Which should I take - the job at the ETF shop or Mutual Fund shop

I recently have been given an offer to start as a wholesaler on the internal sales desk for both a prominent mutual fund shop and leading ETF shop. Room for growth is exponential and money is about the same starting out for each, maybe slightly less at ETF desk. I eventually want to be an external wholesaler. Would you pick the ETF shop or Mutual Fund desk based on where you think trends in the industry are going?

 

Let me preface this by saying I'm not super tied into the progression of sales jobs in the business, so take what I say with a grain of salt. ETF flows have been huge the past few years and I don't expect that trend to die anytime soon. That makes me lean towards the ETF desk, however, I don't know anything about the MF shop, so its hard to say. Remember, you also want to factor in the quality of each firm, career path/opportunity within each place, cultural fit, etc in making a decision like this... Don't know enough about the ins and outs of sales to comment much deeper than that.

(Work in Asset Management at an actively managed fund)

Array
 

True, ETF flows have been substantial, but it ultimately depends on what product you think will be easier to sell, what have the mutual fund flows looked like the past few years/ do you see it as a repeatable investment process? Also, generally, externals at mutual funds have a more favorable compensation structure compared to ETF wholesalers, commissions are lower for ETFs, also more difficult to convince an adviser to buy into a mutual fund vs. a liquid ETF, so commissions adjust accordingly.

 

I would jump at it. ETF's & rob-advisors that use them are only getting more and more marketshare every year. To be able to get in and make a name for yourself, will only be a good thing. Coming from the AM/WM perspective, I see it on the immediate horizon becoming the next BIG hurdle for the business.

 

ETFs are certainly gaining market share from traditional asset managers. But, what exactly does one do in "research" at an ETF shop? Are you creating esoteric ETFs?

The definition of ETFs is that the 'manager' or 'research' functions are largely useless. That usually does not correlate with high pay for the manager or researcher.

 

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