Single stock picking is tricky, and some say that choosing the right exchange traded fund can be just as difficult. ETF portfolios are shaping up to be just the right solution for some investors.
“It’s easy enough to get an ETF, but it’s not simple to know which one to choose. For example, if you want to invest in China from the UK you would have to choose between around 15 ETFs. For the UK the choice is 34 and if you want to jump into the U.S. market there are 67,” Philip Salter wrote on City AM. [ETF Model Portfolios Should Come with Moer Education]
The managed ETF portfolio has been the latest way to invest in the U.S., that provides separate and personalized ETF strategies that are managed by professionals. According to Morningstar data, there is about $40 billion in the managed portfolio space. Assets under this management have grown about 43% over the past year.
So far, managed ETF portfolios are only conducive to those high-net worth investors. There will be choices in the near future for those that don’t have large enough assets to be fully managed by the pros at this point in time. [Why More Money Managers are Using ETFs]
The shift to the fee-based advisor model rather than commissions is another factor driving managed ETF portfolios. [ETF Managed Portfolios: The Next Big Thing]
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.