Additionally, if the ETF structure can be adapted to a true active strategy, advisors will offer analysis and recommendations of individual managers when working with ETFs. Morningstar has already taken steps to rate ETF managed portfolios. [Morningstar to Rank ETF Managed Portfolios]
Brian Gaffney, chief executive at Allianz Global Investors Distributors, predicted ETFs will siphon assets from mutual funds. So far, ETFs have not fully broken through with institutional investors and advisors lack real incentive to switch, Gaffney added. [CEO Says Industry to Lose Money on Active ETFs]
For more information on mutual funds, visit our mutual funds category.
Max Chen contributed to this article.