The National Exchange Traded Fund Association, an effort at the ETF industry’s first dedicated trade group, is taking a break due to lack of demand.
The group launched last year as an ETF-specific lobbying and research group, has been “shelved” due to “lack of demand,” Brendan Conway of Barron’s reports, citing IndexIQ’s Adam Patti.
Patti told Barron’s the trade association could restart in 2014, but he did tell Barron’s lack of adequate financing was one of the reasons the group never got off the ground.
Additionally, the NETFA struggled to gain traction with some of the largest ETF sponsor’s. BlackRock’s (NYSE: BLK) iShares, State Street’s (NYSE: STT) State Street Global Advisors and Vanguard, the three largest U.S. ETF sponsors, never expressed interest in joining NETFA. [Big Names Eschew ETF Trade Association]
That trio controls over 80% of assets under management at U.S. ETFs.
NETFA was formed to educate investors on the benefits and uses of ETFs, provide education and commentary, and advance industry issues with regulators and government agencies. [ETF Trade Association is Born]
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