The ETF Store Launches Operations

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Independent Advisor Will Focus On Exchange-Traded Funds

In addition to a shift in assets away from actively managed mutual funds to ETFs, there is also a shift in advisors moving from large brokerage houses to independent firms

The ETF Store announced today that it has launched operations as a fee-only advisory firm focused on providing the benefits of exchange- traded funds to retail customers.

Exchange-traded funds are an innovative investment vehicle that may offer investors a number of advantages over actively managed mutual funds, including lower costs, lower taxes, greater transparency and more convenience.

The funds, known as ETFs in market shorthand, offer exposure to diversified baskets of stocks, bonds and other investment securities like mutual funds, but, like individual securities, are traded throughout the day on major stock exchanges.

"Investors have become increasingly frustrated with the conflicts of interests inherent in the large brokerage firms and the high fees and underperformance of actively managed mutual funds," said Joe Massman, The ETF Store's founder and chief executive. "The current financial crisis has made it clear to many people that the focus of the investment advisory business has too often been on the profit margins of the advisor and mutual fund company rather than on the needs of the investor."

"We believe exchange traded funds are a far, far better solution than actively managed mutual funds for investors who want to manage their investment risk, allocate their assets among many asset classes, reduce their taxes, and lower their investment costs," Massman said. "Our mission is going to be explaining those benefits to investors so they can take the actions necessary today to reach their financial goals tomorrow."

The acceptance of ETFs as an alternative to stocks and actively managed mutual funds has been growing in recent years and skyrocketed in 2008. According to Barclays Global Investors, ETFs experienced record inflows of $176 billion last year while investors withdrew $179 billion out of U.S. mutual funds.

"We are in the early stages of one of the most profound changes in the investment industry since the creation of the mutual fund," Massman explained. "The continued growth and development of exchange-traded funds will dramatically alter the managed money and financial advisory businesses, and the financial crisis is only going to accelerate those changes."

"Unfortunately, large brokerage houses and many mutual fund companies are resisting those changes," Massman continued. "That is understandable, however, since it is hard to embrace new innovations that damage your profitability."

Massman said the Kansas City-based company plans to open a retail store in the future and expand to other cities as investor demand accelerates.

"In addition to a shift in assets away from actively managed mutual funds to ETFs, there is also a shift in advisors moving from large brokerage houses to independent firms," Massman said. "We believe we will be able to provide an attractive alternative for advisors who no longer wish to sell products with high fees and sales commissions. Our advisors will focus on one thing - doing what is best for their clients."

About The ETF Store:
The ETF Store is a Kansas City based fee-only independent investment advisor that provides investment solutions to retail customers using exchange traded funds. The firm was founded in 2008 to provide investors an alternative investment solution to actively managed mutual funds.

The ETF Store offers investors a free, no obligation second opinion on their portfolios. To make an appointment, call The ETF Store at (816) 363-3837 or send an email to advice (at) More information about The ETF Store is available at


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Karen VanAsdale
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