Exchange-Traded Funds (ETFs) are one of the fastest growing product areas in the financial services industry. Numerous advantages of ETFs compared to classic mutual funds drive their growth and the growing popularity with private investors. Wealth managers, family offices and endowments also value the positive characteristics of ETFs. Especially Europe, with its globally recognized UCITS regulation for ETFs, is currently at the center stage of the ETF story.
The basic idea behind ETFs is to replicate index performance at low cost. It is still the primary motivation behind the implementation of the vehicles. With growing popularity, new and exotic constructions emerge, beside the plain vanilla versions that just replicate well-known indices like the S&P 500 or the MSCI World. An in-depth analysis of these new product ranges, their underlying indices, issuer and counterparties, as well as comparison with alternatives have become a necessity.
The following presentation outlines our ETF consulting services. With the help of several case studies, we show how the use of ETFs can improve your investment processes, profitability, client retention. At the same time, we highlight that the implementation of ETFs is not trivial.
To download the PDF version please click: Our ETF Consulting Services
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It has become obvious that the ETF market will continue to grow on the supply side but even more so through demand from clients. Implementing wealth management, balanced or multi-asset approaches with ETFs instead of mutual funds or single stocks/bonds is an unstoppable trend. These shifts do not come without new challenges. The investment universe has to be captured and processes for information collection and vehicle selection have to be constructed. A continously growing product universe ties up resources. Above all, the management responsibility is transferred from the mutual fund managers to the supplier of the wealth management/balanced approach. This is not a trivial matter but a whole new level of competence. Content for monthly reviews has to be generated internally and needs to be tailored to the specifics of passive investments. A self-assessment of the management performance is also expected by clients.
This reorganization can be a tremendous effort. On the other hand, suppliers will operate a future-oriented solution which clients already demand and value, especially within the wealth management space.
We offer a holistic consulting approach that encompasses the investment universe, ETF selection, IT and work flow processes, as well as content. Considering all aspects and stakeholder interests, we can accompany your shift to ETFs, right from the start.