AAM’s Chandler Nichols on Making ETFs Work for Advisors and Investors

Humble Beginnings in High Finance

Chandler’s entry into the ETF industry started in 2018, and like many in finance, he took the mailroom route—literally.

Fresh out of college with a finance degree, he joined a major mutual fund and ETF issuer, supporting the sales desk by running reports, compiling competitive analytics, and yes, helping ship materials to far-flung conferences. It wasn’t glamorous, but it gave him a front-row seat to how asset flows were shifting.

While crunching numbers on Morningstar and Bloomberg, he spotted a pattern: ETFs were eating mutual funds’ lunch.

Cheaper, more tax-efficient, and easier for advisors to use, ETFs offered real advantages. This wasn’t just a trend—it was a paradigm shift. By the time Chandler wrapped up that early role, he wasn’t just curious about ETFs—he was all in.

The AAM Playbook: Legacy Meets Innovation

Now a product developer at Advisor Asset Management (AAM), Chandler operates at the crossroads of tradition and disruption. AAM began life in 1979 as a bond broker-dealer—fitting, considering the current economic climate of elevated rates and sticky inflation.

Over the decades, it evolved into a multi-purpose asset manager offering everything from SMAs and UITs to mutual funds and, now, ETFs.

What sets AAM apart?

Its knack for teaming up with boutique investment managers—think niche experts who lack the scale to distribute widely.

Chandler’s job is to turn these high-caliber strategies into accessible ETF products that resonate with financial advisors.

Whether the solution is active or passive, the goal is clear: solve real portfolio problems with precision and transparency.

How the Sausage Is Made: ETF Strategy and Portfolio Fit

Unlike some issuers that launch ETFs and hope they stick, AAM’s approach is grounded in portfolio construction. Chandler emphasizes working directly with advisors to figure out where a strategy fits in the bigger picture.

He’s spent years showing clients how to swap traditional holdings—especially in income-seeking portfolios—for smarter, risk-adjusted alternatives.

The Star Player: Fixed Income with a Twist

One ETF Chandler highlights as a key offering is the AAM SLC Low Duration Income ETF

. It’s a collaboration with SLC Fixed Income, a Manhattan-based manager overseeing over $100 billion. The fund targets short-duration credit exposure (1.5 to 2 years), avoiding long-term interest rate risk while diving deep into asset-backed securities, CLOs, and high-quality corporates.

Unlike vanilla short-term bond funds, LODI’s value-add comes from security selection.

It’s a fundamentally driven, bottoms-up strategy that seeks yield without stretching too far into junk territory. For investors glued to money market funds, Chandler pitches LODI as a “cash-plus” solution that keeps pace with inflation while staying investment-grade.

The Other Play: Preferreds for Conservative Equity Reallocations

Chandler also champions preferred securities—hybrid instruments that walk the line between equity and debt. Issued mostly by banks and utilities, they can provide consistent income and even qualify for favorable tax treatment.

He argues that for clients overexposed to financial sector equities, preferreds offer a smoother ride with equity-like upside.

But they’re not without challenges.

Sector concentration and volatility versus high-yield bonds are frequent pushbacks.

Chandler’s counter? Active management can mitigate those risks by selecting the right issuers and structures, keeping the portfolio tight without sacrificing yield.

Portfolio Risk, Returns—and Real Talk

Chandler isn’t about selling pipe dreams. If a product doesn’t fit a client’s risk profile or target returns, he’ll say so. “Honesty breeds positivity,” he says, and that mindset has helped AAM position itself as more than just a product shop.

It’s a service provider—there to support portfolio construction, not just hand out tickers.

The Underdog You Should Know

If there’s one ETF Chandler wishes got more consideration, it’s the Brentview Dividend Growth ETF

. Run by the former team behind Santa Barbara Asset Management, this actively managed fund doesn’t just chase long dividend histories—it hunts for new initiators, lower-beta names, and above-average yields.

Why active over passive?

Because rules-based screens can miss the next great dividend story. Brentview’s approach combines institutional rigor with flexibility, making it a standout in a crowded dividend ETF market.

Looking Ahead: Summer Strategy and Market Watch

With summer ahead, Chandler’s team is keeping a close eye on “stagflation-lite”—elevated inflation with modest growth.

Their playbook? Stick to short-to-intermediate duration fixed income, prioritize income over cash hoarding, and help advisors reposition portfolios without increasing volatility.

As ETF adoption continues to rise—especially among active strategies—AAM plans to stay in the game by combining institutional talent with practical wrappers.

Chandler’s focus remains on education: demystifying ETF mechanics like liquidity, implied trading volume, and bid-ask spreads.

For more information on AAM ETFs, please call your AAM Representative. You can also call 866.606.7220 or visit www.aamlive.com.

AAM ETFs are distributed by Quasar Distributors LLC.

Each fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectus contains this and other important information about the investment company, and it may be obtained by calling 800.617.0004 or visiting www.aamlive.com or go to https://www.aamlive.com/ETF/fund-materials. Read it carefully before investing.

Alpha measures the excess return of an investment relative to a benchmark index. Beta is a measurement of the price volatility of a stock or other asset relative to overall market. Coupon is the annual interest rate paid on a bond paid from issue date until maturity. Duration is a measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates.

Advisors Asset Management, Inc. (AAM) is an SEC-registered investment advisor and member FINRA/SIPC. Registration does not imply a certain level of skill or training

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.