The actively managed exchange traded fund industry is going through a growth spurt, making it more important than ever for investors to understand the differences between active and passive management. Small differences in these funds can have a big impact upon a portfolio.
“The first active ETF products launched in 2008, and at the end of the first quarter 2013, there were 108 active ETFs and exchange traded products listed globally with $17.8 billion in assets from 18 providers, listed on 9 exchanges,” Deborah Fuhr wrote for CNBC. [Active ETF Market Gearing Up]
According to ETFGI figures, record net inflows of $73.4 billion in the first quarter of 2013 totaled all assets in ETFS and ETPs globally to $2.09 trillion. For more perspective, active ETFs and ETPs accounted for about 1% of this.
In the United States alone, there are a total of 1,439 ETFs and ETPs from 53 providers trading on 3 different exchanges. There are about $1.47 trillion assets under management as of March 31, 2013. Of this, there are 60 actively managed ETFs currently trading, with $12.9 billion in total assets under management, accounting for 1% of the U.S. ETP market, according to ETFGI figures. [Where ETFs and Mutual Funds Diverge]