On January 1st, 1993, the SPDR S&P 500 exchange traded fund, known by traders as $SPY, began trading on the New York Stock Exchange. Since then, exchange traded funds, or ETFs have grown to $1 trillion in assets under management, making them one of the most popular investments for both professionals and retail investors. This week, we are excited to announce a new use case for the TradeIt API: ETF marketing, direct to the consumer.
The ETF represents one of the most consumer-friendly innovations in retail investing since the discount brokerage. With transparent fee structures and superior liquidity, the ETF has largely outpaced the mutual fund as the retail portfolio’s favorite companion to typical equities. Today, individual investors can diversify their portfolio, add dividend income, or invest in specific countries or sectors through specialized ETFs like $GLD, for gold, or $SDIV, for dividends.
ETFs also protect novice investors by allowing them to diversify their portfolio without betting on specific companies in unfamiliar industries. However, with more competitive ETFs on the market each year, issuers often struggle to reach these consumers and educate them about their products. Here, we saw an opportunity to leverage TradeIt’s technology to benefit both the merchant and the consumer.
With TradeIt capabilities, any issuer site can allow their traffic to purchase ETFs via their existing broker. Self-directed investors often read ETF fact sheets before making their decision to purchase, and TradeIt integration gives them a convenient way to access their broker and submit trade orders. For ETF issuers, TradeIt enables a “checkout aisle” on their website to optimize their marketing funnel. Ultimately, TradeIt helps ETF issuers leverage their product information by making it actionable for the customer.
Beginning this month, we are launching pilot programs with major ETF issuers and marketers to make the most out of their web content. Interested in participating? Please email email@example.com.