The three key elements to consider when launching an ETF
Entering the European ETF market can be intimidating. There are numerous exchanges, currencies, languages, and country-specific laws to navigate. And then there’s the high costs, and potentially elongated time-to-market.
You may have a brilliant ETF idea – but how do you turn that idea into a reality, while contending with these hurdles? If you go it alone, chances are another pre-established asset manager will get there first.
This is where white-label platforms shine. The white-labeller can build, manage, and even distribute the ETF on your behalf, reducing costs and time-to-market, while handling the above complexities.
The question is – how do you choose the right white-label platform for you? Below, we look at three key considerations.
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What do you want to launch, and can the white-label ETF platform do it?
It may sound simple, but it’s important to ensure that the white-label platform is able to launch the product you want to launch – you shouldn’t need to compromise on a great idea!
For example, do they have a suitable ETF ICAV platform, or capability to build one specially designed for your product?
Or is your idea UCITS-compliant? If you want to create a commodity, digital assets, or short and leveraged product – it’s unlikely to be UCITS-compliant, and would need to be built as an ETC. So, you would need to ensure your white-label platform of choice has multi-asset or ETC capabilities.
From ManCo, to ICAVs, to ETCs/ETNs, and multi-asset platforms – having the right infrastructure is essential.
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Does the white-label ETF platform have the relevant experience and track record?
The ETF market can be complex, especially for newcomers. When looking to launch an ETF, you’ll want to ensure that the team is experienced, and that the white-label platform has a strong track-record of launching ETFs.
This is important, otherwise you may face increased execution risk.
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What type of service do you require, and does the white-label ETF platform offer it?
Prospective ETF managers need to ask themselves what they want from a white-label platform. From capital markets, operations, and legal services – to sales, marketing, and digital platforms onboarding – it’s important to understand the level of service you require, and if the white-label platform can meet that requirement.
Many white-labellers do not offer distribution, for example, which means sales and marketing are not included. Perhaps you can handle this yourself inhouse – but for those less familiar with the diversity of the European market, having on-the-ground sales personnel in numerous countries could be a considerable advantage.
The bottom line is, if you’re looking to launch an ETF with a white-label platform, you need to choose the one that works for you.
HANetf is Europe’s first and largest white-label ETF and ETC/N platform, with $4.5 billion assets under management spread across 36 ETPs and numerous partners, such as The Royal Mint, Guinness Global Investors, and Sprott Asset Management.
We only focus on ETPs, which allows us to have deeper knowledge and insights in the space. Our senior team of renowned experts have launched a combined 1,200+ ETPs across their careers, and our specialist in-house sales, marketing, and capital markets teams can provide teach-ins on a consultative basis to help asset managers navigate this complex market.
Our clients benefit from the most extensive infrastructure of any white-label provider: ManCo, multiple ICAVs, physical ETC/N platform, and a multi asset ETC/N platform. This allows us to launch any exchange-traded solution for asset managers.
If you’d like to enquire further about how HANetf can build your etf idea, please contact us.
