Will the recent market volatility be a way for actively managed exchange traded funds (ETFs) to garner their fair share of the market?
Some mutual fund companies have been hit hard and are looking for ways to get back into the market. Perhaps an actively managed ETF may be their means. Fund companies today looking to attract assets have to be as competitive as possible. Managing active ETFs elevates their exposure, making them more competitive.
Grail Advisors recently filed with the SEC for registration of two actively managed ETFs, which with American Beacon Advisors serving as the subadvisor, reports David Hoffman for Investment News. The ETFs are expected to be managed similar to their mutual funds.
Grail Advisors is taking a different approach than PowerShares, with their actively managed ETFs. PowerShares puts a diligent limit on the amount of active management, whereas Grail Advisors will take on a different approach. They found managers who are comfortable managing the ETF with full transparency. They realize there is a greater need for transparency now, more than ever.
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.