LONDON and NEW YORK, January 28, 2019 /PRNewswire/ --
ETFS Capital has provided an initial $4 million of seed funding to ETFLogic, the exchange traded fund (ETF) analytics and data company.
The parties anticipate that any future funding will also come from ETFS Capital, enabling ETFLogic to focus solely on developing its business without the need to source outside capital.
The tools that ETFLogic provide are incredibly useful to ETF issuers, financial advisers and anyone wishing to select which ETFs might be best for their client or portfolio.
ETFS Capital is delighted to announce that it has invested $4 million in ETFLogic, the New York City-based ETF analytics and data company. This is the first outside fund raising by ETFLogic, which commenced operations in 2018 with just founders' money.
The ETFS Capital business was formed out of ETF Securities in 2018 following the successful divesture of its operating ETF businesses in Europe and the US, which delivered proceeds of more than $600 million. Those proceeds are now being applied to investment opportunities within the ETF eco-sphere, with a particular focus on helping to grow start-ups who bring innovation and new solutions to the sector. With its deep ETF management experience and ability to invest small and large amounts in any company, ETFS Capital is an ideal partner for ETFLogic.
Commenting on the funding, Graham Tuckwell, Chairman of ETFS Capital, said that it was his team's experience running ETF Securities, together with the significant synergies with ETFS Capital's other portfolio companies, Ultumus and ETF Stream, that led them to invest in ETFLogic.
"We know from first-hand experience that data tools are absolutely crucial to successfully trading ETFs. If ETFLogic's solutions had been available to us at ETF Securities we could have made even better decisions for our clients and saved ourselves days or weeks of work each time," he said.
"ETFs are changing how financial markets operate and invest," said Emil Tarazi, CEO of ETFLogic. "Every participant in the ETF ecosystem can benefit from what they have to offer.
"ETF assets have grown with a commensurate increase in complexity and we are still in the very early stages of this evolution. Our clients - ETF issuers, advisors, traders and corporations - need analytics and easy-to-use tools to gain an edge in this new ETF-driven world. That is why we are excited to have the backing of ETFS Capital.
"In addition to capital, they provide strategic advice and deep knowledge of the ETF markets. We couldn't be more eager now to accelerate our roadmap and enable our clients with our best-in-class tools."
The global ETF market currently stands at $5.5 trillion in assets under management and is expected to grow to $12 trillion by the end of 2023. With an ever-expanding product universe, ETFs now require an expansive skillset and deeper analytics to understand how to invest. The lack of robust tools and a go-to dedicated ETF platform could lead investors to the wrong decisions when choosing from the thousands of ETFs to add to their portfolio.
ETFLogic fills a gap in the ETF analytics market by providing an easy-to-understand and user-friendly online platform packed with interactive visualizations, unique data points and customized reports around trading costs, risk factors and underlying portfolio characteristics.
Financial professionals across the industry are empowered with ETFLogic's tools to cut through complexity. ETFs are easily compared across multiple dimensions, helping investors price, trade and manage these products in their portfolios. The company also helps break down the factor and asset class exposures of ETFs, allowing asset managers to save time and simplify their investment process.
The $4 million investment will be used to expand ETFLogic's team, while also building out its product offering in Europe and the US.
About ETFS Capital
ETFS Capital is the new name for ETF Securities, following the divestiture by the company of its US and European businesses, which delivered the company more than $600 million in proceeds. Those proceeds remain with the company and are being used to invest in the ETF eco-sphere. Key senior executives from ETF Securities have remained with the company, which is now the world's largest investment firm devoted solely to investing in companies and start-ups operating in the ETF eco-sphere. Visit the website at ETFSCapital.com
ETFLogic is a financial technology platform dedicated to ETFs (Exchange Traded Funds). Founded in 2017 by Emil Tarazi, ETFLogic provides analytics and data that brings cost transparency to the ETF market. Powered by a vast set of databases, the company provides timely and actionable insights for institutional investors on the true cost, liquidity and risks of ETFs. The ETFLogic team consists of financial markets professionals from across the industry, including market-makers, data scientists and ETF sales specialists. Visit the website at ETFLogic.io.
1. Source: iShares' "Four big trends to drive ETF growth 2018"
SOURCE ETFS Capital