ETF managed portfolios are generally associated with retail investors and clients of financial advisors. However, the business is expanding as more large institutional investors adopt ETF-based strategies.
Managed portfolios of ETFs are one of the fastest growing segments of the managed-account space. [ETF Managed Portfolios See Steady Growth]
Firms specializing in ETF managed portfolios manage at least $63 billion but the true figure for those using ETFs at the core in the U.S. could be double that figure, reports Ari Weinberg for Pensions & Investments.
“Institutions are continuing to embrace ETFs because these products allow investors to solve problems – whether that means gaining exposure to certain asset classes or accessing liquidity,” said Daniel Gamba, Head of iShares Americas Institutional Business at BlackRock. [More Institutional Investors Seen Using ETFs]
According to Morningstar, ETF managed portfolios currently follow 530 strategies from 125 firms with $63 billion in assets under management. [ETF Managed Portfolios: Disruptive Innovation]
Yet these figures don’t include the traditional asset class style box associated with many large pension fund and endowment manager searches, according to the P&I report.
“Some view what we offer and say ‘this is a retail product,’ but I’d say they’re a bit behind the curve,” said Robert G. Smith, co-founder of Sage Advisory Services, in the article.