An Introduction to ETFs

Exchange-traded funds (ETFs) continue to garner increasing attention in the market from retail and institutional investors. Well-established asset managers and new sponsors are entering the space introducing innovative product lineups. ETFs have existed for about 30 years, but it is no secret that they have exploded in popularity with investors for a variety of reasons, such as ease of purchase, trading flexibility, and tax efficiency.

ETFs continue to see strong growth based on investor demand. The U.S. ETF market ended 2021 with total assets of $7.2 trillion (about $22,000 per person in the U.S.) and net flows exceeding $900 billion (about $2,800 per person in the U.S.), while worldwide, ETFs exceeded $9.7 trillion (about $30,000 per person in the U.S.) over the same period.¹

If you are looking to launch an ETF, then download our guide below. We will walk you through everything you need to know to get started, including the differences between ETFs and other product offerings, startup costs, necessary service providers, and how to gain assets via distribution.

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How we help

If you are ready to launch an ETF, then contact us today to get started.

Year-over-year, the most well-known global wealth and asset managers continue to choose ACA Foreside to help expand and support their product line up of ETFs. In 2023, our specialists partnered with more than half of the ETF launches in the U.S., and we support 1,000+ ETFs distributed across 275 managers. 

We work 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.

Once launched, we can further support you with our broad range of advisory, managed services, and regulatory technology solutions, to help you grow and protect your business, while also addressing your compliance, ESG, investment performance, and cybersecurity challenges.

¹ Morningstar Direct Worldwide ETF Net Assets and Flows as of 12/31/2021.