches in 2025, a nearly 60% increase from 736 in 2024 [3] - The rise of 351 exchanges allows for tax-free transfers of appreciated assets to ETFs at launch, indicating a growing trend in the ETF market [4] Group 2 - Advisors face challenges in the ETF business, including high operational costs, with a threshold of $100 million in assets needed for ETFs to be self-sustaining [5] - The potential for scaling asset allocation services through ETFs exists, but many firms struggle with the economics of launching and maintaining these funds [4][5]

Core Viewpoint - Tidal Financial Group and Defiance have announced the closure and liquidation of 8 ETFs listed on NASDAQ, including the crypto-related Defiance Leveraged Long and Yield Ethereum ETF (ETHI) [1] Group 1 - The last trading day for these funds on NASDAQ is set for January 26, 2026 [1] - Shareholders holding shares as of the liquidation date on January 30 will automatically redeem cash based on net asset value [1] - This decision is part of a continuous review of the product line aimed at adjusting strategies according to market conditions [1]

Core Viewpoint - TimesSquare Capital Management and Tidal Financial Group have launched the TimesSquare Quality Mid Cap Growth ETF (NASDAQ:TSCM), aiming to leverage their mid-cap growth strategy in an ETF format [1][5]. Group 1: ETF Strategy and Structure - TSCM is an actively managed U.S. mid-cap growth ETF that employs a bottom-up, research-intensive approach for stock selection [1]. - The ETF focuses on identifying companies with reliable growth traits and sensible valuations, encapsulated in the firm's philosophy of "Growth with a Conscience" [2]. - The fund will typically hold between 30 and 40 stocks, creating a more concentrated portfolio compared to many passive mid-cap benchmarks [3]. Group 2: Stock Selection Criteria - Stocks are selected based on four main criteria: strong management teams, sustainable competitive advantages, consistent performance, and attractive valuations relative to competitors [3]. - Valuation discipline is emphasized, particularly in a market where mid-cap growth stocks can experience significant fluctuations due to interest rates, earnings expectations, or investor sentiment [4]. Group 3: Market Positioning and Outlook - The launch of TSCM occurs amid a growing popularity of active equity ETFs, especially in mid-cap growth, where fundamental research is believed to yield better returns than broad indexes [5]. - TimesSquare is positioning TSCM as a disciplined growth strategy in a competitive ETF market filled with passive options and trend-driven active offerings [5][6].

Core Viewpoint - VistaShares and Tidal Financial Group have announced the planned closure and liquidation of the VistaShares Animal Spirits™ 2x Daily Strategy ETF (NYSE: WILD) following a review of the fund's viability, prioritizing the interests of shareholders [1] Fund Closure and Delisting - The fund will be delisted from the New York Stock Exchange (NYSE) at the close of regular trading on January 14, 2025, after which WILD shares will no longer trade on an exchange [2] - Shareholders can sell their shares on the exchange prior to the delisting date through their brokerage accounts, subject to customary brokerage commissions and fees [3] Liquidation Process - The fund will liquidate its portfolio on January 20, 2025, and will increase its cash holdings in preparation for liquidation, which may lead to a deviation from its stated investment objective and strategy [4] - On or around the liquidation date, WILD will distribute its remaining net assets in cash, pro rata, to shareholders of record who have not sold their shares prior to liquidation, with this distribution expected to be a taxable event for shareholders [5]

Core Viewpoint - Unlimited ETFs and Tidal Financial Group announced the transfer of two ETFs from NYSE Arca to the New York Stock Exchange, effective January 2, 2026, while maintaining their current ticker symbols [1][2]. Group 1: ETF Details - The Unlimited HFMF Managed Futures ETF (HFMF) aims to replicate the gross returns of the hedge fund industry's Managed Futures sector, targeting a volatility level approximately twice that of the sector [3]. - The Unlimited HFEQ Equity Long/Short ETF (HFEQ) seeks to mirror the gross returns of the hedge fund industry's Equity Long/Short sector, also targeting a volatility level approximately twice that of the sector [4]. Group 2: Company Background - Unlimited ETFs utilizes proprietary machine learning to create ETFs that aim for similar gross returns as the broader hedge fund industry or specific segments, with comparatively lower expenses. The firm was founded by Bob Elliott, a former member of the investment committee at Bridgewater Associates [5]. - Tidal Financial Group is an ETF platform focused on innovative investment strategies, partnering with asset managers to launch and grow ETFs, providing comprehensive infrastructure and distribution solutions [7].

