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Listen "Top Heavy Markets, Fragile Portfolios: How to Break Free of the Mag-7 Trap with Ahmed Farooq"
Episode Synopsis
What do advisors do when markets feel like a giant game of Jenga—top-heavy, fragile, and unpredictable with every move?
Ahmed Farooq, Senior VP and Head of ETF Distribution at Franklin Templeton Canada joins us to explore how smart ETF design, active fixed income, and global diversification are helping advisors rebuild sturdier portfolios for an increasingly uncertain world.
🎧 Summary:
In this episode, host Pierre Daillie welcomes Ahmed Farooq, for a wide-ranging, insight-packed conversation on the evolution of ETF usage by Canadian advisors. From navigating tariff turmoil and Mag-7 concentration risk to building smarter income solutions and global diversification strategies, Ahmed shares a front-line perspective from the road across Canada.
He explains how Franklin Templeton is responding to market demand with low-cost passive offerings, factor-based ETFs like their Low Volatility High Dividend suite, and precision-focused actively managed fixed income solutions that are reshaping how advisors approach portfolio construction. With advisors seeking both protection and income, Farooq explains why it's time to get comfortable with complexity—because simplicity in this market can be costly.
💡 Key Takeaways:Regional Divergence in US Exposure Sentiment: Advisor views on US equity exposure vary widely across Canada—Eastern advisors are trimming, while Western clients remain overweight USD assets.Market Fragility Requires Smarter Diversification: Amid tariff threats, macro noise, and election risk, advisors are embracing factor-based strategies (like Low Volatility + High Dividend) to hedge downside without abandoning return potential.Mid-Caps Offer Shelter from MAG7 Storm: Franklin’s new FMID ETF (US Mid Cap Multifactor) helps diversify away from S&P 500 concentration by tilting toward locally domiciled, less globally exposed companies.Fixed Income: “Don’t Try This at Home” Advisors are outsourcing bond sleeve construction due to rate volatility, inverted curves, and term premium unpredictability. Ultra-short mandates like FHIS are seeing big inflows.Pricing Power for Portfolio Flexibility: Franklin’s razor-thin passive ETF fees (as low as 5 bps) free up advisors’ fee budget to allocate to alpha-seeking active or alternative strategies.Smart Beta 2.0 is Actually Just... Smarter Rules: Legacy “smart beta” is giving way to multi-layered, rules-based ETFs that integrate dividend sustainability, earnings quality, and volatility screens.Active Management is Back—for Good Reason: As bond markets become harder to read, advisors want precision, not guesswork. And they want active managers who justify their fees through measurable performance and risk control.⏱️ Chapters:
00:00 – Intro: Market Noise, Rate Cuts, and Tariff Whiplash
01:30 – Cross-Canada Advisor Sentiment on US Exposure
05:45 – Emotional Investing & Climbing the Wall of Worry
10:30 – Why Low Volatility + High Dividend ETFs Are Resonating
13:00 – Avoiding Dividend Traps: Earnings & Guidance Matter
18:20 – FMID: Mid-Cap US Multifactor as a MAG7 Antidote
24:00 – Are Mid-Caps More “Domestic”? Surprising Names & Thesis
28:00 – The Fixed Income Puzzle: Why Advisors Aren’t Going Long
33:00 – Ultra Short Flows & Advisor Reinvestment Fatigue
36:45 – Why Active Fixed Income Is in Demand Again
42:00 – Fixed Income Doesn’t Excite Advisors—That’s Why They Outsource It
44:45 – From “Smart Beta” to Smarter Rules-Based Strategies
48:00 – The Evolution of Active Fixed Income ETF Design
51:00 – The Fee Budget Shift: Where Active and Passive Coexist
55:00 – Franklin's Pricing Strategy and Competitive Edge
58:00 – Fee Budgeting: Making Room for Alternatives
01:01:00 – What's Ahead: Tariffs, Geopolitics & Diversifying for Multiple Outcomes
01:04:30 – Helping Advisors Build Resilient Models and Platforms
01:08:00 – Why Pricing, Platform Fit, and Analyst Buy-In Matter
#ETFs #FranklinTempleton #FixedIncome #SmartBeta #DividendInvesting #PortfolioConstruction #ETFInvesting #AdvisorInsights #ActiveManagement #Markets2025
Copyright © AdvisorAnalyst.com
Ahmed Farooq, Senior VP and Head of ETF Distribution at Franklin Templeton Canada joins us to explore how smart ETF design, active fixed income, and global diversification are helping advisors rebuild sturdier portfolios for an increasingly uncertain world.
