“There’s been a lot of discussion and active work going on in the industry on this topic,” Hammond said. “There are ways where you can take a traditional 40 Act mutual fund and convert it in its entirety into an ETF.”
With the intensifying proliferation of ETF products, there is a greater need for education among both investors and advisors.
“The challenge for advisors is sorting through all of the products on the shelf and trying to find the one that’s right for their client,” Hammond added. “I think manufacturers will be more focused on how to better service the financial advisor and educate them on how these products are applicable to their clients.”
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.