Managing ETFs in FA

Elena Lundaeva Articles Leave a Comment


ETFs – or Exchange Traded Funds – have since their inception in early 1990s gained significant popularity and their market cap has been growing every year. While the ETF market is still smaller than that of mutual funds, ETFs are constantly gaining more and more popularity. With their low costs and easy access to wide diversification, ETFs provide a lucrative way for investors to invest in various underlying products.

Part of ETFs’ low costs can be explained by the fact that they don’t generally require active managing. That doesn’t remove the fact that day-to-day ETF operations still contain many tasks that might be cumbersome and tedious without the right tools. With the flexibility of the FA Platform and its many features, many of those tasks can be made significantly easier or even fully automated. For example:

Basket model calculation
Calculating the basket model is an integral part of ETF operations. FA can make this process easier by automatically generating the basket model, for example, based on the most recent index available. The model can even be automatically sent to the right parties, further reducing the amount of manual work needed.

• Fund portfolio management
Fund portfolio management is a part of FA’s core functionality. FA makes it easy to track the index, rebalance the fund portfolio, generate the respective trades, send them to the market, and execute the trades in the system. The whole process can also be highly automated in the FA Platform to further reduce the effort needed for different manual tasks in fund management.

• Integrations to various actors in the ETF landscape
With FA’s flexible data fetching and importing possibilities, it is easy to import data from third parties or provide data to them. FA allows the user to retain complete control on the data sent and received, but the integrations can also be made fully automatic. Allowing fund companies to focus on the funds themselves and spend time on actual productive work.

All in all, FA can support ETF operations in multiple ways and make the operations simpler and more effective. With FA Platform’s various features you can focus on more important tasks and leave the manual extra work to be handled by FA.


 

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