🎧 Summary:
In this episode, host Pierre Daillie welcomes Ahmed Farooq, for a wide-ranging, insight-packed conversation on the evolution of ETF usage by Canadian advisors. From navigating tariff turmoil and Mag-7 concentration risk to building smarter income solutions and global diversification strategies, Ahmed shares a front-line perspective from the road across Canada.
He explains how Franklin Templeton is responding to market demand with low-cost passive offerings, factor-based ETFs like their Low Volatility High Dividend suite, and precision-focused actively managed fixed income solutions that are reshaping how advisors approach portfolio construction. With advisors seeking both protection and income, Farooq explains why it's time to get comfortable with complexity—because simplicity in this market can be costly.
💡 Key Takeaways:Regional Divergence in US Exposure Sentiment: Advisor views on US equity exposure vary widely across Canada—Eastern advisors are trimming, while Western clients remain overweight USD assets.Market Fragility Requires Smarter Diversification: Amid tariff threats, macro noise, and election risk, advisors are embracing factor-based strategies (like Low Volatility + High Dividend) to hedge downside without abandoning return potential.Mid-Caps Offer Shelter from MAG7 Storm: Franklin’s new FMID ETF (US Mid Cap Multifactor) helps diversify away from S&P 500 concentration by tilting toward locally domiciled, less globally exposed companies.Fixed Income: “Don’t Try This at Home” Advisors are outsourcing bond sleeve construction due to rate volatility, inverted curves, and term premium unpredictability. Ultra-short mandates like FHIS are seeing big inflows.Pricing Power for Portfolio Flexibility: Franklin’s razor-thin passive ETF fees (as low as 5 bps) free up advisors’ fee budget to allocate to alpha-seeking active or alternative strategies.Smart Beta 2.0 is Actually Just... Smarter Rules: Legacy “smart beta” is giving way to multi-layered, rules-based ETFs that integrate dividend sustainability, earnings quality, and volatility screens.Active Management is Back—for Good Reason: As bond markets become harder to read, advisors want precision, not guesswork. And they want active managers who justify their fees through measurable performance and risk control.⏱️ Chapters:
00:00 – Intro: Market Noise, Rate Cuts, and Tariff Whiplash
01:30 – Cross-Canada Advisor Sentiment on US Exposure
05:45 – Emotional Investing & Climbing the Wall of Worry
10:30 – Why Low Volatility + High Dividend ETFs Are Resonating
13:00 – Avoiding Dividend Traps: Earnings & Guidance Matter
18:20 – FMID: Mid-Cap US Multifactor as a MAG7 Antidote
24:00 – Are Mid-Caps More “Domestic”? Surprising Names & Thesis
28:00 – The Fixed Income Puzzle: Why Advisors Aren’t Going Long
33:00 – Ultra Short Flows & Advisor Reinvestment Fatigue
36:45 – Why Active Fixed Income Is in Demand Again
42:00 – Fixed Income Doesn’t Excite Advisors—That’s Why They Outsource It
44:45 – From “Smart Beta” to Smarter Rules-Based Strategies
48:00 – The Evolution of Active Fixed Income ETF Design
51:00 – The Fee Budget Shift: Where Active and Passive Coexist
55:00 – Franklin's Pricing Strategy and Competitive Edge
58:00 – Fee Budgeting: Making Room for Alternatives
01:01:00 – What's Ahead: Tariffs, Geopolitics & Diversifying for Multiple Outcomes
01:04:30 – Helping Advisors Build Resilient Models and Platforms
01:08:00 – Why Pricing, Platform Fit, and Analyst Buy-In Matter
#ETFs #FranklinTempleton #FixedIncome #SmartBeta #DividendInvesting #PortfolioConstruction #ETFInvesting #AdvisorInsights #ActiveManagement #Markets2025
Copyright © AdvisorAnalyst.com
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