Other asset managers, while now unsure of demand for actively managed ETFs, want to hedge their bets in case mutual fund 12(b)-1 fees are abolished and brokers are more willing to try the new product. [What’s a 12(b)-1 fee?]
So far, there seems to be a “wait-and-see” approach when it comes to active ETFs. But if companies come out with actively managed ETFs containing elements that aren’t available in traditional mutual funds, advisors may decide not to wait for a one- or three-year track record. [How else active ETFs are catching on in the industry.]
More than a dozen actively managed ETFs have been launched in 2008 and 2009, reports Larry Light for The Wall Street Journal.
For more stories about actively managed ETFs, visit our actively managed ETF category.