Chris Hedges, Managing Director for MFS Investment Management, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss advisor demand for ETFs and where liquid alternatives fit in a portfolio.
As competition in the wealth management sector intensifies, Hedges notes that many advisory firms are looking to reduce the number of investment partners they work with, creating growing demand for firms that can deliver a broad range of investment solutions and support services through a single relationship. He explains that MFS is well positioned to meet this demand through its full product suite, including ETFs, SMAs, CITs, as well as practice management resources and educational insights.
On the ETF front, Hedges highlights growing advisor adoption across both passive and active strategies. He explains that advisors increasingly want access to core strategies through an ETF wrapper, citing tax efficiency as a key driver. To meet this demand, he notes MFS will continue to expand its ETF offerings throughout the coming year.
Regarding alternatives, Hedges emphasizes MFS’ experience in liquid alternatives, including a macro product designed to be uncorrelated with stock and bond positions while maintaining daily liquidity. While he does believe private credit can play an important role in portfolios, he notes that these investments may be better suited for high-net-worth investors with longer time horizons of five to 10 years and less immediate liquidity needs. While MFS delivers liquid alternative solutions, Hedges emphasizes that the firm remains focused on its public markets expertise, an area where the firm has delivered investment solutions for more than a century.
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