Open Architecture Financial Platform
Despite ETFs being one of the fastest growing financial products of the new century, Fund.com and its AdvisorShares subsidiary approach ETFs differently than mainstream ETF providers by observing and copying a new, successful business model – Apple’s iPhone. Apple made the iPhone software open to software developers that unleashed a torrent of creativity and resulted in 85,000 applications for the iPhone being developed by independent programmers. Apple itself invests in the platform, branding, marketing and the distribution these “apps”, however, the apps have made the iPhone infinitely more desirable to the general public, dramatically increasing Apple’s sales, with Apple’s stock recently breaking the $200.00 mark, even in the still shaky economy. AdvisorShares applies this same model to ETFs.
The AdvisorShares’ ETF platform allows existing investment advisors to “plug-in” their own investment management strategy into an ETF. Like an iPhone “app,” independent managers develop their own products that “run on” AdvisorShares ETF platform. AdvisorShares shares in the management fee revenue, just like Apple. And also just like Apple, AdvisorShares’ target market is massive – in the US there are currently 10,466 registered investment advisors (RIAs) in the United States that oversee $37.5 trillion in professionally managed assets, according to Tiburon Strategic Advisors. In the company’s view, all advisors want to grow their business and a custom NYSE-listed ETF will help them achieve their goals.
Read more about this topic: Fund.com
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