Tidal Financial Group, founded in 2012 as Toroso, has grown into a successful third-party service provider for ETFs. Co-founder Michael Venuto discusses the company’s evolution from SMAs to portfolio research, attracting clients like SoFi and RPAR. The business has expanded from $1 billion to $36 billion, overseeing 230 ETFs.

Active ETFs now outnumber passive ones in the US market, signaling a trend towards niche and single-stock products. With a high open-to-close ratio, the industry is thriving but may face challenges as it moves upmarket. Tidal focuses on clients looking to enhance their existing assets through efficient structures.

Despite the growth in ETFs, the market still has room for expansion, especially with the potential introduction of dual share classes pending SEC approval. Tidal believes this change could benefit firms like DFA and Vanguard, but may require expertise in capital markets or the assistance of service providers like Tidal for successful transitions.

Read more at Yahoo Finance: ETF Wave Hasn’t Crested Yet, Tidal Co-Founder Says