Group 1 - The valuation of ETF platforms is significantly higher than that of traditional wealth managers, with multiples ranging from eight to ten times earnings for ETF businesses compared to three to four times for others [2] - The number of Registered Investment Advisor (RIA) transactions and ETF launches reached record highs, with 322 RIA deals in 2025, up from 272 in 2024, and 1,167 ETF launches in 2025, a nearly 60% increase from 736 in 2024 [3] - The rise of 351 exchanges allows for tax-free transfers of appreciated assets to ETFs at launch, indicating a growing trend in the ETF market [4] Group 2 - Advisors face challenges in the ETF business, including high operational costs, with a threshold of $100 million in assets needed for ETFs to be self-sustaining [5] - The potential for scaling asset allocation services through ETFs exists, but many firms struggle with the economics of launching and maintaining these funds [4][5]
Do ETFs Make RIA Firms More Valuable?
Yahoo Finance·2026-02-11 05:03