How to LaunchArticle06 Apr 2022

How to Convert a Mutual Fund to an ETF

Understanding the key considerations for converting a mutual fund to an ETF.
The US Exchange-Traded Fund (ETF) market has grown dramatically over the last decade, with an annual growth rate of over 19% and assets under management exceeding $7 trillion at the end of 2021. In addition to the expected continued growth of the market, the approval of several semi-transparent ETF models has more active asset managers considering adding ETFs to their product offering.
A big challenge for managers entering the ETF market is building the scale necessary to be competitive. One way to achieve scale is to convert an existing mutual fund into an ETF, which can help firms get a leg up when entering the ETF race.
This guide highlights some of the considerations when converting a mutual fund to an ETF, along with the changes you may need to make to your operations.


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