Inside the ETF Boom: A Q&A with Garrett Stevens and What’s Next
The exchange-traded fund (ETF) industry has transformed from a niche corner of the market into one of the most powerful forces in modern investing.
Over the past decade, ETFs have not only exploded in popularity but have also evolved in scope shifting from simple, index-tracking products to a wide array of actively managed, thematic, and highly specialized strategies.
Few people have had a front-row seat to this transformation like Garrett Stevens, Co-Founder and Chief Business Officer at Exchange Traded Concepts (ETC). Having helped pioneer the white-label ETF model, Stevens has worked with issuers across the globe to bring a wide variety of funds to market. In this conversation, he shares his perspective on where ETFs are headed, what investors are demanding, and how ETC continues to shape the future of the ETF universe.
First things first, you’ve been in the ETF world a long time - what’s your story, and what inspired you to launch Exchange Traded Concepts?
I began my career in financial services right out of college, following in the footsteps of my family. My grandmother was the first female licensed stockbroker in Oklahoma back in 1969, and I grew up fascinated by her stories about the market. After graduating, I started out as an independent investment advisor with a partner, serving a niche group of nonprofits, foundations, endowments, and hospitals.
After a decade working with these clients, I launched my own family of ETFs in 2009 tailored specifically to them. While those funds ultimately didn’t gather enough assets to be sustainable, the experience opened my eyes to a bigger opportunity: the need for a firm that could help others bring their strategies to market faster, more cost-effectively, and with everything they needed in one place. That vision led me, along with partners Rich Hogan and Jay Baker, to found Exchange Traded Concepts in 2011.
Since then, we’ve launched hundreds of funds for clients around the world, grown to a 25-person team, and today advise or sub-advise on more than $20 billion in assets. Recently, I transitioned from my longtime role as CEO into a new position as Co-Founder and Chief Business Officer, joining me on the executive committee are Rich Malinowski and Andrew Serowik, who now serve as Co-CEOs. This shift allows me to focus fully on growth—bringing in new business lines, new clients, and new opportunities that will benefit our partners.
Looking ahead, our pipeline of funds slated for late 2025 and 2026 is the strongest and most diverse we’ve ever had. I’m excited to hand off some of the operational responsibilities and put all my energy into helping ETC and our clients continue to grow.
State of the ETF Universe:
The ETF industry has seen explosive growth over the last decade. Where do you see the greatest areas of opportunity for ETFs in the next 3–5 years?
I see a growing trend of bespoke ETFs, where asset managers use the structure to deliver their existing strategies in a more tax-efficient way. Wealth managers are also starting to build products designed specifically for their advisors and clients. ETFs have become so popular that investors are now demanding them from their advisers. In the past, firms launched ETFs mainly to attract new assets; today, many are creating them as tailored tools for their own clients sometimes without ever marketing them to outside investors. They are just a really powerful tool for their firm and clients.
How have investor preferences shifted recently—are advisors and institutions asking for different kinds of strategies compared to five years ago?
Five years ago, index funds dominated the ETF space. Today, about 75% of the new funds we launch are actively managed. Investors are more comfortable with ETFs than ever and no longer see them as just passive tools. That shift is fueling demand for new strategies in the ETF wrapper, giving asset managers a way to reach clients who may not meet SMA minimums or who want to reduce capital gains from active trading. For many, putting their strategy in an ETF can be a real game-changer.
Trends and the Future:
Beyond traditional equity and bond ETFs, where do you see the most innovation happening right now - whether that’s active management, thematics, alternatives, or something else?
We’ve seen an explosion of single-stock ETFs, especially leveraged and inverse products, some even offering weekly distributions. These targeted tools give investors new ways to trade specific trends something that barely existed a few years ago. At the same time, crypto-related strategies keep expanding as the SEC opens the door to new digital assets.
As ETFs become a more global product, what role does ETC see in helping international issuers tap into the US market?
