How to Launch an ETF: The White-Label Playbook | Mike Venuto

In a recent episode of “Behind the Ticker,” Mike Venuto, co-founder and CIO of Tidal Financial Group, shared insights into the company’s approach to launching, growing, and operating ETFs. Tidal, a firm that has grown significantly over the years, now manages and supports over 160 funds with more than $19 billion in assets under management. Venuto, who has a background in ETFs dating back to his time at WisdomTree and Global X, highlighted Tidal’s unique platform that helps clients from initial idea generation to full-scale ETF operations.Venuto discussed his hands-on role at Tidal, which involves structuring ETFs, managing active funds, and collaborating closely with clients to develop innovative products. A key focus of the conversation was on the breadth of Tidal’s capabilities, from handling compliance and legal matters to marketing and product development. The company prides itself on offering a comprehensive service, allowing ETF issuers to focus on managing their portfolios while Tidal handles the operational complexities.One of Tidal’s standout achievements is its ability to launch ETFs quickly and affordably, compared to the traditional process. Venuto explained that while starting an ETF independently can cost hundreds of thousands of dollars and take up to nine months, Tidal can often bring funds to market in under four months at a fraction of the cost. This efficient process, combined with the firm’s expertise in complex strategies such as options, derivatives, and leverage, has allowed Tidal to grow rapidly, especially in the active ETF space, which has seen significant demand.Venuto also touched on trends in the ETF market, including the growing interest in active strategies, single stock ETFs, and the potential for mutual fund-to-ETF conversions. He noted that while mutual fund conversions have been slow, the demand for more tax-efficient ETF structures continues to rise. Additionally, Venuto emphasized that Tidal only partners with clients who have strong, viable product ideas, ensuring that the firm maintains a low fund closure rate and helps clients succeed in a competitive market.Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast