What is a White Label ETF Provider?
In simple terms, a white label ETF provider allows you to leverage an existing platform’s infrastructure, knowledge, and resources to launch your own ETF, making the process faster and more affordable. Instead of building from scratch, you gain access to ready-made resources that save time and costs while ensuring a high-quality product.
Why Choose a White Label ETF Provider?
Launching an ETF independently can be overwhelming due to significant costs, regulatory hurdles, and time demands. White labels provide turnkey solutions, handling the behind-the-scenes processes without being visible in your ETF branding. This streamlined support is why so many managers choose white labels over navigating the complex launch process alone.
Let us break down the challenges of creating an ETF independently, the benefits of using a white label provider, and how Tidal Financial Group offers more than a standard white label service.
Challenges of Creating an ETF on Your Own
- Building Your Own Trust
Going solo to build an ETF from the ground up involves significant costs and an extended timeline. Setting up operational infrastructure, a capital markets network, compliance protocols, marketing, trusteeship, business management, and a trading team requires an initial investment of $600,000 to $1 million, along with annual costs of $300,000 to $500,000. This process typically takes 6 to 12 months and is generally suited for larger firms requiring full control over their ETF offerings. - Advising a Series Trust
An alternative is to become an advisor to an existing series trust. This is cheaper and faster, with initial costs ranging from $40,000 to $80,000 and annual expenses of $300,000 to $400,000. The launch timeline is typically 4 to 6 months. Your firm is not responsible for the trust and, as a result, will experience fewer operational burdens. However, you will still be responsible for compliance, marketing, and business management. - Working with a White Label Platform
A white label ETF provider offers the most cost-effective and time-efficient option. You can launch within 3 to 5 months, with initial costs between $50,000 and $75,000 and annual expenses between $200,000 and $260,000. A key advantage of using a white label solution is that it allows a portfolio manager the flexibility to focus on the fund’s investment strategy and promote the fund to investors, while the white label provider manages the operational aspects, including compliance, regulatory filings, portfolio implementation, and fund administration
While traditional white label platforms provide a seamless route to market, Tidal goes beyond the standard model, offering comprehensive expertise and support, earning Tidal a reputation in the industry as the “ETF Masters.”
Tidal Financial Group: More Than Just a White Label Provider
While many white label platforms offer a streamlined path to market, Tidal Financial Group takes it a step further. As the leading ETF platform in the U.S., Tidal does not just help you launch quickly and affordably—we provide enhanced services that extend beyond traditional white labeling.
Here’s how Tidal can help:
- Trust structure flexibility: Tidal is the only platform offering a variety of trust structures for our clients. This flexibility allows clients to selectively outsource or insource various aspects of the ETF business, tailoring our approach to your specific needs.
- Advising Your ETF: Tidal can act as your ETF advisor, managing compliance and regulatory tasks. This allows you to focus on your investment strategies while knowing that your fund meets all regulatory requirements.
- Product Development: Tidal’s team of product experts helps you navigate the competitive ETF landscape, assess fee structures, and highlight what sets your strategy apart. We guide you through optimizing your investment approach, designing future product launches, and evaluating options like converting existing SMAs or mutual funds into an ETF.
- Smart Growth Program (SGP): Tidal’s Smart Growth Program provides a unique service for scaling and optimizing marketing and sales efforts. SGP provides a unique advantage for our clients, offering a level of support that sets us apart from other providers.
- Trading and Capital Markets Subadvisor: Tidal provides comprehensive trading and capital markets support, acting as an extension of your portfolio management and trading teams. Leveraging deep ETF expertise and strong sell-side relationships, we help you navigate the complexities of exchange-traded portfolios, ensuring your funds maximize the tax efficiency and liquidity benefits unique to the ETF structure.
Why Partner with Tidal?
Launching an ETF can be complex and costly, but Tidal’s expert support provides an efficient, affordable solution. From building a trust and managing regulatory requirements to handling trading operations, Tidal has you covered.
With Tidal, you gain more than a white label provider—you gain a dedicated partner focused on your ETFs success. Known as “The ETF Masters,” Tidal brings years of experience and expertise, ensuring that your product hits the market smoothly and efficiently.
If you are considering launching an ETF, Tidal Financial Group can be your trusted guide every step of the way.
