Large fund companies, asset managers, hedge funders and even financial advisors are taking a closer look at the exchange traded fund as a way to bring their ideas to the market and to tap into the growing demand for efficient, easy-to-use investment products.
As asset managers evaluate entering the ETF arena, many wonder where to start. Some started from scratch and worked with white label ETF service providers while others have converted existing strategies into the ETF format.
For those who are seeking a way in to the ETF industry, the upcoming ETF Bootcamp conference event, headed by Conference Chair Tom Lydon of ETF Trends, that is slated for September 29 and 30 in New York City could provide some insights into the different ETF structures and provide a checklist of important board and employee considerations. Additionally, the event will walk through the best practices for internal controls, audit tax, board construction, and oversight pertaining to the establishment and maintenance of ETFs. [Understanding the Legal and Compliance Framework for ETFs]
“Our agenda is designed to cover all the major aspects of bringing an ETF to market; from idea to launch,” Lydon said. “Each panel discussion will share their unique opinions and best practices.”
For example, PIMCO, a traditional mutual fund provider turned actively managed ETF purveyor, has seen its PIMCO Total Return ETF (NYSEArca: BOND), the ETF version of the flagship Total Return Bond Fund, attract $3.5 billion in assets. ETF adaptation has also been outpacing the flagship mutual fund as the smaller ETF allows Bill Gross and his team to more efficiently implement their best ideas without having to be spread across the gigantic number of holdings found in the Total Return Mutual Fund. [Bill Gross ETF Topping its Mutual Fund Father]