Two former senior IShares executives are rolling out a company aimed at consolidating “sub-scale” exchange-traded fund (ETF) operations, Financial Times reports. ETF Opportunity Partners has been floated by former IShares chief executive Lee Kranefuss and former head of IShares’ international business Rory Tobin. The new venture aims to catalyze formation of the next generation of ETFs that may reach the $1 billion mark. While the industry outside the U.S. has seen the number of ETF issuers expand to 117 from 66 and the number of products to 2,735 from 503 in five years, new issuers are struggling to reach even $100 million in assets. ETF Opportunity looks to combine the fragmented ETF operations while the original owners may continue to hold an economic interest.

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