U.S. Bancorp Fund Services is partnering with Exchange Traded Concepts to launch an exchange traded fund multiple series trust, providing a shared trust model that will aid in quickly expanding the ETF space.
The multiple series trust, dubbed ETF Series Solutions, serves as an investment advisor to funds and helps reduce the costs and time to file new offerings, essentially marketing new products cheaply and quickly.
The series trust platform helps smaller managers without the scale or means to launch and managed registered ETF products, reports Jackie Noblett for Ignites. A minimum of a year to 18 months and $1 million are required to get a provider’s first ETF to launch, according to industry insiders. In comparison, Exchange Traded Concepts contends it can get a product to market in around 75 days.
“This new MST and partnership with Exchange Traded Concepts help make entering the ETF market incredibly easy for investment managers,” Joe Redwine, president of USBFS, said in a press release. “We continuously strive to find new ways to help our clients focus on investing while capitalizing on developments in the market.”
“The ETF MST is a new concept in the industry that enables investment advisers to build awareness and recognition for their brand as a private-label ETF and launch an ETF in approximately 75 days for a minimal initial investment,” Eric Falkeis, officer of ESS and chief financial officer of USBFS, said in the release. “Our ETF professionals have the operational and regulatory experience, plus the industry contacts needed to navigate the complexities of launching and managing an ETF.”
U.S. Bancorp is also hoping to attract ETF providers that are using other ETF servicing platforms. The new multiple series trust is part of the company’s “ETF Fusion” servicing platform.
“A manager can come to us and use us for our full-service ETF Fusion offering, or if they don’t have the exemptive relief, which is often an obstacle to launching, we have a solution for them,” Bob Kern, executive VP of business development and marketing at U.S. Bancorp Fund Services, said in the Ignites article.
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.