New ETF provider launched with advisory focus
Two former senior Global X employees have launched their own ETF provider, ETF Shares, focused on offering index ETFs for advisers and retail investors.
Co-founders David Tuckwell and Cliff Man previously worked together at Global X as a senior product and investment strategist and head of portfolio management, respectively.
At ETF Shares, Tuckwell will be the chief investment officer, while Man will be chief executive.
Chairing the company will be Graham Tuckwell who originally established ETF Securities Australia in 2005, which was later rebranded as Global X in 2022 when it was acquired by Mirae Asset Global Investments.
The firm will begin by launching a range of ETFs on Cboe next month, including a US Quality ETF, a Magnificent Seven ETF, and a US Technology ETF. ETF Shares will start by offering a management fee for most of its funds at 29 basis points, far below the Australian average of around 1 per cent.
Speaking to Money Management’s sister title InvestorDaily, the pair said the adviser market is the primary users of ETFs in Australia. Compared to overseas players where institutional investors are larger ETF users, the pair’s knowledge of the adviser market will be a benefit to them.
Man said: “With our expertise, we know the market dynamics here, and from a regulatory perspective, we have the knowledge of the landscape and how it has changed since the royal commission a few years back which changed the adviser market hugely.
“That wouldn’t be something that overseas ETF issuers would know about or have a grasp of, and not something they would be able to easily master.”
Tuckwell added: “It’s the advisers who run the show here, and we’re familiar with how financial advisers work here. We’re happy to work with local advisers and retail investors, and not just with the big end of town. That’s a competitive advantage for us.”
They also noted Australia’s ETF market is highly concentrated with only around six providers of ETFs compared to over 100 in the US and 30 in the UK.
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