ETFs have become viable new channels for investment advisers to further distribute their investment strategies, and Ultimus provides a comprehensive service offering to help them launch and operate these popular investment vehicles. An ETF can be a lower-cost and appealing investment option for investors for several reasons:
Less complicated buy/sell process, as they are typically traded on an exchange, not with the fund company itself, like a mutual fund.
- No 12b-1 fees or load fees (i.e. advertising, marketing, and distribution expenses that a mutual fund passes along to shareholders).
- Most are passively managed, which is an inherently less expensive strategy than active management.
- More tax efficient because their structure generally triggers fewer taxable events.
However, higher creation costs and lower expense ratios create a higher breakeven point for ETF managers. ETF transactions also do not include incentive fees for broker dealer platforms and broker dealer representatives like mutual funds. Ultimus offers advisers an economical solution to combat these higher costs with our series trust offerings, which allow advisers to share costs like those incurred from compliance or board services. Our dedicated ETF onboarding team and extensive partnerships also equip us to help you get your fund to market and to effectively manage it thereafter.