Virtus Investment Partners (NasdaqGS: VRTS), the Connecticut-based investment manager, announced after the close of U.S. markets Monday that it will acquire a majority stake in ETF Issuer Solutions, a provider of white label ETF solutions.
New York-based ETF Issuer Solutions “will become a Virtus affiliate and continue to operate as a multi-manager ETF platform, providing investors access to differentiated investment capabilities from select subadvisers,” according to a statement.
The transaction is expected to close in March and terms of the deal were not disclosed.
Founded in 2012, ETF Issuer Solutions currently manages three existing ETFs “has seven additional ETFs in registration with the Securities and Exchange Commission. All of the company’s ETFs are managed by external subadvisers,” according to the statement.
Current offerings from ETF Issuer Solutions include the InfraCap MLP ETF (NYSEArca: AMZA), which debuted in October. Although AMZA is one of the newest entrants to the crowded MLP ETF space, the new ETF is unique in thatcan employ hedging via derivatives and even short MLPs during periods of increased market stress. [MLP ETF Update]
The firms other ETFs include the recently launched BioShares Biotechnology Clinical Trials Fund (NasdaqGM: BBC) and the BioShares Biotechnology Products Fund (NasdaqGM: BBP), which debuted last month.
BBC’s index excludes large pharmaceuticals companies as well as medical devices and diagnostics; life science tools; specialty pharmaceuticals, generic drugs and outsourced drug delivery; healthcare services; contract research organizations; neutraceuticals; agricultural biotechnology; animal health; diversified healthcare; food sciences; information technology; and nanotechnology firms.
BBP tracks the BioShares Biotechnology Products Index, which is also sponsored by LifeSci Index Partners. That index follows U.S.-listed biotech companies with a primary product offering or product candidate that has landed FDA approval, according to the SEC filing. At the end of the second quarter, the index was home to 43 companies. [Nifty New Biotech ETFs]
ETF Trends editorial team contributed to this post.