During the March 2020 turmoil, bond ETFs continued trading while many underlying bonds barely changed hands. Cohen argues that exchange trading gave buyers and sellers transparent prices and supported stressed bond markets rather than destabilizing them.

ETF exchange prices remained visible during disrupted bond trading
One investment-grade ETF traded thousands of times while major holdings averaged about 30 trades
ETF transactions created price formation without forcing every trade into underlying bonds
Policymakers subsequently documented ETFs' supportive role

“There just wasn't um price formation happening in the bond market, but it was happening in the E t F market with buyers and sellers…”
Samara Cohen · 11:02

“The bondy t F universe behaved well, and as a result, the bond market behaved better.”
Samara Cohen · 12:24

#etfs#bonds#liquidity#covid-19#price-discovery

Myth Buster41:07

Direct Indexing Is Not Simply an ETF Competitor

Cohen presents direct indexing as another component of the same index-investing ecosystem. Direct ownership can support customization for institutions and individuals, while ETFs retain distinctive benefits from their tradability, transparency, and secondary-market liquidity.

Roughly half of BlackRock's discussed book was direct indexing
Direct indexing serves institutions and increasingly individuals
ETFs provide secondary-market liquidity and transparency
The two structures address different investor needs

“Direct indexing is a is a very important part of the index and E T F ecosystem.”
Samara Cohen · 41:07

“But there's certainly a role for a very important role for direct indexing.”
Samara Cohen · 41:50

#direct-indexing#etfs#customization#index-investing

Hot Take· 1

Hot Take18:21

Indexing Is a Tool for Broader Market Participation

Cohen counters ideological criticism of indexing by emphasizing access. She says ETFs and index products let many ordinary households obtain diversification, manage risk, and participate in economic growth in ways once reserved for sophisticated institutions.

Index products lower barriers to diversified investing
ETF ownership extends beyond wealthy households
Transparency and choice support personal financial planning
Broader participation is central to Cohen's defense of indexing

“There are more people accessing the markets and investing in the markets and participating in economic growth on their terms than ever before in history.”
Samara Cohen · 18:40

“I think ETF spring markets. They bring market out access, they bring transparency, and increasingly they bring choice”
Samara Cohen · 18:57

#indexing#financial-access#diversification#investors

Explainer· 5

Explainer12:28

The Virtuous Cycle Between Bond ETFs and Electronic Bond Trading

Demand for bond ETFs encouraged dealers to invest in electronic execution and algorithmic pricing for the underlying market. Cohen describes a reinforcing cycle in which ETF adoption improves bond-market transparency and liquidity, which in turn strengthens the ETF ecosystem.

ETF demand encouraged electronic bond trading
Dealers invested in algorithmic pricing
Automation increased transparency and liquidity
Benefits extended to both ETFs and underlying bonds

“bond dealers have started to really invest in algorithmic pricing, which creates more transparency, more trading, and more liquidity.”
Samara Cohen · 13:10

“a real virtuous cycle of how e t f s have been integrated into the fabric of of capital markets across the board.”
Samara Cohen · 13:22

#bond-market#electronic-trading#liquidity#market-structure

Explainer22:27

The Three Jobs Inside a Global Index-Investment Platform

Cohen divides her platform's work into daily fund management, scalable technology architecture, and leadership across the market ecosystem. The explanation shows that index investing involves portfolio operations, automation, exchanges, liquidity providers, and market safeguards.

Teams manage portfolios, rebalances, corporate actions, and market quality
Platform architects automate lower-touch work and create scale
Ecosystem teams engage exchanges and liquidity providers
External market safeguards affect ETF quality

“So really we do three things.”
Samara Cohen · 22:27

“The third part is ecosystem leadership”
Samara Cohen · 23:09

#investment-operations#technology#market-structure#teams

Explainer27:03

Giving Index Investors a Choice Over Proxy Voting

BlackRock began offering eligible clients the option to vote shares themselves or deliberately delegate voting to the asset manager. Cohen frames this as a way to respect differing views about whether stewardship is part of the manager's value proposition.

Asset managers often vote shares on clients' behalf
Some clients want direct control over governance decisions
Others intentionally delegate stewardship
Voting choice can separate asset management from governance authority

“some investors may feel Nope, I'd like them to manage my assets, but I want the votes”
Samara Cohen · 28:32

“we are really hopeful of increasingly being able to give those investors choice.”
Samara Cohen · 28:37

#corporate-governance#proxy-voting#stewardship#investor-choice

Explainer36:58

Why Active Asset Managers Use ETFs to Pursue Alpha

Cohen says other asset managers are among the largest ETF adopters. They use ETFs for cash equitization, market data, options strategies, rapid risk changes, and temporary exposure while longer research processes continue.

Active managers integrate ETFs into alpha strategies
ETFs can equitize cash quickly
ETF options can provide nonlinear volatility exposure
Funds serve as placeholders during due diligence
ETFs support rapid exposure changes in fast markets

“one of the biggest adopters of of ETS has been other asset managers”
Samara Cohen · 36:58

“people will use the e t F as a place holder um as they do that research and figure out where they want that exposure…”
Samara Cohen · 38:59

#institutional-investing#risk-management#options#asset-allocation#etfs

Explainer48:11

The Difference Between a Mentor and a Sponsor

Cohen distinguishes mentors who advise and develop someone from sponsors who deliberately create opportunities and move a career forward. Her examples include leaders who trusted her with intimidating assignments and advocated for advancement.

