Exchange-traded fund products and sales have proliferated dramatically in the past five years and the trend promises to continue. It is no surprise then that established mutual fund companies have been eager to enter the business either through acquisition of an existing ETF sponsor or by building an ETF business organically by obtaining their own exemptive relief to sponsor and launch new ETFs. One of the principal questions that an advisor confronts upon deciding to launch ETFs is whether to establish a new board of trustees, separate from its mutual fund board, to oversee the ETFs. While the initial instinct may be that it is more efficient to utilize the existing mutual fund board to oversee both mutual funds and ETFs, a number of factors should be carefully considered prior to reaching that conclusion. 

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