Trust Company of America (“TCA”), a provider of integrated technology, custody and management support for Registered Investment Advisors, has launched ETF Custody Advantage, a trading platform designed for exchange-traded funds.

Joshua Pace, president and CEO, Trust Company of America.

The platform initially provides 60 ETFs from key asset classes – including domestic and international equity, bond, sector, currency and commodities – and includes funds from ETF providers Guggenheim Investments and Global X.

“[Our] ETF platform will ensure investors receive greater levels of diversification through exposure to a wide array of asset classes,” said TCA’s president and CEO Joshua Pace. “What sets ETF Custody Advantage apart is its transparency, allowing advisors to know exactly what returns their clients are receiving, giving them a greater amount of flexibility. In addition, the tax efficiency and investment options advisors will have through this will be a game-changer.”

Compared to mutual funds (traditionally a leading choice for advisors), ETF Custody Advantage enables advisors to provide their clients with significantly lower expense ratios, greater investment flexibility through intraday trading, and a higher level of transparency. Furthermore, to help manage costs, TCA will provide a custody fee offset on all participating ETFs, automatically applied to assets held in the products on the trading platform.

Advisor clients may also benefit from the potential for greater tax efficiency through low portfolio turnover rates and greater control over the timing of tax consequences.

Horizon Investments president and CEO Robbie Cannon, noted: “As a money manager with conviction that active investment management strategies can add greater value over time, our firm turns to ETFs for low-cost global diversification needed to help our clients meet their goals. We’re excited that TCA has created this new program to help us take advantage of cost savings for clients and also tap into additional resources from leading ETF providers like Guggenheim and Global X.”

TCA’s ETF sponsors, Guggenheim Investments and Global X, will provide advisors and their clients with ETF educational resources, including white papers, commentaries, sales ideas and fact sheets.

TCA plans to add to its line-up of ETF providers throughout the year.