The exchange traded fund (ETF) industry is raving about the actively managed fund premiering, but it appears most of the raving is from potential issuers.

A conference sponsored by Index Publications and Financial Advisor Magazine previewed the enthusiasm and it was on behalf of most providers. Many of the financial planners in attendance indicated an actively managed ETF would be a product that still needs a market, reports Lawrence Carrel for TheStreet.

Until this point, all of the products available in the United States have passively tracked an index much like a traditional mutual fund does. Active management has been a new way to bank on new investors and compete with the mutual fund industry.

Most insiders feel that an actively managed ETF is the next step for the business and that they are inevitable. The good side for investors is that they will carry lower expenses than a mutual fund, and traditional indexes will remain the core. Time is the key so that many can judge by performance.

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.