The pair have set up the company in a bid to shake up the industry and offer investors access to new products in what is a rapidly expanding market.
Kranefuss started and ran the iShares series of ETFs when it was still part of Barclays Global Investors.
He left shortly after BlackRock bought iShares in 2010 to explore his own entrepreneurial opportunities.
Tobin was the CEO of the iShares international business and also left after its acquisition by BlackRock to "pursue other opportunities".
He had worked at iShares since 2004.
This joint venture by Tobin and Kranefuss is designed to pursue what they refer to as "organic and inorganic opportunities in the ETF industry".
During their time at iShares, assets under management grew from $20bn to $470bn and represented nearly 50% of the global ETF marketplace.
Kranefuss said: "ETFs have been one of the most successful financial products fo the past 50 years. While asset growth in the ETF industry has been tremendous, much more room exists to serve investors well through innovative ETF products and services."
Since the emergence of the UBS rogue trader who worked on the ETFs desk, the vehicles have come under the spotlight in terms of their regulatory efficiency.
The rapid growth of the sector and whether the regulator can keep up with it is one area of concern, particularly as it is expected to grow further with the arrival of RDR in the UK.
Tobin Said: "There are exciting opportunities to bring ETFs to more investors in more countries and we believe the industry will see significant change as investors and regulators demand greater fidicury alignment between ETF providers and the ultimate investor."