Mentorship and sponsorship serve different functions
Sponsors act intentionally to advance a career
Stretch assignments can build confidence and visibility
Effective support can come from people of any gender

“A sponsor being somebody who will actually work intentionally to to move your career forward.”
Samara Cohen · 48:17

“it's it's the scariest things that once you do, you are the proudest of of having done.”
Samara Cohen · 48:43

#sponsorship#mentorship#career#leadership

Story· 2

Story05:03

The Trading-Floor Opportunity Cohen Almost Never Pursued

Cohen initially avoided applying to Goldman's securities division because the trading floor sounded intimidating. A diversity recruiting effort prompted her to visit, and she discovered that its energetic, collaborative environment closely matched the theater settings in which she thrived.

Intimidation can obscure genuine fit
Direct exposure can overturn assumptions about a career
Diversity outreach opened a path she had not pursued
Learning the environment's language helped her gain confidence

“sometimes if something's interesting, even if it's intimidating, it's worth checking out.”
Samara Cohen · 05:26

“once I got my bearings and learned to speak the language.”
Samara Cohen · 05:37

#career#trading#confidence#diversity

Story39:50

How Thematic ETFs Made Investing Relevant to Cohen's Daughter

Cohen recounts using climate-focused ETFs to connect investing with her daughter's environmental interests. She sees thematic products as an entry point that can make markets personally relevant before investors build broader portfolios.

Personal themes can motivate first-time investors
Climate products connected investing with environmental interests
Thematic exposure can start a portfolio-construction conversation
Relevance can broaden market participation

“part of how we are bringing more people into the markets is helping them connect to the themes that are important to them”
Samara Cohen · 40:33

#thematic-etfs#climate#investor-education#portfolio-construction

Tool· 1

Tool24:37

How Aladdin Became BlackRock's Risk-Management Backbone

Cohen describes Aladdin as the system that equips both BlackRock managers and external clients with risk-management capabilities. It grew from technology created by fixed-income and mortgage specialists into the common platform used to analyze risk and operate portfolios.

Aladdin began with fixed-income risk expertise
Its founding purpose was to put better tools in clients' hands
BlackRock portfolio managers adopted it firm-wide
Other asset managers later became Aladdin clients

“Aladdin is how we we arm our investment managers, both Black Rocks investment managers and the investment managers who are who are Aladdin clients outside…”
Samara Cohen · 24:37

“It is really the backbone of how we we look at risk and we run our portfolios.”
Samara Cohen · 25:45

#aladdin#risk-management#blackrock#technology

Takeaway· 4

Takeaway02:10

How Backstage Theater Work Prepared Cohen to Lead

Cohen explains that her theater experience centered on production, design, and directing rather than acting. She connects directing's emphasis on casting with the leadership task of putting the right person in the right role.

Backstage production developed coordination skills
Directing requires deliberate casting
Leadership depends on matching people with roles
Theater and finance can reinforce one another

“casting is of directing and putting the right person in the right seat is a lot about leading any business.”
Samara Cohen · 03:15

#leadership#theater#career#team-building

Takeaway34:46

BlackRock's Hybrid-Work Goal: Physical and Mental Health

Cohen describes hybrid work as an ongoing pilot rather than a settled policy. The aim is to preserve remote flexibility and family benefits while restoring the in-person connection many employees missed.

The pilot allowed up to two remote days
Employee safety remained the first priority
Mental health includes human connection
Policies must evolve with conditions and observed outcomes

“healthy doesn't just mean you know, being safe from the from from the virus. It means being mentally healthy.”
Samara Cohen · 35:27

“I imagine we will be experimenting for a while”
Samara Cohen · 36:07

#hybrid-work#leadership#mental-health#workplace

Takeaway42:16

Employee Networks Provide Visibility, Role Models, and Safe Spaces

Cohen credits women's networks with expanding her relationships, career visibility, and range of role models. She also values networks as places where employees can discuss challenges openly and learn how others overcame them.

Networks connect employees who might not otherwise meet
They encourage strategic career thinking
They expand the available set of role models
Safe discussion of challenges supports stronger work and recruiting

“It's an opportunity to meet and connect with people you wouldn't otherwise know, um and an opportunity to to think more intentionally and strategically about…”
Samara Cohen · 42:28

“you can't do your best work unless you can talk about your challenges, both inside and outside the office.”
Samara Cohen · 42:49

#employee-networks#career-development#inclusion#mentorship

Takeaway53:16

Cohen's Career Lesson: Difference Can Be a Superpower

Looking back, Cohen rejects the narrow Gordon Gekko stereotype of what an investor must look like. She argues that excellence takes many forms and that backgrounds such as theater, gender, and race can contribute distinctive strengths rather than disqualify someone.

Finance once appeared to demand a narrow identity
Excellence in investing has many forms
Different backgrounds can create useful strengths
Believing in one's difference may lag behind being told it has value

“Now what I know is excellence looks like uh, lots of different things in the world of investing.”
Samara Cohen · 53:33

“I think there is a superpower in being different.”
Samara Cohen · 53:50

#career#diversity#identity#investing

Frameworks in this episode

ETF Product Engineering Lifecycle

Measure-Then-Choose ESG Spectrum

Two-Dimensional ETF Performance Scorecard

Insights & moments

⚡Myth Buster· 2

Why Bond ETFs Added Price Discovery During the COVID Crash