Everyone Wants to Launch an ETF. Few Think About What Comes Next.
One of the best things about the ETF industry is that you often get to see the little guy compete with the big guy. That doesn’t happen much elsewhere.
Launching an ETF business has never been easier. You can outsource almost everything. But that’s also part of the problem.Too many issuers spend all their time figuring out how to enter the market, and not enough time thinking about what happens once they’re in it.
If you don’t have distribution reach or brand recognition, you’re starting from a tough spot. Trying to win over clients who’ve never heard of you is hard work. And as retail participation grows, the challenge only gets bigger.
So yes, it’s nice to say you’re competing with Vanguard or iShares. But let’s be honest, most of the time, you’re not.
Global stocks are soaring, big tech’s reporting, and institutional investors are bearish on real estate
Markets are booming, earnings are looming, and even the Louvre jewel thieves couldn’t escape the headlines. While equities hit record highs across Europe and Asia, gold and silver tanked in heroic fashion last week. With Big Tech earnings on the docket, central banks are back in focus this week (especially the US Fed), and all eyes are on whether this year’s bull run has legs… or just really fancy sneakers.
Big Tech’s Make-or-Break Earnings Week: The 2025 bull market could hinge on this week’s earnings from Apple, Microsoft, and Meta. Traders are bracing for volatility and watching closely/reading between the lines for a hint about whether AI-fueled momentum has staying power.
Gold & Bond Inflows Break Records: Despite last week’s price plunge, gold and fixed income are on track for record-breaking inflows in 2025. The rally may be entering a new phase marked by equal parts margin calls and grandiose fear of missing out (“FOMO”).
Big Retreat from Real Estate: Institutional investors are dumping real estate exposure amid sluggish sales, high vacancies, and weak cash flows… It’s officially the worst-performing asset class in 2025 for large asset managers (and nobody seems eager to catch the falling knife).
Unfortunately some issuers have suffered outflows year to date. (Source: Trackinsight)
Data from the Hong Kong Exchanges and Clearing (HKEX). shows year-to-date average daily turnover hitting HK$37.8 billion (US$4.86 billion) as of end-September. This surge has helped the special administrative region overtake South Korea and Japan, making it the third-largest ETP market in the world by turnover. (Source: China Daily)
Brian Roberts, the exchange’s managing director and head of equities product development said the total market value of assets under management in Hong Kong’s ETF market has doubled over the past decade, growing from around HK$300 billion to HK$650 billion by 2025.
“FOMO” has also been a major driver of investment as returns from the precious metals continue surge, according to Mirae Asset Global Investments’ Global X.
Inflows into physical gold ETPs on the Australian Securities Exchange have reached A$997mn (US$646.1mn) year to date, exceeding the A$981mn full-year peak in 2020. (Source: Ignite Asia)
This is the lowest level in ten years, which is arguably healthy and inevitable as the onslaught of new issuers, products and energy was bound to take a toll. (Source: Eric Balchunas – Linkedin)
Beneath the surface, there’s a huge divergence playing out among the market’s 11 sectors. All of them are up for the year, yet the gap between the winners and the laggards is enormous. (Source: ETF.com)
Based on the performance of the SPDR suite of sector ETFs, gains stretch from barely 1% all the way up to 24%.
The combined company will develop crypto funds centered on derivatives and structured products, executives of the companies said in an interview. Terms of the transaction, which was financed through a mix of cash and equity, weren’t disclosed.
FalconX, co-founded by Raghu Yarlagadda in 2018, has facilitated more than US$2 trillion in crypto trades for more than 2,000 institutional clients.
Founded in 2018, 21shares managed more than US$11 billion in assets across 55 listed exchange-traded products as of September. (Source: The Wall Street Journal)
UK investors holding crypto ETNs in their Stocks and Shares ISAs could be forced to sell holdings from April 2026 unless their chosen investment platform offers an Innovative Finance ISA (IFISA).
In the current HMRC guidance on the tax treatment of crypto ETNs, the UK government states these products held in a Stocks and Shares ISA will automatically be treated as an IFISA investment after 6 April 2026.
However, if the platform does not offer an IFISA, it cannot continue to hold the assets as qualifying investments once the rule change takes effect. (Source: Laurent K. – Linkedin)
Over the past few weeks, at least three ETF issuers – Volatility Shares, ProShares and T-Rex – have sought permission from the SEC to launch new leveraged funds. If approved, these products would offer investors the opportunity to magnify daily swings in the Dow Jones Industrial Average (DJIA); shares of artificial-intelligence darlings Nvidia Corp (NVDA) and CoreWeave (CRWV); and cryptocurrencies, including bitcoin (BTCUSD) and XRP, by as much as 5x.
Many of the filings pitched funds that aim to amplify daily moves by 3x. But Volatility Shares has filed for permission to launch at least 21 funds advertising 5x daily swings on a number of individual stocks, cryptocurrencies, stock-market indexes or existing ETFs.
(Source : Eric Balchiunas – Linkedin)
As the sector expands rapidly and traditional mutual funds come under fee pressure. Hans Georgeson, chief executive of RLAM, told the Financial Times that the firm plans to open an office in Dublin within 18 months to support the £184bn group’s international expansion and entry into the active ETF market. “The active ETF market is moving very fast,” Georgeson said. “We plan to enter in the top 10. We are very ambitious in the active ETF space. We will probably launch with both equity and fixed income.”
M&G is preparing to unveil its first active ETFs within weeks, with the first products investing in UK government bonds and US Treasuries. Neil Godfrey, global head of client group at M&G Investments, said: “[These] ETFs will open up possible new investor audiences and potentially expand our partnerships with our existing investor base.” (Source: Financial Times)
This signals a fresh political determination to achieve a hugely challenging goal that would transform the funding of Europe’s entire corporate sector.
Improving the efficiency of Europe’s fragmented and partially inefficient capital markets so that the EU can compete more effectively with the US and China is an increasingly urgent priority for top European policymakers.
Euronext is already attempting to address market fragmentation with the launch this year of a single trading platform for European ETFs, known Euronext ETF Europe.
62 of the 79 US firms that originally filed for exemptive relief to offer ETFs as a share class of their mutual funds before September 26 (the date when Dimensional’s application got the nod from the SEC) have now submitted updated–and presumably final–applications. (Source: Ben Johnson – Linkedin)
Meanwhile, this week Mairs & Power and Nationwide joined the queue as filers #83 and #84, respectively.
The folks at Ignites were kind enough to invite me on a webinar last week to discuss Semi Transparent ETFs. Despite losing the host halfway through, it was an entertaining conversation. A replay is available if interested.
One of the main drivers behind the success of ETFs in the US has been their tax efficiency, a feature not applicable to European ETFs. Here are the main differences.
ETFcareer.com connects top talent with the industry’s leading firms. Whether you’re just starting out or seeking a senior-level role, our curated job board features opportunities tailored to your expertise.
As we approach year end now is a good time to reflect on how we have grown and developed during the year. Have you actively sought out to learn something new? Have you taken formal training during the year?
As the year winds down, it’s a good moment to take stock of something most professionals overlook: your own development.
How much formal training did you complete this year? If your answer is “none,” you’re not alone. But that’s also a warning sign.
In finance, we rebalance portfolios every quarter. In our careers, we rarely rebalance our knowledge. The ETF industry is evolving fast. Standing still means falling behind.
Don’t let your skills go stale. Continuous training isn’t a perk; it’s maintenance.
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