Job Growth Seen in ETF Business

July 12th at 3:09pm by Tom Lydon

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Growth in the exchange traded fund industry is accelerating as more investors get comfortable using the financial products. Consequently, fund providers have to add new hires to keep up with the burgeoning ETF business.

Since 2000, ETF assets have risen from $65 billion to $1 trillion, or around a 31% annual growth rate.

However, a major hurdle for the future growth of ETFs comes from a lack of awareness or knowledge the average retail investor has about ETFs. As exchange traded products proliferate in the marketplace and become more complex in nature, it becomes evident that investors and advisors will have to understand how the methodology of funds drives performances.

Fund providers will have to allocate new resources, and potentially new employees, to educate both retail and institutional investors on building a global, multi-asset portfolio. For instance, investors will need to understand the various product structures, underlying investments, such as the benchmark indexes, commodities or currencies, and regulatory and tax laws involved.

ETF providers may also revamp their advertising and marketing teams to better target their ETF customer base.

Other opportunities for ETF job growth may come from within large institutions. Mutual fund providers are quickly seeing that ETFs are not just a fad. For instance, Vanguard offers their own ETF products. Brokerage firms Schwab and TD Ameritrade have also entered the field, and the firms are looking to expand their ETF product services into the 401(k) market. The massive 401(k) market may very well be the next big ETF frontier, and companies will need the necessary hands to execute the growth.

Registered Investment Advisors (RIAs) are responsible for building a rapport with clients, performing investment analysis, presenting and executing investment plans, and providing customer service. Small and large institutions alike are looking for sharp minds to help grow assets under managements.

But it may not be easy to find the right employees in the ETF world. As a relatively new financial product, finding the candidate with the right skills is important. And because ETFs are still growing, it makes the right hire more critical than ever.

We started the ETF Trends Job Board to help match these growing companies with the right people. We hope it will become the go-to place for ETF industry jobs – where employers can go to find the best candidate for the position and where job seekers can go to find their ETF industry dream job.

If you’re looking for a job in the ETF industry, go to our Job Board.

If you’re looking for the right person to fill an open position, get information here.

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