ETF Operations

Why Advisors (and Family Offices) Should Consider Creating their Own ETFs

By |November 4th, 2022|ETF Operations, Tax Efficient Investing, ETF Investing|

Independent RIA firms seek to do what is "right" for the client, which often boils down to minimizing fees and taxes and increasing transparency/education (i.e., ETFs). But the "right" solution for an advisor's clients might not be available 'off-the-shelf' in the ETF market, or the advisor can't use ETFs because they are stuck "managing around" legacy portfolios and tax problems.

What's the solution? Allow advisors to create their own ETFs, which can be customized to deliver the specific investment program the advisor desires and allows an advisor to offer unique solutions for legacy tax issues tied to low-basis securities.

Can You Keep Your Track Record After an ETF Conversion?

By |August 26th, 2022|ETF Operations, Research Insights, ETF Investing|

Here is the bottom line: converting into the ETF structure can bring a lot of benefits to the table, but porting your official track record over to an ETF can be challenging.

However, even if the facts and circumstances of your situation suggest that porting your official track record into an ETF is impossible, all is not lost. Retail consumers, institutional investors, platform providers, gate-keepers, and so forth, will likely be aware of your previous performance and reputation as an asset manager/advisor and they can often read between the lines. For example, if an advisor has been running the "ACME US Dividend Strategy" for 20 years, and this same advisor launches the "ACME US Dividend ETF" with the same investment process and investment objective, it doesn't take a rocket surgeon (or a brain scientist) to figure out that the ETF is probably a more tax-efficient version of the old strategy.

​Can you convert a mutual fund into an ETF tax efficiently (or an SMA or hedge fund)?

By |May 28th, 2021|ETF Operations, Research Insights, ETF Investing|

The question we keep getting, in various forms, is the following:

  1. Can you do a tax-free conversion of a mutual fund into an ETF?
  2. Can you do a tax-free conversion of SMAs (separately managed accounts) into an ETF?
  3. Can you do a tax-free conversion of a hedge fund into an ETF?

Long story short, yes, yes, and yes...but it's complicated!

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