ETF Managed Portfolios Branch Out from Retail to Institutional

May 28th at 10:59am by John Spence

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.

The opinions and forecasts expressed herein are solely those of John Spence, 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.

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