Are you thinking of launching a new Exchange-Traded Fund (ETF), but the major distribution platform gatekeepers keep you down?

Gatekeepers control who gets precious fund shelf space, but most ETFs never make it that far.

U.S. ETF assets have climbed to about $11.8 trillion in more than 4,400 funds. However, the market remains highly concentrated; the five largest providers alone control almost 80 percent of U.S. ETF assets.

But there’s room beyond the gate. For smaller issuers, emerging managers, and new fund launches, the challenge is access and managing the gatekeeping systems that control which products reach which investors.

For smaller issuers and new launches, the real challenge is breaking through those distribution gatekeepers. This article explains how platform requirements work and what practical steps you can take to earn your place on the shelf.

The Major ETF Distribution Platforms: Who You Work With

ETF distribution runs through a relatively small number of channels. Each has its own needs and culture. Here’s what to understand about each one:

RIAs – Fidelity, Pershing, TD Ameritrade/Schwab

Registered investment advisors use custodians to hold client assets and execute trades. The major custodians, primarily the combined Schwab/TD Ameritrade platform, Fidelity, and Pershing, offer their own ETF platforms and fund supermarkets that RIAs use to access and compare products.

Their open‑architecture shelves and ETF lists make them central distribution hubs for many advisory firms.

Size of the market. RIAs account for 63 percent of active ETF ownership in advised channels and nearly half of index ETF ownership. If you can make a great case to independent advisors, the RIA channel may be the best path to early success for ETF launches.

Growth outlook. The RIA segment is one of the fastest-growing segments and has continued to take market share from traditional brokerage models. In addition, more advisors continue to prefer the independent, fee‑based practices supported by the RIA channel.

Advantages for small ETF issuers. Schwab’s ETF OneSource platform and Fidelity’s ETF platform offer commission-free trading on a select list of ETFs and carry weight with RIAs who want to minimize transaction costs.

Disadvantages. Decision-making is fragmented across thousands of independent firms, so shelf availability does not automatically translate into flows.

Best‑fit ETF profile. RIA distribution can be a good fit for ETF issuers that provide core equity and fixed-income strategies.

Special considerations. Revenue sharing terms are typically presented as standard, but there is more flexibility than most issuers realize, especially in the RIA custodian and IBD channels.

Wirehouse Platforms – Merrill Lynch, Morgan Stanley, UBS, Wells Fargo

The wirehouse channel remains one of the most coveted and difficult to access. Wirehouse advisors have historically managed more assets than other platforms. On average, they have held about $198 million per advisor in client assets, compared with $88.1 million in assets under management per advisor across all channels.

Issues for ETF managers to consider include:

Market size and growth outlook. Wirehouse platforms now manage hundreds of billions of dollars in ETF assets, up sharply over the past five years. ETF allocations at wirehouses are expected to keep rising as model portfolios expand and firms continue the long move from commission to fee-based portfolios.

Advantages for small ETF issuers. A single home‑office approval can open access to thousands of advisors and billions in client assets. Plus, this one green light may signal to other platforms that you are good to go.

Disadvantages. Unlike other channels, ETF issuers often need to pay shelf space fees or agree to revenue-sharing arrangements to be in the game. And being approved doesn’t mean sales will come automatically. You need to educate an often-large sales force with timely content, and, where allowed, digital distribution. Content approval also requires knowledge and patience with each wirehouse’s needs and restrictions.

Best‑fit ETF profile. Wirehouse platforms tend to raise the most assets for large, easy‑to‑explain ETFs. Core U.S. equity and bond funds from name brands, plus a limited set of well‑known active or income strategies, usually fit wirehouse models.

Special considerations. Unlike other platforms, wirehouses frequently charge ETF issuers shelf‑space fees. These fees are often structured as a share of the fund’s expense ratio, usually between 10-15 percent. What’s more, wirehouses typically take six to 18 months for due diligence review and approval. This is slower than many RIAs or TAMPs, which may review products on a rolling or semiannual basis. Product reviews at large broker‑dealers typically occur at least annually, sometimes quarterly, which is roughly in line with other major platforms.

Independent Broker-Dealers – Ameriprise, LPL Financial, Raymond James

Independent broker-dealers (IBDs) may be a good place to start for smaller issuers than wirehouses. LPL Financial, the largest independent broker-dealer in the U.S., supports more than 22,000 financial advisors through a relatively open architecture.

Market and growth outlook. IBDs now account for roughly 16 percent of total industry assets and nearly one‑fifth of all U.S. financial advisors. The IBD channel is expected to grow, but perhaps not as much as the wirehouse and RIA markets.

Advantages for small ETF issuers. Independent broker‑dealers, like wirehouses, use centralized due diligence teams to vet new ETFs for their platforms, and many broker‑dealers will not consider listing a fund until it has reached $50-$100 million in assets with at least a one-year track record, and often longer.

Disadvantages. A big drawback is how hard it is to stand out. Emerging, smaller, or untested ETF strategies frequently struggle to make it past the gate.

Best‑fit ETF profile. Among others, active ETFs and option-income ETFs have gained popularity with independent broker-dealers, as advisors seek actively managed, tax‑efficient, and income-producing funds.

TAMPs and Model Platforms – AssetMark, Envestnet, Orion Portfolio Solutions, SEI Investments

Turnkey asset management platforms (TAMPs) design many of the portfolios that RIAs and smaller broker-dealers use. As such, TAMPs are influential gatekeepers, and when a well-known TAMP platform includes your ETF in a widely distributed model portfolio, it can drive your asset flows.

