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ETF Trading Platforms Offer Treasure Trove of Data: Report


Some exchange traded fund providers were quick to jump onto Charles Schwab’s new ETF OneSource platform as the services also let sponsors take a peek into the trading habits of investors.

“The holy grail in many respects of the ETF business is capturing better data, and that has led us down different paths to capturing that data in less than ideal ways,” Bill Belden, director of product development at Guggenheim Investments, said in an Ignites.com report.

Schwab clients can buy and sell 105 ETFs with zero online trade commissions. The OneSource platform includes funds managed by State Street Global Advisors, Guggenheim Investments, Invesco PowerShares, ETF Securities, U.S. Commodity Funds and Schwab’s own lineup of ETFs. [Schwab Unveils Game-Changing Commission-Free ETF Platform]

“It has been a challenge,” Frank Polefrone, senior VP at Access Data, said in the article. “Firms are trying to understand not only their own position, but flows and assets based on the products they are selling.”

By partnering with Schwab, fund providers gain access to data that can better a provider’s management distribution strategy and compensation for its wholesaling force.

“Clearly the reporting aspect is something we’ll be able to leverage,” Belden added.

“As with commanders on the battlefield, the better the operational information that managers have, the better they can run their businesses,” Rubesh Jacobs, director at kasina, said in the Ignites report.

Other broker-dealers that are considering commission-free platforms are also looking into packaged data and reporting, according to the article.

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. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.