The case for investing in Texas goes beyond its iconic cowboy culture and vast scenery. It's deeply rooted in the state's business-friendly environment and thriving economic network. Capitalizing on its unique blend of tax advantages and unmatched potential for economic growth, Texas has emerged as an attractive destination for financial investments. Meanwhile, the ETF industry is expected to sustain its upward trajectory, with more assets flowing from mutual funds to ETFs.

In this episode, Rusty and Robyn talk with Edward Rosenberg, Managing Director and Head of ETF and Funds Management at Texas Capital Bank. Edward believes that every firm needs to have ETFs in its offerings, whether they realize it or not. Why? ETFs offer trading flexibility, diversification, greater transparency, tax benefits, and lower operating costs than traditional open-end funds. There is so much room for expansion, and the possibilities are endless. 

Edward talks to Rusty and Robyn about the case for investing in Texas. He explains how Texas's business-friendly environment and tax benefits can contribute to a company's bottom line. Edward also shares his thoughts on the future of the ETF industry, including the projected growth and the role of direct indexing and model portfolios.

Key Takeaways

• [02:59] - What led Edward to specialize in ETFs?
• [05:20] - An overview of Texas Capital Bank and its ETF lineup.
• [07:50] - The case for investing in Texas.
• [12:21] - Composition of the Texas Capital Texas Equity Index ETF.
• [14:01] - How ETFs fit into a portfolio.
• [16:09] - The projected growth of the ETF industry.
• [19:03] - How direct indexing complements ETF portfolios.
• [21:58] - How the ETF models can compete against the models from big firms.
• [24:25] - Edward's thoughts on the ETF industry and its future.
• [27:14] - How Edward maintains his energy to perform at a high level.
• [28:28] - Edward's favorite investment idea.
• [31:06] - The people Edward is thankful for professionally.
• [33:07] - Edward's recommendations for content.

Quotes

[09:39] - "The business environment of the Texas estate along with the tax benefits that individuals get can really add to a company's bottom line." ~ Edward Rosenberg

[11:17] - "Texas has more companies publicly traded or listed on the exchanges than any other state. This shows a diverse economy growing much faster than the entire U.S. economy and in most states across the board." ~ Edward Rosenberg

[23:09] - "If everybody's the same and you're an advisor, how can you differentiate yourself? You have to look at the newer products or active ETFs. You have to be different to really add value to what you're doing." ~ Edward Rosenberg

Links 

• Edward Rosenberg on LinkedIn
• Texas Capital Bank
• The Black Crowes
• Aerosmith
• Vanguard
• Northern Trust
• American Century Investments
• Rob Holmes
• Morningstar
• Merrill Lynch
• Morgan Stanley
• LPL Financial
• BlackRock
• iShares
• Charles Schwab
• Shundrawn Thomas
• ETF.com
• NYSE

Connect with Us

• Meet Rusty Vanneman, Orion's Chief Investment Officer
• Check Out All of Orion's Podcasts
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3364-OPS-12/27/2023