The U.S. exchange traded fund industry has expanded to over $1.4 trillion in assets under management. Now, some are looking to foreign financial markets to try and replicate the success story.
Vince Lowry, the CEO and founder of a Philadelphia-based RIA, plans to launch a new ETF company RevenueShares, backed by Chinese private equity, in the growing Chinese ETF market, which has gathered $38.8 billion from $12 million over the past decade, reports Kelly O’Mara for RIABiz. [China-Listed ETF Market Experiences Boom in Sector Plays]
“The ETF trend is for real, so we made a pretty big bet on it,” Lowry said in the article.
Lowry hopes that the company will capture 10% to 20% of the projected $400 billion ETF market through a first-mover advantage while operating as an RIA, or registered investment advisory firm.
RevenueShares, the ETF branch of VTL, follows revenue-weighted indexing methodologies.
“No one else has done it and I don’t believe anyone else will,” Paul Weisbruch, vice president of ETF/options sales and trading at Street One Financial LLC, said in the article.
Currently, VTL is working through the regulatory red tape required to be listed on Chinese exchanges.
“Because of the difference of financial policies and legal systems between China and America, we still have a lot of work to do,” Yulong Wang, chairman of Suzhou Industrial Park Kaida Venture Capital, the private-equity firm backing the venture.
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.