Trillions

10 Billion Served: The Unsung Role of an ETF Market Maker

There’s been roughly 10 billion individual ETF trades in the past 25 years with almost no issues. This McDonald’s-esque track record of happy customers is one of the reasons ETFs have become so popular. One of the main reasons behind the stellar track record of trading is the important role played by ETF market makers, who provide liquidity for popular ETFs but also lesser traded ones— stepping in to be a buyer or a seller when there are none.  On this week’s Trillions, Eric and Joel speak with veteran ETF market maker Chris Hempstead of Deutsche Bank as well as Annie Massa of Bloomberg News, who just wrote about the secretive market maker Susquehanna in the latest issue of Bloomberg Markets. The discussion covers ETF mechanics, liquidity, and poker. Yes, poker. See <a href="https://omnystudio.com/listener">omnystudio.com/listener</a> for privacy information.

Money goes where it's treated best. That simple truth is a big reason why more and more money—trillions, in fact—flows into a powerful, low-cost tool that's quietly transformed investing in recent years. Exchange-traded funds, or ETFs, let you invest in everything from the stock market to gold like never before. This biweekly podcast will demystify them—and delight you in the process.