ETF White-Label White Papers
Important Insights Into Index Versus Active ETF Management
We have received quite a few questions related to the costs and benefits an ETF sponsor faces when managing their funds as a “passive/index [...]
Should I launch an Active ETF or Index ETF?
Should you launch an Active or Index ETF? This post dives into some of the regulatory & legal nuances involved. If you are [...]
Can you convert a mutual fund into an ETF tax efficiently (or an SMA or hedge fund)?
We receive the following question(s) almost daily: Can you do a tax-free conversion of a mutual fund into an ETF? Can you do a [...]
Can ETF white label platforms “steal” your ETF?
In this piece, we walk through the common comment that ETF white label operations can "steal" your ETF. And while this is a valid [...]
Can You Keep Your Track Record After an ETF Conversion?
We get a lot of questions related to whether or not you can keep your official track record when you do a tax-free ETF [...]
How to Start an ETF? Resources and FAQ
We get the following question at least 1x a day: “How do I start an ETF?“ The good news is we can help [...]
ETF-prenuers: An Introduction to ETF White Label Services
Interested in starting an ETF? Interested in converting a managed account, hedge fund, or mutual fund into an ETF? Simply want to learn [...]
Lowering Costs by Taking EDGAR filing duties in-house
Colleagues, We continue to build a platform that helps ETF sponsors win. In that spirit, I wanted to share some good news: We [...]
We are Lowering ETF White Label Costs and Investing Back into the Business
From Day 1, we have sought to build a platform that helps ETF sponsors win with a dedication to affordability, turnkey operations, and [...]
Mutual Fund to ETF Conversions: To Proxy or Not to Proxy, that is the question
ETF conversions are accelerating, and we are seeing more and more mutual funds converting into ETFs. The reasons for a mutual fund to [...]
Why Advisors (and Family Offices) Should Consider Creating their Own ETFs
We believe that the primary benefits of the ETF wrapper (tax efficiency, easy access, and transparency) should be available to a broader set of [...]
ETF Architect Marine Corps Ball FAQ
What is the Marine Corps Ball?The Marine Corps Ball is an annual celebration that commemorates the founding of the Marine Corps on November 10, [...]
FAQs
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.
What do I need to do in order to launch an ETF?
We launch a new ETF via three key workstreams: SEC approval, Board approval, and internal compliance program development. Launch times can vary widely based on the Sponsor’s registration status, ability to iterate on board materials, and desired launch date. A launch can occur as quickly as 90 days.
How much does it cost to launch an ETF?
Launch costs are incurred and passed on without markup to you. We rely on select vendors curated over many years to ensure the lowest costs possible.
Who can start an ETF?
Sponsors must be willing to register with the SEC as a Sub-Adviser, or if an index provider, establish a robust compliance program subject to Board approval. While anyone can start an ETF, we screen candidates for a commitment to compliance and a robust, viable business plan.
Is it hard to run an ETF?
For normal people, yes. For combat Marines, no.
Do you convert mutual funds into ETFs?
Yes. Mutual fund conversions are becoming increasingly common. Additional costs are required to ensure a smooth conversion; however, the process itself is common.
Do you convert hedge funds into ETFs?
Yes. We can (and have) converted hedge funds into ETFs. The analysis will be conducted to confirm eligibility and a workplan for conversion. Additional costs apply.
Do you convert SMAs into ETFs?
This is possible; however, it is the most difficult of the three conversions to undertake. The analysis will be conducted to evaluate conversion potential. Additional costs apply.
Does your firm help me with distribution? I have a great idea, but need help selling.
Distribution IS the ETF business. More importantly, distribution requires a highly customized, bespoke approach. What may be the viable path for one fund is NOT a viable path for another. We prefer to provide bespoke 1:1 consulting on distribution, as required, and we will leverage our network on your behalf. Distribution expenses can get costly, fast. As such, we will not provide canned distribution services or packages upfront, but rather, will work with you to assess where your strengths and weaknesses are, what stage of ETF growth you anticipate being in, and how a comprehensive distribution strategy can leverage those points.
The Alpha Architect and ETF Architect relationship
Empirical Finance, LLC (“Empirical”) is a holding company that has 100% ownership of ETF Architect (Empowered Funds, LLC) and Alpha Architect (Alpha Architect, LLC). ETF Architect is focused on providing advisory services to ETFs; Alpha Architect is focused on intellectual property development and managing SMAs.
Wesley R. Gray (majority owner), John “Jack” Vogel, Patrick Cleary, Ryan Kirlin, and Dave Babulak are equity owners of Empirical.
Contact us