If you’re an asset manager or family office exploring an ETF launch, one of the first questions you’ll face is how involved you want to be in the fund’s structure and ongoing management.

At Exchange Traded Concepts (ETC), we help clients bring ETF ideas to market every day. While every launch is unique, most issuers work with us in one of four ways: Sub-Advisor, Index Provider, Fund Sponsor or ETC as Trading Sub-Advisor. In most cases, ETC serves as the ETF’s Advisor, handling the regulatory, operational, and portfolio management complexity so you can stay focused on strategy and growth.

Active Strategy? You’ll Likely Be the Sub-Advisor

For active ETFs, SEC rules require that the firm selecting securities act as an advisor or sub-advisor. In this structure, you make the investment decisions, and ETC’s portfolio management team handles trade execution, custom basket construction, and coordination with Authorized Participants.

This option gives you maximum flexibility and allows assets to count as your firm’s AUM. It does come with regulatory responsibilities, including SEC registration and ongoing compliance requirements. It’s best suited for managers who want direct control and are prepared to operate as a regulated advisor (if they aren’t already). Many managers see this as a worthwhile trade-off.

Prefer a Rules-Based Approach? Consider the Index Provider Route

For index-based ETFs, clients often serve as the Index Provider, defining a transparent, rules-based methodology that the ETF tracks. ETC works closely with leading index calculators who formalize, publish, and maintain the index, while our team manages portfolio implementation.

This structure avoids SEC and FINRA registration. It also offers strong branding benefits, allowing firms to market both the index and the ETF, to an extent. The limitation is flexibility, the fund must follow the index, and changes occur on a predefined schedule.

Want to Focus on Growth? The Fund Sponsor Model Fits

A Fund Sponsor is a client who doesn’t fit neatly into the Sub-Advisor or Index Provider roles and instead focuses on the business side of the ETF often licensing an index or working with a third-party sub-advisor while overseeing fund economics, branding, and distribution. This role offers flexibility without regulatory registration, though it can be more challenging to directly own the investment narrative.

Already Launched an ETF? ETC Can Serve as Trading Sub-Advisor

If you’ve launched an ETF on your own series trust or are planning to launch one outside of ETC’s trust, ETC can step in as the trading sub-advisor. In this structure, you remain the fund’s advisor, while ETC’s portfolio management team handles day-to-day trade execution, custom basket construction and tax optimization.

This approach allows you to leverage ETC’s deep operational and trading expertise without giving up control of the investment strategy or trust relationship. It also provides long-term flexibility: you can keep trading outsourced or bring it in-house down the road as your platform scales.

Why Work with ETC?

With over a decade of ETF experience as the industry’s first white label ETF platform, ETC helps you choose the right structure, avoid costly missteps, and launch with confidence.

ETC empowers issuers to focus on what they do best - ideas, strategy, and growth - while we handle the heavy lifting. If you’re considering launching an ETF, ETC is not just a provider, we’re your long-term partner from concept to scale.

Let’s Start Planning Your ETF Launch

Whether you’re just exploring an idea or ready to move forward, the next step is a conversation.

👉 Schedule a call with ETC to start planning your ETF launch and turn your investment strategy into a scalable ETF product. Contact us here.>>

Launching an ETF is a journey. ETC is built to guide you every step of the way.

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