ETF Securities has launched CANVAS, a service enabling asset managers from around the world to build and launch white-labelled exchange-traded funds in Europe.
CANVAS will provide a number of ETF-based solutions, including the ability to build ETFs using ETF Securities’ full infrastructure, set up a bespoke ETF platform, convert existing UCITS funds into ETFs or add an ETF share class into a UCITS fund.
Matt Johnson, head of distribution EMEA, ETF Securities, says: “Asset managers have been steadily increasing their own use of ETFs for some time and recognise that it is one of the highest growth areas within the industry with approximately USD350bn invested in Europe alone. However, many do not have the infrastructure, expertise or resources to build their own products. CANVAS provides an easy and efficient way for them to launch ETFs, relying on ETF Securities’ years of proven expertise and infrastructure. To date we have already received strong interest from asset managers in Europe, the US and China.”
There has been a tenfold increase in ETF assets over the last decade. ETF Securities expects the market to continue to grow more than 50 per cent over the next two years as investors become more aware of the cost advantages, transparency and ease of use that ETFs offer over many other traditional financial vehicles. Institutional and retail investors are increasingly using ETFs to gain regional exposure to developed and emerging markets as well as to access specific asset classes. Widening and deepening distribution channels across market segments and regions, and increasing market awareness of ETFs, are expected to further drive demand for these investment products.
Johnson adds: “As we are in constant contact with our investor base, we are able to respond quickly to their needs. The launch of CANVAS is one of a number of new initiatives we are working on that will expand our business into some new and exciting areas.”
CANVAS is a European service that offers its expertise to provide ETF-based solutions to passive and active asset managers. Its open architecture model supports a broad range of services from the development to the full management of an ETF, with a focus on speed to market as well as capital and resource efficiency.
