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Ethel J. Davis: Trailblazer in Wealth Management
Ethel J. Davis is the CEO and Chief Investment Officer at VZD Capital Management, LLC, and a trailblazer in the investment industry. With over thirty years of experience, she is known for providing exceptional customer service and developing customized investment strategies for high-net-worth clients, multigenerational families, and trusts. She is one of the first African American women to own 100% of a Registered Investment Advisory firm in the Midwest—an accomplishment that is rare across the United States. Ethel’s approach to wealth management is unique, emphasizing building legacies and creating lasting wealth. Her work has positively impacted her clients’ financial and personal lives, fostering strong relationships, treasured memories, and contributing to a better world.
Ethel’s journey highlights resilience and determination. After being let go as a partner from another Registered Investment Advisory firm, she founded VZD Capital Management, LLC, in 2012. As a solo practitioner, she faced a deep fear of failure that pushed her to work tirelessly. As a single woman and African American, she needed capital to start her firm. She took a leap of faith, invested her savings into launching the business, and credited God for helping her through major setbacks.
She was deeply committed to owning a fee-based, discretionary Registered Investment Advisory firm and focused all her energy on building a top-tier company from the ground up. She was determined to control her own destiny, driven by a desire to overcome manipulative practices and societal limitations. Her persistence and strong beliefs kept her going despite major startup challenges.
Empowerment and Core Values
Ethel’s core values of diversity, inclusion, and financial literacy are central to her work. She champions these principles by actively promoting empowerment among underserved communities and inspiring others to pursue positive change, demonstrating her dedication to making a meaningful impact and motivating readers to follow her example.
Personal Journey and Inspiration
Her parents, Vergie and Zether Davis, instilled in her a strong work ethic and a sense of belonging despite her minority status. Her father died in 1983, and her mother passed away in 2007. Unfortunately, all her aunts and uncles have also passed, so her support system is somewhat limited. Still, that didn’t deter her determination to put God first and make her parents proud of their decision to adopt her at 5 days old from the University of Kansas Hospital.
Guiding Principles: Empowering Financial Freedom
Ethel’s values of integrity, empathy, and service guide every professional decision she makes. VZD Capital’s approach to financial advising focuses on a personalized investment process that provides solutions tailored to each client’s specific needs. Her goal is not just to manage money but to empower individuals to overcome financial trauma, improve financial literacy, and build wealth. Ethel aims to change the narrative for young women about genuine financial empowerment, drawing on her own experiences with debt and lessons from her mother. She believes her financial mistakes make her a more empathetic advisor, as she understands the challenges many people face but are too embarrassed to discuss.
Values in Portfolio Management
At VZD Capital, personalized service and genuine relationships are central to its portfolio management approach. The firm listens carefully to each client’s unique perspective and develops tailored solutions that respect each client’s individual financial journey. Whether clients focus on building or preserving wealth, VZD Capital aims to understand their values and support multi-generational families in maintaining their legacies. She chose to prioritize the client over her own compensation. Therefore, VZD offers only fee-based, discretionary investment management services to ensure that its clients’ interests always come first.
Beyond the Numbers: A Personalized Approach
VZD Capital’s approach goes beyond just numbers, focusing on the emotional and personal side of each client’s wealth journey. By building strong relationships and understanding clients’ values and goals, the firm ensures clients feel truly appreciated—giving them direct access to decision-makers and clear communication that builds trust, setting VZD Capital’s services apart.
A Transitional Journey in Finance:
Ethel’s interest in finance grew from recognizing her lack of financial literacy. Although her parents emphasized saving and living below their means, they didn’t teach her about investing. She served on a local bank board but noticed that female leaders remained passive, allowing their male counterparts to dominate. This experience discouraged her, reinforcing the idea that “women are to be seen and not heard.” It wasn’t until she met fellow students at the University of Kansas in Lawrence, KS, that she encountered friends from wealthy families who saw wealth differently. This inspired her to pursue a career that would deepen her understanding of the financial world.
Trailblazing Leadership in Wealth Management
As CEO, Ethel defines leadership as setting a positive example and fostering a diverse and inclusive culture. She values authenticity, expertise, and the creation of an entrepreneurial environment where team members are partners. Her mission is to break down industry barriers and create opportunities for underrepresented groups.
