“Providers that cannot or do not differentiate themselves are not able to extract the necessary market share from established providers,” Bernie Thurston of DeltaOne Solutions said. [ETFs and Financial Advisors]
One example of a newer entrant into the ETF business that has done well is Charles Schwab. The provider entered into the market with precise offerings and was able to do so with a large distribution platform. The provider now manages $7.2 billion within their low-cost, broad-based ETF choices. Schwab’s ETFs trade free online for their in-house accounts.
Christian Magoon for Nasdaq reports that there are three major categories where an ETF can fail – product development, marketing and distribution.
Tisha Guerrero contributed to this article.