Author Archives: ag

Are ETFs Cheaper? By Scot Blythe

  As ETF assets grow, there is pressure to reinvent the wheel. It’s natural because many investors don’t want just beta. They may want dividends; they may want low volatility; they may want enhanced indexing. There is, for example, now a covered-call ETF on BRIC countries. But these add-ons come at a cost. And that cost means that ETFs are not necessarily cheaper than mutual funds—at least in the U.S. …

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Will This Be the Year of the Actively Managed ETF? By Rosalyn Retkwa

Managers are gearing up for new fund launches but demand remains uncertain and front-running fears are still an issue. Jack Brennan, chairman emeritus of The Vanguard Group, known for its low-cost index funds, recently echoed a common sentiment when he described actively managed ETFs as an oxymoron. “One of the reasons you index is to take manager risk out of the equation. To put manager risk back into the equation …

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Active vs. Passive Debate Spills Into ETFs By Tom Lydon

Actively Managed ETFs News: The debate over active management versus passive management remains, but in the end does it really matter? Both styles compliment exchange traded fund investing and when used together — they can both enhance a portfolio. “While some trace their history to as early as 2000, most were launched in just the last five years. Looking at the market size, the Morningstar managed ETF database puts total …

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Active ETFs Thriving at 5, says AdvisorShares’ Hamman By John Sullivan Advisor One

Five years in, products are gaining in the number of new releases and assets under management Noah Hamman is happy to take up the flag for the active ETF space as a whole. “In some ways, I feel that from a marketing perspective so much of what we do is addressing the issues the industry faces as a whole,” he says. When asked about what’s happening with active ETFs now …

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Time To Buy an Active ETF? Stock Pickers Doing Well in 2013 By Brendan Conway

We often note the paucity of actively managed exchange-traded funds — often enough, apparently, that BlackRock’s (BLK) Larry Fink cited a line from a recent column on the company’s earnings call pooh-poohing their progress last year: “Actively managed ETFs may be the biggest story that never quite happened in 2012.” And yet the small number of actively managed ETF are doing remarkably well. At least, several are starting off 2013 …

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Growth Spurt: Active ETFs on the way to $500 billion By Jason Kephart

McKinsey says name brands will drive big growth over next seven years Actively managed exchange-traded funds have yet to take off with investors — with one big exception — but over the next several years, experts expect them to grow faster than their passive brethren.   Pooneh Baghai, co-leader of the Americas wealth management, asset management and retirement practice at McKinsey & Co., predicts that assets in actively managed exchange-traded …

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Schwab Prescibes ETF for Money Fund Malaise By Joe Morris

Charles Schwab has filed to launch an actively managed short-term bond exchange traded fund, in the latest sign that US fund managers see ETFs as the heirs to money market funds. The company’s proposed Active Short Duration Income ETF, its first active ETF, which will invest in investment grade short-term fixed income securities, professes to share the same goals as money funds – capital preservation and daily liquidity. It will …

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Vanguard research finds cots to be a mojor factor in long-term underperformance of active funds By Simon Smith,CFA

A comprehensive analysis of fund returns in the UK by Vanguard has revealed that costs are the central contributing factor underlying the under-performance of active funds versus their benchmarks over the long-term. Peter Westaway, Chief Economist at Vanguard. According to Vanguard’s Case for Indexing research, only 17% of active equity funds and 4% of active fixed income funds that were in existence in 1997 outperformed their prospectus benchmark over the …

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Risk Management Remains Top of Mind as Advisors Pursue Strategic Mix of Products By Invesco

Registered Investment Advisers (RIAs) expect to see increased usage of Exchange-Traded Funds (ETFs) in client portfolios, while aversion to risk remains high, according to results of an Invesco market research study released today. RIAs surveyed believe ETFs will make up 24 percent of portfolio allocations over the next 12 months and 33 percent over the next three years, representing a 10 percent increase over results reported in Invesco’s survey of …

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ETF Performance Beats Active Management By Tom Lydon

According to the latest data from Standard & Poor’s, most passive index funds, including exchange traded funds, beat out the performance of actively managed mutual funds. There are a few exceptions, but on the whole, active management is not outperforming. “There is nothing novel about the index versus active debate,” the new  S&P Indices Versus Active Funds Scorecard (SPIVA) report notes. “It has been a contentious subject for decades, and …

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