Exchange-Traded Funds

Support for all aspects of launching and operating ETFs

>>Exchange-Traded Funds
Exchange-Traded Funds 2021-09-15T13:46:43-04:00

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).
  • 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 throughout the ETF ecosystem also equip us to help you get your fund to market and to effectively manage it thereafter.

How Ultimus helps you launch and operate a successful ETF:

We educate you on all aspects of the ETF ecosystem, including the day-to-day operational processes, and guide you through every step of the onboarding process.

We have strong relationships throughout the ETF ecosystem and can make important introductions to Authorized Participants (APs), market makers, and listing exchanges. We also partner with experienced service providers to ensure that your ETF will be managed professionally by the right organizations providing the right services. Your dedicated Ultimus relationship manager will assist with ongoing communication and coordination with these parties.

Our series trust model provides you the opportunity for lower operational costs for your ETFs.

Ultimus provides ETF fund accounting and administration, legal administration, relationship management, and tax and compliance services. Learn more.

Our experience working with AP agreements allows us to negotiate the process with trust counsel and AP legal teams so they are in place for your ETF launch and beyond. Also, raising assets for a new ETF requires a sound distribution strategy, which must include a plan for educating investors about the benefits of ETFs, how they differ from a mutual fund, and how they can be used in a portfolio. Through our ETF distribution services, Ultimus can assist you in developing this strategy for your fund.

Our shared trust outside counsel will work with you to file the ETF exemptive relief application, as well as the draft prospectus and all 15c material.

We work directly with ETF listing exchanges to provide your strategy information and holdings for analysis, as well as work with you as to determine if your fund meets generic listing standards or if a 19b4 filing is required.

We offer professional marketing support for your new or existing fund, employing a 4-step approach which includes creating a core messaging strategy, establishing or redesigning your brand, complete fund and firm website creation, and creating marketing collateral such as fact sheets and pitch decks including the content, design, and compliance review. For ETF websites, we offer a technology solution that displays live fund data—it is a solution that is flexible, simple and customizable. For continuity, we also offer ongoing digital marketing and website maintenance services.

Thinking of Launching an ETF?

Q&A with Tom Lydon & Dave Nadig of ETF Trends and ETF Database

Let’s Talk

Contact a member of our team.