“ETFs are growing faster than many other products, expanding into new asset classes and being used in new and different ways,” Deborah Fuhr, managing partner at ETFGI, said in the article. “Many firms are looking at how they could or should participate.”
Fuhr argues that through white-label partnerships, asset managers can quickly and efficiently bring an investment strategy to market as an ETF. [Hedge Fund Strategies Could Bolster ETF Growth]
“You need a capital markets team, a dedicated sales force, knowledge of the legal issues, relationships with market makers and brokers,” Fuhr said. “If you’re not set up to do this then you’re venturing into a whole new area.”
In the U.S., ETF turnkey solutions like Exchange Traded Concepts, ALPS, AdvisorShares and ETF Issuer Solutions help go through the regulatory approval process, provide a board of directors and get an ETF listed on an exchange for a startup fee. [‘White Label,’ Turnkey Companies Help ETF Industry Expand]
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.