“ETFs are much more dominant in the U.S. market than in Germany, but market volatility in each has been the same–exactly the same,” Mr. Sauter said.
Mr. Sauter’s concept of “advisor’s alpha” was also discussed at the conference. The idea can help advisors reconsider their traditional value proposition. The focus of the concept is for advisors to diverge from picking investments and strategies and to concentrate more on a new value proposition based on alternative skills and expertise. Market outperformance is replaced by client relationship-oriented services such as wealth management and financial-planning strategies.
“The advice perspective and planning that today’s advisor provides is far more valuable than a buy, sell, or hold call,” Sauter said.
Vanguard is the third-largest provider of ETFs, measured by assets under management.
Tisha Guerrero contributed to this article.