Exponential ETFs, an upstart fintech exchange traded funds issuer behind a unique family of funds, topped $500 million in assets under management.
Detroit-based Exponential offers a pair of its own in-house ETFs: the American Customer Satisfaction ETF (CBOE:ACSI) and the Reverse Cap Weighted U.S. Large Cap ETF (CBOE:RVRS).
“As asset managers face increasing margin pressure, we will continue to find ways to bring efficiencies and automation to the operational and portfolio management functions so that our partners can continue to provide their clients with differentiated investment strategies,” Exponential founded and CEO Phil Bak said in a statement.
Why It's Important
Exponential's ascent up the ranks of the ETF industry assets under management ranks is important because it shows upstarts with fresh approaches can find success. That's vital amid increasing concerns about competition in a business where the three largest issuers combine to manager more than 80% of assets.
In addition to the aforementioned ACSI and RVRS, Exponential acts as the sub-advisor for a dozen other ETFs, including a slew of newer products.
Exponential also acts as the sub-advisor for The Acquirers Fund ETF (NYSE: ZIG), Amplify Transformational Data Sharing ETF (NYSE: BLOK) and the Amplify Advanced Battery Metals and Materials ETF (NYSE: BATT), among others.
With the pace of new ETF launches still robust, Exponential's sub-advisory business is poised to benefit as more issuers test the waters with unique concepts challenging the pure beta fare often offered by the industry's behemoths.
“The AUM milestone comes as Charles Ragauss, Managing Director, is promoted to the newly created position of Chief Operating Officer,” according to Exponential. “In his new role, Mr. Ragauss will continue to oversee and manage the day-to-day operations of the firm, including its proprietary strategies and portfolio management sub-advisory business. Meanwhile, Josh Blechman, Director of Capital Markets, is being promoted to Managing Director and will oversee the firm’s expansion of its capital markets service offerings.”