Exchange traded funds (ETFs) have exploded in the last decade. Fund providers are offering new and exciting ways to invest in the marketplace, and one of the biggest changes may be the advent of the actively managed ETF.
Ignites put together a panel of experts to discuss “The Rise of Active ETFs,” and they will talk about why the new funds are catching on and where growth is expected, writes Johnathan E. Braunstein for Ignites. Joining in on the panel are Don Suskind, head of PIMCO’s ETF product management team, and Noel Archard, head of iShares product research and development at BlackRock. The moderator for the panel is Tom Graves, the co-developer of Standard & Poor’s ETF Report. [Actively managed ETFs are ready to explode.]
Graves remarks upon the growing interest between advisors and investors for actively managed ETFs. Major fund companies are beginning to acknowledge the demand in actively managed products.
Suskind comments on how active manage in strategy could deliver better risk-adjusted returns, and how the full disclosure in active ETFs won’t detract from returns. The ETFs will provide access to areas that are otherwise unavailable, full portfolio transparency and tax implications at parity with or better than traditional funds. Active management includes credit analysis and interest rate positioning.
Archard notes the slowly evolving trend of active ETFs in the marketplace. He describes them as being able to improve upon existing structures instead of just replicating index ETFs. However, Archard expects slower growth in active ETFs compared to index ETFs since fund providers will need to show that they are able to deliver the management skills necessary for successful investments. [New players file for active ETFs.]
For the more in-depth conversation, listen to the recording here.
For more information on actively managed ETFs, visit our actively managed ETFs category.
Max Chen contributed to this article.