The Expanded ETF Ecosystem

The exchange-traded fund (“ETF”) ecosystem consists of a web of interlocking entities and relationships that help ensure ETFs can be bought and sold smoothly throughout the day. A key feature of traditional ETFs has been their transparency—the fact that they disclose their holdings each day—but with the introduction of new structures and models, this is beginning to change.

As the ETF universe has continued to grow, new entrants to the space and new approaches to ETF structures have received SEC approval, including semi-transparent ETFs. These new ETFs selectively disclose portfolio holdings information to the public on a schedule similar to traditional actively-managed mutual funds while still striving to maintain market and net asset value parity. This is accomplished through the use of alternative methods of signaling the value of an ETF’s portfolio to the market.

In this white paper, we collaborated with Arro Financial Communications and ETF Trends to create a comprehensive companion to the expanded ETF ecosystem, encompassing both traditional passive ETFs as well as these new semi-transparent models that are beginning to see the light of day. Download here.

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How we help

ACA Foreside has helped over 400 firms and 1,600 funds to launch new funds or convert existing funds.

Sice our launch in 2005, we have been working with asset management firms throughout the world to facilitate compliance and product distribution through legal underwriting, registered rep licensing and chaperoning, and DTCC/NSCC fund sponsorship. We have experience working with all types of pooled investment vehicles such as traditional mutual funds, ETFs, alternative products, closed-end interval funds, and private placements.

If you would like to get in touch with one of our team today, we're ready to help. Start a conversation with us here.

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