Former CEO of TD Ameritrade and football coach Joe Moglia joins to discuss his transition from coaching to Wall Street, the brokerage industry, Nvidia's future, meme trades, college athletics, and more. The podcast covers leadership, stock splits, industry dynamics, geopolitical uncertainty, crypto politics, AI concerns, and insights on leadership and pursuits.
Vanguard's new CEO change signifies a potential shift in strategy and market presence, impacting the ETF industry.
The rise of commission-free trading and platforms like TD Ameritrade's ETF Command Center revolutionize asset management.
The RIA space growth, potential disruptors like Goldman Sachs using AI for efficiency, reshaping future solutions.
Deep dives
The Shift in ETF Dominance
Vanguard's new CEO, Celine Ramji, formerly from iShares, has spurred the company's potential to shift the balance in the ETF industry. With iShares taking over, it marks a significant change as Vanguard, under Tim Buckley, may not have prioritized the advisor community leading to a loss of assets to iShares. The sudden retirement of Buckley and the appointment of an outsider like Ramji could signal a shift in strategy and priorities at Vanguard, potentially impacting its market presence.
Commission-Free ETF Trading's Impact
The rise of commission-free trading for ETFs has led to a significant surge in assets managed through such platforms. Custodians, like TD Ameritrade's ETF Command Center, allowed advisors access to a range of ETFs, opening up opportunities for diversification without the burden of trading costs. This shift has revolutionized asset management options and empowered advisors to manage client portfolios more efficiently.
The Future of the RA Space
The Registered Investment Advisor (RIA) space continues to be one of the fastest-growing channels in the financial industry, attracting advisors looking for autonomy and enhanced value proposition for clients. While Schwab and Fidelity dominate the market, potential disruptors like Goldman Sachs might leverage AI to drive efficiency, offering a competitive edge in the evolving landscape. The focus on efficiency and cost-effective solutions will play a significant role in reshaping the future of the RA space.
Vanguard's Leadership Transition
Vanguard's recent CEO transition from Tim Buckley to Celine Ramji signals a new era at the company. Ramji, being the first outsider to lead Vanguard, brings a fresh perspective and potential cultural shift. Advisors and industry observers are keen on Ramji's leadership style and strategic direction, possibly hinting at changes that could impact Vanguard's relationship with advisors and its market positioning. The shift in leadership could pave the way for Vanguard to adapt to changing market dynamics and investor demands.
Vanguard's New Changes and Business Strategies
Vanguard's recent decision to bring in an external individual suggests a potential shift in the company's approach. The focus on actively managed ETFs indicates a willingness to explore more profitable avenues, even considering different fee structures for these offerings compared to traditional index funds. With Vanguard's massive asset base, creativity in generating additional basis points of revenue becomes crucial. The move to hire externally raises questions about the desire for change and profitability within the company.
Financial Market Turmoil and AI Concerns
The discussion branches into the recent market upheavals driven by meme trading events like GameStop and AMC, highlighting the dangers of speculative investing and lack of risk management. Additionally, insights on the evolving landscape of artificial intelligence showcase the growing concerns surrounding unchecked AI actions, as seen through instances like AI mimicking voices without consent. The conversation on workplace culture delves into remote trading mishaps and the blurred lines between home and office work standards, emphasizing the need for stringent risk controls and responsible AI development.
On episode 143 of The Compound and Friends, Michael Batnick and Downtown Josh Brown are joined by Joe Moglia, former CEO and Chairman of the Board at TD Ameritrade, as well as the former Head Football Coach and current Chairman of Athletics at Coastal Carolina University. They discuss: how Joe went from coaching to Wall Street, the brokerage industry, what's next for Nvidia, the meme trade part 2, college athletics, and much more!
This episode is sponsored by Global X and VRGL.
Visit https://www.globalxetfs.com/ to explore a lineup of more than 90 ETFs, along with insights to help you navigate a dynamic investing landscape.
Join VRGL’s co-founders on May 30th at 1PM CST to learn more about how VRGL’s new Risk Tolerance workflow can accelerate client acquisitions for your firm. Register at: www.vrglwealth.com/events
Investing involves the risk of loss. This podcast is for informational purposes only and should not be or regarded as personalized investment advice or relied upon for investment decisions. Michael Batnick and Josh Brown are employees of Ritholtz Wealth Management and may maintain positions in the securities discussed in this video. All opinions expressed by them are solely their own opinion and do not reflect the opinion of Ritholtz Wealth Management.
The Compound Media, Incorporated, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. For additional advertisement disclaimers see here https://ritholtzwealth.com/advertising-disclaimers. Investments in securities involve the risk of loss. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. The information provided on this website (including any information that may be accessed through this website) is not directed at any investor or category of investors and is provided solely as general information.