Distributor

What is it?

The Distributor is the entity responsible for marketing and selling shares of an ETF to investors. The distributor works with financial institutions, brokerage firms, and other market participants to ensure the fund is accessible to potential investors.

Why is it important?

• Market reach and accessibility – a well-established distributor can enhance an ETF’s visibility and availability in various markets.
• Liquidity and investor base – distributors play a role in ensuring ETFs attract sufficient investor interest, contributing to trading volume and liquidity.
• Investor confidence – recognized distributors with strong reputations may enhance trust in the ETF and its management.