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 …
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 …
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 …
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 …
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 newĂ‚Â S&P Indices Versus Active Funds Scorecard (SPIVA) report notes. “It has been a contentious subject for decades, and …
Taking Risk into Account in the Active vs. Passive Dabate By Michael Rawson CFA
How much would you pay for an investment that has a 50% probability to pay $1,000,000 and a 50% probability to pay nothing if you could enter the investment only one time? While the expected value of this payoff is $500,000, most people would not pay anywhere near that amount to enter this investment. The probability of the zero payoff is just too high. The more risk averse you are, …
ETF Spotlight: Actively Managed Funds By Tom Lydon
Actively Managed ETFs: Actively managed exchange traded funds are beginning to make their mark in the $1.2 trillion ETF industry. Hybrid indices and equity-focused actively managed ETFs are hitting the market, after the success of theĂ‚Â PIMCO Total Return ETF. The active ETF universe is “heterogeneous,” says Morningstar ETF analyst Robert Goldsborough, though heavily skewed toward fixed income. “There are a lot of unique strategies, but not a lot of mainstream …
Pros and Cons of Actively Managed ETF’s By Robert Powell (Market Watch)
 —A growing number of investment firms, hoping to jump on the exchange-traded-fund band wagon, are launching actively managed ETFs. In recent weeks, for instance, several large managers best known for their active management, including PIMCO, BlackRock, Fidelity Investments, and John Hancock, either plan to or have already launched funds that seek to give investors the best of both worlds—mostly low costs, intraday trading and a chance to beat the indexes. …
As ETFs Evolve, New Species Emerge By Caitlyn Grudzinski
ETFs have grown 25% a year since 2002 and many experts see this growth continuing in the future. In addition to taking over a larger share of the broad market, ETFs could also grow in terms of complexity and structure. As index-based trading becomes more popular, as in the ETF market, ETF sponsors and index providers will “push to develop new and interesting indexes,” says Michael Mundt, a partner at …
Should You Move Into Active ETF’s? By Tom Taulli
Fidelity joins other providers looking to break open the spaceĂ‚Â |Ă‚Â Ă‚Â Aug 6, 2012 The market for exchange-traded funds has surged in popularity during the past decade, with assets now over $1.5 trillion. That growth is no fluke. ETFs offer both affordability and access, as they typically have low fees and track just about any type of market, from stocks to bonds to commodities. Still, the exchange-traded world isn’t perfect. Perhaps …