Trust Company of America (TCA), an independent provider of integrated technology, custody and practice management support for registered investment advisers (RIAs), has launched a new ETF trading platform, ETF Custody Advantage.
The offering provides 60 ETFs from key asset classes – including domestic and international equity, bond, sector, currency and commodities – and include funds from ETF providers Guggenheim Investments and Global X.
To help manage costs, TCA will provide a custody fee offset on all participating ETFs, automatically applied to assets held in the products on the trading platform.
"TCA's ETF platform will ensure investors receive greater levels of diversification through exposure to a wide array of asset classes," says TCA's president and CEO Joshua Pace. "What sets ETF Custody Advantage apart is its transparency, allowing advisers to know exactly what returns their clients are receiving, giving them a greater amount of flexibility. In addition, the tax efficiency and investment options advisers will have through this will be a game-changer."
TCA's ETF Custody Advantage enables advisers to provide their clients with lower expense ratios than most mutual funds; greater investment flexibility through intraday trading on a regulated exchange; a higher level of transparency than mutual funds of securities held by the investment; the potential for greater tax efficiency through low portfolio turnover rates; and greater control over the timing of tax consequences.
TCA's ETF sponsors, Guggenheim Investments and Global X, will provide advisers and their clients with ETF educational resources, including white papers, commentaries, sales ideas and fact sheets. In addition, TCA plans to add to its line-up of ETF providers throughout the year.
"As a money manager with conviction that active investment management strategies can add greater value over time, our firm turns to ETFs for low-cost global diversification needed to help our clients meet their goals," says Horizon Investments president and CEO Robbie Cannon. "We're excited that TCA has created this new programme to help us take advantage of cost savings for clients and also tap into additional resources from leading ETF providers like Guggenheim and Global X."