ETFS Capital has provided $4 million of seed funding to ETFLogic, the exchange traded fund analytics and data company.
ETFLogic provides data tools for ETF issuers, financial advisers and anyone wishing to select which ETFs might be best for their client or portfolio.
ETFS Capital has invested $4 million in ETFLogic, the New York-based ETF analytics and data company. This is the first outside fund raising by ETFLogic, which commenced operations in 2018 with just founders' money.
ETFLogic's platform helps investors uncover the exact liquidity and cost of investing in every ETF. This helps financial institutions price, trade and manage ETFs in their portfolios.
The company, which is headed up by Emil Tarazi, a UBS programme trading alumnus, also breaks down the factor and asset class exposures of ETFs, allowing asset managers to save time and simplify their investment process.
The capital will be used to expand ETFLogic's team, while also building out its product offering in Europe and the US.
Commenting on the funding, Graham Tuckwell, Chairman of ETFS Capital, said that it was his team's experience running ETF Securities, 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.
Emil Tarazi, CEO of ETFLogic, said:
"ETFs are changing how financial markets operate and invest. 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.
As the ETF ecosystem deepens, ETF providers, market makers and exchanges are investing more in technology and data that supports trading.
ETFLogic aims to fill a gap in the ETF analytics market by providing an easy-to-use one-stop shop for generating reports around trading costs, risk factors and underlying portfolio characteristics.