Money managers who are looking to join the exchange traded fund space are utilizing the services of ETF turnkey platforms or white label ETF providers to help launch a new fund.
A growing number of ETF turnkey platform services, such as Recon Capital and Virtus ETF Solutions, are positioning themselves as partners with sales, capital markets and investment management expertise to effectively bring to market a money manager’s investment strategy in an ETF wrapper, writes Jackie Noblett for Ignites.
The ETF platform services are shifting away mere service providers, offering more than operational expertise and treating money managers like subadvisors or distribution partners. The ETF platforms are shifting away their focus to provide more ancillary benefits and advice, especially as regulatory hurdles become easier to overcome and operational costs recede.
“Yes, there’s a decreasing cost to launch products, but there’s still an increase in expertise that is needed to be successful in the ETF market,” Richard Keary, founder of Global ETF Advisors and consultant to Recon Capital Partners, told Ignites.
Recon Capital, for instance, provides distribution, trading and operational infrastructure for managers looking into launching ETF investment strategy. The firm has filed to launch the BullMark LatAm Select Leaders ETF with Brazilian registered investment advisory firm BullMark Financial Group, according to an August 24 Securities and Exchange Commission filing.
Other ETF platform services providers include Exchange Traded Concepts, ETF Managers Group, ALPS Fund Services, US Bancorp Fund Services and Gemini Fund Services.