Ex-PIMCO Manager Graff Opens ETF Advisory

Austin Graff, who filled executive roles at PIMCO and Goldman Sachs, has opened Opal Capital, where he will offer advisory and other services to exchange-traded and mutual funds. 

Boca Raton, Florida-based Opal will continue Graff’s current role as subadvisor to the TrueShares Low Volatility Equity Income ETF (DIVZ), for which he served as the portfolio manager prior to the launch of Opal. DIVZ is up 1.4% year to date, according to data from Yahoo Finance. 

The firm founded by Graff, who served as a portfolio manager at PIMCO, the world’s biggest active ETF manager, will offer investment management services for ETFs, mutual funds, family offices and financial advisors.  

The firm is focusing on so-called equity income solutions, a part of the ETF industry that has boasted high returns this year, that creates actively managed income strategies using dividend-paying equities, according to a company statement.  

“The launch of Opal Capital comes at a time in the market when investors are looking for income and stability in their portfolios,” Graff said in the statement. “After years of focus on growth names, we believe that dividend-paying equities have been overlooked, and that income solutions will play a critical role in investor portfolios.” 

Divided stocks have traditionally held up well despite market gyrations, experts have noted. Among the top-performing dividend ETFs are the WisdomTree US High Dividend Fund (DHS), and the iShares Select Dividend ETF (DVY), which have risen 1.9% and 3.1% in the last month, respectively.  

“In a rising interest rate environment, dividend-paying equities tend to be more stable, and can have lower volatility,” Graff said in a statement to ETF.com. “Dividends are less impacted by interest rates than other income options, such as fixed income, and they tend to outperform in a rising rate, or otherwise inflationary environment.” 

Contact Shubham Saharan at [email protected]