How does a white label platform work?
An ETF White Label Platform enables an ETF Sponsor to launch an ETF without incurring the high cost of building and running a Trust. ETF Architect runs all aspects of running an ETF and enables its clients to focus on distribution and running their strategy.
The high-level services provided by ETF white labels can be broken into three core components:
- Legal/Regulatory/Compliance
- Portfolio Management
- Marketing/Distribution
ETF Architect offers #1/#2 because we believe #3 should be flexible and open architecture and bank custody platforms offer #1. There are several other white labels that offer #1, #2, and #3 in one package.
Do I need to hire a Sub-Adviser to do trading? Who trades my ETF?
We bring a best-in-class trading and execution team as part of our service offering. There is no incremental need to hire trading personnel or outsource trading to a third party. Most importantly, ETF Architect prides itself in high-quality trading operations, thereby ensuring your shareholders are afforded a fiduciary level of care in the execution of its duties.
Am I an Adviser on the Trust? A Sub-Adviser?
Both options are available.
How is billing handled? Do I enter into a lot of service agreements?
ETF Architect provides a single, clean invoice on one page. We include all accounting, billing, and invoice payments as part of our low, fixed fee. You enter into a single contract.
Do I get to choose my listing exchange?
Yes. ETF Architect works with all three listing exchanges (NYSE, NASDAQ, CBOE)
What other costs are there that I should know about?
All fund sponsors will need EO/DO insurance and have to cover certain variable costs. We seek to keep these costs as low as possible and bill them passthrough (i.e., no markup).
What types of funds can your platform handle?
Our platform can support any fund type with the appropriate partner. Each strategy type is evaluated on a standalone basis (e.g., equities, fixed income, futures, etc.).
What are your screening criteria?
We do not seek to be the largest platform or the platform with the most funds. We grow slowly and selectively, opting to partner with high-integrity firms with a demonstrable chance of success. At a minimum, we expect partners to possess $500k in operating capital, $5M of launch capital for the ETF on Day 1, and a reasonable roadmap to $50M in fund AUM.
What is your pricing?
Pricing is developed on a case-by-case basis.