Creating your own ETF seeks to deliver cost-effective and tax-efficient benefits that could be essential when positioning your business for growth.
If you’re ready to take your strategy to the next level, look no further than exchange-traded funds (ETFs). The popular and ever-growing investment vehicle can serve as a wrapper for an existing strategy while typically offering favorable benefits such as low costs, tax efficiency, simplified operations, and more.
ETFs may be an attractive option for asset managers seeking to optimize trading efficiency, RIAs looking to enhance tax effectiveness, or institutions wanting to elevate their business profile and generate exposure for their proprietary strategies.
Elevate your Strategy with these ETF Benefits:
Tax-Efficient Wrapper
ETFs can offer substantial tax advantages over other investment vehicles. The creation/redemption process allows for in-kind transfers which have the potential to minimize or eliminate capital gains distributions while mirroring an existing strategy.
Lower Costs + Speed to Market
ETC’s white-label platform ETF-in-a-Box streamlines the ETF process to save clients on unnecessary costs and time delays. By providing the complete infrastructure needed, ETC can launch virtually any type of ETF in as little as 100 days.
Simplified Operations
The ETF structure allows for the execution of your investment strategy in one trade – the purchase of the ETF. ETC handles the rest including portfolio optimization and replication, basket creation, and rebalancing.
Public Exposure
The public nature of ETFs gives clients a powerful platform to promote their funds, proprietary models, and advisory business to a wider audience. ETFs can be used as a tool to drive client acquisition and AUM growth.
See How ETFs Work for Clients
Investment Advisers often find ETFs to be a significantly more efficient investment wrapper for their clients. ETFs can help advisers streamline business operations, taxes, and trading of their portfolios. ETFs can also simplify the opening, reporting, and relationship aspects of smaller accounts.
The tax structure of ETFs, particularly their ability to minimize capital gains tax, was a factor for Cabana Asset Management (“Cabana”) to start an ETF fund family. Cabana worked with ETC to repackage their existing SMA strategies into a comprehensive suite of 8 ETFs.
For institutional clients with substantial assets, the introduction of an ETF fund family can be a valuable cross-selling tool, potentially driving cost savings and revenue growth for their core business.
If you’re missing ETFs in your business, contact ETC to learn if consolidating your existing strategy into one trade could provide advantages over your current structure.
Related Content:
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Bloomberg Trillions Podcast: Now There Are One-Stop Shops to Launch Your ETF |
ETF Marketing Strategies: How to Promote Your ETF & Increase Demand |
| Maximizing your investment returns, reducing risk, and ongoing portfolio rebalancing and optimization are just a few ways ETC's portfolio management team simplifies your business operations. | ETC’s CEO, Garrett Stevens, joins the Bloomberg Trillions Podcast to discuss how a white-label ETF Issuer can provide a number of advantages for people looking to launch an ETF. | An innovative approach to fund marketing can help ETF managers gain exposure in a fiercely competitive industry, but many forget this key tactic that could make or break the success of their ETF. |
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Exchange Traded Concepts is an SEC Registered Investment Adviser. The Firm's Form ADV is publicly available and can be found here: https://www.adviserinfo.sec.gov/Firm/151197. ETC may be subject to various conflicts of interest in the provision of its services. Potential conflicts of interest shall be identified in the Firm's Form ADV. The Exchange Traded Funds are referred to as "Funds" for purposes of this document. ETC transacts business in the United States and other jurisdictions where it is properly registered or excluded or exempted from registration requirements. This document does not constitute an offer of services in jurisdictions where ETC does not have the necessary licenses.
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The information provided herein: (a) is provided as of the date indicated, (b) is in summary only and is not complete, and (c) is subject to change at any time without notice. Certain information provided by ETC is based on third-party sources and, although generally believed to be reliable, has not been independently verified. ETC is not responsible for errors or omissions from these sources. No representation is made with respect to the accuracy, completeness, or timeliness of such information, and ETC assumes no obligation to update or otherwise revise such information. In no event will ETC be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with the use of the information contained herein, even if advised of the possibility of such damages. ETC and its respective employees and its affiliates hereby exclude, to the extent permitted by applicable law, all liability in connection with the use of the information herein.
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