Market size and outlook. By 2025, the TAMP market had grown into a multi‑trillion‑dollar system, with a handful of large platforms capturing a substantial majority of outsourced portfolio management assets. While any number over one trillion is immense, the wirehouse and RIA markets are bigger. The TAMP market share is projected to grow steadily, perhaps as much as 10 percent yearly, as RIAs outsource more portfolio construction.

Advantages for small ETF issuers. Winning a sleeve in a widely used TAMP model can create steady asset inflows without managing an ungainly number of relationships. Other time-savers are that many TAMPs handle trading, rebalancing, and administration, and may create marketing content.

Disadvantages. TAMP and model platforms can dilute control over how your ETF is positioned and used inside portfolios. This makes it harder to stand out.

Best‑fit ETF profile. Core portfolio components attract the most assets on many TAMP platforms. These include broad U.S. stock ETFs, diversified investment‑grade bond funds, and international equity ETFs. Income‑oriented bond ETFs have also drawn strong flows.

Digital Advice Platforms – Betterment, Empower, Schwab Intelligent Portfolios,  Vanguard Digital Advisor, and Wealthfront

Digital advice platforms, sometimes called robo-advisors, manage money algorithmically and typically build portfolios from a small list of ETFs. They favor low-cost, liquid products from established providers.

Market and outlook. Robo-advisors managed approximately $1.2 trillion in the U.S., up from roughly $650 billion in 2020. Assets are expected to keep growing as younger investors prefer automated, low‑cost ETF portfolios and digital channels expand.

Advantages for small ETF issuers. Digital platforms may be a good fit for asset managers looking to expand their reach among young, affluent investors. You’ll also likely get detailed data and analytics on investor behavior.

Disadvantages. Robo‑advisors usually lock you into a small ETF menu and account sizes. Algorithms control portfolio construction, so you have little influence over how your ETF is used, explained, or differentiated.

Best‑fit ETF profile. These platforms favor low‑cost, broadly diversified ETFs. Core U.S. and international stock funds, high‑quality bond funds, and market‑cap index ETFs may best fit their models.

The Pros and Cons of the Major ETF Distribution Platforms

How to Get on the Shelf When the Shelf Is Almost Full

Every major platform claims to have limited shelf space stocked with products from larger issuers. Your job is to identify and fill gaps that the incumbent products do not address.

Be different

Platform gatekeepers see hundreds of new product pitches each year. The ones that get remembered are the ones that answer a simple question: Why does this ETF exist, and what does it do that nothing else on our platform does?

Target the right channel

Targeting the right channel is table stakes. You must match your distribution effort to the platform where your product makes the most sense. If you run a thematic or alternative strategy ETF, for example, the RIA channel and certain IBDs are more likely to be receptive than wirehouses, which tend to favor core asset classes.

Build relationships

Build relationships before you need them. Gatekeepers at the major platforms evaluate your product, firm, and people. Making yourself known before you submit a formal application should improve your odds.

Make it easy for platforms to say yes

Many issuers create due diligence guides for platform decision-makers that include details on why and how their ETF is a good fit, the fund’s unique selling points, and the investment team’s experience, strategy, and risk‑management process. You also want to spell out how you will support their advisors with model construction, portfolio analytics, and access to your portfolio managers.

Three Questions We Hear Most Often About Gatekeeper Personas

What are the personas of these gatekeepers who have so much power?

A typical U.S. wirehouse gatekeeper is an investment professional, often in their 30s to 50s, with a CFA or similar designation and a process‑driven mindset. They care about managing risk for their firm, living within the rules, and how a strategy fits firm models.

TAMP and regional broker‑dealer gatekeepers can be somewhat more entrepreneurial and open to niche ideas. However, they still expect clear processes, advisor education, and that you can service clients as you grow.

What’s the best way to communicate with gatekeepers?

ETF issuers should understand gatekeepers’ research habits, what they like to watch and/or read, favored trade publications like ETF.com and Ignites, and social media, including LinkedIn, Twitter/X, and Facebook. Some gatekeepers are solo decision-makers who prefer email, calls, or in-person due diligence meetings. Larger platforms tend to have due diligence teams that work with key contact sales groups of the big asset managers.

What are the basic requirements gatekeepers need to see?

ETF platforms look for a few basic things before they take you seriously as a partner. Gatekeepers want to see at least $100 million in ETF assets, but some RIAs and digital advisors may approve less. Gatekeepers also expect competitive pricing and liquidity, accurate and timely regulatory filings, reliable fund accounting, responsive investor‑relations support, and high‑quality market portfolio management commentary. 

It’s a Wrap: A Practical Guide for Boutique ETF Issuers

Getting on the shelf is hard. But smaller ETF issuers do it every year, and the ones that succeed share a common set of traits: a great story, disciplined investment strategy, focused distribution, consistent marketing, and the patience to build relationships before they need them.

The goal is to understand how each shelf works and then design a distribution plan that fits your size, resources, and thesis.

Schedule a complimentary strategy session with Dan Sondhelm, CEO of Sondhelm Partners, and learn how your ETF strategy can successfully gain shelf space.

Frank Serebrin is the Content Marketing Director for Sondhelm Partners. He leads strategic and creative content and marketing services for our asset management and wealth management clients.