To Hyland, the tangled state of affairs underscores the need for a consistent platform on key issues that crosses company lines. "BlackRock or State Street have a team of staff or outside lobbyists to protect their interests, but small and midsized issuers can't afford their own representation. It's important that we have an organization whose interests are 100% aligned with the entire ETF world," he says.
Patti said that while Netfa would welcome the big three ETF firms, the group is ready to move forward without them. "It might end up that the ETF industry follows a pattern set by the banking industry, where the American Bankers Association represents the largest banks while the Independent Community Bankers of America represents everyone else."