“Their experience in Canada will give them some institutional trust and credibility, but it’s going to be like any other start-up at first,” John Gabriel, an analyst at Morningstar, said.
The U.S. ETF market is known for its concentration of assets and difficulty for start-ups to acquire assets. The three largest U.S. providers, iShares, State Street Global Advisors and Vanguard make up $1 trillion of the $1.2 trillion U.S. ETF market as of the end of July.
Currently, there is a buy-write ETF and exchange traded note available to investors: the PowerShares S&P 500 BuyWrite Portfolio (NYSEArca: PBP) and the iPath CBOE S&P 500 BuyWrite Index ETN (NYSEArca: BWV).
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.