Core Insights - Tidal Financial Group is actively engaging in the launch of new ETFs and converting mutual funds, indicating a strategic focus on expanding its product offerings [1] - The company is also increasing its staffing levels, which suggests a commitment to supporting growth and enhancing operational capabilities [1] ETF Launches - Tidal Financial Group is involved in the launch of new Exchange-Traded Funds (ETFs), reflecting a trend in the industry towards innovative investment products [1] Mutual Fund Conversions - The company is converting mutual funds, which may provide investors with more flexible investment options and align with current market demands [1] Staffing Levels - Tidal Financial Group is increasing its staffing levels, which may enhance its ability to manage new product launches and improve service delivery [1]

Core Viewpoint - The retirement of former House Speaker Nancy Pelosi will end the trend of investors closely following her stock trades, as she will no longer be required to disclose her family's stock holdings after leaving Congress [1]. Group 1: Pelosi's Investment Influence - Pelosi is one of the wealthiest members of Congress and has been dubbed a "stock god" due to her successful investment strategies, with reported stock trades amounting to approximately $59 million over the past three years [1][3]. - A significant number of investors, including financial experts and day traders, have closely monitored Pelosi's trades, with a social media account dedicated to tracking her stock activities amassing 1.2 million followers [3]. - The NANC ETF, managed by Dan Weiskopf, invests in stocks traded by Pelosi and other Democratic members of Congress, boasting a net asset value of approximately $263 million, while another ETF focused on Republican members has around $60 million [4]. Group 2: Performance and Returns - Pelosi's family reportedly achieved an investment return of 84.3% in 2023, significantly outperforming Warren Buffett, with their wealth increasing from $41 million in 2004 to $120 million in 2023 [4]. - The investment strategies employed by Pelosi, particularly her use of long-term options, have been noted for their effectiveness, leading to substantial market influence when her trades are disclosed [4]. Group 3: Legislative Context and Reactions - There is currently no law prohibiting members of Congress from trading stocks, but there are disclosure requirements that mandate reporting trades within 45 days [3]. - The issue of congressional stock trading has garnered bipartisan support for potential legislation to ban such activities, with various lawmakers advocating for reforms [5]. - The U.S. Treasury Secretary has called for a ban on individual stock trading by Congress members, which may further propel legislative efforts to restrict such practices [5].

Core Insights - The ETF industry is experiencing a significant transformation with new entrants and innovative products, such as the LionShares US Equity Total Return ETF, which aims to provide tax advantages through dividend management [1][2][3] - The dominance of major players like BlackRock, Vanguard, and State Street is declining, capturing only 57% of investor flows in 2023, the lowest share on record [2] - The number of new ETF issuers has surged, with 60 new entrants in the past two years, marking the highest rate of new fund launches since the inception of ETFs in 1993 [3][4] Industry Trends - The ETF market has attracted over $2 trillion in investor cash recently, indicating strong demand for these investment vehicles [3] - The barriers to entry for launching ETFs have significantly decreased, allowing independent traders and smaller firms to enter the market more easily [8] - The ETF footprint is expanding, with ETFs now representing 36% of all US fund assets, a doubling of their market share over the past decade [6] Competitive Landscape - The competition in the ETF space is intensifying, with a tripling of launches since 2021, but closures are also rising, with one ETF shutting down for every five that launch [9] - The operational costs for launching an ETF have decreased, with estimates suggesting around $65,000 to set up a fund and $225,000 in annual operating expenses, down approximately 20% from a decade ago [8] - The challenge for new entrants is not just launching but also achieving commercial viability in a crowded market [10]