Old money management firms that missed the first exchange traded fund boat are beginning to step into the market. However, these new entrants will face hurdles as they come up against an entrenched industry.

Tom Lydon, founder and publisher of ETF Trends, joined Dave Nadig, director of ETFs for FactSet, on ETF Gurus to discuss the uphill battle that new fund providers will face

For instance, we are hearing about how John Hancock, T. Rowe Price and Goldman Sachs want to expand into the ETF space.

The ETF industry has been a greater disruptor in the fund industry. We have witnessed compensation changes in wirehouse firms, with many changing from commission and fee-based to fee-only. More are no longer taking 12b-1 fees anymore.

However, these new entrants will have to tackle distribution challenges, adjusting to the way they apply distribution to ETFs products, compared to fund products in separate accounts.