How Does an ETF Broker Spend a Workday?

What is an ETF Broker?

An ETF broker is a stock broker that specializes in buying and selling exchange-traded funds (ETFs). ETFs are similar to an index mutual fund in that they represent a pool of stocks. However, unlike index funds, they are traded exactly like stocks. This means that ETFs are not actively managed and can be sold at any time during open trading hours. An ETF broker is required to have specialized knowledge of ETF funds.

Client Duties

Like a traditional stock broker, ETF brokers purchase investments on behalf of their clients. Potential clients include corporations, institutions and private investors. ETF brokers may be employed by a brokerage firm or may be self-employed. Either way, direct advisement of clients takes up a majority of an ETF trader's day. Meetings with clients (via phone, e-mail or in person) may involve discussing the investor's goals, offering purchase advice and managing the client's funds. Based on client input, the ETF broker will then purchase or sell ETF funds. The overall goal of an ETF trader is to maximize profits earned for their clients.

Research Duties

When not meeting with clients, an ETF broker's time is largely spent doing research on ETF funds. Research duties may involve the analysis of ETF prospectuses, reading news stories and earnings reports, speaking with colleagues about new funds and reviewing portfolios of current clients. As ETF data can change daily, ETF brokers must constantly revisit specific funds to ensure they are providing their clients with the best and most timely investment advice possible.