Before & beyond the launch: PR helping ETF sponsors cut through the noise when introducing share classes and active strategies 

Key Takeaways:

• The SEC’s preliminary approval for dual share class ETFs opens doors for innovation communications around future launches 
• ETF sponsors should focus on early audience segmentation, earned media outreach, multi-channel advisor education, and robust digital strategies—including SEO and AI-optimization—to stand out and effectively launch new products.
• Sponsors should communicate operational readiness and be transparent about yet to be finalized distribution and cost details to build trust with advisors and boards of directors. 

On September 29, the SEC granted preliminary approval to Dimensional Funds Advisors’ request for exemptive relief to offer a dual share class structure allowing a single fund to have both traditional and ETF share classes. Numerous other firms have also applied for exemptive relief, and this regulatory clarity is likely to lead to a slew of new ETFs. Add to this the record number of active ETFs launched or soon to launch in 2025.

Will the SEC’s ruling usher in a golden era for ETFs? Maybe not immediately.

Many details are yet to be worked out, and there is a huge communication and education gap between sponsors addressing the operational challenges of making these new share classes happen as well as advisors who may not fully understand the more complex dynamics of dual share classes.

In the meantime, clear communication and education now can help ETF plan sponsors look prepared, build trust and grow mindshare. Here are five strategies to capitalize on this golden opportunity for either an active ETF or ETF share class:

1. Start early to create a pre-launch foundation.

Ideally, issuers begin elevating awareness with significant runway before launch. Share class issuers may require more time given the education lift needed to educate partners.

Best practices:

• Segment your audiences: Create distinct strategies for RIAs, wire houses, the growing audience of institutional investors using ETFs and direct to consumer channels.
• Create clear positioning before launch: Assure your ETF will stand out amidst the crowd by defining a clear investment thesis, the problem the ETF will solve and how the ETF fits into the broader portfolio.
• Demonstrate your expertise: Behind the scenes operational challenges require experienced professionals with deep relationships. Elevating experienced operational leaders can provide a competitive edge and can help assuage concerns about the complex dynamics of offering ETFs alongside traditional mutual funds.

2. Rely on earned media as the workhorse of ETF visibility.  

While clearly articulating your value proposition in a launch release, smart ETF sponsors work with the most important outlets to line up embargoed or exclusive stories for launch day to gain more prominent coverage.

Best practices:

• Develop story angles for different audiences.
  • Financial trade media want to know the mechanics and competitive differentiation to educate financial professionals.
  • Personal finance media will want the wealth building narratives around the product that will resonate with end investors.
  • Leadership outlets may want to cover the innovation, executive vision and strategy around the launch.
• Prioritize ETF media.
  • Get in front of established ETF media including VettaFi/ETF Trends, ETF.com, ETF Database, ETF Express, ETF Stream, ETF Upside and others as well as ETF reporters at traditional business outlets like CNBC, Bloomberg, Barron’s and Wall Street Journal.
• Prioritize podcasts.
  • In a more laid-back setting, podcasts like the Compound and Friends, the Long View and Capital Allocators are great platforms to convey your firm’s mission and fund’s value proposition to more audiences.

3. Spotlight advisor education across multiple channels.  

Given the complexity of ETF share classes and novel active strategies, education can help successful firms stand out. This should include webinars and virtual events, content that explains how your product works and how to use it within a portfolio, custom calculators that can demonstrate tax efficiency benefits and conference presence at advisor and key ETF events.

4. Prioritize digital strategies. 

To maintain visibility, especially with advisors who begin their investment research online, identify the salient keywords and search strings advisors are likely to use and be sure to optimize for those terms on your website and in educational content.

• Take steps to optimize your SEO footprint by creating the type of content that will help you get found. Getting your content placed in other well visited sites supports this effort.
• Optimize for generative engines (GEO) and AI-powered search tools. Create well-structured data using schema markup as well as clear and authoritative content that language models can confidently reference.

5. Master post launch retention and growth. 

This includes an ongoing engine of thought leadership content, a steady stream of performance communications (including milestone growth achievements) and quarterly written and video updates.

Additional considerations about share class

Beyond the pre- and post- launch strategies used by successful ETF sponsors, there are a number of nuances to share class communications that are worth mentioning. At this point, there are still so many unknowns about how share classes will work.

Further, most financial intermediary firms won’t be ready to support ETF share classes immediately. That means sponsors need to get in front of these operational readiness issues and be transparent about the timing and limitations to prevent advisor frustration from undermining trust.

The elephant in the room that few are talking about is compensation. Many traditional asset managers have relied on revenue sharing and 12-b-1 fees to drive distribution, and many of the platforms will not have these incentives to promote ETF share classes despite their benefits. Distribution will likely need to think differently to incentivize sales.

Lastly, advisors will want clear explanations on how the costs will be allocated across mutual fund and ETF share classes in the same portfolio. Proactive communication about governance processes will be necessary for both advisors and the boards overseeing ETFs.

Despite these considerations, thoughtful planning and robust PR strategies can make the difference between whether your ETF gains traction or disappears into the crowded ETF landscape. If you are looking for communications support for your launch, let us know.