Michael McClary, Chief Investment Officer at Valmark Financial Group, joined Keith Black, Managing Director of RIA Channel, to discuss his long-term role as an ETF strategist.
With $7.03 billion in discretionary assets and $4.73 billion in ETF assets as of March 31, 2024, Valmark Financial Group ranks #22 in RIA Channel’s list of the Top 50 ETF Power Users. Valmark is one of the country’s largest and longest-tenured ETF strategists, with total assets today of $10 billion. The firm was founded as an insurance business and still maintains a significant footprint in that sector. Valmark also operates a broker-dealer and a full-service investment advisory business.
During McClary’s twenty-plus-year tenure, Valmark’s assets have grown from $150 million to $10 billion today, with ETFs driving the firm’s growth. As one of the first ETF strategists, he has seen the ETF industry grow from just 150 funds to over 3,000 funds today. His goals are for his investors to make money and to give them the best statistical chance for success. Due to their structure and fees, many investment products do not pass this screening process. McClary is a believer in indexing, as the low fees, transparency, liquidity, tax efficiency, and trading costs maximize the probability of investor success.
Valmark built The Optimized Portfolio System®, which gives clients a choice of optimized ETF portfolios. The four focuses of the team include asset allocation, ETFs, fixed income, and derivatives. McClary states, “Don’t mention return without mentioning risk in the same sentence.” Futures and options strategies help manage the risk of some client portfolios and external funds. The Flex program mixes index ETFs and active ETFs into portfolios matching various investment objectives. Active ETFs offer advantages over active mutual funds, especially in terms of fees and tax efficiency.
Resources:
RIA Channel Top 50 ETF Power Users Ranking