ETFs: The Missing Piece to your Business Growth?

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.

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