ETC’s turnkey platform provides international issuers with a seamless way to enter the U.S. market by managing the full fund launch and operations process. Our clients span Korea, Europe, Australia, and Canada, firms that are highly successful at home but lack the infrastructure to operate in the U.S. Their local expertise often leads to strategies not widely available here, which, with the scale of the U.S. investor base, can translate into strong opportunities.
Tackling Today’s ETF Challenges:
For new issuers, building awareness and gathering assets remains one of the toughest challenges. How does ETC help partners overcome that hurdle?
Launching an ETF is no longer an “if you build it, they will come” industry. Success requires a clear distribution and marketing strategy from day one. We believe digital marketing is the most effective approach because it can be scalable, trackable, and adaptable in real time through channels like email, blogs, social media, and targeted ads. Unlike in the past, new ETFs don’t attract attention automatically, especially without a well-known brand. Building awareness within the advisor community takes time - often years - and consistency. It is important to plan for the asset growth to take a couple years as your having to build awareness within the advisor community about your new ETF. They are going to need to hear about it quite a few times before they are willing to put client money in it, so new entrants need to be prepared to wait out that initial period. They also need to focus on having a product that performs as designed and has consistent marketing efforts to build that recognition. That’s why we remind clients that launch day isn’t the finish line, but the starting line for long-term growth and recognition.
With ongoing SEC scrutiny and evolving rules, what are the biggest regulatory challenges a new ETF issuer will face?
While ETC manages the legal and regulatory side of running a fund, marketing under FINRA rules can be a steep learning curve. We provide training and educational support to guide clients through this process. It’s natural to be excited with big ideas for promotion, but strict rules often require adjustments. With the right approach, though, firms can still build effective, compliant campaigns that connect with their audience.
What Sets ETC Apart:
The white-label ETF space has become increasingly competitive. What sets ETC apart from other issuers when it comes to guiding partners through the launch and growth of their funds?
ETC was the very first white-label ETF issuer, we essentially created this industry. Our founders were involved with the launch of the very first ETF back in 1993, and since then our team has helped bring a wide variety of funds to market over the last 14 years. That unmatched experience gives us a unique perspective on what works, what doesn’t, and how to guide issuers through every step of the process.
What really sets ETC apart is our client-first approach. We pride ourselves on being accessible and hands-on and our leadership and staff are always available, and we never simply “hand off” a client once the paperwork is done. We see every relationship as a true partnership, and we’re selective about who we work with because we want to give each fund the best chance at long-term success.
Unlike other firms, ETC has never launched its own funds. Many competitors entered white labeling as a side business, but we’ve made it our sole focus. That means no conflicts of interest, our only priority is helping our clients succeed. With full transparency on costs, deep industry expertise, and a proven track record of innovation, ETC continues to be the partner of choice for issuers around the world.
Many firms can help someone “launch” an ETF, but ETC often talks about building long-term partnerships. What does ETC do differently to ensure its funds succeed well beyond day one?
Our “beyond launch plan” begins well before a fund goes live. Drawing on my background as an investment advisor and the experience of our team, which has heard nearly every ETF idea imaginable, we help clients evaluate how their product is likely to be received in the market. Once the concept is set, we map out positioning and marketing strategies, backed by a thorough analysis of competing funds: how they’re priced, how they’re marketed, and how successful they’ve been.
After launch, we don’t step back—we actively work to get funds approved on key platforms as they meet eligibility requirements. At the same time, our marketing team partners with clients to develop a distinct “personality” for the fund, ensuring it stands out and has the best chance to attract assets beyond their existing client base.
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Exchange Traded Concepts, LLC (“ETC”) is an SEC Registered Investment Adviser. ETC presently offers two lines of business, the first being the provision of white-label ETF services, that include investment advisory and administrative platform services, and the second is offering its portfolio management services on a stand-alone basis to other advisers managing funds that have a need for a specialized trading sub-adviser familiar with and skilled in trading on behalf of an ETF and other investment vehicles. ETC provides the trust, board, and decades of experience to offer asset managers (hedge, SMAs, mutual) and others an efficient, cost-effective means to leverage the benefits of the ETF wrapper. ETC’s Form ADV can be found here https://adviserinfo.sec.gov/firm/summary/151197
