Two former top executives at iShares who played key roles in developing the world’s largest exchange traded fund provider have started a new firm.

Ex-iShares CEOs Lee Kranefuss and Rory Tobin have created ETF Opportunity Partners, a firm that focuses on the consolidation of smaller ETF providers, reports Emma Dunkley for Citywire.

“While asset growth in the ETF industry has been tremendous, much more room exists to serve investors well through innovative ETF products and services. ETF Opportunity Partners has been set up to drive that change across the globe,” Kranefuss said.

Kranefuss was the global CEO of iShares, the largest ETF provider measured by assets under management. Tobin was the CEO of the international iShares business, according to the Citywire report.  [September ETF Performance Report]

“We believe the industry will see significant change as investors and regulators demand greater fiduciary alignment between ETF providers and the ultimate investor,” Tobin said. “Too often there is a lack of transparency in products sold as ETFs, as we expect a re-shaping of the regulations and the industry for the benefit of investors globally, he added.” [ETF Investors Take on More Risk in Search for Reward]

In the U.S., about $1 trillion is held in ETFs. [What are ETFs?]

Tisha Guerrero contributed to this article.

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