Turning your ETF idea into a reality doesn’t have to be overwhelming—ETC streamlines the process from concept to launch, so you can focus on what matters most: your investment strategy.
Launching an exchange-traded fund (ETF) can seem like a daunting process, but with the right partner, it becomes a structured and efficient journey. At ETC, we specialize in helping asset managers bring their ETF ideas to life seamlessly. Here’s a step-by-step guide to the timeline of launching an ETF, showcasing our expertise and commitment to making the process as smooth as possible.
Step 1: Selecting ETC as Your White-Label ETF Issuer
Choosing the right ETF issuer is the foundation of a successful launch. At ETC, we provide a full-service platform, guiding you through every step of the process with our deep industry knowledge and operational excellence. From compliance to selection of a lead market maker, we handle the complexities so you can focus on your investment strategy.
Step 2: Sign The Platform Services Agreement
Once you decide to move forward with us, the next step is to sign the Platform Services Agreement. This formalizes our partnership and sets the framework for collaboration, ensuring a clear roadmap for your ETF’s launch.
Step 3: Drafting and Filing the Prospectus
This is where things get busy! Over the course of approximately three weeks, we work closely with you, outside fund counsel, our portfolio management team and our internal legal and compliance teams to draft a comprehensive prospectus. This document outlines the fund’s investment strategy, fees, risks, and other key details.
Before submission to the SEC, the Investment Company Act of 1940 (The 40 Act) requires approval from the trust’s independent board of trustees—a process known as Post-Effective Amendment (PEA) approval. Once approved, we officially file the 485a prospectus with the SEC, marking a significant milestone in the ETF launch process.
Step 4: The 75-Day SEC Review Period
Filing the prospectus kicks off a 75-day countdown with the SEC. Around day 45, we receive SEC comments, which we promptly address, refining the document to meet all regulatory requirements. As we near the deadline, we file the final prospectus (now referred to as the 485b filing), ensuring that everything is in place for the fund to be declared effective on day 75.
Step 5: Fund Setup – Laying the Operational Groundwork
While waiting for SEC approval, we are simultaneously setting up the operational infrastructure of the fund. This is where our expertise shines as we navigate a detailed 150-line checklist, coordinating with all fund service providers, including:
- Obtaining a fund tax ID number
- Opening custody accounts
- Securing a CUSIP for the fund
- Setting up with proxy services
- Filing the exchange listing application
- Selecting the fund’s lead market maker and initial seed provider
- Setting the fund up on fund accounting systems
- Onboarding with the fund distributor
- Adding the fund to all Authorized Participant (AP) agreements
- Setting up the fund’s pre and post trade compliance testing
- And many other things
This operational setup ensures a smooth transition from launch to live trading.
Step 6: Marketing Preparation – Building Awareness
A successful ETF launch requires more than just regulatory and operational readiness; marketing is key to generating investor interest. During the 75-day period, we collaborate with you to build your ETF’s brand presence by:
- Designing and launching the fund’s website (an important SEC requirement with very specific information thats required to be updated before the market opens everyday)
- Creating fact sheets and marketing materials
- Drafting and distributing press releases
- Developing advertisements, social media content, and email campaigns
- Executing a public relations strategy to generate media coverage and industry buzz
Our marketing team ensures that you are well positioned to engage advisors and potential investors after your fund has successfully launched and advisors are well-informed and engaged.
Step 7: Launch Day – The Beginning of Your Fund’s Journey
The big day arrives—your ETF officially begins trading in the secondary market! While this marks the culmination of months of preparation, it’s only the beginning of the fund’s journey. Post-launch, we shift our focus to execution, implementing the marketing and public relations strategies to drive awareness, encourage investment, and establish the fund’s presence in the market.
The ETC Advantage
Launching an ETF is complex, but with ETC as your white-label issuer, you have an experienced partner to navigate every step. From regulatory filings and operational setup to marketing and beyond, we provide end-to-end support, ensuring your ETF not only gets to market but thrives in the competitive landscape.
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Important Disclosures
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.
No representation is made that any Fund's investment process, objectives, goals or risk management techniques will or are likely to be achieved or be successful or that any Fund or any underlying investment will make any profit or will not sustain losses. The risks of investing in a Fund will not be negated by ETC's Fund services, and no assurance is given that a Fund will not be exposed to risks of significant trading losses.
The information provided herein does not constitute tax, legal or accounting advice. ETC does not provide legal, financial, accounting or tax advice. Clients and prospective Clients, as well as investors and prospective investors in a Fund ("Investors") are advised to seek the counsel of their own legal, financial and tax advisors for all matters relating to the services and structures contemplated herein. Each Investor (either alone or with its professional advisors) is solely responsible for its own due diligence, risk assessment and tolerance, investment objectives, any decision to invest in a Fund, and for monitoring its investment for purposes of determining whether it wishes to remain invested in such product and whether such product continues to be appropriate for its circumstances and requirements.
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.
Interests in Funds will not be insured by the FDIC, the SIPC or any other organization, will not be deposits of any bank, and are not guaranteed by any bank.