ETFs

ETFs 2018-11-06T20:37:34+00:00

Exchange Traded Funds (ETFs) have been on a meteoric rise since their introduction in 1993, with total assets now topping $4 trillion*. They appeal to investors because of the diversification, transparency, liquidity, and cost-effectiveness they offer, among other benefits. Gemini provides a complete service offering to help advisors capture assets through these popular investment vehicles.

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. Gemini offers advisors a solution to combat these higher costs with our series trust offerings, which allow advisors 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 quickly and to effectively manage it thereafter.

Additionally, 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 dedicated ETF distribution services, Gemini can assist you in developing this strategy for your fund.

Potential Benefits of ETFs

Most ETFs report exact holdings daily, so investors can verify that the ETF is closely tracking its benchmark.

ETFs are bought and sold on the open exchange, eliminating the need for traditional mutual fund platforms, selling agreements, and required due diligence processes. There is no minimum to buy into ETFs, making them available to investors who may not have the stated minimum investment required by most mutual funds.

Like stocks, ETFs trade throughout the day, so their price fluctuates with market supply and demand. Investors can also use tools like limit orders to purchase shares only at a certain price, and can use ETFs in strategies like shorting.

Investors are not required to hold ETF shares for any particular length of time.

Because ETFs do not have minimums, front-end loads, or redemption fees, they can offer significant cost savings.

ETFs are designed to track market indexes that may contain hundreds or thousands of securities.

ETFs typically distribute fewer capital gains to shareholders than traditional mutual funds.

Contact a member of our sales team to discuss Gemini’s services for ETFs.

*Source

Want More?

Launching a mutual fund or ETF may provide operational efficiencies and allow advisors to recoup lost revenue from smaller accounts. Listen to a recent webinar recording where experienced industry panelists covered:

  • How launching a mutual fund or ETF may be beneficial for an RIA’s business
  • Differences in trust models (series and proprietary)
  • What to expect from the launch process
  • Initial and ongoing resources/costs

Listen to the webinar.

ETFs vs. Mutual Funds: What's the Difference?

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