ETF managed portfolios are in high demand as advisors seek tactical and global asset allocation solutions. This is one of the fastest growing segments of the the managed-account space.
According to Morningstar, ETF managed portfolios assets tracked by the investment researcher expanded 60% in 2012. The firm currently follows 530 such strategies from 125 firms with $63 billion in assets under management. [Managed ETF Portfolios are Gaining Traction]
Looking at the ETF managed portfolio breakdown, global strategies make up 64% of assets in this space, and global all asset strategies continue to attract interest from advisors and institutions. [Morningstar’s Model ETF Portfolio for Younger Investors]
While Charles Schwab’s Windhaven remained a large component in global all-asset strategies, Morningstar found stronger growth in equity strategies, particularly U.S.-focused offerings, over 2012.
U.S.-focused strategies and equity offerings still make up the largest asset breadth, accounting for $26 billion in assets. Currently, equity strategies make up 42% of ETF managed portfolios, compared to all-asset strategies at 36%, as the largest asset breadth category.