First Trust, the sixth-largest issuer of US exchange-traded funds, has managed to stay mostly under the radar in the investing world — and yet it's also perfected a lucrative, Vanguard-proof business model. The company's products are directed more at financial advisors than the retail world, and their funds, most of which are actively managed, have higher fees than typical index-tracking ETFs. Enter the First Trust sales force, which wields steak dinners, personal coaching, sports tickets and Hermès scarves to win business — practices that have attracted the attention of the Financial Industry Regulatory Authority.

On this episode of Trillions, Eric Balchunas and Joel Weber speak with Bloomberg News reporters Emily Graffeo and Max Abelson about their recent First Trust story, “An All-American Finance Empire Drew Billions—and a Regulator’s Attention,” for Bloomberg Businessweek. They discuss CEO Jim Bowen's approach, how the company has distinguished itself from competitors, and why Finra is investigating the company's sales tactics.

<p>First Trust, the sixth-largest issuer of US exchange-traded funds, has managed to stay mostly under the radar in the investing world &mdash; and yet it's also perfected a lucrative, Vanguard-proof business model. The company's products are directed more at financial advisors than the retail world, and their funds, most of which are actively managed, have higher fees than typical index-tracking ETFs. Enter the First Trust sales force, which wields steak dinners, personal coaching, sports tickets and Herm&egrave;s scarves to win business &mdash; practices that have attracted the attention of the Financial Industry Regulatory Authority.</p>
<p>On this episode of Trillions, Eric Balchunas and Joel Weber speak with Bloomberg News reporters Emily Graffeo and Max Abelson about their recent First Trust story, &ldquo;<a href="https://www.bloomberg.com/news/features/2025-03-06/finance-empire-first-trust-drew-billions-and-a-regulator-s-attention" data-destination="https://www.bloomberg.com/news/features/2025-03-06/finance-empire-first-trust-drew-billions-and-a-regulator-s-attention">An All-American Finance Empire Drew Billions&mdash;and a Regulator&rsquo;s Attention</a>,&rdquo; for Bloomberg Businessweek. They discuss CEO Jim Bowen's approach, how the company has distinguished itself from competitors, and why Finra is investigating the company's sales tactics.</p>

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.

Joel Weber and Eric Balchunas demystify the world of exchange-traded funds, or ETFs.

Trillions

How First Trust Became a Quiet Force in ETFs

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/4f4e1b0a-00ea-4ba1-9f14-b29e01034ce4/transcript

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