ETFs can deliver potential cost-savings and tax-efficient benefits, which can play a significant role in positioning your business for growth.
If you’re ready to Future Proof your firm’s growth and drive potential cost savings, look no further than exchange-traded funds (ETFs). These increasingly popular investment vehicles can enhance your existing strategy by delivering appealing perks such as cost effectiveness, tax efficiency, operational ease, and more.
Asset managers, RIAs, and institutions looking to streamline trading or day-to-day operations, improve tax efficiency, or elevate their business visibility to promote proprietary strategies may find ETFs to be a compelling choice.
Elevate your Strategy with these ETF Benefits:
Grow Your Revenue Stream
Chances are, you're already integrating ETFs into your investment strategy or SMA program. So, why not consider launching your own fund and widening your client base? Exposure to clientele who may not meet the SMA's minimum requirements could lead to revenue stream growth.
Tax-Efficient Wrapper
The inherent tax efficiency of the ETF wrapper, particularly the potential to minimize or eliminate capital gains distributions, can mirror your existing strategy. Move your assets into one or multiple ETFs and discover additional opportunities for revenue growth.
Simplify Operations
ETFs can consolidate your entire investment or SMA strategy into one single trade. Rather than making multiple trades to onboard a new client or rebalance multiple clients, the purchase of the ETF is the only trade, and the trading and rebalancing is done automatically.
Diversify your Client Base
With a fund that trades on a major exchange, ETFs provide a powerful platform to promote proprietary models and your advisory business to a wider audience. ETFs can be used as a valuable cross-selling tool to drive client acquisition and AUM growth.
See How ETFs Work for Advisors
Investment Advisors 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 operations of smaller accounts, allowing advisors to focus on client relationships.
The tax structure of ETFs, particularly their ability to minimize capital gains tax, can be a key consideration for institutional clients with substantial assets. ETC works with institutions and other firms to repackage their existing SMA strategies into a comprehensive suite of ETFs, potentially driving cost savings and revenue growth for their core business.
What Advisors May Consider
- Converting an SMA to an ETF
- Converting a model portfolio to an ETF
- Quantifying their investment strategy and mirroring it with an ETF
See How Exchange Traded Concepts Works with Advisors
Exchange Traded Concepts is an independent investment advisor with a track record of providing high-quality advice and hands-on support to firms interested in launching an ETF or issuers that need help managing an existing ETF more efficiently. Whether you’re looking for a turnkey solution like ETF-in-a-BoxTM, portfolio management and capital markets support, or need help navigating an SMA or mutual fund conversion, ETC provides a full suite of ETF services that can be scaled to fit your business needs.
ETC exists to give everyone the opportunity to launch an ETF, whether you’re looking to grow your revenue stream or gain investor exposure. By choosing ETC for your ETF needs, clients have the potential to save time and effort, reduce expenses, and have confidence they’re working with a trusted and reliable partner with longevity and credibility in the ETF space.
Future Proof your business with your own ETFs. Contact ETC to learn if consolidating your existing strategy into one trade could provide advantages over your current structure.
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.