Raymond James subsidiary to launch ETF platform in 2025

The investment management subsidiary of Raymond James will enter the ETF space in 2025 with a new platform headed by Mo Sparks, former director of exchange-traded products for the New York Stock Exchange.

ETFs, particularly actively managed ETFs, have seen a surge in popularity within the last decade, with many top asset management firms adding ETF products to their investment offerings.

"Our ETF platform launch is based on client demand and is in alignment with putting clients' needs first," said a spokesperson for Raymond James Investment Management. "Along with recent growth of ETFs in the active management space, ETF structures have evolved to include more capabilities within the product wrapper — which has become more mainstream, accepted and requested — making it an ideal time to bring the platform to market for our clients."

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Sparks will officially begin in his role on July 22. 

"We are excited Mo will be leading our expansion into the ETF space — one more avenue that we can provide as part of our overall goal to give broader choice to select, high-demand investment strategies," said Bob Kendall, president of Raymond James Investment Management, in a statement.

Before his nearly five years at NYSE, Sparks worked for Vanguard for seven years, including as head of technology and analytics in the portfolio review department's ETF and mutual fund product group. Sparks was a founding member of the company's Global Product Management and Head of Product Management Shared Services leadership teams.

"ETFs are a technology that allows investors unparalleled access and control over today's investment landscape," Sparks stated. "I am eager to build this platform at such a respected organization in support of evolving investor needs — and excited to pair the capabilities of RJIM and its boutique investment managers with the access and tax efficiency that the ETF wrapper provides."

The initial suite of products on the platform will be actively managed. After the initial suite is launched, additional products will be added.

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"Raymond James Investment Management has been evaluating which asset classes maintain the strongest commercial viability potential and align with areas Raymond James Investment Management can add value," the spokesperson told Financial Planning.

The products available will be chosen based on "client needs, commercial viability and skill sets for launching the ETF product suite," according to the spokesperson. Sparks will work with Matt Johnson, head of product management and marketing for Raymond James Investment Management, to determine the products featured on the platform. 

"Mo's passion for putting clients first and bringing strong products to market aligns with our culture and goals for this platform," said Johnson in the firm's statement. "His strategic business mindset and thoughtful nature are the types of qualities we entrust to embody our firmwide values, while building out the ETF product suite within the firm."

The Investment Management division's boutique investment managers will manage the new ETF products.