Fuse Blog

White Label ETF Popularity Does Not Equate to Asset Growth

  • As of November 2023, 9% of active ETFs were white label ETFs but comprised only 2% of total active ETF AUM.
  • Active ETFs dominated 2023 ETF launches, representing 73% of new ETF products. Almost 15% of these active ETF launches were brought to market through a sub-advisory white label model. This demonstrates the appeal of services provided by firms such as ALPS, Toroso Investments, and Exchange Traded Concepts, enabling anyone with an idea to have an ETF vehicle trading live in a few months.  
  • While interest in accessing the market using these approaches will not wane in 2024, brand and distribution are required for growth. With the ETF market becoming increasingly competitive, speedily getting a product to market by outsourcing operational functions to a third party is not enough without a clear strategy for growing assets.

Percentage and AUM of White Label ETFs as of November 2023

Blog 1.17.24

Sources: FUSE, Morningstar