Did you know ETC can act as your outsourced trading desk?

Not only can Exchanged Traded Concepts (ETC) act as a full-stop solution to starting and running all aspects of your ETF, we can also provide an à la carte solution of sub-advisory trading to firms that don’t utilize all of our other services.

ETC’s experienced portfolio management team provides trading and portfolio management services to implement your investment strategy.
 

What is sub-advisory trading?

A sub-advisory trading company is a third-party firm hired by an asset manager or ETF to handle portfolio management and trading. They make changes as needed in the portfolio to follow your investment strategy and leverage market insights and advanced strategies to execute trades efficiently and cost-effectively.

Our portfolio management and trading desk provides expertise in managing the investment strategy and day-to-day operations of your ETF.
 

Our responsibilities typically include:
 

1. Portfolio Management: manage the ETF’s holdings in line with its objectives, rebalancing the portfolio, adjusting sector allocations, and ensuring that the asset selection aligns with the ETF's investment strategy (such as tracking an index or using a specific weighting method).
    
2. Trading Execution: executes trades to ensure the ETF maintains its desired exposure. This may involve buying and selling securities to efficiently minimize transaction costs and market impact, which helps keep the ETF's performance in line with its objectives.
    
3. Liquidity and Pricing: work to monitor liquidity in the ETF's underlying assets, aiming to keep the ETF's market price close to its net asset value (NAV). This involves monitoring market conditions, anticipating demand, and ensuring that creation and redemption of shares are managed effectively.
    
4. Risk Management: monitor and mitigate risks within the portfolio, such as sector concentration and volatility, ensuring that the ETF operates within its risk parameters. We also ensure the fund stays within its regulatory diversification requirements.
    
5. Compliance and Reporting: help the ETF comply with regulatory requirements, maintaining transparency and preparing reports that track portfolio performance, exposure, and compliance with the fund’s investment mandate.
    
6. Board Reporting: provide all required Board Reporting such as Best Execution, Trade Commissions, Performance Reporting, Trade Summary, Fund Performance Attribution Analysis, and others as needed.

By outsourcing these functions, an ETF company can focus on other areas, such as marketing and distribution, while leveraging specialized expertise to enhance the ETF's efficiency, performance, and alignment with its investment strategy.
 

Let ETC handle your ETF’s trading so you can focus on growth — let’s talk!