As investor demand for ETFs continues to grow, more wealth managers and digital platforms are considering how branded ETF ranges could support their client proposition.
But the cost and operational resources required to build and market ETFs, alongside the scarcity of experienced specialists in the sector, often presents a challenge for firms.
It is no surprise then that State Street's ETF as a Service has gained traction as an alternative route to market, allowing firms to access an established provider's infrastructure and ETF experience while maintaining their own branding.
Increasing demand for ETFs
The demand for such a service has been expected. ETFs are increasingly used as default building blocks for index exposure and State Street Investment Management's European Wealth Report 2025 found that 88% of wealth managers expect to use them more in client portfolios.
88%
of wealth managers expect to use ETFs more in client portfolios (State Street Investment Management, European Wealth Report 2025)
Demographic change is a key driver of this shift, alongside increased demand for digital-first options.
"As the generational wealth shifts from boomers to Millennials and Gen Z, people want to be able to invest on their phone," says Anna Edwards, managing director and global head of ETF as a Service, at State Street Investment Management. "ETFs are likely to become even more the vehicle of choice for the demographics that will hold a growing share of wealth."
At the same time, Edwards notes that many wealth managers and digital platforms want to launch proprietary ETFs to avoid losing assets and market share to competitors, as well as to establish control over the product value chain.
Build, rent, or partner?
For wealth managers considering ETF issuance, Edwards says the first decision is whether to "build, rent or partner".
Option 1
Build
Significant investment across the full value chain, and access to specialist capital markets talent is a key challenge.
Option 2
Rent
Launch within an established issuer's ETF structure (white labelling): faster entry, but less flexibility and ownership.
Option 3Increasingly chosen
Partner
Retain the capabilities you already have and access specialist ETF expertise only where gaps exist.
Building an ETF capability in-house requires significant investment across the full value chain, including fund management infrastructure, operating models, capital markets expertise, regulatory oversight and distribution. Firms must also establish relationships with service providers capable of supporting the unique operational requirements of ETFs, while ensuring investment strategies are suitable for an exchange traded structure.
One of the greatest challenges is access to specialist talent, particularly within capital markets. "Capital markets is a highly specialised discipline that does not exist in the same way within traditional pooled fund structures," says Edwards. "There is a limited pool of experienced professionals, and demand for that expertise remains extremely high."
At the other end of the spectrum, firms can opt for a rental model, commonly referred to as white labelling, where they launch products within an established issuer's existing ETF structure and operating framework. While this can reduce complexity and accelerate market entry, it may offer less flexibility and ownership over the end-to-end proposition.
Increasingly, firms are choosing a partnership approach that allows them to retain the capabilities they already possess while accessing specialist ETF expertise where gaps exist. Depending on the organisation, this may include support across capital markets, ETF investments and trading, fund structuring and launch capabilities and operational infrastructure.
The State Street Investment Management ETF as a Service model is built around this partnership philosophy. Rather than replacing a firm's existing capabilities, it enables clients to leverage only the services and expertise they require, creating a tailored operating model that complements their existing business. Clients maintain ownership of the areas where they have strength, while benefiting from State Street's ETF infrastructure, market relationships and specialist expertise where additional support is needed.
The approach can also accelerate time to market. "Building an ETF platform internally can take more than a year," Edwards notes. "By combining their existing capabilities with proven ETF infrastructure and expertise, firms can bring products to market significantly faster while remaining focused on their investment and distribution objectives."
Strategic partnerships
But launching the ETF is only part of the challenge. Success is still dictated by product-market fit and distribution and the ability to build investor demand over time.
"Many ETFs launch successfully from an operational perspective but struggle to gain commercial traction," says Edwards. "In some cases, the investment strategy is not ideally suited to the ETF wrapper. In others, the distribution strategy is not sufficiently developed to drive meaningful asset growth."
As a result, State Street's ETF as a Service model is built around strategic partnerships rather than a traditional white label arrangement. The objective is not simply to provide infrastructure, but to help clients develop a sustainable ETF business by combining their existing strengths with State Street's ETF expertise and capabilities.
For this reason, State Street's ETF as a Service model is built around strategic partnerships rather than traditional white labelling. Clients retain the capabilities, relationships and expertise they already possess, while leveraging State Street IM's ETF infrastructure, capital markets expertise and operational support where needed.
"The most successful partnerships are those where each party focuses on what they do best," says Edwards. "Our clients bring investment expertise, brand strength and investor relationships. We help fill the ETF specific gaps."
One example is Fideuram Asset Management Ireland, part of Intesa Sanpaolo, which launched a range of branded ETFs through State Street's ETF as a Service platform in late 2024. The partnership has since expanded to 13 ETFs Launched with multiple clients, and more in the pipeline.
Despite only launching the service in 2024, State Street's ETF as a Service platform already has over $8bn in assets.
$8bn+
in assets on the ETF as a Service platform
13 ETFs
launched with multiple clients, and more in the pipeline.
2024
year the ETF as a Service platform launched
Looking ahead, Edwards sees significant opportunity for continued growth as ETF adoption accelerates globally. "We continue to see growing demand for ETFs across a range of markets," she says. "Our ETF as a Service model already extends beyond UCITS, and we see further opportunities to support clients across additional regions, domiciles and distribution channels as the market continues to evolve.
As generational change and digital-first investing continue to shape demand for ETFs, branded products may offer wealth managers and digital distribution platforms a way to respond to evolving investor preferences without having to build every element of ETF infrastructure themselves.
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