Cultivating Trust and Transparency
VZD Capital emphasizes transparency across all areas of its business, from executive leadership to vendor partnerships and client relationships. The firm upholds high ethical standards and maintains open communication, building trust with both clients and team members. Publicly available documents, such as ADV Part 2A and 2B, and the Privacy Policy demonstrate this commitment to integrity and compliance.
Essential Leadership Qualities
Effective leaders in finance demonstrate resilience, adaptability, and authenticity. They build strong relationships, delegate efficiently, and work collaboratively to achieve success. By leading with integrity and adhering to high ethical standards, they gain credibility and loyalty. Embracing innovation and engaging with diverse communities allows them to meet the changing demands of the market.
The Power of Mentorship
She pays it forward by sharing her experiences and insights to help others overcome obstacles and challenges. Through initiatives like “Mentoring Monday” sponsored by the Kansas City Business Journal, she supports women in building valuable networks, fostering genuine connections, and promoting women-owned businesses. Ethel is a member of the Kansas City Business Journal Women of Influence community, which officially recognizes women for their entrepreneurial and corporate achievements. This group of women has been a valuable resource for gaining personal and professional insights from a diverse range of professional women.
A Values-Driven Culture at VZD Capital
The value-driven culture at VZD Capital focuses on meeting client needs by developing portfolios customized to individual goals and legacies. By maintaining a low client-to-portfolio manager ratio, the firm provides personalized service and direct communication. VZD Capital steers clear of commission-based products to uphold a conflict-free approach. Collaboration, empowerment, and customer satisfaction are central to the firm’s vision as a leading Registered Investment Adviser.
Leadership at VZD Capital is committed to protecting the company’s culture and vision by planning. Finding a successor who shares the firm’s core values is crucial for maintaining its identity and personal touch, which distinguish VZD from other firms.
Client-Centric Investment Approach
VZD Capital’s investment strategies are tailored to each client’s values, goals, and risk appetite. The firm assesses individual circumstances to choose investments that align with client preferences, avoiding generic or risky portfolios. This customized approach helps clients feel understood and valued.
Key Differentiating Factors
VZD’s approach stands out. Unlike larger firms, it doesn’t assign staff solely to business relationships, as these individuals are not the primary decision-makers. Ethel, as the Chief Investment Officer, personally handles client meetings and makes all investment decisions for them. The company maintains low client-to-staff ratios to meet clients in person and build strong relationships. Its pride lies in being different, making clients feel unique, valued, and a sense of belonging. The company prioritizes its needs over profits, ensuring it receives the best service.
Key Lessons from Experience
Ethel’s experience leading financial firms has given her insights into different client types, including self-directed individuals, validators, and delegators, each with distinct expectations. Acting as a “financial physician,” she provides tailored advice on clients’ immediate concerns during initial consultations. Every client is different, and their first meeting often focuses on a financial symptom that is holding them back from reaching their full potential and building sustainable wealth for their families.
Advice for Young Professionals in Finance
Ethel encourages aspiring finance leaders to build trust and provide guidance with integrity. By emphasizing personalized service, ethical principles, and empathy, young professionals can develop successful practices and create a meaningful impact in the industry.
Ethel’s Evolving Role: Authentic Leadership
With a strong background at well-known firms like American Century, Fidelity Investments, and Charles Schwab & Co., Inc., Ethel has established herself as a respected leader in wealth management. She focuses on staying up to date with industry trends, ensuring compliance, and working efficiently. Authenticity is key to her approach, as she represents women and the African American community with integrity and respect, striving to leave a meaningful legacy in wealth management.
A Legacy of Empowerment and Growth
Ethel’s vision is to inspire future generations to pursue their dreams confidently, guided by the motto “I think I can.” VZD Capital, named in honor of her parents, symbolizes the importance of family support and celebrates clients as part of her extended family. Her goal is to build a premier registered investment advisory firm that empowers clients to define and achieve wealth on their own terms. By redefining wealth and offering diverse programs, she strives to help individuals attain prosperity, launch initiatives such as a financial podcast, and inspire others to do the same.
Quote: “I want to shift the narrative for young women about the ‘power of the purse,’ instead of carrying a designer handbag with no real power inside.”
